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

Hardware NPI SV - Pg 2

Meetup Agendap g

Welcome Welcome

Thanks to PRG & RADICAND

Speakers: AvegantNomadInfiniwingInfiniwing

Panel Discussion St t d Q&A- Structured Q&A

- Audience Q&A


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


Our focus:Our focus:

• Hardware start-ups• Hardware start ups• Hardware product development• Hardware projectsHardware projects• Future-forward R&D


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


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


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


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


• 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


( ), 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


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


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


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


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)


Nomad


NOMADNOMAD – www.hellonomad.com

ChargeCard (our Kickstarter project) crosses the desertNOMAD g ( p j )


Fulfillment at Starbucks


CES 2013


CES 2013GET OUT THERE

Know your $%#@


Hardware NPI SV - Pg 26THERE ARE NO EXCUS

GET PRESS GET PRESS



PUSH FOR PRESSIT’S FREE

Nomad


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


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?


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?


y

Audience QuestionsQ


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