How do you build hardware startups in 2015? Same questions, new answers. This presentation was first given at HAX 7 Demo Day and UC Berkeley in November 2015.

1. Applyby
Nov.28
STATE OF
HARDWARE
2015

2. LIFESTYLE
Let’s start with a few questions…

3. What to build? Why? How?
Where? With whom?
When to launch? How?
How to finance? To distribute?
How not to die prematurely?

4. IoT
The good news about hardware

5. Prototyping and launching is much easier

6. New low-cost platforms enable projects and products
Watch the interview

7. Electronics prototyping become easier with PCB printers
Print 2-layer boards
Dispense solder paste
Reflow

8. Innovation ecosystem is built off mobile components

9. There is an explosion of startups

10. More incubators, maker spaces, accelerators…

11. More hardware investors Source: Bolt.vc

12. More investment than ever in IoT

13. $5.8B
$46B
$2.9B $3.1B
$10B
Several companies reached “unicorn” valuations
$3.85B

14. Asian supply chains have opened up to startups at any scale

15. Retailers step up their game and push smart devices

16. New channels and retail experiences for smart devices
smart pop-up store

17. HEALTH
The less good news

18. The gap between “makers” and “startups” has widened

19. Customers expectations are through the roof
Multi-Touch
3D Touch
Retina
Sapphire glassGorilla glass
4K
12MP
7000 Series Aluminum
Polished Chamfers
Rose gold finish
Space Grey
Aerospace grade
Strongest Alloy
Dual ion-exchange
Unibody design
Accurate colors
Magic

20. Xiaomi started with smartphones and small things
$10 (69 rmb)
Mi Band
$65 (399 rmb)
Yi Camera
$280 (1,799 rmb)
Mi Note
Source: www.hax.co

21. Specs are often comparable, sometimes superior
Source: Engadget, April 2015

22. 0
25
50
75
100
Xiaomization is now in full force
Source: www.hax.co
2010
price
index
1/10
1/5 1/5
1/3
$10 $65 $300 $330 $1,0002015 Price:
1/20

23. Some very new products are already commoditized
$150 $300 $300
Source: www.hax.co

24. Exits were scarce in 2015, some valuations went down
GoPro stock is at $21
its IPO price was $24
Misfit got acquired for $260M
following a $40M series C
and total funding of $64.4M (4x)
Square raised $590.5M over 9 rounds
It is planned to IPO around $4.2B (7x),
below its last $6B valuation.
Fitbit stock is at $27.7
its IPO had opened at $30

25. “Before you had 6 years,
today you have 6 months”
Chris Anderson
CEO, 3D Robotics
Time-to-market is more critical than ever, and getting shorter

26. Distribution remains difficult to reach and finance

27. The way forward
ADVANCED

28. #1
Pick problems wisely

29. technical discovery
softwareecosystem
Xiaomization
Square
Parrot Oculus
Nest
Startups
Sweet Spot
Defensibility and speed matter more than ever
Boston
Dynamics
Magic Leap
Long
Cycles
Source: www.hax.co

30. Science, software and community increase defensibility
Science Software Community
Users
Developers
Suppliers
Distributors
Algorithms
Artificial Intelligence
Big data
UX
Physics
Materials
Medicine
Medicine
Brandetc.
What is your 10x advantage?

31. LIFESTYLE HEALTH ROBOTICS IoT
ENABLEMENT
ADVANCED
MANUFACTURING
Wearapeuthics
Implantables
DataWare
AgTech
Smart automation
HaaS
RaaS
HAX runs 5 tracks focused on key trends

32. Biofeedback wearable for anxiety management
Watch the pitch

33. Inventory
Today
Delivery
Tomorrow
Pick & Place
Next-gen
Robots for retail
Watch the video

34. Precision agriculture
Watch the pitch

35. #2
Build cheaper, better, faster…
in Shenzhen

36. “It’s Hollywood for electronics” - Eric Pan, Seeed Studio
Shenzhen = best supply chain from prototyping to production

37. “We gained a year of
development time
by coming to China”
Nils Mattisson
ex-Apple, Founder of MINUT
“1 week in Shenzhen = 1 month in the Valley”

38. SPEED and COSTS are WEAPONS
linked to your supply chain.
Japan’s Cerevo built its cosplay gun & more in Shenzhen

39. #3
One future?

40. What happens when computers become free?
After computers in things
and apps on things…
disposable or free computing?

42. Synthetic
Biology SoftwareHardware
Food
Business
HAX is a SOSV Accelerator

43. Shenzhen: HAX Accelerator
Product / Market fit
San Francisco: HAX Boost
Product / Retail fit
We invest in,
accelerate
and scale
hardware companies
The World’s First & Largest Hardware Accelerator

44. LIFESTYLE HEALTH ROBOTICS IoT
ENABLEMENT
ADVANCED
MANUFACTURING
Global investment themes
60% Americas, 20% Europe, 20% Asia
80 investments - 60% B2C, 40% B2B

45. ADVANCED
MANUFACTURING
LIFESTYLEROBOTICS
Several startups on a “Fitbit trajectory”
“Lego for robotics” “Polaroid” mobile case
Circuit board printer $9 computer
Smart lights Mobile blood testing
HEALTH
IoT
ENABLEMENT
LIFESTYLE

46. Upto$100k
$100k-$1M
Over$1M
“Most active investor in crowdfunded hardware” - Techcrunch
Vast crowdfunding know-how

47. Sourcing
Building
Supply chain
Learn critical skills in record time
Surround yourself with experts, geeks and entrepreneurs
Strategy
Launch
Fundraising

48. Info/Apply
www.hax.co
www.vimeo.com/haxco
www.slideshare.com/haxlr8r
Talk to us: makeit@hax.co
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best ecosystems
& come build
the future with us.