Funding is something that every startup wants, yet very few know how to get. Especially in hardware. It is even more difficult than your typical modern startup, because it is such a capital intensive venture. Yet most founder’s dreams hinge on their ability to raise a solid funding round. Most think that it is up to chance. If investors like your idea, then they’ll give you money to start your company. But this couldn’t be further from the truth. It actually comes down to a specific science. There are things that every investor looks for, and if you can hit
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Most hardware startups begin with an idea. The founder thinks “Hey, this would be a great product and make the world a better place.” After some serious thought, they get started creating a prototype, whether they do it themselves or with a team. They focus on functionality, and getting their prototype to achieve it’s goal, and work. After months of work they are finally finished! Eureka! Now all they have to do is raise some funding either through friends and family, crowdfunding or venture capital and you’ll be well on your way, right? Wrong! This may be the logic that
Let’s face it. We’re all getting tired of backing a cool hardware crowdfunding project, only to receive our actual piece of hardware more than a year later, if we ever receive it at all. That’s not the way it’s supposed to work. So then why do hardware startups today have such a hard time manufacturing and shipping their product today? The Hardware Industry Has a Problem Whenever you receive your crowdfunded project late, it most likely wasn’t the company’s fault. The hardware industry is broken. With prototyping, licensing, sourcing materials, finding a manufacturer that will accept your order quantity, creating
There are a lot of traps that you can fall into while building a hardware company. Especially if you decide to go the crowdfunding route. With all of the recent campaigns that have successfully raised a large amount of money, only to crash and burn and not be able to ship their product, there are some things that you should know so you can avoid making the same mistakes that they did. In this post, we’re going to look into the drone company ZANO, who raised over $3 Million on Kickstarter only to never ship their final product. They made