5. 2x Startups
First half 2013> Total 2012
HW Funding
TOTAL $M
500
446
375
250
209
125
94
52
0
2012
2013 (RR)
6. Life of a Hardware startup
1. Concept
2. Minimum Functional prototype (MFP)
3. Complete Functional Prototype (CFP)
4. Design-for-Manufacture (DFM)
5. First factory run (FFR)
6. Retail
7. How fast can you get to market?
(every $$$$ matters)
8. Lean Hardware Rules
From Prototype to Production
“No hardware plan survives contact with a factory”
1.Design with the right components
2.A prototype is ready when it can be manufactured
3.Your factory is your most important partner
4.Be memorable
5.Pick the right business model
#
"$$
"#
!
#&%
%
9. Life of a Hardware Startup
CONCEPT
MFP
CFP
DFM
FFR
RETAIL
10. Concept
Targets
• Become a master of the problem
• Customer development (interviews, customer
journey, core need identification, etc.)
Financing
•Bootstrapping (your money, grants, etc.)
•Fundraising almost impossible (track record?)
•Investors want to see something that works
11. MFP
Targets
• “It works”
• Off-the-shelf, 3d prints, handmade parts
• BOM 10s of $ to thousands
Financing
• Bootstrapping, grants, FFF (50K)
• People will think it’s the final product
12. CFP
Targets
• “It looks real!”
• Get ready to talk with suppliers
Financing
• Bootstrapping, Angel investors, Accelerators
• VCs still unlikely
13. DFM
“No hardware plan survives contact with a factory”
#1 rule of Lean hardware
Targets
• “Ready to roll” (& crowdfund)
• Identify supplier, negotiate, reduce fees
• Master your BOM... and your profits
Financing
• Bootstrapping, Angel investors, Accelerators
• Crowd
• VCs might listen (at least looking)
15. FFR
Targets
• “Make the things”
Financing
• Angels, Crowdfunding, Crowd- investing, Pre-sells
• VCs (need $M pre-orders if you crowdfunded)
16. Retail
Targets
• Sell online
• “Get in the store!”
Financing
• VCs
• Pre-orders
• Bank credit lines
• Factoring
• Supplier
• Revenue-based financing
17. Life of a Hardware Startup
•
A category leader will require large
amounts of capital
•
Pick your battle: single hit, portfolio,
platform or ecosystem
•
Success isn’t binary with hardware
18. The Lean Hardware Startup
FINANCING
#LeanHW
www.haxlr8r.com/apply
Cyril Ebersweiler
Benjamin Joffe