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HAX at stanford
Cyril Ebersweiler and Benjamin Joffe of HAX at Stanford discuss building lean hardware startups. They outline a lean hardware philosophy of validating problems, partnering with factories, moving fast to market, being capital effective, being user backed, and focusing on sustainability. The document discusses why China makes sense for hardware startups due to low costs, economies of scale, and access to manufacturing knowledge and supply chains. It notes challenges like intellectual property protection but says hardware startups can protect IP through complex manufacturing. The document provides an overview of HAX's mission to empower founders and the hardware accelerator program they offer.
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HAX at stanford
- 1. HAX AT STANFORD CYRIL EBERSWEILER @HAXLR8R BENJAMINJOFFE @BENJAMINJOFFE BUILDING LEAN HARDWARE STARTUPS Wearable 10x PhD Patents Stealth Accelero -meter Investors Prototype 3D printed Algorithms PCB Shipping Beta test Off the shelf
- 2. 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 5. User backed vs. Venture backed 6. Sustainable vs. Growth at a loss
- 3. 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 5. User backed vs. Venture backed 6. Sustainable vs. Growth at a loss
- 4. WHY CHINA MAKES SENSE FORSTARTUPS
- 5. THE COST OFNOT BEING IN CHINA • “You have to consider the cost of not being in China.” • “If you benefit from economies of scale, China will make sense, so better to start early and learn quickly.” • HAX Comment: if you start elsewhere, consider the switching costs once you reach thousands of units. Will Hart Chief of Staff Spark.io (HAX 2)
- 6. WHAT ABOUT MYIP? • “Protection of IP takes the form of complex manufacturing or product, community, and cloud based services that are hard to reproduce outside of the hardware itself.” • HAX Comment: you might find the hardware you need for your service in China’s thousands of factories. Both Idan Beck Founder gTar (HAX Fund)
- 7. “THE LOST ARTOF INJECTION MOLDING” • “Factory engineers can just look at a product and see the mold around it and the material flowing. They can also tell you if what you have can be made, and how to do it.” • "Being on the factory floor will help you solve problems much faster, speaking the language of engineering." • HAX Comment: China picked up manufacturing knowledge where America left it, and ran Bunnie Huang Hardware Hacker Bunnie Studios (HAX Mentor)
- 8. WHY GO TOCHINA EARLY? • Prototype better and faster – PCBs overnight – All the components you need – All sorts of tools for prototyping – “Lost art of injection molding” – Design for manufacturing – (much) Cheaper • Build and scale fast – Integrated supply chain – Scale up from 1 to any number – Prepare scaling before it’s painful Where is the mold?
- 9. WHY WOULD ALAOBAN CARE? • Four-and-a-half reasons for factory owners to work with startups 1. Grow with you 2. Use excess capacity 3. Improve capabilities 4. Internationalize 4.5 Fun The rest is up to you
- 10.
- 14. HAX MISSION: EMPOWERING FOUNDERS 1.Build the right thing 2. Build things right 3. Ship fast
- 15. Startup Accelerator forHardware From Prototype to Business In Shenzhen & San Francisco
- 16. 8 THINGS ABOUTHAX 1. 111 days 2. Shenzhen & San Francisco 3. 40 startups 4. 60% US+Canada // 20% EU // 20% Asia 5. IOT, wearables, robots, etc. 6. $250k average on KickStarter 7. A growth platform 8. Apply now!
- 17.
- 18. HAX 4 GRADUATES 2robot-as-a-service 2 sports tech 2 health tech 1 green tech 1 3d printer 1 connected camera 1 smart city logistics
- 19. KICKSTARTER LAUNCHES Quitbit /Shot Stats / Niwa / Syrmo www.kickstarter.com/haxlr8r
- 21.
- 22. STARTUP VS. BUSINESS •Startup = looking for a scalable business model • Business = executing on the model
- 23. HARDWARE RENAISSANCE PROTOTYPING ISEASIER THAN EVER Arduino / Pi / Spark / 3D printing / Sensors / BLE / Smartphones / Cloud SUPPLY CHAIN IS BETTER THAN EVER – China (Shenzhen) has the whole chain – Fast, Affordable, Scalable MORE FUNDING – KickStarter (250,000+ HW backers!), IndieGoGo – More VC & Angel money, acquisitions
- 24. BE A MASTEROF THE PROBLEM What matters is the problem, not the solution!
- 25. Market Your interests Your skills Oceanof problems to solve
- 26. MINIMUM VIABLE STARTUP (MVS) <$1m Lifestyle < $10m Small business > $100m Startup
- 27. BEING A STARTUP ARTBUSINESS “My dream” “Whatever sells” YOU
- 28. “The question isno longer: can we make it? But: what can we make that’s worthwhile?” Dr. Bjoern Hartmann Interactive Device Design Critical Making HARDWARE TODAY
- 29. HARDWARE TODAY • Anythingcan be built • Not everything should be • Few can become large businesses
- 30.
- 31. STARTUP CHECKLIST 1. ProductIs something working 2. Skills Can the team make it 3. Spirit Resourceful, Optimistic, Persistent
- 32. STARTUP CHECKLIST 1. ProductIs something working 2. Skills Can the team make it 3. Spirit Resourceful, Optimistic, Persistent 4. Positioning New segment or new market 10x better in some way
- 33. BUILDING THE RIGHTTHING INITIAL PROBLEM INITIAL SOLUTION INITIAL PROBLEM NEW SOLUTION NEW PROBLEM INITIAL SOLUTION NEW PROBLEM NEW SOLUTION INITIAL PROBLEM INITIAL SOLUTION
- 34. STARTUP CHECKLIST 1. ProductIs something working 2. Skills Can the team make it 3. Spirit Resourceful, Optimistic, Persistent 4. Positioning New segment or new market 5. Demand Proof / Customer discovery 6. Distribution How to sell 7. Plan Beyond first product
- 35. NOT JUST HARDWARE •Pure hardware can be copied • Combine Hardware & Software • Community (GoPro, Makerbot, Glass…)
- 36. BEWARE OF THOSE “WARES” wow such excite veryhardware so future
- 37. TWELVE “WARES” TOAVOID 1. FUNware No business
- 38. TWELVE “WARES” TOAVOID 1. FUNware No business Kenji Kawakami Chindogu pioneer (with tissue roll headgear + Fail-proof eyedrop glasses)
- 39. MORE CHINDOGU Baby mop Openeyes stickers
- 40. TWELVE “WARES” TOAVOID 1. FUNware No business (includes NICHEware and ARTware)
- 41. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible
- 42. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible “Two sensors and an app” Nobel-grade research
- 43. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible PRESSY ($27) Funded Oct 2013 Raised $695,000
- 44. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible Speed Button ($10) (“kuai anniu”) Funded Jan 2014 Raised $34k
- 45. TWELVE “WARES” TOAVOID 1. 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.” - Founder of Pressy
- 46. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning
- 47. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning “Build a better mousetrap and the world will beat a path to your door” Ralph Waldo Emerson (maybe)
- 48. TWELVE “WARES” TOAVOID 1. 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”
- 49. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem
- 50. TWELVE “WARES” TOAVOID 1. 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
- 51. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made
- 52. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made
- 53. TWELVE “WARES” TOAVOID 1. FUNware No business 2. EASYware Not defensible 3. SAMEware Bad positioning 4. SOLUTIONware Solution looking for a problem 5. VAPORware Can’t be made
- 54. TWELVE “WARES” TOAVOID 1. 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
- 55. TWELVE “WARES” TOAVOID 1. 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
- 56. TWELVE “WARES” TOAVOID 1. 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
- 57. TWELVE “WARES” TOAVOID 1. 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
- 58. TWELVE “WARES” TOAVOID 1. 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
- 59. TWELVE “WARES” TOAVOID 1. 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
- 60. TWELVE “WARES” TOAVOID 1. 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
- 61.
- 62. TIMEFRAME $ PROTOTYPING PRODUCTION SCALING 3months ~ 2 years 3 months ~ 2 years 1+ year TIME ARE YOU REALISTIC? SOME THINGS TAKE TIME ARE YOU TOO SLOW? MAYBE YOU NEED HELP
- 63. THE RETAIL CHASM PROTOTYPINGPRODUCTION SCALING $ Founders Friends Family Fools Crowdfunding Accelerators Angels Sales Factoring Banks VCsPre-orders RETAIL CHASM TIME
- 64. SCALING STEP BYSTEP $ TIME Specialty stores Big box retailers Online retailers Direct
- 65. LEAN RETAIL RULES Keepdemand higher than distribution Your customers are your best investors Retail is not a sprint. Learn at each step
- 66. SAVE YOUR CASHFLOW! Pre-sales (best!) Credit from supplier (it’s like a bank loan!) Factoring (purchase order financing) Bank credit lines Revenue-based financing VC (most expensive money!)
- 67. KEY STAGES FORINVESTMENT 1. Concept 2. Work-like prototype 3. Look-like Prototype 4. DFM 5. Crowdfunding 6. First shipment 7. Retail 8. Pre-IPO We recruit here We take you there We help anticipate this Awaiting you there!
- 68.
- 69. LEAN HARDWARE PHILOSOPHY 1.Validate problem 2. Partner with factories 3. Fast to market 4. Capital effective 5. User backed 6. Sustainable + HAX Philosophy Meaningful products Alignment with
- 70. COMMENTS | QUESTIONS| APPLY TWITTER @HAXLR8R SLIDESHARE HAXLR8R WEB HAXLR8R.COM wow
Editor's Notes
- #29 http://www.forbes.com/sites/rakeshsharma/2013/11/25/educating-a-maker-the-berkeley-perspective/
- #42 http://www.geektime.com/2014/04/03/xiaomi-copies-pressy-and-comes-out-with-the-mikey-which-costs-less-than-1/ http://www.techinasia.com/new-xiaomi-mikey-not-very-original/
- #43 http://www.geektime.com/2014/04/03/xiaomi-copies-pressy-and-comes-out-with-the-mikey-which-costs-less-than-1/ http://www.techinasia.com/new-xiaomi-mikey-not-very-original/
- #44 http://www.geektime.com/2014/04/03/xiaomi-copies-pressy-and-comes-out-with-the-mikey-which-costs-less-than-1/ http://www.techinasia.com/new-xiaomi-mikey-not-very-original/ http://get.pressybutton.com/
- #45 http://www.geektime.com/2014/04/03/xiaomi-copies-pressy-and-comes-out-with-the-mikey-which-costs-less-than-1/ http://www.techinasia.com/new-xiaomi-mikey-not-very-original/
- #46 http://www.geektime.com/2014/04/03/xiaomi-copies-pressy-and-comes-out-with-the-mikey-which-costs-less-than-1/ http://www.techinasia.com/new-xiaomi-mikey-not-very-original/
- #53 http://huvrtech.com/