Hardware: harder, better, faster, stronger
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The state of the hardware startup industry: Harder, Better, Faster, Stronger.
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Hardware: harder, better, faster, stronger
- 2. • Hardware Startup Accelerator • “Lean Hardware Academy” • $25~$100k • In Shenzhen (SV for HW) ! • Founders • Stanford MIT, Berkeley, Apple… • M/F, 20s~40s • 60% N.A. 20% EU 20% Asia
- 3. Automation Home Sports Music Lifestyle Education Interaction Health Entertainment Pets 50 startups (+30 in 2015)
- 4. #1 investor in crowdfunded hardware
- 5. Crowdfunding Experts:! #1 Investor in crowdfunded hardware! ! Crowdfunding starts when prototype, BOM, supply chain are de-risked by the end of the HAX program.! ! www.kickstarter.com/haxlr8r
- 7. ! While prototyping is getting easier and the supply chain in China opened up to startups, building something unique and defensible is increasingly hard.! Going from 0 to many:
- 8. ! Dreamer!!!!!!!!!!!!!!0! Maker!!!!!!!!!!!!!!!!! 0.1! Veteran!!!!!!!!!!!!!!!!1! Indie!!!!!!!!!!!!!!!!!!!!!1k! Startup!!!!!!!!!!!!!!!!!10k! Inspired by Seeed Studio Shipping products:
- 9. ! The skills needed to prototype hardware are varied, but various tools! and products made it! increasingly accessible.!
- 11. ! Beyond a prototype, something unique enough making requires wider and deeper technical knowledge.!
- 12. Hardware 2.0 skills:! Connected! Sensors! AI / AR / VR! Data science
- 13. This smart trash can uses a Kinect to track and moves to catch the rubbish you throw.
- 14. ! Going from prototype to a manufacturable product and a sustainable business requires many extra skills.! From 0.1 to 1 to many
- 17. Trend 2! Better
- 18. More startups are targeting very specific problems instead of just getting excited with technology.! ! Not everything is worth building at scale.
- 19. Lean Hardware rule #1! ! “Build the right thing”
- 21. Even a humanoid robot in space!
- 22. Robots in daily life Cleaning Mowing Surgery Vertical mobility Thermostat
- 23. More robots Drones for fun! or specific industries Robot butler Robots for pets Robots with katanas?
- 24. Future of Mundane:! Hotel staffed by robots For some jobs, humans will be at a premium soon! In Shenzhen of course
- 25. HAX Startup:! Pipetting robot for biology research
- 26. HAX Startup:! Prynt turns your smartphone into an instant camera, with extra AR features
- 27. Patents used to be the go-to way to protect IP.! ! Today, software, complex algorithms, data science, communities of users or developers are often more valuable.! ! That and of course time-to-market.
- 28. Trend 3! Faster
- 29. No prototype? No excuse!
- 30. - Iterate fast (“Lean prototyping”)! - Learn manufacturing! - Learn from factories Scalable prototypes needs more
- 31. Lean Hardware rule #2! ! “Build things right”
- 32. “Shenzhen’s electronics market is a maker’s dream” Katarina Ilic
- 33. “Every week we’re getting a month worth of output” Dan Corkum
- 34. Being on the factory floor for prototyping and manufacturing helps anticipate and solve problems at record speed.
- 35. “All hardware! lead to Shenzhen”
- 37. More global! More startups! More funding! More exits
- 38. China’s Xiaomi is about to become the most valuable private tech company in the world at a valuation above $40B.! It took only 4 years.! ! They plan to launch 100 hardware startups. Online first, no ads. Outlier or Pioneer?
- 39. Not everyone has the resources and experience of Xiaomi’s founder Lei Jun, yet startups can be built faster than ever.! ! Where will the nest next hardware unicorn ($1B+ startup) or “Xiaomi for X” come from? The next unicorns
- 42. Milestones:! Customer discovery! Work-like prototype! Look-like prototype! Crowdfunding! Shipping & reviews
- 43. “Crowdfunding is! the new seed”
- 44. Do it right and you could go to market with less than $50k in capital, the rest covered by customers. Cost-wise, it’s like the web in 2000.!
- 45. From Kickstarter ($500k) to Series A ($5M)
- 46. Lean Hardware rule #3 ! ! “Ship fast, scale slow”"
- 47. Scaling requires healthy cash flow and margins, otherwise you might end up scaling a money-losing business.
- 48. In addition, both online and offline retail require a mastery of supply chain, logistics and the “in-store” customer experience.! Scale when it’s solid.
- 49. Recap: Death Traps! Poor positioning! Learning too slow! Premature Crowdfunding! Hands-off Manufacturing! Premature scaling
- 50. If you dodge death,! you win!