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


1. Validate problem vs. Assume



2. Partner w/ factories vs. Abdicate




3. Fast to market vs. Long cycles




3. Fast to market vs. Long cycles

4. Capital effective vs. Capital intensive


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


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


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

http://www.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


Kenji KawakamiChidogu pioneer

(with tissue roll headgear+ Fail-proof eyedrop

glasses)

MORE CHINDOGU

Baby mop

Open eyes stickers


(includes NICHEware and ARTware)


2. EASYware Not defensible



“Two sensorsand an app”

Nobel-grade research



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



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



Xiaomi MiKey ($0.8)Launched April 2014

“If Xiaomi starts producing

buttons like Pressy,we will start to produce

smartphones.”



3. SAMEware Bad positioning




“Built a better mousetrap and the world

will beat a path to your door”

Ralph Waldo Emerson(maybe)




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

invented device in U.S. history”




4. SOLUTIONware

Solution looking for a problem

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




4. SOLUTIONware


5. VAPORware Can’t be made




4. SOLUTIONware






4. SOLUTIONware



6. LAMEware Not on spec




4. SOLUTIONware




7. FAILware Successfully built the wrong thing




4. SOLUTIONware





8. LATEware Validated market but woke up competitors




4. SOLUTIONware






9. LOSSware Minimal or negative margins




4. SOLUTIONware







10. BOREware People stop using it




4. SOLUTIONware








11. FUTUREware No market before years




4. SOLUTIONware








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$


3 months ~ 2 years

3 months ~ 2 years

1+ year TIME

ARE YOU REALISTIC? SOME THINGS TAKE TIME

TIMEFRAME$


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


$

FoundersFriendsFamilyFools

TIME

THE RETAIL CHASM


$


AcceleratorsAngels

TIME

THE RETAIL CHASM


$


Crowdfunding

AcceleratorsAngels

Pre-orders

TIME

THE RETAIL CHASM


$


Crowdfunding

AcceleratorsAngels

Bridge of Death

Pre-orders

RETAIL CHASM

TIME

THE RETAIL CHASM


$


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



Onlineretailers

Direct



Specialtystores

Onlineretailers

Direct



Specialtystores

Big boxretailers

Onlineretailers

Direct



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


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


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/

haxlr8r

Devices & Hardware

Thinking Lean Hardware - Cyril Ebersweiler