Hardware startups are infinite loops of question marks. It’s easy to think that by following one process, your hardware startup will succeed, and its even easier to think that if you have enough capital, you’ll be able to make it to the big leagues. But that’s far from true. There’s a process for every aspect and every task in startups. The majority are meant to save your new adventure capitol, time, manpower and resources. Take the Lean Startup for example. It implements a process designed to create order in a chaotic world.
It’s extremely easy to lose sight of what these methodologies, processes, and strategies are really intended for. But the sad truth is, it’s even easier to believe in these 6 common misconceptions of running a hardware startup. So what do you say, up for a short quiz?
In order to guarantee the success of your startup, you have to secure venture capital...
Securing venture capital makes life easier for any hardware startup. However, it doesn't guarantee that your startup's product will be loved and desired by your target audience. Often times, when venture capital isn't an option, founders turn to crowdfunding--which as we all know, can be a very effective means of raising the necessary capital to reach production, or even ship. Just take a look at our very own client's campaign, Cinder. They raised over $500K on Indiegogo and actually shipped!
But regardless of where your capital comes from, what really makes a difference is what you spend it on. In most cases, crowdfunding should likely be spent only on getting your product shipped. That means, your idea needs to be tested, your functional prototype needs to be designed to perfection (from both your POV and your customer's), and your CM has already ran your prototype through DFM processes to get it ready for production.