The Hardware Renaissance
19 hours ago
- Y Combinator observed a significant trend: 7 out of 84 recent startups were hardware companies, and they performed better on average.
- Investors often have a bias against hardware, but founders are better at foreseeing the future because they are creating it.
- Multiple factors are driving the hardware trend: crowdfunding, tablets enabling new products, improved electric motors, reliable wireless connectivity, easier manufacturing, better prototyping tools (Arduinos, 3D printing, laser cutters, CNC milling), and online retail reducing reliance on traditional retailers.
- Hardware has always been appealing, but software had an advantage for rapid growth; this advantage may be temporary if hardware shipping becomes as easy as software.
- Founders interested in hardware should not be discouraged by investor bias; Y Combinator is especially interested in funding hardware startups.
- There is room for the next Steve Jobs, but also for new founders to make their mark.