Acquisitions · Hardware

What does Google's acquisition of Nest mean for the hardware sector and hardware entrepreneurs?

Anonymous

January 13th, 2014

Chris Cinelli

January 14th, 2014

That if you come from the Y Combinator and you have Google Venture behind your shoulder you can be successful even as a hardware startup ;-)

Beside that, if you have a product and a team in which  bigger companies like Google or Apple have a strategic interest, you may have a great exit like Nest. 

If we start hearing other stories like Nest, VCs may re-think their aversion toward hardware startups.  Even just this story may already make more easy to raise money as a hardware company. 

However the basics of economics rest in place. If you are growing a hardware company more organically,  on average it will take a lot longer time to reach the same profits that a software company has because of the lower margins and slower distribution speed. Of course everything is very relative and need to evaluated case by case.

I have been fascinated by smart hardware since I was a child. I really think that there are great opportunities if you have the right product.

Shahab Layeghi Software Professional

January 14th, 2014

I think Google acquired them for their Hardware and specially Software.

cbgsfghjsfhjs arggadghA Brightway Insurance & KnowMyNestegg.com

January 14th, 2014

Internet of Things... I had pitched a few tech VCs on some of this a few years back 09/10 and only had my ideas copied, much of this in inevitable. As "things" come online there will be a lot of Hardware companies that crop up remaking standard "things" with radio communications ability added on.

The Hardware is a Loss Leader. Data is the real gold.

Look at Liquid Robotics "Wave Glider" for a business model. The actual product/robot they make is not for sale. What they are willing to sell is the Data collected by their army of ocean roving robots.

See SmartThings and NinjaBlocks for land lubber players. They are making a radio "hub" and allowing developers to build on their "hub platform". Exact stuff I was trying to get ahead of a few years back. It will be a fun run up to 2020.

Andy Keil Building smart products at Waldo Photos

January 14th, 2014

Google just validated the connected home and you can expect a lot more competition to crop up.

Enter the Google Home ...