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The Hardware Code - Why Hardware Startups Fail or Succeed
This document discusses hardware startups and common reasons they fail or succeed. It notes that hardware startups often fail due to lack of consumer demand, high burn rates, and product strategy mistakes. However, some startups are able to succeed by going through accelerator programs that help them improve skills like prototyping, manufacturing, marketing and sales. The document provides examples of startups that failed, became ventures, bootstrapped or recovered with the help of accelerator programs. It emphasizes best practices like focusing on skills, solving customer needs, treating factories as partners, and selling an innovative product with an engaging story.
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The Hardware Code - Why Hardware Startups Fail or Succeed
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- 2. Program-Based Hardware Fund Pre-seed— $100k + Program Seed/A — Follow-on
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- 6. AI, energy, & lifesciences are promising fields where you can make a huge impact. It's what I would do if starting out today.
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- 8. INDUSTRIAL CONSUMER HEALTH ENTERPRISE 10 20 30 40 2012 2013 20142015 2016 2017 B2BISGROWING
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- 12. Why Hardware StartupsFail 1. Lack of consumer demand 2. High burn rate 3. Lack of interest after initial crowdfund 4. Product strategy mistakes
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- 14. Why startups fail Lackof demand High burn rate
- 15. Why startups fail Lackof 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 Whystartups 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 Whystartups 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 Lackof 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
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- 22. Milestones • Lab prototype •Work/Look-like • DFM • Product • $1M, $3M, $5M, $10M… • Profitable
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- 24. Learning Curves • Positioning •Prototyping • Manufacturing • PR & Marketing • Sales & Retail • Financing • Product, Team & Self-Management
- 25. SEED4 MONTHS GROWTH6 WEEKS OTO 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
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- 28. 4 Groups • Failed •Ventures • Bootstrapped • Recoveries
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- 30. Failed • Too niche(early programs) • Founders split (1 in 20) • Gave up early (< 2y) • Too slow
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- 51. IN 3 MONTHS… from“Does it work?” to… “How much?”
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- 68. Best practices • It’sall 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
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