Hardware is hard:founding hardware engineer, we were acquired 4 years ago by a corporate. We place WiFi sensors around your network that behave like typical clients. We report on user experience and show when there are issues in your network. WiFi technician in a box.
The fact that it’s subscription based is what made us float.
The initial capital outlay, supply chain, compliance and design work is so funding intensive but can we done on budget if you are wise about it.
We had to build a full web app and rich backend to report the results, a device team to write the sensor software and of course hardware design.
About 50% of our funding went into supply chain costs just to get the first units out the door. The rest into staffing. Without the hook into the large hardware manufacturers/China we had a pretty heavy BOM cost.
It was rough but the Saas portion once it was up allowed us breathing room.
It’s critical to design for compliance in your target markets and critical to manage your spend on components. A minor design mistake in your hardware will destroy your brand - where with software it’s a patch away.
Shipping and tax costs are another killer which add so much cost overhead and are often over looked.
It was stressful I’m glad we found a corporate home as it allowed us some breathing room to focus and redesign things with a budget safety net.