software is from the bay, hardware is from shenzhen

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The Lean Hardware motto could be "No Hardware Survives Contact with a Factory" + the 5 rules of lean hardware startups.

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Page 1: Software is from the Bay, Hardware is from Shenzhen
Page 2: Software is from the Bay, Hardware is from Shenzhen

Cyril Ebersweiler / 希雷 / シリル

+50

+33

Partner/ Founder

Mentor / Speaker

Investor - Software

Investor - Hardware

Page 3: Software is from the Bay, Hardware is from Shenzhen

HW is the new black

Page 4: Software is from the Bay, Hardware is from Shenzhen

0

50,000

100,000

150,000

200,000

2011 2012 20130

1.5

3

4.5

6

1.33

2.09

5.83

19,181

93,870

195,449

HW BACKERS HW BACKERS %

0

100

200

300

400

2011 2012 20130

0.5

1

1.5

2

0.460.59

1.57

121

248

365

HW PROJECTS HW PROJECTS %

0

125

250

375

500

2012 2013 (RR)

446

209

94

52

HW Funding TOTAL $M

Page 5: Software is from the Bay, Hardware is from Shenzhen

I SCORED $1M ON KICKSTARTER!Now what?

The Plan

SHIP IN 3 MONTHSSTART PRE-ORDERSRETAIL IN 6 MONTHSC.E.S. IN JANUARY

RAISE $10M

Page 6: Software is from the Bay, Hardware is from Shenzhen

Market Timing

Prototyping

Sourcing

Assembly

Quality Management

Soft/Hard Tooling

Planning

Certifications

Fulfillment

Financing

Fundraising

Distribution

CAD

Software

Marketing

Branding

PR

CrowdfundingIndustrial Design

Design for Manufacture

Payments

BOM

GERBER

Customer ServiceFirmware

Team ME/EE/SW/DE/BIZ

Phase 1Prototyping

Phase 2?

Phase 3Profit

Testing

Problem Solved Supplier(s) Selection

Materials Selection

Page 7: Software is from the Bay, Hardware is from Shenzhen

Market Timing

Prototyping

Sourcing

Assembly

Quality Management

Soft/Hard Tooling

Planning

Certifications

Fulfillment

Financing

Fundraising

Distribution

CAD

Software

Marketing

Branding

PR

CrowdfundingIndustrial Design

Design for Manufacture

Payments

BOM

GERBER

Customer ServiceFirmware

Team ME/EE/SW/DE/BIZ

Phase 1Prototyping

Phase 2?

Phase 3Profit

Testing

Problem Solved Supplier(s) Selection

Materials Selection

HW is not SW

Page 8: Software is from the Bay, Hardware is from Shenzhen

“No business plan survives contact with the customer”

#LEANSW

Page 9: Software is from the Bay, Hardware is from Shenzhen

“No hardware plan survives contact with a factory”

#LEANHW

Page 10: Software is from the Bay, Hardware is from Shenzhen

LOW LABOR COST

SUBSIDIZED CURRENCY

IN 2000, SHENZHEN MADE THINGS...

DUBIOUS QUALITY

Page 11: Software is from the Bay, Hardware is from Shenzhen

IN 2013, SHENZHEN MAKES THINGS...

(REALLY) FAST

AT SCALE

FLEXIBLY

and still CHEAPER

HIGH QUALITY

Page 12: Software is from the Bay, Hardware is from Shenzhen

HW STARTUPS WIN WHEN...

GET SCALING EFFECTS

FIRST TO MARKET

KEEP ITERATING

BRING COGS DOWN

Page 13: Software is from the Bay, Hardware is from Shenzhen

GLASS ATARITECHSHOPAVID XBOX ;-)

111 DAYS 60 $300K $10s of Ms$50K

Page 14: Software is from the Bay, Hardware is from Shenzhen

5 THINGS WE LEARNEDwith 30 startups at HAXLR8R(and investing in some more)

#LEANHW

Page 15: Software is from the Bay, Hardware is from Shenzhen

“Some components seemed totally commoditized yet turned out to be difficult to source. So we had to replace them and re-design our circuit board

during the sourcing process.”

Zach Supalla (founder of Spark.io)

RULE #1 DESIGN WITH THE RIGHT

COMPONENTS #LEANHW

$575K

Page 16: Software is from the Bay, Hardware is from Shenzhen

RULE #2A PROTOTYPE IS READY

WHEN IT CAN BE MANUFACTURED #LEANHW

“Visiting a factory in person earlyin the design process brings better design results.

Their engineers can open up new possibilities.Design with your factory.”

- Bunnie Huang (hacker of the Xbox)

$550K

Page 17: Software is from the Bay, Hardware is from Shenzhen

let’s cook better

RULE #3YOUR FACTORY IS YOUR

MOST IMPORTANT PARTNER #LEANHW

“Not every product can be made in a toy factory.Your factory will make or break you, so pick wisely.

Do not have a third party between you and your key suppliers.”

Zach ‘Hoeken’ Smith (founder of Makerbot)

$580K

Page 18: Software is from the Bay, Hardware is from Shenzhen

RULE #4 BE MEMORABLE

#LEANHW

“If you think that brand is as simple as hiring an agency to create your logo, you have a very long road ahead of you. The first step is understanding

that brand is everything you represent.”

Marc Barros (founder of Contour)

$291K

Page 19: Software is from the Bay, Hardware is from Shenzhen

RULE #5 PICK THE RIGHT

BUSINESS MODEL(S) #LEANHW

“The truth is that if your business modelis purely hardware sales today,

your business is essentially over.”

Jay Goldberg (Venturebeat)

$130KFantasy comes to life

Page 20: Software is from the Bay, Hardware is from Shenzhen

It used to be made in Shenzhen

Now it is designed with Shenzhen

Page 21: Software is from the Bay, Hardware is from Shenzhen

WELCOME TO

HARDWARE CENTRAL

Page 22: Software is from the Bay, Hardware is from Shenzhen
Page 23: Software is from the Bay, Hardware is from Shenzhen
Page 24: Software is from the Bay, Hardware is from Shenzhen
Page 25: Software is from the Bay, Hardware is from Shenzhen
Page 26: Software is from the Bay, Hardware is from Shenzhen
Page 27: Software is from the Bay, Hardware is from Shenzhen
Page 28: Software is from the Bay, Hardware is from Shenzhen

2014Year of Hardware

Page 29: Software is from the Bay, Hardware is from Shenzhen

MAKEIT @ HAXLR8R.COM

JOIN US IN SHENZHEN!

Apply NOW

Page 30: Software is from the Bay, Hardware is from Shenzhen

Thanks Ben!

http://www.haxlr8r.comhttp://kickstarter.com/haxlr8rhttp://venturebeat.com/2012/09/15/hardware-is-dead/http://pandodaily.com/2013/10/03/hardware-is-the-new-software-nope-says-marc-andreessen-its-called-hardware-for-a-reason-it-is-hard/http://z.svbtle.com/why-kickstarter-projects-are-always-delayedhttp://www.wired.com/opinion/2013/09/the-hardware-revolution-will-not-be-hyped-heres-what-itll-take-to-make-this-really-happen/http://blog.noupsi.de/post/56881685860/hardware-by-the-numbershttp://financesonline.com/uploads/iPhone-infographic.jpghttp://www.forbes.com/sites/larrybell/2012/04/15/chinas-rare-earth-metals-monopoly-neednt-put-an-electronics-stranglehold-on-america/

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