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Partner/ Founder

Cyril Ebersweiler / 希雷 / シリル

Mentor / Speaker

Investor - Software

+50
Investor - Hardware

+33
HW is the new black
200,000

HW BACKERS

HW BACKERS %
195,449
5.83

150,000

6
4.5

100,000

3

93,870
2.09

50,000

1.5

1.33
19,181

0

2011

2012

500
HW PROJECTS
400
300

1.57

446

375

121
0.46

2011

1.5
250

248

200

0

TOTAL $M

2
365

100

2013

HW Funding

HW PROJECTS %

0

1
0.5

0.59

209

125
94

2012

2013

0

52

0

2012

2013 (RR)
I SCORED $1M ON KICKSTARTER!
Now what?

The Plan
SHIP IN 3 MONTHS
START PRE-ORDERS
RETAIL IN 6 MONTHS
C.E.S. IN JANUARY
RAISE $10M
Market Timing

Planning

Fundraising

Problem Solved

Supplier(s) Selection

Branding

Team ME/EE/SW/DE/BIZ

Design for Manufacture

Marketing

Prototyping

Materials Selection

Financing

Industrial Design

Sourcing

Crowdfunding

Phase 1
Prototyping

Phase 2
?

Phase 3
Profit

Software

Soft/Hard Tooling

Payments

Firmware

Quality Management

Customer Service

BOM

Certifications

Distribution

GERBER

Testing

PR

CAD

Assembly

Fulfillment
Market Timing

Planning

Fundraising

Problem Solved

Supplier(s) Selection

Branding

Team ME/EE/SW/DE/BIZ

Design for Manufacture

Marketing

Prototyping

Materials Selection

Financing

Industrial Design

Sourcing

Crowdfunding

HW is not SW

Phase 1
Prototyping

Phase 2
?

Phase 3
Profit

Software

Soft/Hard Tooling

Payments

Firmware

Quality Management

Customer Service

BOM

Certifications

Distribution

GERBER

Testing

PR

CAD

Assembly

Fulfillment
“No business plan survives
contact with the customer”
#LEANSW
“No hardware plan survives
contact with a factory”
#LEANHW
IN 2000, SHENZHEN MADE THINGS...
LOW LABOR COST
SUBSIDIZED CURRENCY
DUBIOUS QUALITY
IN 2013, SHENZHEN MAKES THINGS...
(REALLY) FAST
AT SCALE
FLEXIBLY
HIGH QUALITY
and still CHEAPER
HW STARTUPS WIN WHEN...
FIRST TO MARKET
GET SCALING EFFECTS
KEEP ITERATING
BRING COGS DOWN
111 DAYS

AVID

60

GLASS

$50K

TECHSHOP

$300K

$10s of Ms

ATARI

XBOX ;-)
5 THINGS WE LEARNED
with 30 startups at HAXLR8R
(and investing in some more)
#LEANHW
“Some components seemed totally commoditized
yet turned out to be difficult to source. So we had
to replace them and re-design our circuit board
during the sourcing process.”
Zach Supalla (founder of Spark.io)

RULE #1
DESIGN WITH THE RIGHT
COMPONENTS
#LEANHW

$575K
“Visiting a factory in person early
in the design process brings better design results.
Their engineers can open up new possibilities.
Design with your factory.”
- Bunnie Huang (hacker of the Xbox)

$550K

RULE #2
A PROTOTYPE IS READY
WHEN IT CAN BE MANUFACTURED 
#LEANHW
$580K
let’s cook better

“Not every product can be made in a toy factory.
Your factory will make or break you, so pick wisely.
Do not have a third party between you and your key suppliers.”
Zach ‘Hoeken’ Smith (founder of Makerbot)

RULE #3
YOUR FACTORY IS YOUR
MOST IMPORTANT PARTNER 
#LEANHW
“If you think that brand is as simple as hiring an
agency to create your logo, you have a very long
road ahead of you. The first step is understanding
that brand is everything you represent.”
Marc Barros (founder of Contour)

RULE #4
BE MEMORABLE
#LEANHW

$291K
“The truth is that if your business model
is purely hardware sales today,
your business is essentially over.”
Jay Goldberg (Venturebeat)

$130K

Fantasy comes to life

RULE #5
PICK THE RIGHT
BUSINESS MODEL(S) 
#LEANHW
It used to be made in Shenzhen
Now it is designed with Shenzhen
WELCOME TO

HARDWARE
CENTRAL
2014
Year of Hardware
JOIN US IN
SHENZHEN!

Apply NOW

MAKEIT @ HAXLR8R.COM
Useful Links
http://www.haxlr8r.com
http://kickstarter.com/haxlr8r
http://venturebeat.com/2012/09/15/hardware-is-dead/
http://pandodaily.com/2013/10/03/hardware-is-the-new-software-nope-saysmarc-andreessen-its-called-hardware-for-a-reason-it-is-hard/
http://z.svbtle.com/why-kickstarter-projects-are-always-delayed
http://www.wired.com/opinion/2013/09/the-hardware-revolution-will-not-behyped-heres-what-itll-take-to-make-this-really-happen/
http://blog.noupsi.de/post/56881685860/hardware-by-the-numbers
http://financesonline.com/uploads/iPhone-infographic.jpg
http://www.forbes.com/sites/larrybell/2012/04/15/chinas-rare-earth-metalsmonopoly-neednt-put-an-electronics-stranglehold-on-america/
Thanks Ben!

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Software is from the Bay, Hardware is from Shenzhen