SV Hardware Startup to Scale - Meetupfiles.meetup.com/6303542/2014-05-13 SV Hardware... · two...
Transcript of SV Hardware Startup to Scale - Meetupfiles.meetup.com/6303542/2014-05-13 SV Hardware... · two...
SV Hardware Startup to ScaleSV Hardware Startup to ScaleMay 13, 2014
Crowdfuinding Expert PanelHardware NPI SV - Pg 1
Crowdfuinding – Expert Panel
Crowdfunding
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Meetup Agendap g
Welcome Welcome
Thanks to PRG & RADICAND
Speakers: AvegantNomadInfiniwingInfiniwing
Panel Discussion St t d Q&A- Structured Q&A
- Audience Q&A
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Radicand: You Are Here
We’re a consortium of 15 Silicon Valley companies that can help take your hardware p p yproduct from idea to scale
LeanProto
R d
RapidRamp
S l Ch i
ReCost
C t R d ti-Roadmap-FeasibilityPrototype
-Supply Chain-NPI ReadinessBus Systems
-Cost Reduction-Optimization-NPI Workshop-Prototype -Bus. Systems -NPI Workshop
Radicand: You Are HereProduct Realization Roadmap
Develop a preliminary Product
p
Develop a preliminary Product Realization roadmap for:
• Budgeting• Project schedulingProject scheduling• Resource allocationP i l i• Potential investors
Radicand: You Are Here
Radicand: You Are Here
Radicand: You Are Here
Our focus:Our focus:
• Hardware start-ups• Hardware start ups• Hardware product development• Hardware projectsHardware projects• Future-forward R&D
Radicand: You Are Here
We offer:We offer:
• Dedicated & shared work spaces• Dedicated & shared work spaces• Tools, machines, equipment, materials• A collaborative communityA collaborative community• Advising & networking
Speakers Introductionp
A “S kl ” E h A t HW L d U fi t G lAaron “Sparkles” Eash – Avegant. HW Lead Uses first Google image of himself in professional business presentations
Noah Dentzel: Noah launched ChargeCard on Kickstarter in 2012 with the mission of creating a USB cable that you'd always have on you. His team launched ChargeKey and a best-in-classhave on you. His team launched ChargeKey and a best in class mobile accessories brand, NOMAD, in 2013. NOMAD is hiring for their awesome SF North Beach office. Email [email protected].
Kitae Kwon: Founded Infiniwing, Inc. in March 2011. Successfully brought a complex product idea to the world-wide market in less than two years. Raised two million dollars from angels and crowdfunding. left the company in May 2013. Holds two US patents, and currently
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left the company in May 2013. Holds two US patents, and currently an IC design engineer with 15 years of experience. Wworked for Samsung, Maxtor, Corp., and Marvell Semiconductors, Inc.
Avegantg
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Avegant - KS Challengesg g
• Previous companies failed to deliver their • Previous companies failed to deliver their KS projects - souring crowdsourcing opinion of HWopinion of HW
• Asking $499 today for a really sweet product… that you’ll get... in 9+ months
d h t it t b li it S • ...and you have to see it to believe it. So just meet us at the corner on Wednesday and we’ll show it to you
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and we ll show it to you.
Avegant Pre-KS g
• Make a great demo• Make a great demo.
• Then? Media, marketing, media, marketing, media et cetera’ingmedia, et cetera ing
• Major coverage Pre-KS:• DISCOVERY NEWS, October 11th, 2013• ROAD TO VR November 12th 2013
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• ROAD TO VR, November 12th, 2013• TESTED, November 12th, 2013• ENGADGET, December 18th, 2013
Avegant Pre-KS Part 2g
• Hit CES with something new!• Hit CES with something new!
• Meet great ($$$) people!• Meet great ($$$) people!• Major CES coverage
• CNET, January 6th, 2014• REVIEWED.COM (USA TODAY), January 9th, 2014
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( ), y ,• NPR interview• Engadget interview at Live stage
Avegant - During KSg g
• Launch Have a great video that engages• Launch. Have a great video that engages.
• Sales taper. How do you keep the party going?
• Media, marketing, media, marketing…• GIZMAG: January 20th, 2014CNBC “SQUAWK BOX”: February
4th, 2014• CNN: February 5th, 2014• FOX BUSINESS: February 7th, 2014• YAHOO! TECH: February 18th, 2014YAHOO! TECH: February 18th, 2014• CBS Morning Show• Snoop Dog! February 21st, 2014
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Avegant - During KS ROAD TRIP!g g
• If the people are afraid of your ‘hood, b i th d t thbring the drugs to them.
• Austin Boston Chicago Dallas LA • Austin, Boston, Chicago, Dallas, LA, London, Miami, SF, South Bay, Tokyo
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Avegant - Did KS Work?g
• Reached our goal of $250k in 5 hours!
• After the first week, 6 of our biggest 7 days happened within 24 hrs of major media coverage
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happened within 24 hrs of major media coverage
Avegant - Challenges During KSg g g
• Managing crowd expectations• Managing crowd expectations• Detractors who have seen the device• Detractors who have not seen the Detractors who have not seen the
device• Release of milestones - must be planned
AHEAD for HW• Keeping handmade prototypes in working
diti f 1000 2000 3000 dcondition for 1000, 2000, 3000 demos• Sleep
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Avegant - Now What?g
• Engineering Alpha Prototypes• Engineering, Alpha Prototypes• Raise capital on Kickstarter
d l• Beta prototype development• Deliver Glyph Beta (production yp (p
units)• Broaden Technology Footprint Broaden Technology Footprint
(take over the world)
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Nomad
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NOMADNOMAD – www.hellonomad.com
ChargeCard (our Kickstarter project) crosses the desertNOMAD g ( p j )
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Fulfillment at Starbucks
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CES 2013
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CES 2013GET OUT THERE
Know your $%#@
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Hardware NPI SV - Pg 26THERE ARE NO EXCUS
GET PRESS GET PRESS
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PUSH FOR PRESSIT’S FREE
Nomad
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LANDINGZONELANDINGZONE
Landingzone: the docking station for kMacBook Air
• Compact and elegant docking station forCompact and elegant docking station for MacBook Air with security lock built‐in
• Raised $82k in 40 days (Dec 2011)• Raised $82k in 40 days (Dec. 2011)• 488 backers• Deliver the products in October 2012.
– 9 months delay
Landingzone campaign• Quantitative analysis on all the major successes in Kickstarter
• Period and schedule– 40 days, from thanksgiving to Christmas
• Achievable funding goal– it can be reached by 300 backers
• Killer video• Media coverage
– VentureBeat, Business Insider, TechCrunch• Lack of the Thuderbolt support limited the broad ppappeal to the product
What happened after Kickstarterf dfunding
• All five $1M funding leads fall apartAll five $1M funding leads fall apart– NY, Germany, Santa Clara, Redwood City, FL
• All employees left the company• All employees left the company• All original investors also gave up• company had a half million dollar in debt• Zero balance in the bank for five months• Tried to sell the design and IP to a competitor and looking for a joband looking for a job
Get back on track• Found a hidden feature by an accident
– $1M experimentd d l d ’– Product tests done at Apple Stores and Fry’s
– Showed the demo at Apple
• Then two investors showed a strong interest• Then, two investors showed a strong interest• Raise a million dollars from angel investors in June, 20122012
• Apple released new MacBook Airs on June, 2012NewMagSafe 2 charging port– New MagSafe 2 charging port
• Restart finalizing the design and reliability test• Released the Landingzone 1 0 on October 2012 and• Released the Landingzone 1.0 on October, 2012 and Landingzone 2.0 on January, 2013
Differences which leads to success f kafter Kickstarter campaign
• Fully working prototypeFully working prototype– no computer rendered model in the video
• Set up manufacturing partners before the• Set up manufacturing partners before the campaign
• Funding• Strong team• Constant communication with community• Above all Never give upAbove all, Never give up
Panel Discussion
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Structured QuestionsQ
Wh df di ? Wh t Why crowdfunding? Why not more traditional startup funding such as angels/V friends+family incubators?angels/V, friends+family, incubators?
How did you recruit your key team How did you recruit your key team members before raising money?
How did you determine the mix of internal vs. external resources?
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Structured QuestionsQ
How did you determine your product pricing?
Did your product ship on-time? If not, what caused the delays and how would what caused the delays and how would you prevent in the future?
Any lessons that you learned the hard way?
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y
Audience QuestionsQ
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