Angel investing · Hardware manufacturing

Where are all the hardware investors?

Mark Graham Founder @ Caiman

Last updated on March 20th, 2017

We have a completed product designed for mobile device charging and connectivity that is selling and need investment for inventory and growth. Investment seems plentiful for software startups but not hardware startups. There does not appear to be a financial reason for this given the success rate of either type of startup. The hardware investors that do exist seem to be focused on obscure devices like medical diagnostic tools. What gives?

Rob Kornblum

March 20th, 2017

I'm not sure what you are referring to. VR startups are hardware, robotics startups are hardware, smart home/energy startups are hardware. All 3 of those categories have seen plentiful venture capital.

Chris Gorges Managing Director, Infinia Group // Founder, Biddlist

March 20th, 2017

Mark,


Check out http://tiny.cc/vcfinder and filter on hardware.


Also reach out to accelerators / incubators like HAX, Highway 1, RetailXelerator and www.Futureworks.NYC


I can intro you to RX or FW if you email me at cgorges@infiniagroup.com


-Chris

Andy Freeman Product Management and ... - Looking for new opportunities

March 21st, 2017

I don't see a big business with a large profit margin at http://caimandesigns.com - it's wired/wireless charger hub that glows.


"nice to have" in a fairly competitive market has limited appeal to investors, whether it is hardware or software.


The numbers for (some) medical devices are surprisingly strong - investors like that.

Mark Graham Founder @ Caiman

Last updated on March 21st, 2017

@Bob, yes, hardware companies have received investment and can be every bit as profitable as software (although it is arguable whether the ones you listed are more software than hardware). I support this ideal but I am also a little biased ;)


If you google for hardware VC's you will get some hits like "skittish" on hardware and things like this. If you look up VC's that are interested in hardware you will get a much smaller list than those for software (at least in the USA). I have yet to find a VC that is "hardware only" but you will see VC's that are software only.


Your response gives me hope that my findings are flawed.


@Chris very cool stuff with the vc spreadsheet, thanks. Our products are currently targeted at the hospitality industry and we had our first hotel grand opening last October. We have since claimed the honor of most liked amenity in the rooms as well as the most stolen item from the rooms (hotel was not using our security features at first). We have plenty of interest in our product so will see if someone will look at the numbers.


@Andy great perspective to put forward and I would love to address. However, the problem with me responding to it fully is that it will sound like a sales pitch and is not appropriate for this forum. When Facebook was pitched myspace existed, go-pro was yet another camera, and snapchat was an app that only let you see the same messages as other message apps but for a short time - the caiman connect hub is just another charger ;)


I contend that the best strategy for VC's is to focus where there is a huge market regardless of software or hardware. You put forward that medical devices have good numbers and I agree that numbers should be the key factor for VC's. Whether it is better to compete in a new market or implement an improved product in a well established market is another forum topic.


For fun I will put forth this clip from Sara Sampaio, Victoria Secret Angel, tell us what her most favorite thing is.


https://www.youtube.com/watch?v=t5VHW5ZnPus


Mark