HAX CROWDFUNDING GUIDE 2017

NOTE FROM THE AUTHORSThis guide shares lessons gathered over 4 years of supporting close to 100 consumer hardware startups, from page creation to funding (and beyond).

Things keep evolving. We keep this knowledge up to date to support any new investment we make.

We hope it will help creators be more successful, and more responsible, for the benefit of their backers, themselves, and the ecosystem at large.

Ben, Cyril, Duncan, Kate …and all founders who contributed their hard-earned lessons WHAT’S NEXT

“NO.1 INVESTOR IN CROWDFUNDED HARDWARE”

LEARNINGS FROM OUR STARTUPS: 70+ CAMPAIGNS (90% OVER $100,000)

INCLUDING 10 IN THE WORLD’S TOP 100 (OVER $1M)

N0.1 FROM AUSTRALIA

N0.2 IN BACKERSN0.1 FROM FRANCE

N0.1 FROM CANADA

WHAT’S NEXT

Lief is an advanced wellness device that raised over $400,000.

1. THE TECHNICAL LEVEL IS GOING UP

WHAT’S NEXT

In pre-order On market On market$20 $4 $1.5

FIDGET CUBE: COPIED BEFORE DELIVERY

WHAT’S NEXT

USA South Korea ChinaJIBO LG HUB ROBOT Oding Robot

JIBO: INSPIRING PEOPLE “If you don’t ship first, someone else will”

WHAT’S NEXT

2. KNOW YOUR TECH, YOUR COSTS & YOUR FACTORY

WAZER took time to figure out their technology and supply chain before crowdfunding

WHAT’S NEXT

THESE PRODUCTS WILL NOT SHIP

Some projects did not make clear what part of their technology was not ready, or messed up manufacturing.

$15M investment $34M pre-orders £2.3M on Kickstarter 1.5M on Indiegogo

WHAT’S NEXT

3. THE BEST PAGE FROM 2015 IS TODAY’S MINIMUM

A crowdfunding video can cost $5k-$10k or more

Graphics have to be professionally designed

Get the key value proposition straight up

Analyze pros & cons of other campaigns in your category

WHAT’S NEXT

4. JOURNALISTS WANT TO SEE PROOF

Nothing convinces like a live demo

WHAT’S NEXT

REVOLS: Instant Custom-Fit Earphones

Media roadshow

Facebook ads

$2.5M

WHAT’S NEXT

5. VIRAL VIDEOS ARE THE NEW BLACK

10,688,745 Likes

4,519,938 Likes

3,316,552 Likes

6,888,301 Likes

UNILAD 25,508,208 Likes

VIRAL THREAD

GI GADGETS

FUTURISM

NOWTHIS FUTURE

Facebook video channels give you more

chances to go viral if you get picked up.

WHAT’S NEXT

OCTOPUS: Kids Watch For Good Habits

Pre-launchFacebook Ads

Viral video

$1M

WHAT’S NEXT

6. ADVERTISING WORKSFacebook ads

and Adwords can increase momentum

Red arrows can get attention

Use funding news and backers as

“proof”, time limit and savings for FOMO.

WHAT’S NEXT

KOKOON: Ergonomic EEG Headphones For Sleep $1.9M

Facebook AdsLimited PR

WHAT’S NEXT

7. BUILD A COMMUNITY

Pre-campaign adsDemo Roadshow

Email engagement

Existing followersYouTubersCelebrities

Cross-promotions

Demo Videos

OTHER PEOPLE’SYOUR OWN

Influential Bloggers

The “Exploding kittens” card game raised over $8M thanks to the audience

of its creator, the blog The OatmealWHAT’S NEXT

Etc.Etc.

PRYNT: Printer Case For Smartphones $1.5M

Pre-launchCommunity

WHAT’S NEXT

NURA: Headphones Tuned To You $1.8M

Facebook Ads

Media Roadshow+ Friends & Family

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8. IT’S A FULL-TIME JOBThings YOU can do post-launch:

Get more PR

Respond to backersAdjust the page title, image, contentRun adsDo demosPost updatesAnd more!

WHAT’S NEXT

VUE: Everyday Smart Glasses $2.3M

Heavy SupportFacebook Ads

WHAT’S NEXT

WAZER: Desktop Waterjet Cutter $1.3M

Pre-launchRoadshow

Limited Support

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9. YOU CAN’T PREDICT A $1M RESULTTypically you can’t.

Kickstarter had 217 campaigns over $1M since 2009.Hardware startups represent about 100 of them.It’s <1% in tech and design.

If the past is a good predictor, smart watches, travel tech ear/headphones, drones and 3D printers are the best categories.

…but you might not ship your drone, might not be able to finance the second run of your 3D printer, or might be acquired by Fitbit ;)

OLO Smartphone 3D printerWill margins be enough

for a second batch?

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10. THE RESULT DOESN’T DECIDE YOUR FUTURESome of our best companies raised very little at first.

Kickstarter $185,576Jan. 2013

Year 2016 >200 staff

WHAT’S NEXT

NEXT THING CO: From “Failure” to Success $2M

Their first project lacked a cheap computer… so they built one.

Backers: 414 Funding: $71,559

Backers: 39560 Funding: $2,071,928

WHAT’S NEXT

NEXT THING CO: $9 Computer C.H.I.P. $2M

One single interviewto “prove” it is real

Over 100,000 units shipped.

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IN CONCLUSION: WHAT IS CROWDFUNDING SUCCESS?

1. Shipping a (good) product

WHAT’S NEXT

2. Building a profitable business

Before you ship, it is an idea. Before profit, it is an experiment.

LAUNCH GROWTHO TO 1 1 TO N

SHENZHEN Prototype to Launch

SAN FRANCISCO Product to Scale

HAX PROGRAMS

CHINA

EUROPE

USA & CANADA

REST OF WORLD

200 GLOBAL INVESTMENTS

LIFESTYLE

HEALTH

ROBOTICSINFRASTRUCTURE

FABRICATION

5 CATEGORIES

WHAT’S NEXT

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