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Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

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Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#131

Post by grape_ »

jonesb6 wrote: post #129
grape_ wrote: post #107

YC and many other incubators provide startups technology incentive programs (Digital Ocean providing $250k credits, Azure providing $500k in credits, etc.). Are any of the hardware startups here utilizing any of the incentive programs? If so, how so? Very interested to hear about cloud strategies, especially as they relate to hardware companies (APIs, IOTs, etc.).

From my brief research digital ocean only provides credits to YC companies unlike Microsoft, Azure, and even IBM's SoftLayer. I'd just like to point that out. That immediately disqualifies DO for large cloud products due to their pricing and product offerings.

You're absolutely right. I haven't really read through many of the DO use cases, so maybe I can start there. But, Microsoft also has a separate program for YC ($500K instead of $60k I believe for startups outside of YC). And I know Amazon and Google both have programs that are not exclusive to YC ($100k both). I'm very curious to see how hardware companies are using cloud, and if these incentives are even working.

Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#132

Post by compumike »

rdl wrote: post #124

What do you do when a hardware startup/kickstarter/etc. has raised, say, $150/unit, but needs $250-300/unit to ship? I se this a lot with crowdfunded projects -- either they underestimated costs, or had a single huge setback.

The answer is basically that the company dies and customers get nothing.

We (Pantelligent, YC W13) did a Kickstarter, then successfully shipped to customers, and are now transitioning to normal orders. Our actual production costs and timeline were within ~15% of our before-the-fact spreadsheet estimates, but then again, we were experienced engineers who know how to ship hardware & software products, which is quite unlike most new entrants.

Just within the "temperature controlled cooking products" space, I could name a bunch of "competitors," but not a single one besides ourselves has shipped, with the exception of the existing sous-vide field which has had more time to develop and is fairly simple from an engineering perspective. Most of these products will likely never ship.

Sadly, crowdfunding usually leads to dramatic overpromising on features (some of which are not even manufacturable!), and severe and unsustainable underpricing, in order to drive pre-orders. That's just a recipe for disappointed customers and dead companies.

Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#133

Post by louprado »

cfort6 wrote: post #57

Lots of platforms exist for home automation, control of IoT devices, etc... HomeKit, Nest, Wink, etc. How worth it is it to integrate with these platforms? Should new IoT devices "cover all the bases", or is it not worth the extra cost & development? Currently I'm doing an IoT project and I think I may just skip all those platforms. The HomeKit app costs $14.99, a Wink base station or a Nest costs money... Personally…

Our company is going with HomeKit since the high-bar of entry means you will compete with less companies. We recently received our MFi Manufacturing license which means we can procure Apple's authentication co-processor and submit product plans directly to Apple.

If anyone has a startup working on a HomeKit product please e-mail me... louprado at gmail.com. Perhaps we can be of service to each other. I am in downtown Oakland.

Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#134

Post by louprado »

JonFish85 wrote: post #119
louprado wrote: post #117

Last month my hardware start-up was almost shut down because our power supplies are CEC efficiency level 5 and not 6. Customs would have seized our entire last shipment. Prior to that I got a cease and desist from the Bluetooth SIG unless I immediately paid $2500 to $10000. I paid immediately. I have no problem following regulations and paying for licenses. The problem is getting blind-sided by it. I still don't even…

"I have no problem following regulations and paying for licenses. The problem is getting blind-sided by it. I still don't even understand if I need a RoHS certification to ship in my home state of California. Is there any resource you found helpful ? Thanks in advance." At least in my own work this has been something that pops up time & time again. Not only are there regulations that are tricky to nail down, there ar…

Random IP lawsuits aside, there are known agencies/certifications/requirements, etc that may eventually require compliance. Here's the ones I know:

RoHS, CEC?, UL, FCC, Wifi Alliance, Bluetooth SIG, please add if anyone else knows.

I get that the OP is about pre-release startups and the general advice is "don't worry certifications; just ship". But this became a problem just 90 days after our product launch. Had the timing been worse it could kill a new company.

Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#135

Post by [deleted] »

JonFish85 wrote: post #119
louprado wrote: post #117

Last month my hardware start-up was almost shut down because our power supplies are CEC efficiency level 5 and not 6. Customs would have seized our entire last shipment. Prior to that I got a cease and desist from the Bluetooth SIG unless I immediately paid $2500 to $10000. I paid immediately. I have no problem following regulations and paying for licenses. The problem is getting blind-sided by it. I still don't even…

"I have no problem following regulations and paying for licenses. The problem is getting blind-sided by it. I still don't even understand if I need a RoHS certification to ship in my home state of California. Is there any resource you found helpful ? Thanks in advance." At least in my own work this has been something that pops up time & time again. Not only are there regulations that are tricky to nail down, there ar…

[deleted]

Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#136

Post by JonFish85 »

louprado wrote: post #134
JonFish85 wrote: post #119

Earlier quoted context omitted.

"I have no problem following regulations and paying for licenses. The problem is getting blind-sided by it. I still don't even understand if I need a RoHS certification to ship in my home state of California. Is there any resource you found helpful ? Thanks in advance." At least in my own work this has been something that pops up time & time again. Not only are there regulations that are tricky to nail down, there ar…

Random IP lawsuits aside, there are known agencies/certifications/requirements, etc that may eventually require compliance. Here's the ones I know: RoHS, CEC?, UL, FCC, Wifi Alliance, Bluetooth SIG, please add if anyone else knows. I get that the OP is about pre-release startups and the general advice is "don't worry certifications; just ship". But this became a problem just 90 days after our product launch. Had the…

USB-IF, I2C (usually people will say "I2C-compatible", or Two-Wire Interface to avoid paying a royalty) are two others that come to mind immediately.

Edit: Basically any interface logos you use (stickers above ports) are probably owned by someone.

Re: Ask Us Anything: Y Combinator Hardware Companies Crowdfunding

#138

Post by dalanmiller »

louprado wrote: post #117

Last month my hardware start-up was almost shut down because our power supplies are CEC efficiency level 5 and not 6. Customs would have seized our entire last shipment. Prior to that I got a cease and desist from the Bluetooth SIG unless I immediately paid $2500 to $10000. I paid immediately. I have no problem following regulations and paying for licenses. The problem is getting blind-sided by it. I still don't even…

Does your device use bluetooth in a special way or just general purpose Bluetooth usage? Did you have to pay that much just to put the "Bluetooth certified" logo somewhere?
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