The Hardware Code - Why Hardware Startups Fail or Succeed
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The document outlines key insights about the hardware startup ecosystem, highlighting challenges such as lack of consumer demand and high burn rates that often lead to failures. It emphasizes the importance of strategic investments and partnerships in achieving successful product development and market launch. Additionally, it provides best practices for startups to enhance their chances of success in the competitive landscape.
The Hardware Code - Why Hardware Startups Fail or Succeed
- 2. Program-Based Hardware Fund Pre-seed — $100k + Program Seed/A — Follow-on
- 3. 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 HAX | HARDWARE TRENDS 2017 | PAGE 3 $300M ASSETS UNDER MANAGEMENT 600+ STARTUP INVESTMENTS №1 EARLY STAGE INVESTOR (2017)
- 5. 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 HAX | HARDWARE TRENDS 2017 | PAGE 5 HARDTECH VERTICALPROGRAMS MILESTONE-BASEDINVESTMENT №1 EARLY STAGE INVESTOR (2017) (NEXTFUND:1Q’18)
- 6. AI, energy, & life sciences are promising fields where you can make a huge impact. It's what I would do if starting out today.
- 8. INDUSTRIAL CONSUMER HEALTH ENTERPRISE 10 20 30 40 2012 2013 2014 2015 2016 2017 B2BISGROWING
- 12. Why Hardware Startups Fail 1. Lack of consumer demand 2. High burn rate 3. Lack of interest after initial crowdfund 4. Product strategy mistakes
- 14. Why startups fail Lack of demand High burn rate
- 15. Why startups fail Lack of demand High burn rate Positioning Price Cash flow Development Sales Visibility
- 16. Customer discovery Distribution terms Factory terms Marketing PR Distribution Prototyping Manufacturing R&D Team Why startups fail Lack of demand High burn rate Positioning Price Cash flow Development Sales Visibility
- 17. Customer discovery Distribution terms Factory terms Marketing PR Distribution Prototyping Manufacturing R&D Team Why startups fail Lack of demand High burn rate Positioning Price Cash flow Development Sales Visibility 10x Advantage Science Software Experience Nice to have Must have B2B B2C Features Science Fiction
- 18. Why startups fail Lack of demand High burn rate Positioning Customer discovery 10x Advantage Science Software Experience Price Distribution terms Factory terms Cash flow Nice to have Must have B2B B2C Features Science Fiction Marketing PR Distribution Visibility Prototyping Manufacturing Development R&D Team Sales
- 19. HAX Startups
- 20. Results
- 21. Trajectory
- 22. Milestones • Lab prototype • Work/Look-like • DFM • Product • $1M, $3M, $5M, $10M… • Profitable
- 23. Learning Curves
- 24. Learning Curves • Positioning • Prototyping • Manufacturing • PR & Marketing • Sales & Retail • Financing • Product, Team & Self-Management
- 25. SEED4 MONTHS GROWTH6 WEEKS O TO 1 1 TO N SHENZHEN PrototypetoLaunch SANFRANCISCO ProducttoScale
- 26. Learning Curves • Positioning (HAX SZ) • Prototyping (HAX SZ) • Manufacturing (HAX SZ) • PR & Marketing (HAX SZ + HAX SF) • Sales & Retail (HAX SF) • Financing (Coming soon!) • Product, Team & Self-Management
- 27. 4 Groups
- 28. 4 Groups • Failed • Ventures • Bootstrapped • Recoveries
- 29. Failed
- 30. Failed • Too niche (early programs) • Founders split (1 in 20) • Gave up early (< 2y) • Too slow
- 31. Ventures
- 32. MAKEBLOCK
- 36. Canada
- 38. low tones mid tones high tones sensitivity
- 40. France OCTOPUS
- 41. 1 2 3 4 18MONTHSFROMCONCEPTTOMARKET
- 45. Bootstrap
- 46. TRAINERBOT
- 47. VOLTERA
- 48. PINPRESS
- 51. IN 3 MONTHS… from “Does it work?” to… “How much?”
- 52. Recoveries
- 53. Pre-HAX
- 56. Crowdfunding
- 59. Product 2
- 61. CHIP—$9COMPUTER
- 63. Health
- 65. Customer Pivot
- 67. Conclusion
- 68. Best practices • It’s all SKILLS • It does ONE job • It targets a NEED • Your factory is your PARTNER, you BANK, your INVESTOR • It’s a NEW DISH • It’s a STORY • It must SELL • It takes YEARS