This document outlines the Lean Hardware philosophy of HAX, a hardware startup accelerator. It emphasizes validating problems, partnering with factories, fast iterations to market, capital efficiency, user backing, and sustainability over growth. It warns against "wares" like fun products with no business, easily copied ideas, same solutions as competitors, and products without addressing real problems. It discusses the challenges of prototyping, manufacturing, distribution, and scaling hardware startups.
7. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
8. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
9. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
5. User backed vs. Venture backed
10. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
5. User backed vs. Venture backed
6. Sustainable vs. Growth at a loss
11. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
5. User backed vs. Venture backed
6. Sustainable vs. Growth at a loss
12. YESTERDAY @ HAX
2
robot-as-a-service
2
sports tech
2
health tech
1
green tech
1
3d printer
1
connected camera
1
smart city logistics
21. TWELVE “WARES” TO AVOID
1. FUNware
No business
(includes NICHEware and ARTware)
22. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
23. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
“Two sensors
and an app”
Nobel-grade
research
24. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
PRESSY ($27)
Funded Oct 2013
Raised $695,000
25. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
Speed Button ($10)
(“kuai anniu”)
Funded Jan 2014
Raised $34k
26. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
Xiaomi MiKey ($0.8)
Launched April 2014
“If Xiaomi starts producing
buttons like Pressy,
we will start to produce
smartphones.”
27. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
28. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
“Built a better mousetrap and the world
will beat a path to your door”
Ralph Waldo Emerson
(maybe)
29. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
The problem with mousetraps
• 4,400 patents
• 400 applicants per year
• “most frequently invented
device in U.S. history”
30. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
“When you have a hammer, everything looks like a nail”
31. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
32. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
33. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
34. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
35. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
36. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
37. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
10. BOREware
People stop using it
38. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
10. BOREware
People stop using it
11. FUTUREware
No market before years
39. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
10. BOREware
People stop using it
11. FUTUREware
No market before years
12. LOCALware
Too tied to a local ecosystem
40. NOT JUST HARDWARE
• Pure hardware can be copied
• Combine Hardware Software
• Community (GoPro, Makerbot, Glass…)
47. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Crowdfunding
Accelerators
Angels
Pre-orders
TIME
48. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Crowdfunding
Accelerators
Angels
Bridge of Death
Pre-orders
RETAIL CHASM
TIME
49. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Crowdfunding
Accelerators
Angels
Sales
Factoring
Banks
VCs
Bridge of Death
Pre-orders
RETAIL CHASM
TIME
50. SAVE YOUR CASH FLOW!
Pre-sales (best!)
Credit from supplier (it’s like a bank loan!)
Factoring (purchase order financing)
Bank credit lines
Revenue-based financing
VC (most expensive money!)
53. SCALING STEP BY STEP
$
Bridge of Death
TIME
Online
retailers
Direct
54. SCALING STEP BY STEP
$
Bridge of Death
TIME
Specialty
stores
Online
retailers
Direct
55. SCALING STEP BY STEP
$
Bridge of Death
TIME
Specialty
stores
Big box
retailers
Online
retailers
Direct
56. SCALING STEP BY STEP
$
Bridge of Death
TIME
Specialty
stores
Big box
retailers
Online
retailers
Direct
57. LEAN RETAIL RULES
Keep demand higher than distribution
Your customers are your best investors
Retail is not a sprint. Learn at each step
Cash flow is king
58. LEAN HARDWARE PHILOSOPHY
1. Validate problem
2. Partner with factories
3. Fast to market
4. Capital effective
5. User backed
6. Sustainable
59. LEAN HARDWARE PHILOSOPHY
1. Validate problem
2. Partner with factories
3. Fast to market
4. Capital effective
5. User backed
6. Sustainable
HAX philosophy
Meaningful products
Aligned with founders