Thinking Lean Hardware - Cyril Ebersweiler

HARDWARE

STARTUPS

CYRIL EBERSWEILER

FOUNDER, @HAXLR8R

BUILDING

le

a

n

Startup Accelerator for Hardware

From Prototype to Business

In Shenzhen & San Francisco

NAA (NOT ANOTHER ACCELERATOR)

“OH NO, NOT another accelerator, you may think. But

this one is different.”

#hax

LEAN HARDWARE PHILOSOPHY

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume

2. Partner w/ factories vs. Abdicate

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume

2. Partner w/ factories vs. Abdicate

3. Fast to market vs. Long cycles

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume

2. Partner w/ factories vs. Abdicate

3. Fast to market vs. Long cycles

4. Capital effective vs. Capital intensive

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume2. Partner w/ factories vs.

Abdicate3. Fast to market vs. Long

cycles4. Capital effective vs. Capital

intensive5. User backed vs.

Venture backed

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume2. Partner w/ factories vs. Abdicate3. Fast to market vs. Long cycles4. Capital effective vs. Capital

intensive5. User backed vs. Venture

backed6. Sustainable vs.

Growth at a loss

LEAN HARDWARE PHILOSOPHY

1. Validate problem vs. Assume2. Partner w/ factories vs. Abdicate3. Fast to market vs. Long cycles4. Capital effective vs. Capital

intensive5. User backed vs. Venture

backed6. Sustainable vs.

Growth at a loss

AS SEEN ON

YESTERDAY @ HAX

2 robot-as-a-service2 sports tech2 health tech1 green tech1 3d printer1 connected camera1 smart city logistics

KICKSTARTER LAUNCHES

Quitbit / Shot Stats / Niwa / Syrmowww.kickstarter.com/haxlr8r

MANUFACTURING

FINANCING

DISTRIBUTION

POSITIONING prototyping

POSITIONING

BEWAREOF THOSE“WARES”

wow

such excite

very hardware

so future

TWELVE “WARES” TO AVOID1. FUNware No business

TWELVE “WARES” TO AVOID1. FUNware No business

Kenji KawakamiChidogu pioneer

(with tissue roll headgear+ Fail-proof eyedrop

glasses)

MORE CHINDOGU

Baby mop

Open eyes stickers

TWELVE “WARES” TO AVOID1. FUNware No business

(includes NICHEware and ARTware)

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

“Two sensorsand an app”

Nobel-grade research

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

PRESSY ($27)Funded Oct 2013Raised $695,000

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

Speed Button ($10)(“kuai anniu”)Funded Jan 2014Raised $34k

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

Xiaomi MiKey ($0.8)Launched April 2014

“If Xiaomi starts producing

buttons like Pressy,we will start to produce

smartphones.”

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

“Built a better mousetrap and the world

will beat a path to your door”

Ralph Waldo Emerson(maybe)

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

The problem with mousetraps• 4,400 patents• 400 applicants per year• “most frequently

invented device in U.S. history”

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

“When you have a hammer, everything looks like a nail”

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

7. FAILware Successfully built the wrong thing

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

7. FAILware Successfully built the wrong thing

8. LATEware Validated market but woke up competitors

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

7. FAILware Successfully built the wrong thing

8. LATEware Validated market but woke up competitors

9. LOSSware Minimal or negative margins

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

7. FAILware Successfully built the wrong thing

8. LATEware Validated market but woke up competitors

9. LOSSware Minimal or negative margins

10. BOREware People stop using it

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

7. FAILware Successfully built the wrong thing

8. LATEware Validated market but woke up competitors

9. LOSSware Minimal or negative margins

10. BOREware People stop using it

11. FUTUREware No market before years

TWELVE “WARES” TO AVOID1. FUNware No business

2. EASYware Not defensible

3. SAMEware Bad positioning

4. SOLUTIONware

Solution looking for a problem

5. VAPORware Can’t be made

6. LAMEware Not on spec

7. FAILware Successfully built the wrong thing

8. LATEware Validated market but woke up competitors

9. LOSSware Minimal or negative margins

10. BOREware People stop using it

11. FUTUREware No market before years

12. LOCALware Too tied to a local ecosystem

NOT JUST HARDWARE

• Pure hardware can be copied

• Combine Hardware & Software

• Community (GoPro, Makerbot, Glass…)

FINANCING

TIMEFRAME$

PROTOTYPING PRODUCTION SCALING

3 months ~ 2 years

3 months ~ 2 years

1+ year TIME

TIMEFRAME$

PROTOTYPING PRODUCTION SCALING

3 months ~ 2 years

3 months ~ 2 years

1+ year TIME

ARE YOU REALISTIC? SOME THINGS TAKE TIME

TIMEFRAME$

PROTOTYPING PRODUCTION SCALING

3 months ~ 2 years

3 months ~ 2 years

1+ year TIME

ARE YOU REALISTIC? SOME THINGS TAKE TIME

ARE YOU TOO SLOW? MAYBE YOU NEED HELP

THE RETAIL CHASM

PROTOTYPING PRODUCTION SCALING

$

FoundersFriendsFamilyFools

TIME

THE RETAIL CHASM

PROTOTYPING PRODUCTION SCALING

$

FoundersFriendsFamilyFools

AcceleratorsAngels

TIME

THE RETAIL CHASM

PROTOTYPING PRODUCTION SCALING

$

FoundersFriendsFamilyFools

Crowdfunding

AcceleratorsAngels

Pre-orders

TIME

THE RETAIL CHASM

PROTOTYPING PRODUCTION SCALING

$

FoundersFriendsFamilyFools

Crowdfunding

AcceleratorsAngels

Bridge of Death

Pre-orders

RETAIL CHASM

TIME

THE RETAIL CHASM

PROTOTYPING PRODUCTION SCALING

$

FoundersFriendsFamilyFools

Crowdfunding

AcceleratorsAngels

SalesFactoringBanksVCs

Bridge of Death

Pre-orders

RETAIL CHASM

TIME

SAVE YOUR CASH FLOW!

Pre-sales (best!)Credit from supplier (it’s like a bank loan!)

Factoring (purchase order financing)Bank credit linesRevenue-based financing

VC (most expensive money!)

DISTRIBUTION

SCALING STEP BY STEP$

Bridge of Death TIME

Direct

SCALING STEP BY STEP$

Bridge of Death TIME

Onlineretailers

Direct

SCALING STEP BY STEP$

Bridge of Death TIME

Specialtystores

Onlineretailers

Direct

SCALING STEP BY STEP$

Bridge of Death TIME

Specialtystores

Big boxretailers

Onlineretailers

Direct

SCALING STEP BY STEP$

Bridge of Death TIME

Specialtystores

Big boxretailers

Onlineretailers

Direct

LEAN RETAIL RULES

Keep demand higher than distribution

Your customers are your best investors

Retail is not a sprint. Learn at each step

Cash flow is king

LEAN HARDWARE PHILOSOPHY

1. Validate problem2. Partner with factories3. Fast to market4. Capital effective5. User backed6. Sustainable

LEAN HARDWARE PHILOSOPHY

1. Validate problem2. Partner with factories3. Fast to market4. Capital effective5. User backed6. Sustainable HAX philosophy

Meaningful productsAligned with founders

APPLY NOW

@HAXLR8R

WWW.HAXLR8R.COM

THANKS!www.slideshare.com/

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