1.
HAX | HARDWARE TRENDS 2017 | PAGE 1
2017
HARDWARE
TRENDS
IT’SSTEAMENGINETIME
WWW.HAX.CO
JULY2017

2.
HAX | HARDWARE TRENDS 2017 | PAGE 2
FOREWORD Software is eating the world,
and the world is hardware.
You need both to make it smarter.
This is our third report.
It started as new perspectives on hardware startups
were needed, beyond unicorns, Fitbit’s stock price,
or the latest crowdfunding chaos.
As investors focused on hardware for the past 5 years
(>200 investments), we see the ongoing re-invention
of every physical product category & industry.
We hope this report provides a broader perspective
as to what is happening, and coming next.
AUTHORS
BENJAMIN JOFFE - WRITING LEAD
VITALY VYAZOVSKY - CREATIVE LEAD
KEY CONTRIBUTORS
KATE WHITCOMB - CONSUMER
DUNCAN TURNER - HEALTH,
ENTERPRISE, INDUSTRY
ZONA LIU - CHINA
CYRIL EBERSWEILER - FINANCING
HAX | HARDWARE TRENDS 2017 | PAGE 2

3.
HAX | HARDWARE TRENDS 2017 | PAGE 3
WWW.HAX.CO
/ ABOUT HAX
HAX IS A PROGRAM-BASED
HARDWARE FUND
THAT INVESTED IN OVER
200 GLOBAL STARTUPS
/ OTHER HAX REPORTS
HARDWARE TRENDS 2016
HARDWARE TRENDS 2015
THE STATE OF ROBOTICS 2015
/ HAX TALKS
BUILDING HARDWARE FROM ZERO TO IPO (2017)
THE RISE OF CONSUMER & SERVICE ROBOTS (2017)
THE RISE OF GENERATION HEALTH (2017)
HAX CROWDFUNDING GUIDE (2017)
CONTACT US: MAKEIT@HAX.CO
HAX | HARDWARE TRENDS 2017 | PAGE 3

4.
HAX | HARDWARE TRENDS 2017 | PAGE 4
Many of the examples
used in this report are
SOSV / HAX investments.
Notable exceptions are
unicorns (it’s coming),
crowdfunding failures,
and Juicero :)
DISCLOSURE
ACKNOWLEDGEMENTS
The authors thank:
• / The many founders
we work with, for their insights,
• / Our creative team, for taking
this report to new levels,
• / The many more participants
in the hardware revolution.
/ It is 2017 and this is
just the beginning.
HAX | HARDWARE TRENDS 2017 | PAGE 4

5.
HAX | HARDWARE TRENDS 2017 | PAGE 5
AIRE
ALPHA GLASS
AMBER TECHNOLOGIES
BABYBE
BARTESIAN
BBB
BEETL
BERKELEY ULTRASOUND
BLOOM
CARV
CIRCADIA
CRIAMTECH
DIABETO
DISPATCH
ELEPHANT ROBOTICS
FEEL
FEETME
FLAIR
FLICKTEK
FLOW NEUROSCIENCE
FROBOT
GARDENSPACE
HISENS
JAPET
JOY
KEEN
KINDARA
KNITERATE
KOKOON
LEAP
LIEF THERAPEUTICS
LILU
LIVIN FARMS
LOOKING GLASS
LOVELY
MAKEBLOCK
MILKSAFE
MINDSET
MINUT
MOJO
MOONA
MOUSR
NOMIKU
NURA
O2O2
ORENDA
PARTICLE
PETCUBE
PRYNT
PYCNO
RAY BABY
REVOLS
SANA
SIMBE ROBOTICS
SMARTFUSE
SMARTSHEPHERD
SONICAM
TRAINERBOT
VOLTERA
VUE
WAZER
YEELIGHT
HAX
STARTUPS
QUOTED
INTHIS
REPORT
WWW.HAX.CO
HAX | HARDWARE TRENDS 2017 | PAGE 5

6.
HAX | HARDWARE TRENDS 2017 | PAGE 6
02/
03/
04/
05/
06/
07/
01/
ENTERPRISE
CHINA
HEALTH
INDUSTRY
LATE STAGE FINANCING
CONSUMER
GENERAL TRENDS 8
/TABLEOFCONTENTS
59
120
153
186
203
226
08/ ABOUT SOSV & HAX 237
HAX | HARDWARE TRENDS 2017 | PAGE 6

7.
HAX | HARDWARE TRENDS 2017 | PAGE 7
GENERALTRENDS
01
FROM CONSTRUCTION TO INSURANCE.
02
UNICORNS ARE HARDWARE STARTUPS, 11
ARE FROM CHINA.
03
COMPUTER VISION TO MACHINE
LEARNING AND BIG DATA.
04
AND DEVICES MIGHT BECOME TROJAN
HORSES FOR INSURANCE.
05
PLACE FOR HARDWARE
SECTORS
06
REINVENTED WITH DEEP TECH AND BIG
DATA.
07
DESPITE MEDIA REPORTS, MOST
CREATORS SHIP.
08
AND HEALS. DIGITAL THERAPIES
COMPETE WITH PHARMA.
09
WITH SENSORS, DATA AND ROBOTS.
EXECUTIVESUMMARY
12
INCLUDE MICRO-CAP IPOS, REG A+, RMS,
AND MORE.
10
DOMESTIC STARTUPS, WITH A FEW
GLOBAL-MINDED PLAYERS.
11/
“SILICON VALLEY FOR HARDWARE”
CHINA LATESTAGEFINANCING
HAX | HARDWARE TRENDS 2017 | PAGE 7

8.
HAX | HARDWARE TRENDS 2017 | PAGE 8
GENERAL
TRENDS
INVESTMENT,
COMMUNITIES
SECURITY & MORE01/
HAX | HARDWARE TRENDS 2017 | PAGE 8

9.
HAX | HARDWARE TRENDS 2017 | PAGE 9
STEAM
ENGINE
TIME
ENTERING
A GOLDEN AGE

10.
HAX | HARDWARE TRENDS 2017 | PAGE 10
STEAM ENGINE TIME
NEWCOMEN
ATMOSPHERIC
ENGINE
1712
JAMES WATT
STEAM ENGINE
1781
STEAM ENGINES HAD BEEN AROUND
FOR A WHILE. BUT HIGH COST AND
POOR PERFORMANCE LIMITED ITS USE
TO PUMPING WATER IN MINES
JAMES WATT MADE IT
CHEAPER & MORE EFFICIENT.
IT BECAME VERSATILE.
STEAM THEN POWERED MANY
INDUSTRIES SUCH AS TEXTILE,
TRANSPORTATION, AND… THE TIMES
‘AEOLIPILE’
BY HERO OF
ALEXANDRIA
1ST CENTURY A.D.
“PENNY”
ROTARY PRESS
1843
KOENIG
PRINTING PRESS,
1814
STARTED AS
PENNY PRESS
1851
KEY IMPROVEMENTS
STARTED A REVOLUTION

11.
HAX | HARDWARE TRENDS 2017 | PAGE 11
APERFECT
STORMIN
HARDWARE
CHEAPER
COMPONENTS
ONBOARD
CPU
RETAILERS
FOR HIGH-TECH
SMALL BATCH
MANUFACTURING
MICRO-CAPS,
REG A+…
CLOUD CROWDFUNDING
& PRE-SALES
SOCIAL MEDIA
TO TEST DEMAND
SMARTPHONES
NEW & BETTER
PROTOTYPING
TOOLS

12.
HAX | HARDWARE TRENDS 2017 | PAGE 12
NEW
EXPECTATIONS
PERSONALIZATION,
SPECIALIZATION
RISING
COMPLEXITY
HIGHER
DEFENSIBILITY
WITH DEEP TECH
CUSTOMERS KEEN
BUT WARY
WANT TO AVOID
DEPENDENCIES AND
DEVICE OBSOLESCENCE
DIVERGENCE NOW
NO UNIFYING HUB
OR TECHNOLOGY
CONVERGENCE
LATER?
01/ 02/ 03/ 04/ 05/
SMARTDEVICESMULTIPLY
THANKSTOLOWERBARRIERS
OFENTRY
SEGMENTATION
LOWER BARRIERS
& MARKET GROWTH
MAKE SOME NICHES
VIABLE FOR NEW
ENTRANTS

13.
HAX | HARDWARE TRENDS 2017 | PAGE 13
STARTUP AVERAGE
FROM IDEA TO IPO
8 YEARS
R&D PROTOTYPE PROTOTYPE PRODUCTION ONLINE GLOBAL IPOOFFLINE
PRODUCTIZING RETAIL
YEAR 01 YEAR 02 YEAR 03 YEAR 04 YEAR 05 YEAR 06 YEAR 07 YEAR 08
COULDWEDOITIN4ORLESS
WITHTHERIGHTSUPPORT?
DISTINCT AND TIME-INTENSIVE PHASES
R&D IPO
HARDWARE SCALING
IS MORE LINEAR
THAN SOFTWARE
HAX | HARDWARE TRENDS 2017 | PAGE 13

14.
HAX | HARDWARE TRENDS 2017 | PAGE 14
MANY ARE OVER
10 YEARS OLD
2002
IPO
2007
IPO
2005
PRIVATE
2009
ACQUIRED
2009
ACQUIRED
2009
PIVOT
2009
PRIVATE
1994
IPO & PIVOT
2009
CHARITY
1999
BANKRUPT
SMARTDEVICES
PIONEERS
CELEBRATE
ANNIVERSARY

15.
HAX | HARDWARE TRENDS 2017 | PAGE 15
FALLEN SOLDIERS
OF THE INDUSTRIAL AGE
MANY NEW THINGS
CAN BE MADE
DEMAND WILL DECIDE
ON SURVIVORS

16.
HAX | HARDWARE TRENDS 2017 | PAGE 16
TEAM ALIGNMENT
& COMMUNICATION
POOR
POSITIONING TECHNICAL
FEASIBILITY
FEATURE
CREEP
NEGLECT PR
& MARKETING
LACK OF
DEMAND
HANDS-OFF
MANUFACTURING
SLOW
PROTOTYPING
UNPREPARED
FOR RETAIL
BAD TERMS
FOR CASH FLOW
POOR SKILLS
FOR FINANCING
LACK OF
GRIT
WHATKILLS
HARDWARE
STARTUPS?
MOSTLY,
THEMSELVES
MANY SNAKES
FEW LADDERS
HAX | HARDWARE TRENDS 2017 | PAGE 16

17.
HAX | HARDWARE TRENDS 2017 | PAGE 17
Clarify
Responsibilities
One founder
full time on business
Plan & Communicate
Internally
Cut features
Track runway
Find best resources
at each step
Communicate externally
Ask for advice
Follow up
Validate demand
EXTERNALLY
Find leads
HOW
HARDWARE
STARTUPS
SUCCEED
Show commitment

18.
HAX | HARDWARE TRENDS 2017 | PAGE 18
INVESTMENT
HAX | HARDWARE TRENDS 2017 | PAGE 18

19.
HAX | HARDWARE TRENDS 2017 | PAGE 19
01/
02/
03/
MORE INVESTORS
& KNOWLEDGE
INVESTORS
GETSAVVY
ABOUT
HARDWARE
HARDWARE INVESTMENT SPREADING
MANY FIRMS DEDICATE A PARTNER
SPECIALISTS EMERGING
FOR PRE-SEED, SEED, GROWTH…
FOR ROBOTICS, HEALTH, ETC.
INVESTORS EXPECT MORE
CONSUMER = PREFERRED WITH SAAS
HEALTH TECH = NEEDS PROOF OR FDA
B2B = NEEDS CUSTOMERS
HAX | HARDWARE TRENDS 2017 | PAGE 19

20.
HAX | HARDWARE TRENDS 2017 | PAGE 20
HARDWARE
INVESTOR
CHECKLIST
UNDERSTAND MANUFACTURING CONSTRAINTS
INTRODUCE OTHER HARDWARE FOUNDERS FOR GUIDANCE
BRING EXPERIENCE IN LAUNCHING A PRODUCT
INTRODUCE CUSTOMERS
HELP ANTICIPATE COSTS & RUNWAY
INTRODUCE RELEVANT FOLLOW-ON INVESTORS
“If your prototype is ugly, people think you have nothing.
If it’s pretty they think you’re ready to ship.
Yet you might still be a year away… if you know what you’re doing.”
ARE YOU ABLE TO…?
BENJAMIN JOFFE, PARTNER, HAX
HAX | HARDWARE TRENDS 2017 | PAGE 20

21.
HAX | HARDWARE TRENDS 2017 | PAGE 21
HAX (SOSV)
$150M ACCELERATOR
& SEED FUND
BOLT
$80M SEED FUND
LEMNOS LABS
$50M SEED FUND
ROOT / VENTURES
$30M SEED FUND
HARDWARE CLUB
$28M SEED FUND
PLAYGROUND
$300M FUND
ECLIPSE VC
$433M FUND
SOME SPECIALISTS
EMERGING
GRISHIN ROBOTICS
$100M SEED FUND

22.
HAX | HARDWARE TRENDS 2017 | PAGE 22
ASIA
CHN - HAX
HKG - BRINC, READWRITE LABS
JPN - MAKERS BOOTCAMP
KOR - SPARKLABS, N15
IND - REVXX, IKP EDEN
EUROPE
AUT - HARDWARE TRIBE
EST - BUILDIT
GBR - STARTUPBOOTCAMP
GER - HARDWARE.CO
ITA - INDUSTRIO
USA
SF - HAX
SF - HIGHWAY1
SF - READWRITE LABS
LA - MAKE IN L.A.
PGH - ALPHALAB GEAR
FROM PROTOTYPE TO PRODUCT
HARDWARE
ACCELERATORS
WANTTOSOLVE
THEFIRSTSTEPS
FROM BOOTCAMPS TO MONTHS-LONG PROGRAMS
FROM FREE SUPPORT TO INVESTMENT
HAX | HARDWARE TRENDS 2017 | PAGE 22

23.
HAX | HARDWARE TRENDS 2017 | PAGE 23
U.S.VCINVESTMENTINIOT
SOURCE: PITCHBOOK DATA, STEVE MYERS, CEO, MINDTRIBE
*AS OF NOV 2016
0
300
600
900
1,200
1,500
0
50
100
150
200
250
2012 2013 2014 2015 2016*
Deal Count
Invested ($M)
1,2731,106
822
560536
174
236
197
136
9090
136
197
236
174
HAX | HARDWARE TRENDS 2017 | PAGE 23

24.
HAX | HARDWARE TRENDS 2017 | PAGE 24
INVESTMENTINROBOTICS
SOURCES: CB INSIGHTS, THE ROBOT REPORT, JUNE 2017
0
500
1,000
1,500
2,000
2011 2012 2013 2014 2015 2016
1,950
587
273176191155
Invested ($M)
HAX | HARDWARE TRENDS 2017 | PAGE 24

25.
HAX | HARDWARE TRENDS 2017 | PAGE 25
0
250
500
750
1,000
1,250
1,500
Xiaomi
MagicLeap
Ofo
Nio
Mobike
Meizu
BloomEnergy
View
Peloton
ProteusHealth
Essential
Royole
SigFox
Zoox
Mobvoi
Carbon
Lytro
Roku
Ring
3DR
Razer
Njoy
TinkLabs
Anki
Velodyne
Devialet
Thalmic
Quanergy
RethinkRobotics
AeroFarms
UBTech
Sphero
Juicero
DJI
Roobo
QUADRUPLE NUMBER OF STARTUPS
WITH >$100M FUNDING SINCE 2014
CHINA DOMINATES THE TOP SPOTS
4X
‘SECONDWAVE’REACHESSCALE
X US$100 MILLION
Source: Crunchbase, media reports
Note: Jawbone (raised $900M) filed for bankruptcy
THE NUMBER OF HARDWARE STARTUPS
WITH OVER $100M IN FUNDING
QUADRUPLED SINCE 2014 (8 TO 35)
HAX | HARDWARE TRENDS 2017 | PAGE 25

26.
HAX | HARDWARE TRENDS 2017 | PAGE 26
XIAOMI
& ‘MINI-MI’
ACQUIREDIPO
OTHER
CHINESE
WESTERN
9%
2/3
HARDWARE
UNICORNS
OFGLOBAL
BLESSING
FROM
CHINA
18

27.
HAX | HARDWARE TRENDS 2017 | PAGE 27
SOFTWAREGIANTS
BUILD&BUY
HARDWARE
HAX | HARDWARE TRENDS 2017 | PAGE 27

28.
HAX | HARDWARE TRENDS 2017 | PAGE 28
MOREMNCSINVEST
INHARDWARE
STARTUPS
BEAM SUNTORY INVESTED IN COCKTAIL ROBOT BARTESIAN
SAMSUNG INVESTED IN SOUS-VIDE COMPANY NOMIKU

29.
HAX | HARDWARE TRENDS 2017 | PAGE 29
BY TECH COMPANIES
TECHNOLOGY IS OFTEN
THE #1 MOTIVATION
OTHERS CAN BE ADDING
SALES, OR ACQUIRING
DATA OR TEAM
SOFTBANK ACQUIRED BOSTON
DYNAMICS FROM GOOGLE
New expectations?
Buyer Company Value
Amazon Kiva $775M
Apple Beats $3B
Apple PrimeSense $350M
Apple Beddit n.a.
Facebook Oculus $2B
Fitbit Coin n.a.
Fitbit Pebble $28M
Fitbit Vector $15M
Google Nest $3.2B
Google Dropcam $555M
Intel Mobileye $15B
Intel Recon $175M
Intel Basis $100M
Nokia Withings $191M
Omron Adept $200M
Samsung SmartThings $200M
Softbank Arm $32B
Softbank Boston Dynamics n.a.
Softbank Shaft n.a.
Stratasys Makerbot $400M
Teradyne Universal Robots $285M
Wanfeng Tech Paslin $300M
RECENT ACQUISITIONS
MORE
M&A

30.
HAX | HARDWARE TRENDS 2017 | PAGE 30
RECENT ACQUISITIONS
BY NON—TECH
COMPANIES
MOST SEEK
PRODUCT LINES
AND DATA SOURCES
MORE
M&A
J&J BOUGHT ILLUMASK
LIGHT THERAPY MASK FOR ACNE
Buyer Company Value
Electrolux Anova $250M
Fossil Misfit $260M
General Motors Cruise $1B
Johnson & Johnson IlluMask n.a.
Mars Whistle $117M
Mattel Fuhu $21.5M
Midea Kuka $3.9B
KUKA IS NOW
PART OF CHINA’S MIDEA
MARS ACQUIRED WHISTLE
FOR ITS DOGS ACTIVITY DATA
HAX | HARDWARE TRENDS 2017 | PAGE 30

31.
HAX | HARDWARE TRENDS 2017 | PAGE 31
THREE EXOSKELETON COMPANIES
WENT PUBLIC IN 2014SNAPSHOTOFSELECTPUBLIC
HARDWARECOMPANIES
FORTUNESVARY STOCK VARIATION SINCE IPO
-1
-0.5
0
0.5
1
1.5
2
Ekso Cyberdyne Rewalk
-88%
77%83%
-1
-0.5
0
0.5
1
1.5
2
iRobot Square GoPro Fitbit
-83%-75%
86%
176%

32.
HAX | HARDWARE TRENDS 2017 | PAGE 32
HARDWARE
STARTUP
CHALLENGES
HAX | HARDWARE TRENDS 2017 | PAGE 32

33.
HAX | HARDWARE TRENDS 2017 | PAGE 33
CROWDFUNDING
IS THE EXCEPTION
YOU GET THE
MONEY FIRST!
DIRECT PRE-SALES
MAINTAINS MOMENTUM
WITH MARKETING UNTIL
YOU SHIP
MAKING THINGS
COST MONEY
NEGATIVE CASH FLOW
SLOWS YOU DOWN
(OR KILLS YOU)
PEOPLE, PAPERWORK
& PATIENCE
SELLING OFFLINE
TAKES TIME
FINANCING&CASH
FLOWAREKEY
FORHARDWARE
CASH FLOW IS KING
WHEN ARE SUPPLIERS,
RETAILERS… AND YOU,
GETTING PAID?
HAX | HARDWARE TRENDS 2017 | PAGE 33

34.
HAX | HARDWARE TRENDS 2017 | PAGE 34
“Manufacturing is capital intensive.
Cash flow improves if you credit your assembly.
Our manufacturer gave us special payment terms.”
FINANCING THE FIRST
PRODUCTION RUNS IS
ALWAYS A CHALLENGE
“ ALEX NESKIN, COFOUNDER / PETCUBE
SMART DEVICES FOR PETS
HAX | HARDWARE TRENDS 2017 | PAGE 34

35.
HAX | HARDWARE TRENDS 2017 | PAGE 35
STARTUPS
GO HIGH-TECH,
INCREASE DEFENSIBILITY
MAKERS
KEEP FOCUS ON DIY, FUN
& EDUCATION,
HAX SHIFTED
ATTENDANCE FROM
MAKERFAIRE TO CES
STARTUPS
&
MAKERS
GROW
FURTHER
APART
HAX | HARDWARE TRENDS 2017 | PAGE 35

36.
HAX | HARDWARE TRENDS 2017 | PAGE 36
GLOBALIZATION
FORCES ‘MAKER’
STARTUPS
TO CHANGE
3DR DROPS D.I.Y. DRONES
FOR CONSUMER DRONES.
OUTPACED, THEY FOCUS NOW
ON B2B DRONE SOFTWARE
NYC-BASED 3D PRINTING
COMPANY GETS ACQUIRED
THEN RELOCATES PRODUCTION
FROM NYC TO CHINA
HAX | HARDWARE TRENDS 2017 | PAGE 36

37.
HAX | HARDWARE TRENDS 2017 | PAGE 37
ECOSYSTEM
HAX | HARDWARE TRENDS 2017 | PAGE 37

38.
HAX | HARDWARE TRENDS 2017 | PAGE 38
EXHIBITORS PER COUNTRY
STRONG: FRANCE & KOREA
WEAK: JAPAN & GERMANY
HAX: 83 STARTUPS!
USA
CHINA
FRANCE
TAIWAN
SOUTH KOREA
HONG KONG
HAX
CANADA
UK
JAPAN
GERMANY
ISRAEL
0 450 900 1350 1800
CES2017:
APROXYFOR
HARDWARE
INNOVATION

39.
HAX | HARDWARE TRENDS 2017 | PAGE 39
STARTUPS ARE BOOMING
0
150
300
450
600
2012 2013 2014 2015 2016 2017
EXHIBITOR BOOTHS IN EUREKA PARK
(EARLY STAGE STARTUP ZONE)
CES2017:
APROXYFOR
HARDWARE
INNOVATION

40.
HAX | HARDWARE TRENDS 2017 | PAGE 40
02/
03/
04/
01/
FRENCH PRESIDENT EMMANUEL MACRON
AT THE OPENING OF STATION F
THE WORLD'S LARGEST INCUBATOR,
WITH 1,000 STARTUP
PROJECT FINANCED BY FRENCH TECH
BILLIONAIRE XAVIER NIEL FOR $280M
HOW FRANCE BECAME
A TECH POWERHOUSE
WITH “FRENCH TECH”
IN LESS THAN 5 YEARS!
ENTREPRENEURS LEAD
INVEST IN & SUPPORT ECOSYSTEM
HARDWARE CHAMPIONS
SIGFOX, DEVIALET, ETC.
‘FRENCH TECH’
GLOBAL BRANDING EFFORT
CORPORATES OPEN UP
WELCOME STARTUP TALENT
HAX | HARDWARE TRENDS 2017 | PAGE 40

41.
HAX | HARDWARE TRENDS 2017 | PAGE 41
BANGALORE, LONDON
PARIS, TEL AVIV
SF, NYC
OFFLINE
HARDWARE
COMMUNITIES
KEEPGROWING
APPLIEDSINGULARITY
IOTLONDON
SFHARDWARE
IOTPARIS
SFIOT
IOTCENTRALNYC
HARDWIREDNYC
IOTISRAEL
NYCHWSTARTUP
IOTSF/SV
11,757
10,720
6,657
5,942
5,941
5,596
5,481
4,799
4,373
3,421
Jun 2017
Jun 2016
Mar 2015
MEMBERSHIP OF THE WORLD’S TOP 10 HARDWARE/IOT MEETUPS

42.
HAX | HARDWARE TRENDS 2017 | PAGE 42
ONLINE
HARDWARE
RESOURCES
MULTIPLY
POPULAR ONLINE
RESOURCES ON
HARDWARE
HACKSTER.IO
COMMUNITY OF 200,000 HARDWARE LEARNERS,
ENGINEERS & MAKERS (65% PRO, 35% HOBBYIST).
ACQUIRED BY AVNET.
MAKE
DIY PROJECTS AND IDEAS FOR MAKERS
FICTIV
ONLINE 3D PRINTING & CNC MACHINING SERVICES
SILICON VALLEY ROBOTICS
INFORMATION AND EVENTS
ON THE LATEST IN ROBOTICS
HACKADAY
NEWS AND HACKS ABOUT HARDWARE
HARDWARE TREK
COLLABORATIVE PLATFORM FOR HARDWARE
INNOVATION
HARDWARE MASSIVE
GLOBAL COMMUNITY PLATFORM FOR HARDWARE
STARTUPS

43.
HAX | HARDWARE TRENDS 2017 | PAGE 43
DEFENDING
INNOVATION
WITHDATA
&MORE
HAX | HARDWARE TRENDS 2017 | PAGE 43

44.
HAX | HARDWARE TRENDS 2017 | PAGE 44
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
“HARDWARE:
DATAACQUISITION
TOOLFORA.I.
Hardware can be
a data acquisition
strategy for A.I. companies.”
“Private data gives
a competitive advantage
over public datasets.”
NILS MATTISSON, CEO, MINUT
CAMERA-FREE HOME SECURITY
HAX | HARDWARE TRENDS 2017 | PAGE 44

45.
HAX | HARDWARE TRENDS 2017 | PAGE 45
DEALINGWITH
COPYCATS
SOFTWARE
OFTEN THE STRONGEST DEFENSE
TRADEMARK
A SIMPLE & COST-EFFECTIVE PROTECTION
PATENTS
COSTLY & HARD TO DEFEND AT FIRST, USEFUL LATER
CERTIFICATIONS
GIVES A STRONG LEAD IN AN AREA. ESPECIALLY FDA.
DATA
A STRONG EDGE OVER PUBLIC DATA SOURCES
COMMUNITY
CONTRIBUTE FAME, DATA OR CODE
REPUTATION
A LONG-TERM DIFFERENTIATOR
HAX | HARDWARE TRENDS 2017 | PAGE 45

46.
HAX | HARDWARE TRENDS 2017 | PAGE 46
It's easy to copy hardware.
It's hard to copy software.”
“Building a strong brand,
acquiring an audience early,
patents can also help defend
against copycats.”
Alex Neskin
Cofounder, Petcube
Smart Devices For Pets
“
HAX | HARDWARE TRENDS 2017 | PAGE 46

47.
HAX | HARDWARE TRENDS 2017 | PAGE 47
MAR 2017 - CLOUDPETS
CONNECTED BEAR LEAKED
KIDS’S RECORDINGS +
INFO OF HUNDREDS OF
THOUSANDS
OF CUSTOMERS.
SEP 2016 - MIRAI BOTNET
ATTACKS VIA MILLIONS OF
IOT DEVICES. 80% WERE
DVRS AND WEBCAMS STILL
USING FACTORY-SET
PASSWORDS.
2015 - CHRYSLER
HACK TRIGGERS
RECALL OF
1.4M VEHICLES
JUN 2016 - INSULIN PUMP
VULNERABILITIES LEAD
TO WARNING OF
114,000 PATIENTS
JUN 2017 - 30,000
SMART FRIDGES
INFECTED BY THE
PIED PIPER VIRUS
HACKERSTHREATEN
YOURCAR,YOURHOME…
ANDYOURINSULINPUMP

48.
HAX | HARDWARE TRENDS 2017 | PAGE 48
TECH
HELL?
OUR
FUTURE
HACKERS CONTROLLING
OUR DEVICES AND RANSOMING
WITH CRYPTOCURRENCIES?
HAX | HARDWARE TRENDS 2017 | PAGE 48

49.
HAX | HARDWARE TRENDS 2017 | PAGE 49
INSURERS & IOT

50.
HAX | HARDWARE TRENDS 2017 | PAGE 50
NILS MATTISSON / CEO, MINUT
CAMERA-FREE HOME SECURITY
“
CONNECTEDDEVICES
ATTRACTINSURERS
All major insurers look at IoT.
The focus is mostly on prevention of damages
(and thereby increased margins) rather than
precise pricing»
HAX | HARDWARE TRENDS 2017 | PAGE 50

51.
HAX | HARDWARE TRENDS 2017 | PAGE 51
DIFFERENT
MOTIVATIONS
EXPLORATION OF
BUSINESS MODELS
PREVENTION
AVOID DAMAGES
PRECISION
TAILOR TO NEEDS
PROOF
VERIFY CLAIM
GIVEAWAYS
DISCOUNTS
RENTAL
USAGE-BASED
CONNECTED
DEVICES
ATTRACT
INSURERS
HAX | HARDWARE TRENDS 2017 | PAGE 51

52.
HAX | HARDWARE TRENDS 2017 | PAGE 52
USAGE-BASED
CAR INSURANCE
PROGRESSIVE
USES OBD SYSTEM
BY ZUBIE
SMOKE ALARM
FOR FREE
LIBERTY MUTUAL
FREE NEST PROTECT,
AND 5% POLICY REBATE
HOME SECURITY
DISCOUNT
AMERICAN FAMILY
$30 OFF THE RING
SMART DOOR BELL,
AND POLICY REBATES
SMART TOOTHBRUSH
FOR FREE + USAGE-
BASED REBATES
BEAM DENTAL
FOR THE ENTIRE FAMILY,
OFFERS USAGE-BASED
REBATES
SOURCE: INTERNET OF BUSINESS
ACTIVITY TRACKER
FOR FREE
JOHN HANCOCK
WANTS CUSTOMERS TO
STAY HEALTHY
CONNECTEDDEVICES
ATTRACTINSURERS

53.
HAX | HARDWARE TRENDS 2017 | PAGE 53
2015
SMART TOOTHBRUSH
2016
. INSURANCE PLANS
. FLOSS, TOOTHPASTE
SUBSCRIPTION
. FIND & RATE
DENTISTS
THE BIRTH OF PURE
IOT-POWERED
INSURERS?
IOT:
TROJANHORSE
FORINSURANCE
…ANDMORE

54.
HAX | HARDWARE TRENDS 2017 | PAGE 54
FUTURE
OPPORTUNITIES
FORINSURANCE
01/ SELF-DRIVING VEHICLES
02/ SHARING ECONOMY
03/ SMART HOME
04/ HOME ENERGY STORAGE SOLUTIONS
HAX | HARDWARE TRENDS 2017 | PAGE 54

55.
HAX | HARDWARE TRENDS 2017 | PAGE 55
WHERETOBUILD A
HARDWARESTARTUP?
THE WORLD OF HARDWARE
RESOURCES IS NOT FLAT
HAX | HARDWARE TRENDS 2017 | PAGE 55

56.
HAX | HARDWARE TRENDS 2017 | PAGE 56
ISSILICON
VALLEY
HOSTILEFOR
EARLYSTAGE
STARTUPS?
HIGH SALARIES & COST
OF LIVING, RECRUITING
DIFFICULTIES & LOW
RETENTION MAKE IT HARDER
“It's easier to start a company
outside the Valley than in it.”
SERGEY BRIN
PRESIDENT, ALPHABET
CO-FOUNDER, GOOGLE
“

57.
HAX | HARDWARE TRENDS 2017 | PAGE 57
NON-VALLEY
LOCATIONSCAN
HAVENOTABLE
ADVANTAGES
LOWER RENTS, SALARIES,
EASIER HIRING AND TAX
ADVANTAGES CREATE
ARBITRAGE OPPORTUNITIES
STARTING ABROAD
CANADA: UP TO 35% TAX CREDIT ON R&D
FRANCE: 30% TAX CREDIT ON R&D
AUSTRALIA: UP TO 43.5% TAX CREDIT ON R&D
STARTING RURAL
SPRITE ROBOTICS RAN A YEAR
WITH $1,000/FOUNDER/MONTH
IN CHAMPAIGN, ILLINOIS.
HIRED MSC & PHDS FROM
UNIVERSITY OF ILLINOIS. Singapore, Malaysia, China, Hong Kong
also offer various advantages to startups
HAX | HARDWARE TRENDS 2017 | PAGE 57

58.
HAX | HARDWARE TRENDS 2017 | PAGE 58
ISSILICON
VALLEY
SUITABLEFOR
HARDWARE
STARTUPS?
COSTS, KNOW-HOW AND
LACK OF SUPPLY CHAIN
ADD TO THE CHALLENGE
“Founders should seek
world-class resources.
Their R&D, prototyping,
production, financing
and sales could take place
in five different locations.
For hardware, prototyping
and production often mean
Shenzhen.”
BENJAMIN JOFFE
PARTNER, HAX
“
HAX | HARDWARE TRENDS 2017 | PAGE 58

59.
HAX | HARDWARE TRENDS 2017 | PAGE 59
CONSUMER
DEVICES
02/
HAX | HARDWARE TRENDS 2017 | PAGE 59

60.
HAX | HARDWARE TRENDS 2017 | PAGE 60
PRODUCTS
MORE SCIENCE & SOFTWARE FOR
DIFFERENTIATION & DEFENSIBILITY
CROWDFUNDING
STILL PATH OF CHOICE TO LAUNCH
CONSUMER HARDWARE
INVESTORS
OFTEN WAIT FOR PROOF OF DEMAND
& SALES. MOVING TO B2B
DISTRIBUTION
RETAILERS GET SAVVY, DEDICATE
BUYERS & SHELVES
CONSUMERS MATURING
QUESTION UTILITY, COMPATIBILITY,
DRMS, OBSOLESCENCE
NEW BUSINESS MODELS
CONSUMABLES, SUBSCRIPTION.
SELLING DATA UNPROVEN
TRENDS
IN CONSUMER
TECH
EXPLOSION
IN VARIETY & COMPLEXITY

61.
HAX | HARDWARE TRENDS 2017 | PAGE 61
WEARABLES
GO HIGH TECH OR DIE?
HAX | HARDWARE TRENDS 2017 | PAGE 61

62.
HAX | HARDWARE TRENDS 2017 | PAGE 62
SMART
DEVICE
FEVER
COOLING
DOWN
Startups like Hello and Fitbit sold investors
on hardware as a data pool, but failed to
deliver. It's hard to find a model that
investors like.”
“Negotiations with manufacturer are
tough, and retailers are more careful in
terms of sales in.”
“More positive, tools to make decisions
with data for product and marketing have
multiplied.”
INVESTORS,
MANUFACTURERS,
RETAILERS
ARE MORE CAUTIOUS
CLEMENT PERROT,
CEO, PRYNT
TURNS PHONES INTO
INSTANT CAMERAS
“
HAX | HARDWARE TRENDS 2017 | PAGE 62

63.
HAX | HARDWARE TRENDS 2017 | PAGE 63
DEATHOF
WEARABLES:
VASTLY
EXAGGERATED?
INVESTMENT SHIFTS
FROM WELLNESS
TO MEDICAL-GRADE DEVICES

64.
HAX | HARDWARE TRENDS 2017 | PAGE 64
THE FIRST
GENERATION
OF SMART WATCHES
AND BANDS IS ‘DONE’
THE WINNERS ARE
APPLE, FITBIT, SAMSUNG
AND… XIAOMI WITH
ITS LOW-COST BANDS
HAX | HARDWARE TRENDS 2017 | PAGE 64

65.
HAX | HARDWARE TRENDS 2017 | PAGE 65
FITBIT
IPO
MISFIT
ACQ. BY FOSSIL
$260M
WITHINGS
ACQ. BY NOKIA
$190M
PEBBLE
ACQ. BY FITBIT
$23M
BASIS
ACQ. BY INTEL
$100M
THE FIRST GENERATION OF
SMART WATCHES & BANDS
IS ‘DONE’
NO MAJOR INDEPENDENT PLAYER LEFT
HAX | HARDWARE TRENDS 2017 | PAGE 65

66.
HAX | HARDWARE TRENDS 2017 | PAGE 66
PRODUCT
REINVENTION
WITH
DEEP TECH
01/
02/
03/
04/
05/
CONNECTED
SMART
PERSONALIZED
SPECIALIZED
INTELLIGENT
FROM CONNECTED TO INTELLIGENT

67.
HAX | HARDWARE TRENDS 2017 | PAGE 67
RE-INVENTION
WITH DEEP TECH
EXAMPLE:
AUDIO
PRODUCTS
PRODUCT DESCRIPTION IMPROVEMENT TECHNOLOGY FIELD
APPLE AIRPODS FULL WIRELESS EARPHONES CONNECTED TELECOM
BRAGI FULL WIRELESS AUDIO CONNECTED TELECOM
HERE AUGMENTED AURAL REALITY’ INTELLIGENT SIGNAL PROCESSING
KOKOON HEADPHONES FOR SLEEP SPECIALIZED NEUROSCIENCE + ML
MINDSET HEADPHONES FOR FOCUS SPECIALIZED NEUROSCIENCE + ML
NURA AUTO-TUNING HEADPHONES PERSONALIZED BIOLOGY + SIGNAL PROCESSING
REVOLS CUSTOM-FIT EARPHONES PERSONALIZED MATERIALS SCIENCE

68.
HAX | HARDWARE TRENDS 2017 | PAGE 68
ORENDA’S COFFEE MACHINE
CAN ANALYSE YOUR TASTE
RAISED $157.5M
REVOLS CUSTOM FIT EARPHONES
RAISED $2.5M ON KS
NURA’S HEADPHONES
TUNE TO YOUR HEARING
RAISED $5M + $1.8M KS
SENSING, SOFTWARE & MATERIALS
AFTER-MARKET CUSTOM-FIT
USER PREFERENCE DATA
DRIVES MORE REVENUE
BETTER LTV FROM CUSTOMERS
01/
02/AFTER-MARKET CUSTOMIZATION
SOLVES BESPOKE PRODUCTION
PERSONALIZED
IS THE NEW NORMAL
HAX | HARDWARE TRENDS 2017 | PAGE 68

69.
HAX | HARDWARE TRENDS 2017 | PAGE 69
SMART
HOME
DEVICE DIVERGENCE
BEFORE CONVERGENCE?
HAX | HARDWARE TRENDS 2017 | PAGE 69

70.
HAX | HARDWARE TRENDS 2017 | PAGE 70
SINGLE-
PURPOSE
DEVICES
DOMINATE
SMART PLATFORMS
ARE LAGGING Kate Whitcomb
Program Director
HAX Growth
Consumer hits today
are all single-purpose products,
not part of a suite.”“

71.
HAX | HARDWARE TRENDS 2017 | PAGE 71
EVERYTHING IS SMART BUT STANDARDS LAG
SMART
HOME
WILL VOICE LIKE ALEXA
BECOME THE NEW HUB
FOR THE HOME?
HAX | HARDWARE TRENDS 2017 | PAGE 71

72.
HAX | HARDWARE TRENDS 2017 | PAGE 72
VOICEASSISTANTS
WILL VOICE TIE UP ALL SMART DEVICES?
HAX | HARDWARE TRENDS 2017 | PAGE 72

73.
HAX | HARDWARE TRENDS 2017 | PAGE 73
VOICEASSISTANTS
AREBOOMING
AMAZON ECHO, TAP, DOT,
SHOW, REMOTE & DASH WAND
APPLE HOMEPOD GOOGLE HOME
INVOKE BY HARMAN/KARDON
WITH MICROSOFT CORTANA
TODAY
AMAZON Alexa
APPLE Siri
GOOGLE Assistant
MICROSOFT Cortana
SAMSUNG Viv
ALIBABA Genie
BAIDU Little fish
TENCENT Xiaowei
AMAZON LEADS WITH
OVER 15M UNITS SOLD
NEXT
SONY?
NINTENDO?
XIAOMI?
HAX | HARDWARE TRENDS 2017 | PAGE 73

74.
HAX | HARDWARE TRENDS 2017 | PAGE 74
NEST
THERMOSTAT
PHILIPS HUE
LIGHT
ECOBEE
SWITCH
BELKIN
OUTLET
KEEN
VENT
SAMSUNG
HUB
AUGUST
LOCK
RING
VIDEO DOOR BELL
FITBIT
FITNESS TRACKER
DROPCAM
CAMERA
HYDRAO
SHOWER HEAD
SAMSUNG
ROBOTIC VACUUM
DEVICES
COMPATIBLE
WITH ALEXA
VOICE SERVICES
MULTIPLY
FROM APPS TO VOICE:
A NEW PLATFORM
WILL IT HELP
SMART DEVICES
TAKE OFF?

75.
HAX | HARDWARE TRENDS 2017 | PAGE 75
HUAWEI MATE 9 PHONE HTC U11 PHONE LG FRIDGE
C BY GE SOL
LIGHT
‘NATIVE’
ALEXA APP
SPREADS
TOO
BRANDS ADD
THE ALEXA APP
INTO PRODUCTS
DASHBOT BY NEXT THING CO.
CAR ASSISTANT
FORD
CAR ASSISTANT

76.
HAX | HARDWARE TRENDS 2017 | PAGE 76
DESIRE
FOR QUALITY
PRO-LEVEL RESULTS
AT HOME
LOOKING FOR
RECURRING REVENUE
WITH CONSUMABLES &
SUBSCRIPTIONS
01/ 02/
KITCHEN
TECH
PROFESSIONAL
PREPARATION AT HOME

77.
HAX | HARDWARE TRENDS 2017 | PAGE 77
KITCHEN
TECH
JUICERO
COLD-PRESS JUICER
RAISED $118.5M
BARTESIAN
COCKTAIL MACHINE
INVESTED BY BEAM SUNTORY
ORENDA
HOME BARISTA
NOMIKU
SOUS-VIDE CIRCULATOR
INVESTED BY SAMSUNG

78.
HAX | HARDWARE TRENDS 2017 | PAGE 78
PHOTO: BLOOMBERG
JUICERO & PR
How A Dream For Investors
Turned Into A PR Nightmare
A DREAM PITCH FOR INVESTORS
COMBINE HIGH-TECH & CONSUMABLES
OVERSPEC FOR THE JOB?
HAND-SQUEEZE IS ENOUGH
BACKLASH ON “DRM ON VEGS”
DOUBLE LOCK-IN:
CONSUMABLES & CONNECTIVITY
EVENTUALLY
BUSINESS MIGHT BE SOUND, BUT PR WAS BAD
TIME WILL TELL IF JUICERO TURNS IT AROUND
01/
02/
03/
04/

79.
HAX | HARDWARE TRENDS 2017 | PAGE 79
CLICK AND GROW -
HERBS & WALL FARM
RAISED $6.3M
LIVIN FARMS
EDIBLE INSECT FARM
FOR CLEAN PROTEIN
GROWING… INTEREST
HERBS, FOOD & MORE
MOTIVATIONS VARY
SELF-SUFFICIENCY,
SUSTAINABILITY, EDUCATION...
01/
02/
HOME FARMING
GROWING FOOD EASILY
SAVING THE PLANET?

80.
HAX | HARDWARE TRENDS 2017 | PAGE 80
TOYS,
STEAM
&FAMILY
TECH

81.
HAX | HARDWARE TRENDS 2017 | PAGE 81
LITTLEBITS = LEARN
ELECTRONICS
RAISED $62M
MAKEBLOCK
LEARN ROBOTICS
RAISED $36M
OSMO
EDUCATION GAMES
RAISED $38.5M
STEAM
TECH
To Learn
& Play

82.
HAX | HARDWARE TRENDS 2017 | PAGE 82
ELECTRONICTOYSGETSMARTER
WITHONBOARDCOMPUTERS
COZMO BY ANKI
A.I. ROBOT RAISED $157.5M
SPARK BY DJI
CONSUMER DRONE WITH GESTURE CONTROLS
RAISED $105M

83.
HAX | HARDWARE TRENDS 2017 | PAGE 83
SPORT
TECH
FROM TRACKERS
TO COACH WARE

84.
HAX | HARDWARE TRENDS 2017 | PAGE 84
PELOTON
BIKES + VIDEO
COACHING
RAISED $444M
CARV
SKI SENSORS
AND AUDIO COACHING
TRAINERBOT
PINGPONG ROBOT
WITH VIDEO DRILLS
& COMMUNITY
SPORTS
TECHGETS
SPECIALIZED
WITH REAL-TIME
VIDEO, AUDIO
& ROBOT COACHING

85.
HAX | HARDWARE TRENDS 2017 | PAGE 85
AR
A LITTLE
OVER-HYPED?
VR&

86.
HAX | HARDWARE TRENDS 2017 | PAGE 86
01/
02/
03/
CHALLENGES
CPU
BATTERY LIFE
INSIDE-OUT TRACKING
…AND ‘KILLER APPS’
VIRTUAL
REALITY:
TOWARD
STANDALONE

87.
HAX | HARDWARE TRENDS 2017 | PAGE 87
SONICAM USES
64 MICROPHONES
FOR 3D SOUND RECORDING
VIRTUAL
REALITY:
BRIDGINGTHE
CONTENT
GAP
3D CAMERAS WITH
3D SOUND OFFER
IMMERSIVE CONTENT

88.
HAX | HARDWARE TRENDS 2017 | PAGE 88
FOVE ADDS
EYE-TRACKING
TO VR CONTROL
APPLE ACQUIRED EYE-TRACKING
COMPANY SENSOMOTORIC
INSTRUMENTS IN JUNE 2017
FOVEATED DISPLAY BY VARJO
HIGH RESOLUTION IN AREA GAZED AT
STANDARD DISPLAY
VIRTUAL
REALITY:
EYETRACKING
&FOVEATED
DISPLAY

89.
HAX | HARDWARE TRENDS 2017 | PAGE 89
LEAP BRINGS
HAND GESTURES INTO VR
VIRTUALREALITY:
NATURALHAND
GESTURES

90.
HAX | HARDWARE TRENDS 2017 | PAGE 90
SPECTACLES BY SNAP
PHOTOS & SHORT VIDEOS
$130
VUE
‘EVERYDAY SMART GLASSES’
VOICE CONTROL, NOTIFICATIONS,
BONE CONDUCTION AUDIO
$199 PRE-ORDER
ALPHAGLASS
AR GLASSES WITH FULL-LENS DISPLAY,
BONE CONDUCTION AUDIO, ETC.
$899 PRE-ORDER
DISCREET,
PRACTICAL
SMART
GLASSES
SECOND
COMING

91.
HAX | HARDWARE TRENDS 2017 | PAGE 91
We are going to
make the camera
the first augmented
reality platform”
AUGMENTED
REALITY:
STARTINGWITH
SMARTPHONES?
TARGETS:
RECOGNIZE PEOPLE & OBJECTS,
ADD ANIMATED OBJECTS,
CREATE 3D SCENES
FROM 2D PHOTOS
MARK ZUCKERBERG,
CEO, FACEBOOK
“

92.
HAX | HARDWARE TRENDS 2017 | PAGE 92
MICROSOFT HOLOLENS
$3,000
ATHEER
AR GLASSES
FOR INDUSTRY
DAQRI
SMART HELMET & GLASSES
FOR INDUSTRY
AUGMENTEDREALITY:
DEVICESONLYFOR
BUSINESSSOFAR?

93.
HAX | HARDWARE TRENDS 2017 | PAGE 93
LOOKING GLASS
VOLUMETRIC DISPLAY
A.I. CHARACTER
HOLOGRAM
HOLOGRAPHIC
DISPLAYS
OR“REAL
VIRTUALITY”?
LATEST DEVELOPMENT
FOR TRUE 3D DISPLAYS

94.
HAX | HARDWARE TRENDS 2017 | PAGE 94
CONSUMER
ROBOTS
GROWING INTEREST
AND CAPABILITIES

95.
HAX | HARDWARE TRENDS 2017 | PAGE 95
DJIRULES
CONSUMER
DRONES
PARROT, YUNEEC DOWNSIZED
3DR ABANDONED HARDWARE
LILY ROBOTICS WENT BANKRUPT
GOPRO SUFFERED FROM DELAYS
SOURCE: GARTNER, 2017
0
1
2
3
4
Consumer Commercial
3.69
2.8
2.36
1.71
2016 2017
US$ BILLION

96.
HAX | HARDWARE TRENDS 2017 | PAGE 96
ROBOTS
TAKEOVER
THEHOME
2016
2022
SOURCE: TRACTICA, 2017
MARKET:
UNITS:
$3.6B
10M
MARKET:
UNITS:
$13B
50M

97.
HAX | HARDWARE TRENDS 2017 | PAGE 97
IROBOT
SOLD OVER 15M ROBOTS
CHINA’S ECOVACS
CLAIMS 65% OF LOCAL MARKET.
FILED FOR IPO IN SHANGHAI
SWEDEN’S HUSQVARNA
SOLD OVER 1M ROBOT
LAWNMOWERS
01/
02/
ROBOTS COVER BASIC TASKS
INTELLIGENCE IS RISING
ROOMBA MAKER
AT AN ALL-TIME HIGH.
MARKET CAP = $2.5B (JUN 17, 2017)
THEFIRSTWAVE
OFCONSUMER
SERVICEROBOTS
ISMATURE

98.
HAX | HARDWARE TRENDS 2017 | PAGE 98
“Roomba, go clean
the kitchen floor!”
ROBOTSTOO
SIMPLE?
YOU CAN’T SAY (YET)

99.
HAX | HARDWARE TRENDS 2017 | PAGE 99
01/
02/
DEDICATED SHAPE
MORE (COST-)EFFECTIVE
THAN HUMANOIDS
CLOUD
ONBOARD CPU
LOW-COST SENSORS
ALLOW MAPPING,
ORIENTATION,
OBSTACLE AVOIDANCE
XIAOMI’S
ROBOT VACUUM
MAPS A HOME
NEXTWAVE:
CLOUDROBOTICS
&ONBOARD
COMPUTERS

100.
HAX | HARDWARE TRENDS 2017 | PAGE 100
PR2 ROBOT
BY WILLOW GARAGE
YEAR: 2011
COST: $400,000
BEETL
CLOUD ROBOT
YEAR: 2017
COST: $400
EXAMPLE:
DOG POOP
PICKER
FINDS TARGET
MAKES MAP
NAVIGATES
AVOIDS OBSTACLES
NOW 1,000X CHEAPER

101.
HAX | HARDWARE TRENDS 2017 | PAGE 101
PERSONAL
MOBILITY

102.
HAX | HARDWARE TRENDS 2017 | PAGE 102
CHINA IS POISED
TO DOMINATE
MOBILITY DEVICES
NINEBOT SOLD 1M UNITS
(JAN’16~JUN’07, 50% OVERSEAS)
XIAOMI RELEASED AN E-SCOOTER
HOVERBOARDS ARE SO 2016 :)

103.
HAX | HARDWARE TRENDS 2017 | PAGE 103
RETAIL&
CROWDFUNDING
ROUTE TO MARKET

104.
HAX | HARDWARE TRENDS 2017 | PAGE 104
Big box retailers now have
specialized buyers
for Family Tech who manage
dedicated shelves.
More products got on market,
and most kids and parents
seem to love them.”
SAM HICKMANN
CEO, JOY
KIDS WATCH FOR GOOD HABITS
“

105.
HAX | HARDWARE TRENDS 2017 | PAGE 105
FASTER
TO SCALE
DIFFERENTIATE VIA
UNIQUE VALUE PROPOSITION
ITERATIVE PROTOTYPING IN SHENZHEN
BUILD & ENGAGE COMMUNITY
VALIDATE VIA CROWDFUNDING
(VALUE PROP, PRICING, FEATURES, ETC.)
ENGAGE RETAIL BUYERS BEFORE SHIPPING
01/
02/
03/
04/
05/
OCTOPUS: KID WATCH FOR GOOD HABITS
FROM IDEA TO 1,500 TARGET STORES
IN 18 MONTHS
5 STEPS
TO SUCCESS

106.
HAX | HARDWARE TRENDS 2017 | PAGE 106
SELECTION OF HAX PRODUCTS ON AMAZON LAUNCHPAD
ONLINE RETAIL
IS MOSTLY…
AMAZON
AND AMAZON LAUNCHPAD
WELCOMES TECH
PRODUCTS

107.
HAX | HARDWARE TRENDS 2017 | PAGE 107
GOING
FROM ONLINE TO
BRICK-AND-MORTAR
IS A CHALLENGE
FOR MOST
STARTUPS NEED TO LEARN
THE PROCESSES, MARGINS
AND BUSINESS PRACTICES
OF RETAILERS

108.
HAX | HARDWARE TRENDS 2017 | PAGE 108
SMART DOORBELL
STARTUP RING
SCALES ITS STRATEGY
01/
02/
03/
FAST GROWTH
$209M FROM VC
THANKS TO STRONG SALES
BROADER VISION
FROM “NEVER MISS A VISITOR”
TO “SAFER NEIGHBORHOODS”
EXPLORING NEW MODELS
WITH INSURERS, ETC.

109.
HAX | HARDWARE TRENDS 2017 | PAGE 109
UPDATEON
CROWDFUNDING
ECOSYSTEM MATURING

110.
HAX | HARDWARE TRENDS 2017 | PAGE 110
THIRD PARTY
WHITE LABEL
SELF-HOSTED
CROWDFUNDING,
PRE-SALES
&AMAZON
MADEPRODUCTS
FASTER
TO“PROVE”
Crowdfunding
Pre-sales
1
2
3 Online retail

111.
HAX | HARDWARE TRENDS 2017 | PAGE 111
PRODUCT IN BETA
= ENOUGH TIME
FOR CHANGES
REPEAT BACKERS
KNOW THE RISKS
CROWDFUNDING
REMAINSTHEBEST
POSSIBLEFEEDBACK
THATYOUCANGET
BACKERS ARE
REAL CUSTOMERS

112.
HAX | HARDWARE TRENDS 2017 | PAGE 112
MOUSR
SMART CAT TOY
INTERVIEWED EVERY
BACKER
TRAINERBOT
PING-PONG ROBOT
YOUTUBE
COMMUNITIES
GUIDED SPECS
FLICKTEK
GESTURE-BASED
CONTROLLER
FULL RE-DESIGN
FROM FEEDBACK
VOLTERA
CIRCUIT BOARD
PRINTER
BACKERS HELPED
BETA-TEST
HOW HAX STARTUPS
USED FEEDBACK

113.
HAX | HARDWARE TRENDS 2017 | PAGE 113
100 PROJECTS 30 PROJECTS 11 PROJECTS
SOURCE: HAX EVALUATION BASED ON
KICKSTARTER & INDIEGOGO DATA
FOCUS ON HIGH-PROFILE FAILURES
HIDES THE BIGGER PICTURE
TRIVIA: 11 HAX STARTUPS RAISED
OVER $1M ON KICKSTARTER
MILLION-DOLLARPROJECTS
CONNECTEDHARDWARE
CAMPAIGNSMOSTLYSHIPPED

114.
HAX | HARDWARE TRENDS 2017 | PAGE 114
LILY ROBOTICS | SELFIE DRONE
$15M FROM VCS
$34M PRE-ORDERS
BANKRUPT
HELLO SENSE | SLEEP TRACKER
$40M FROM VCS
$2.4M ON KICKSTARTER
BANKRUPT
PEBBLE | SMART WATCHES
$15M FROM VCS
$30M ON KICKSTARTER
ACQUIRED (FITBIT) FOR $23M
SKULLY | AR BIKE HELMET
$12.5M FROM VCS
$2.5M ON INDIEGOGO
BANKRUPT
HIGH-PROFILE
FAILURESWERE
VCBACKED

115.
HAX | HARDWARE TRENDS 2017 | PAGE 115
TEAM COST TIME
PERCEPTION
(ESTIMATE)
10 $2M 4YEARS
REALITY
(2017)
2
$100KVC
+$250KKS
18MONTHS
MAKINGHARDWARE
FASTER&FORLESS
ALEX &
HARRISON CHEN
CO-FOUNDERS
FORBES ASIA 30
UNDER 30
E.G. PING-PONG ROBOT

116.
HAX | HARDWARE TRENDS 2017 | PAGE 116
1. The tech level is going up
2. Know your tech, costs & factory before launch
3. The best page from 2015 is today’s minimum
4. Journalists want to see proof
5. Viral videos are the new black
6. Advertising works once you have momentum
7. Build a community
8. It's a full-time job
9. You can’t predict a $1M result
10. The result doesn’t determine your future
WHAT IS SUCCESS?
A. SHIPPING A GOOD PRODUCT
B. BUILDING A PROFITABLE BUSINESS
HAX CROWDFUNDING GUIDE 2017
WWW.SLIDESHARE.COM/HAXCO
10LESSONS
FROM>80CAMPAIGNS
BYHAXSTARTUPS

117.
HAX | HARDWARE TRENDS 2017 | PAGE 117
WHY
PROJECTS
GETDELAYED
Major problems during DFM/DFA
Major problems during beta testing
1
2
3 Stacking of frequent minor problems
Converting a design to a scalable supply chain.
A good DFM/DFA process mitigates a lot of the
problems that can arise with metals, plastics, fabrics,
digital electronics, Bluetooth, etc.
Major problems delay by months.
Many minor ones (long certifications, negative tests,
plastic color problems, etc.) delay by weeks. Being on-
site saves time.
Source: Kickstarter research by Mindset, 2017

118.
HAX | HARDWARE TRENDS 2017 | PAGE 118
SOLVE
PROBLEMS
FASTER
INCHINA JACOB FLOOD
COFOUNDER, MINDSET
HEADPHONES FOR CONCENTRATION
“ When you're in China, you only need
short discussions to fix small issues.
The time saved on back and forth
can avoid months of delays.”

119.
HAX | HARDWARE TRENDS 2017 | PAGE 119
KICKSTARTER SUCCESS
JASEN WANG, CEO
A MAKER WITH PASSION
FOR EDUCATION
450 STAFF,
GLOBAL SALES…
FROM SHENZHEN
MAKEBLOCK
STEM
ROBOTS
01/
02/
03/
HUMBLE BEGINNINGS
SOLO FOUNDER
LIMITED ENGLISH
RAISED $185,000 IN 2012
FAST GROWTH
400 STAFF, $MILLIONS
IN SALES,
RAISED $36M FROM VCS
INCLUDING SEQUOIA
CHINA
KICKSTARTER FANS
LAUNCHED 6 PRODUCTS
FOR MARKET
VALIDATION
DRONES, ELECTRONCIS
& MORE

120.
HAX | HARDWARE TRENDS 2017 | PAGE 120
HEALTH
TECH
BEYOND TRACKING,
TOWARD PREVENTION
AND HEALING
MEDICAL
DEVICES
REGULATED
CONSUMER
HEALTH
NON REGULATED
03/
HAX | HARDWARE TRENDS 2017 | PAGE 120

121.
HAX | HARDWARE TRENDS 2017 | PAGE 121
We have the opportunity
to make the generation born now
the healthiest in history.”
‘GENERATION
HEALTH’
IS COMING
ALEX GORSKY
CEO, JOHNSON & JOHNSON
“
HAX | HARDWARE TRENDS 2017 | PAGE 121

122.
TODAY
TOMORROW
HEALTH IS BINARY
HEALTH CARE IS SICK CARE
YEARLY CHECK-UPS
BLANKET TREATMENT
WELLNESS IS A SPECTRUM
P4 MEDICINE
REAL-TIME DATA
CLINICAL STUDY OF ONE
HAX | HARDWARE TRENDS 2017 | PAGE 122

123.
HAX | HARDWARE TRENDS 2017 | PAGE 123
/ 02
/ 03
/ 04
4p PREDICTIVE
ANTICIPATE
/ 01
PREVENTIVE
AVOID ONSET
MEDICINE
WITHDATA
FROMDEVICES PERSONALIZED
TO EACH PATIENT
PARTICIPATORY
CONTRIBUTE DATA

124.
HAX | HARDWARE TRENDS 2017 | PAGE 124
DIGITAL
THERAPIES
THENEW
PHARMA?
SANA SLEEP MASK
REPLACES SLEEPING PILLS
NEUTROGENA LIGHT MASK
IS A NEW ACNE TREATMENT
HAX | HARDWARE TRENDS 2017 | PAGE 124

125.
A.INEEDS
HEALTHDATA
FROMDEVICES
YOUR A.I.
IS JUST AS GOOD
AS YOUR DATA
OPPORTUNITY
HAX | HARDWARE TRENDS 2017 | PAGE 125

126.
HAX | HARDWARE TRENDS 2017 | PAGE 126
PREVENT SICKNESS
OPTIMIZE WELLNESS
LONGER LIFE
GENETICIST MICHAEL SNYDER
WEARS SEVEN BIOSENSORS
HE DETECTED THE ONSET
OF LYME DISEASE ON HIMSELF
WELLNESS
AS-A-SERVICE
THE NEXT 10 YEARS:
HAX | HARDWARE TRENDS 2017 | PAGE 126

127.
HAX | HARDWARE TRENDS 2017 | PAGE 127
DATA
ISTHE
NEW
BLOOD
PRIVACY
CHALLENGES REMAIN
GATHERING OF DATA
A HUGE DATA MANAGEMENT ISSUE
PERSONALIZED OUTPUT
EXPLAINABLE FOR EACH CASE
INITIATIVES STARTING
E.G. IBM WATSON,
EUROPEAN OPEN SCIENCE CLOUD
NORMALIZATION
OF TIME IS A CHALLENGE
PRIVACY
DATA ANONYMIZING IMPRACTICAL
LEGISLATION ON USE NEEDED
HAX | HARDWARE TRENDS 2017 | PAGE 127

128.
HAX | HARDWARE TRENDS 2017 | PAGE 128
DUNCAN TURNER
MANAGING DIRECTOR
HAX SEED
Donating your data
might help more than
donating an organ”
“

129.
HAX | HARDWARE TRENDS 2017 | PAGE 129
60%
BEHAVIOR
& ENVIRONMENT
30%
GENETICS
10%
HEALTHCARE
BEHAVIOR
ISAKEY LONG TERM HEALTH
HAX | HARDWARE TRENDS 2017 | PAGE 129

130.
HAX | HARDWARE TRENDS 2017 | PAGE 130
TECHNOLOGY
IS A PROBLEM
TOO
DIGITAL ADDICTION,
BLUE LIGHT,
LOCAL WARMING
HAX | HARDWARE TRENDS 2017 | PAGE 130

131.
HAX | HARDWARE TRENDS 2017 | PAGE 131
TROJAN
HORSEFOR
HIGH-VALUE
DATA
NURA
DATA ON
HEARING CHANGES
RAY BABY
DATA ON BABY
BREATHING
CIRCADIA
DATA ON LIGHT INFLUENCE ON SLEEP
KOKOON
BRAIN DATA FOR
AUDIO THERAPY
MINDSET
DATA ON CONCENTRATION
HEALTHTECHDEVICES
HAX | HARDWARE TRENDS 2017 | PAGE 131

132.
HAX | HARDWARE TRENDS 2017 | PAGE 132
A.I. FOR DISEASE
PREVENTION
WILL BE DRIVEN
BY HARDWARE DATA
ALARGENUMBER
OFBLOODDIAGNOSTIC
DEVICESAREENTERING
THEMARKET
CRIAMTECH GEO-TAGS
DISEASE IDENTIFIED IN BLOOD
TO GIVE UP TO DATE INFO ON
POTENTIAL EPIDEMICS.
BBB PROVIDES HISTORICAL
TRACKING OF KEY MARKERS
IN THE BLOOD

133.
INVESTMENTREQUIRES ‘PROOF’
HAX | HARDWARE TRENDS 2017 | PAGE 133

134.
HAX | HARDWARE TRENDS 2017 | PAGE 134
INTEREST
INMEDICALDEVICESISUP
BUTDOWNINWELLNESS
PRE-FDA FUNDING GAP OFFERS OPPORTUNITIES
FDA/CE APPROVAL
REQUIRED FOR
“SERIOUS”DEVICES
PRE-APPROVAL FUNDING
LESS CROWDED
FOR INVESTORS
“WELLNESS” DEVICES
LOWER INTEREST FROM
INVESTORS / CONSUMERS?
HAX | HARDWARE TRENDS 2017 | PAGE 134

135.
HAX | HARDWARE TRENDS 2017 | PAGE 135
INVESTORS
WANT‘PROOF’
FORMEDICAL
DEVICES
Med-tech seed funding
is very hard to find; we raised from
tech and consumer investors.
It was tough due to regulatory risk:
everyone wants to see data first.
So get the data.
Nothing else really matters.”
You need ‘proof’. Research
studies and our scientific
expertise helped a lot. FDA
policies are not set for
behavioral health devices,
which makes it harder.”
GEORGE ELEFTHERIOU,
CEO, FEEL
EMOTIONS TRACKER
RICHARD HANBURY,
CEO, SANA
SLEEP INDUCING SMART MASK
“
“

136.
Investors have lots of interest in mental health
with clinical applications, much less in
‘wellness’ applications.”
Since there are no winners in the space yet,
it’s a big opportunity, but hard for
early stage startups.”
“
GEORGE ELEFTHERIOU
CEO, FEEL
EMOTIONS TRACKER
HAX | HARDWARE TRENDS 2017 | PAGE 136

137.
SOLVING FOR & BEYOND TRACKING
X
HAX | HARDWARE TRENDS 2017 | PAGE 137

138.
HAX | HARDWARE TRENDS 2017 | PAGE 138
FEEL
EMOTION SENSOR
RECOGNIZES JOY, SADNESS,
STRESS, DISTRESS, AND CONTENT
BERKELEY ULTRASOUND
FOCUSED ULTRASOUND
FOR BRAIN STIMULATION
TO TREAT DEPRESSION
FLOW NEUROSCIENCE
TRANS-CRANIAL DIRECT-CURRENT (TDCS)
FOR BRAIN STIMULATION
TO TREAT DEPRESSION
FROMTRACKING
TOTREATMENT
SOLVING FOR DEPRESSION
HAX | HARDWARE TRENDS 2017 | PAGE 138

139.
HAX | HARDWARE TRENDS 2017 | PAGE 139
LIEFTHERAPEUTICS
ANXIETYMONITOR
“We've chosen to do both
consumer and clinical devices.
Our practical way to do this was to use
Kickstarter for the consumer version,
then use the learnings for the clinical one”
LIEF TRACKS ANXIETY,
USES BIO-FEEDBACKTO TRAIN USERS
IT RAISED $400,000 ON KICKSTARTER
MAP HEALTH MANAGEMENT TEAMED UP WITH
LIEF THERAPEUTICS TO PILOT ANXIETY-MONITORING
WEARABLE IN ADDICTION RECOVERY PATIENTS
ROHAN DIXIT, CEO,
LIEF THERAPEUTICS
HAX | HARDWARE TRENDS 2017 | PAGE 139

140.
HAX | HARDWARE TRENDS 2017 | PAGE 140
FROMPREVENTIONTOREHABANDIMPLANTS
LUMO LIFT TRACKER
TRACKS POSTURE
JAPET BIONIC CORSET
RELIEVES PRESSURE ON SPINE
AND HELPS REHAB
SMARTFUSE SMART CAGE
INCREASES THE SUCCESS RATE
OF SPINAL FUSIONS SURGERIES
SOLVING FOR BACK PAIN
HAX | HARDWARE TRENDS 2017 | PAGE 140

141.
SANA
INDUCES SLEEP WITHIN MINUTES
USING LIGHT AND SOUND, BRAINWAVE
MONITORS & MACHINE LEARNING
CIRCADIA
POWERS LIGHT THERAPY WITH SLEEP
DATA FROM RADAR TECHNOLOGY AND
MACHINE LEARNING
MOONA
CONTROLS PILLOW TEMPERATURE
TO INDUCE AND DEEPEN SLEEP,
ADJUSTING WITH MACHINE LEARNING
DIGITAL
THERAPIES
&MACHINE
LEARNING
SOLVING FOR SLEEP
HAX | HARDWARE TRENDS 2017 | PAGE 141

142.
“SLEEPTECH
GOESMEDICAL
For generic, unproven products,
the sleep market is commoditized,
with no proof actually helping anyone.
We chose to go medical first,
prove with data, get FDA,
then go back to consumer,
with that proof as the differentiation”
RICHARD HANBURY, CEO, SANA
SLEEP-INDUCING SMART MASK
CONSUMER PRODUCTS
REACHED THEIR LIMIT?
HAX | HARDWARE TRENDS 2017 | PAGE 142

143.
HAX | HARDWARE TRENDS 2017 | PAGE 143
KEEN
GESTURE RECOGNITION,
BIOFEEDBACK AND MACHINE LEARNING
TO TREAT BODY-FOCUSED
REPETITIVE BEHAVIORS
D-FREE
ULTRASOUND DETECTION FOR
INCONTINENCE PREVENTION
RAISED $4.9M
FEETME
PRESSURE-TRACKING INSOLE
FOR DIABETIC FOOT, AND
INJURY PREVENTION FOR RUNNERS
AIRE
BREATHALYZER FOR DIGESTION
TESTING AND IBS PREVENTION
OTHER PREVENTION DEVICES
NEWDEVICES
PREVENTNUMEROUS
CONDITIONS
HAX | HARDWARE TRENDS 2017 | PAGE 143

144.
HAX | HARDWARE TRENDS 2017 | PAGE 144
INGESTIBLE
SENSORS
PROTEUS DIGITAL HEALTH
USES INGESTIBLE SENSORS
TO INCREASE MEDICATION ADHERENCE
AND IMPROVE OUTCOMES
TRACKING
FROM THE INSIDE
HAX | HARDWARE TRENDS 2017 | PAGE 144

145.
HAX | HARDWARE TRENDS 2017 | PAGE 145
SENSIO AIR
ALLERGEN TRACKER
MY UV PATCH BY L’OREAL
NOTE: MOST UV TRACKERS HAVEN’T
SHIPPED, OR ARE INEFFECTIVE.
POLLUTION,
ALLERGENS&UVS
O2O2
SMART POLLUTION MASK
SOLVING FOR ENVIRONMENT
AIR VISUAL
POLLUTION TRACKER
HAX | HARDWARE TRENDS 2017 | PAGE 145

146.
HAX | HARDWARE TRENDS 2017 | PAGE 146
market-in-2016/
REAL PROOF OF TREATMENT
EFFECTIVENESS CAN REQUIRE
MORE THAN FDA APPROVAL
IGROW, IRESTORE AND HAIR REPRO
LASER HAIR GROWTH HELMETS
LIGHT THERAPY
ACNE MASK
BY NEUTROGENA
GLOPRO NEEDLE
MICRO-NEEDLE & RED LED LIGHT
TO EXFOLIATE & BRIGHTEN THE SKIN
TRIA
LASER HAIR
REMOVAL
SOLVING FOR SKIN & HAIR
ANTI-AGING,
ACNE,HAIR
REMOVAL&
REGROWTH

147.
LOVELY
SEX TOY AND COACH
FOR COUPLES
UNDER-
WEARABLES
SOLVING FOR SEX
ELVIE
PELVIC FLOOR TRAINER
WITH KEGEL EXERCISES
HISENS
TRACKER FOR ERECTILE
DYSFUNCTION
HAX | HARDWARE TRENDS 2017 | PAGE 147

148.
TRACKINGFERTILITY
&PREGNANCY
BLOOM
PREGNANCY TRACKER
SOLVING FOR CONCEPTION
MOJO
MEDICAL-GRADE HOME TEST
FOR MALE FERTILITY
WINK BY KINDARA
FEMALE FERTILITY TRACKER
HAX | HARDWARE TRENDS 2017 | PAGE 148

149.
HAX | HARDWARE TRENDS 2017 | PAGE 149
EASING
THEEARLY
MONTHS
SOLVING FOR PRETERMS
BABYBE
REMOTE PRESENCE
FOR PRETERM BABIES
HUGSY
SMART BABY BLANKET

150.
RAY BABY
NON-CONTACT MONITOR
LILU
BREAST PUMPING BRA
MILK SAFE
HOME TEST FOR BREAST MILK
AND BABY FORMULA
EASING
THEEARLY
MONTHS
SOLVING FOR NURSING
HAX | HARDWARE TRENDS 2017 | PAGE 150

151.
HAX | HARDWARE TRENDS 2017 | PAGE 151
GLUCOSEMONITORS,
FROMLOWTOHIGHTECH
VERILY
AN ALPHABET SPIN-OFF, IS DEVELOPING
A GLUCOSE MONITOR WITH ALCON
PROFUSA
MAKES A GLUCOSE SENSOR TO
PLACE UNDER THE SKIN FOR
CONTINUOUS MONITORING
DIABETO
CONNECTS TO GLUCOSE MONITORS
FOR MANAGEMENT AND REMOTE
PATIENT MONITORING
SOLVING FOR DIABETES
HAX | HARDWARE TRENDS 2017 | PAGE 151

152.
HAX | HARDWARE TRENDS 2017 | PAGE 152
PLENTYMORE!
HAX | HARDWARE TRENDS 2017 | PAGE 152

153.
REWIRING THE PHYSICAL WORLD
WITH SENSORS AND ROBOTS,
CHANGING THE WAY WE MAKE
ENTERPRISE
ANDINDUSTRIAL04/
HAX | HARDWARE TRENDS 2017 | PAGE 153

154.
ENTERPRISES
FINDING
VALUABLEDATA
INDUSTRY PLAYERS
HAVE DIFFERENT PACES
ADOPTION SPEED MIGHT
SORT OUT WINNERS
HARDWARE-ENABLED
SOFTWARE
HARDWARE USED MOSTLY
FOR DATA COLLECTION
DATA IS THE NEW OIL
FOR ENTERPRISE
INSIGHTS BRING
NEW REVENUE
INDUSTRIAL IOT
OUTPACES CONSUMER IOT
MORE SENSORS IN
BUILDINGS & CARS
THAN HUMANS
WHERE IT HAS
NEVER EXISTED
HAX | HARDWARE TRENDS 2017 | PAGE 154

155.
“SCALE: one deal = convince one person/org to say
yes, instead of many in B2C. It’s simpler and cleaner.
ACQUISITION COSTS: invest time instead of money.
Fly once instead of sacrificing margin for each sale.
CHANGING LANDSCAPE: your product might have
better use cases or economics for business.
For instance, hotels and Airbnb operators showed
more interest than we expected.
GOING
FROMB2C
TOB2B
DANIEL MYERS
COFOUNDER, FLAIR
SMART VENTS
HAX | HARDWARE TRENDS 2017 | PAGE 155

156.
HAX | HARDWARE TRENDS 2017 | PAGE 156
BUILDING MANAGEMENT
LOGISTICS
RETAIL
TOPDATAGATHERINGENTERPRISES
RECENTLYDISCOVERINGNEWVALUE
MINING
UTILITIES
AGRICULTURE
HAX | HARDWARE TRENDS 2017 | PAGE 156

157.
FROM$3.8BILLIONIN2015
TO$10BILLIONBY2020
CONNECTED MINING MARKET:
REDUCE
PRODUCTION COSTS
ENHANCE
PRODUCTION EFFICIENCY
PROTECT
WORKERS
COMPUTER VISION SURVEYING, SENSING,
REMOTE-CONTROLLED ROBOTIC MACHINERY
HAX | HARDWARE TRENDS 2017 | PAGE 157

158.
TRUCKS DROVE
4 MILLION KILOMETERS
AUTONOMOUSLY
RIO TINTO USED HUNDREDS
OF CONNECTED SENSORS SINCE 2011
MONITOR, CONTROL, AUTOMATE
REMOVAL & PROCESSING OF ORE
WITH REAL-TIME R/C EQUIPMENT
FROM REMOTE CONTROL CENTERS.
MININGCOMPANIES
AMONGFIRSTMOVERS
INMASSDEPLOYMENT
OFINDUSTRIAL
IOTSENSORS
“WE JUST DIDN’T
KNOW THIS WAS
CALLED IOT.”
JOHN MCGAGH
HEAD OF INNOVATION
RIO TINTO
HAX | HARDWARE TRENDS 2017 | PAGE 158

159.
ELECTROMAGNETIC SENSING
FROM THE SURFACE,
TO OPTIMIZE DIGGING OPERATIONS
LIAR SCANS ROCK MECHANICS TO
MAXIMIZE ORE OUTPUT AND REDUCE
EXPLORATION TIME.
MOBILE SCANNING TOOL FOR
STRUCTURAL MAPPING FOR
TUNNELS, ROCKS AND ROADS
EXAMPLESOF
MINETECHSTARTUPS
HAX | HARDWARE TRENDS 2017 | PAGE 159

160.
ENERGY SAVING
GRID MANAGEMENT
EXTRA REVENUE
UTILITY
COMPANIES
SEEVALUE
INIOTSTART-UPS
HAX | HARDWARE TRENDS 2017 | PAGE 160

161.
CONNECTED
HOMETECH
HELPSUTILITY
COMPANIES
UTILITIES PAY OWNERS
$30-$50 / YEAR / NEST
TO LEVEL LOAD THE GRID.
VOLTCLOUD
VOLTSTORAGE USES
VANADIUM REDUX FLOW
FUEL CELLS FOR SAFE,
HIGH EFFICIENCY
& SMART STORAGE
VOLTSTORAGE SMART
GRID CAN RESPOND
TO NETWORK DEMAND
HAX | HARDWARE TRENDS 2017 | PAGE 161

162.
BREEZI
SMART MONITOR FOR
AC EFFICIENCY
ELECTRICITY
FOR RESIDENTIAL A/C
FLAIR
SMART AC USAGE
SAVINGSOF1-2%
INWIDE
ENERGYAREAS
ISMEANINGFUL
$29BN
HAX | HARDWARE TRENDS 2017 | PAGE 162

163.
“ Utilities are shifting to dynamic pricing, generation and usage and struggle
to keep up internally. Investing in solutions for demand response avoids the
need of ‘peaker plants’, and stabilizes the grid.
The AC industry doesn’t have the skillset for apps, cloud systems
and algorithms. This creates opportunities for startups.
For distribution, contractors can use our solution for thermal audits.
They can thus bill hours and recommend systems based on real data.”
DANIEL MYERS
COFOUNDER, FLAIR
SMART VENTS
HAX | HARDWARE TRENDS 2017 | PAGE 163

164.
HAX | HARDWARE TRENDS 2017 | PAGE 164
AGTECHNEEDED
TOBETTERFEED
AGROWING
POPULATION
LAND SHORTAGE
CALLS FOR
MORE INPUTS
& BETTER YIELD
HAX | HARDWARE TRENDS 2017 | PAGE 164

165.
RISINGFOODNEEDSREQUIRE
70%GROWTHINOUTPUT
BY2050
SOURCES OF GROWTH
IN GLOBAL AGRICULTURE
OUTPUT = TIME TO
IMPROVE PRODUCTIVITY
TOTAL OUTPUT GROWTH RATE
PRODUCTIVITY IMPROVEMENTS
MORE INPUTS PER AREA
EXPANSION OF IRRIGATION TO CROPLAND
EXPANSION OF AGRICULTURAL LAND
1961-70 1971-80 1981-90 1991-2000 2001-13
2.30
2.10 2.13
2.52
2.88
HAX | HARDWARE TRENDS 2017 | PAGE 165

166.
LIVESTOCKMONITORING
ISEXPECTEDTOCONTRIBUTE20%
OFTHEOVERALL80%PRODUCTIVITYGAINS
EXPECTEDINAGRICULTUREBETWEEN
2015AND2025
SOURCE:FROSTANDSULLIVAN
HAX | HARDWARE TRENDS 2017 | PAGE 166

167.
HAX | HARDWARE TRENDS 2017 | PAGE 167
CERES IMAGING RAISED $5MGAMAYA RAISED $4.3M
SENSINGTECHNOLOGY
BOOSTSPRODUCTIVITY
GARDENSPACE
HYPERSPECTRAL SENSORS
SIMPLE AND AFFORDABLE
BRING ACTIONABLE INFORMATION
TO FARMS AND GARDENS
HAX | HARDWARE TRENDS 2017 | PAGE 167

168.
PYCNO
SHIPPED 150 LOCATIONS
SECROP ROLLING OUT
ACROSS FRANCE
NUTRIENTNEEDS
REDUCEWASTE
&SAVERESOURCESEDYN IRRIGATES
BASED ON SOIL DATA
SENSORS INFORM HARVEST TIMES
HAX | HARDWARE TRENDS 2017 | PAGE 168

169.
FARMERS MAXIMIZE REVENUE, USING
LOW COST MOISTURE
AND SPOILAGE SENSORS
DISTRIBUTORS
PREDICTS VOLUMES
TRADERS
BUY/SELL COMMODITIES
SENSING CROP AFTER HARVEST
CREATES NEW ECONOMIES
AND NEW MARKETS
AMBER TECHNOLOGIES CROP SENSORS
SENSORS
FORCROPSILOS
HAX | HARDWARE TRENDS 2017 | PAGE 169

170.
HAX | HARDWARE TRENDS 2017 | PAGE 170
SENSORS CAN HELP TRACK, TRACE & PRESERVE GRAIN
LIKE CORN, SOYBEAN AND BARLEY.
FARMERS WANT TO KEEP THEIR DATA, BUT ALSO SEE THE
BENEFITS OF SHARING WITH THEIR BUYERS.
EVENTUALLY, IT WILL HELP AVOID SPOILAGE AND IMPROVE
FOOD TRACEABILITY”
LUCAS FRYE, COFOUNDER
AMBER TECHNOLOGIES
CROP SENSORS
“
HAX | HARDWARE TRENDS 2017 | PAGE 170

171.
HAX | HARDWARE TRENDS 2017 | PAGE 171
VERTICALFARMINGRECEIVED
MOSTAGTECHINVESTMENT
FOUNDED 2004
RAISED $90M
FOUNDED 2011
RAISED $58M
FOUNDED 2011
RAISED $12M
FOUNDED 2017
RAISED $28M
HAX | HARDWARE TRENDS 2017 | PAGE 171

172.
HAX | HARDWARE TRENDS 2017 | PAGE 172
“HOME SYSTEMS
ARE BECOMING LARGER
AND CAN GROW MORE PLANTS.
YET, MOST CAN STILL
ONLY GROW BASIC GREENS
AND HERBS.”
BJORN DAWSON
CEO, GROBO
HOME GROWING SYSTEM
HAX | HARDWARE TRENDS 2017 | PAGE 172

173.
HAX | HARDWARE TRENDS 2017 | PAGE 173
“ADULT CONTENT” OF URBAN FARMING
DRIVING IMPROVEMENTS & USER ADOPTION.
LEGALIZATION SPREADING
COUNTRIES + STATES IN NORTH AMERICA LEGALIZING.
INVESTMENT BOOM
IN PHARMA/BIOTECH & CULTIVATION.
CANNABISTECH
ISSETTOBOOM
IN2018
01/
02/
03/
THANKS TO BETTER GROWING SYSTEMS
& BROAD LEGALIZATION
HAX | HARDWARE TRENDS 2017 | PAGE 173

174.
PICKERS
PLANTERS
AGTECH
ROBOTS
ALLOWFOR
DENSECROP
SPACE
HAX | HARDWARE TRENDS 2017 | PAGE 174

175.
LOGISTICS
AUTOMATION
HAX | HARDWARE TRENDS 2017 | PAGE 175

176.
ROBOTS
AREJOINING
THEWORKFORCE
INDUSTRIAL REVOLUTION TRIVIA
HAND SPINNING WITH A WHEEL WOULD TAKE A WORKER
50,000 HOURS FOR 100 LB OF COTTON
BY THE 1790S, 100 LB COULD BE SPUN IN 300 HOURS BY MULE.
ONE WORKER WITH A SELF-ACTING MULE TOOK JUST 135 HOURS.
SOURCE: A SHORT HISTORY OF THE BRITISH INDUSTRIAL REVOLUTION
HAX | HARDWARE TRENDS 2017 | PAGE 176

177.
HAX | HARDWARE TRENDS 2017 | PAGE 177
SMARTER VERSION OF
CONSUMER DEVICES TO
OPTIMIZE TIME AND COSTS
LOGISTICS:
WAREHOUSES,
INVENTORY
SERVICES: SECURITY, ROOM
SERVICE, FLOOR & WINDOW
CLEANING, INVENTORY, ETC.
ROBOTS
AREJOINING
THEWORKFORCE
01/
02/
03/

178.
AMAZON
DEPLOYS
45,000
ROBOTS
ALSO CREATES
100,000 JOBS
NOV 2014
15,000
ROBOTS
SEP 2015
30,000
ROBOTS
JAN 2017
45,000
ROBOTS
INWAREHOUSES
HAX | HARDWARE TRENDS 2017 | PAGE 178

179.
HAX | HARDWARE TRENDS 2017 | PAGE 179
RELAY BY SAVIOKE
EXPANDS ITS INDOOR
DELIVERIES BEYOND HOTELS
TALLY BY SIMBE
AUTOMATES RETAIL INVENTORY
LOCUS
WAREHOUSE ROBOTS
FETCH
WAREHOUSE ROBOTS
STANDALONE
ROBOTSSPREAD
HAX | HARDWARE TRENDS 2017 | PAGE 179

180.
I don’t think people are investing in automation
because of a near-term labor shortage.
It’s about improving productivity.
Fundamentally, that means people will be replaced.”
KARL SIEBRECHT
CEO, FLEXE
(ON-DEMAND
WAREHOUSE SPACE)“
HAX | HARDWARE TRENDS 2017 | PAGE 180

181.
BURGERS
BY MOMENTUM MACHINES
FROZEN YOGURT
BY FROBOT
COFFEE
BY A MITSUBISHI ROBOT ARM
SERVICEJOBS
AUTOMATION
MCDONALD’S ORDER KIOSK ROBOT WAITER
FAST FOOD FIRST IN LINE
HAX | HARDWARE TRENDS 2017 | PAGE 181

182.
HAX | HARDWARE TRENDS 2017 | PAGE 182
DELIVERIES
SMALL DRONES
SMALL PARCELS,
DESIGNATED ROUTES
01/
02/ LONG-DISTANCE DRONES
FIXED WING REACHED
100 MILES
AMAZON PRIME AIR
JD.COM
TEAM ROADRUNNER
DRONE ‘BEEHIVE’
CONCEPT PATENT
BY AMAZON
HAX | HARDWARE TRENDS 2017 | PAGE 182

183.
LEGS
STILL EXPENSIVE
…UNTIL IT'S NOT
02/
DISPATCH BOSTON DYNAMICS
DELIVERIESWHEELS
SEVERAL STARTUPS
RUNNING PILOTS
01/
HAX | HARDWARE TRENDS 2017 | PAGE 183

184.
CAR MAKERS
BATTLE WITH SOFTWARE GIANTS
AUTONOMOUSCARS
ISALL-OUTWAR?
HAX | HARDWARE TRENDS 2017 | PAGE 184

185.
With billions of smart devices,
connectivity is in the spotlight.
No-one seems financially
motivated to deploy LoRa
nationally. Carriers developed
Narrowband-IoT to crush Sigfox.
Lower costs might
leave it a chance”
THEBATTLE
FORTHE
NARROW
BAND
WILL POLITICS
& ECONOMICS
PREVAIL?
ZACH SUPALLA,
CEO, PARTICLE
FULL-STACK IOT DEVICE PLATFORM
“
HAX | HARDWARE TRENDS 2017 | PAGE 185

186.
HAX | HARDWARE TRENDS 2017 | PAGE 186
INDUSTRY05/
MICRO-MANUFACTURING,
SMART FACTORIES
& PERSONAL FABRICATION
HAX | HARDWARE TRENDS 2017 | PAGE 186

187.
HAX | HARDWARE TRENDS 2017 | PAGE 187
LABOUR ECONOMICS
MOVED PRODUCTION
FROM SUPERPOWER
TO SUPERPOWER.
MANUFACTURING
MOVEDFORTHE
LASTTIME? IT LEFT BEHIND
ENGINEERING KNOW-HOW
AND INNOVATION
GREAT BRITAIN
1780 1830
CENTRAL EUROPE
1870
JAPAN
1890
USA
1950
CHINA
HAX | HARDWARE TRENDS 2017 | PAGE 187

188.
GREAT BRITAIN
NOW NEXT
CENTRAL EUROPE
NEXT
JAPAN
?
USA
?
CHINA
ROBOTICS
WILLDOMINATE
HIGH-VALUE
PRODUCTION
REGARDLESS OF LABOR COSTS
HAX | HARDWARE TRENDS 2017 | PAGE 188

189.
HAX | HARDWARE TRENDS 2017 | PAGE 189
JAPANESE
ROBOTS
DOMINATE
…SOFAR 100,000
200,000
300,000
400,000
500,000
Fanuc
Yaskawa
ABB
Kawasaki
Nachi
Kuka
Denso
Epson
Adept
25,000
45,000
80,00080,000
100,000110,000
250,000
300,000
400,000
ROBOTS INSTALLED BASE
WORLDWIDE
SOURCE: ROBOTICS & AUTOMATION NEWS, 2016

190.
ROBOTS / 10,000 WORKERS
OF LARGER COUNTRIES
(SOURCE: IFR, 2016)
CHINA
LAGSIN
INDUSTRIAL
ROBOTSUSE 150
300
450
600
SouthKorea
Japan
Germany
USA
France
UK
China
4971
127
176
301305
531
HAX | HARDWARE TRENDS 2017 | PAGE 190

191.
HAX | HARDWARE TRENDS 2017 | PAGE 191
CHINA LEADS NEW PURCHASES
INDUSTRIAL
ROBOT
SPENDING
ISRISING
0
1
2
3
4
'08 '09 '10 '11 '12 '13 '14 '15
China Japan North America
US$ BILLION
HAX | HARDWARE TRENDS 2017 | PAGE 191

192.
ROBOTS
PURCHASED BY COUNTRY
(SOURCE: IFR, 2015)
AUTOMATION
HASTAKEN
OFFINCHINA
20,000
40,000
60,000
80,000
China
SouthKorea
Japan
USA
Mexico
Canada
2,7004,700
27,000
35,00038,000
69,000
SALES 2015: 248,000 (+12%YOY)
+20%YOY
HAX | HARDWARE TRENDS 2017 | PAGE 192

193.
HAX | HARDWARE TRENDS 2017 | PAGE 193
CHINA
PLANSTOAUTOMATE
MUCH,MUCHMORE
2011: FOXCONN PLANNED TO REPLACE
500,000 WORKERS WITH 1 MILLION ROBOTS BY 2016
2016: ONLY 40,000 ROBOTS WERE INSTALLED SINCE 2011
“We want to automate
dangerous, dirty and dull work first.”
We plan to keep only
a minimal number of workers
assigned for production, logistics,
testing, and inspection processes.”
JIA-PENG DAI
GM OF AUTOMATION COMMITTEE,
FOXCONN
HAX | HARDWARE TRENDS 2017 | PAGE 193

194.
HAX | HARDWARE TRENDS 2017 | PAGE 194
ROBOTS
BYTHE
NUMBERS
HOME APPLIANCES TRANSPORTATION MACHINERY
KEY INDUSTRIES USING ROBOTS
CHINESE
ROBOTICS
COMPANIES
3,000
ROBOTS
PER 10,000
WORKERS
50 150In 2015 Goal by 2020
>
COMPUTERS & ELECTRONIC GOODS
HAX | HARDWARE TRENDS 2017 | PAGE 194

195.
HAX | HARDWARE TRENDS 2017 | PAGE 195
ROBOTS
BYTHE
NUMBERS
AVERAGE PAYBACK PERIOD
FOR ROBOTS IN CHINA (YEARS)
0
2
4
6
8
10
12
2008 2010 2015 2017 *
GLOBAL UNIT MARKET SHARE
TARGET (2025)
50%
ROBOT PRODUCED IN CHINA
TARGET (2020)
100,000
AUTOMATION
THRESHOLD:
<2YEARS
HAX | HARDWARE TRENDS 2017 | PAGE 195

196.
HAX | HARDWARE TRENDS 2017 | PAGE 196
CHANGYING'S
UNMANNED FACTORY
HAS 60 WORKERS
INSTEAD OF 600
‘DARK
FACTORIES’
RISING
IT RUNS 24/7
PRODUCTIVITY IS UP 250%
DEFECTS DOWN 80%
HAX | HARDWARE TRENDS 2017 | PAGE 196

197.
HAX | HARDWARE TRENDS 2017 | PAGE 197
SPECS&PRICE
MATTERMORE
THANMAKING
HUMANFRIENDS
COBOTS
NOT POPULAR YET
DESPITE PROMISING PHOTOS
HAX | HARDWARE TRENDS 2017 | PAGE 197

198.
“Our vision system
allows our robots
to locate objects to pick up,
and avoid collisions with workers.
It can save factories a lot of trouble.”
INDUSTRYNEEDS
LOW-COST
&FLEXIBLE
ROBOTS
JOEY SONG, CO-FOUNDER
ELEPHANT ROBOTICS (COBOTS)
FORBES ASIA 30 UNDER 30
HAX | HARDWARE TRENDS 2017 | PAGE 198

199.
HAX | HARDWARE TRENDS 2017 | PAGE 199
SOFTWARE AUTOMATES DESIGN
BASED ON CONSTRAINTS
3D PRINTING DREAM
TRUE SOON?
FINALLYA
VIABLEOPTION
FORPRODUCTION
OFSOMEPARTS
HAX | HARDWARE TRENDS 2017 | PAGE 199

200.
JULIO TERRA
DIRECTOR OF TECH & DESIGN,
KICKSTARTER
THEMAKER
MOVEMENT
GETSNEW
TOOLS
“Though the consumer 3D printer
bubble has burst, we enjoy seeing a
wave of new personal fabrication tools.”
“Desktop water jet cutters, vacuum
formers, robotic arms, and circuit board
printers form the next generation.”
CROWDFUNDING SUPPORTS
INNOVATION
HAX | HARDWARE TRENDS 2017 | PAGE 200

201.
HAX | HARDWARE TRENDS 2017 | PAGE 201
OTHERMILL
MILLING MACHINE
VOLTERA
CIRCUIT BOARD PRINTER
WAZER
WATERJET CUTTER
DESKTOPMANUFACTURING
SHRINKFACTORYTOOLS
DESKTOP METAL
METAL 3D PRINTER
KNITERATE
KNITTING MACHINE
MATTHEW NOWICKI
COFOUNDER & CTO, WAZER
“The maker revolution starts with D.I.Y. and tools for
hobbies & education. But consumers are very
price-sensitive, and most cheap tools do not offer
accuracy, reliability, maintenance & serviceability.”
HAX | HARDWARE TRENDS 2017 | PAGE 201

202.
HAX | HARDWARE TRENDS 2017 | PAGE 202
Desktop fabrication companies
tend to target prosumers who either make
money from what the tools make or use
tools to support their core activities.
An ecosystem of tools is forming,
as it exists for industry. Next up might be
desktop EDMs, metal printing and fiber
laser cutters. Soon, the only limit
will be creativity.
DESKTOP
FABRICATION
TOOLS
EMPOWER
PROSUMERS
“
MATTHEW NOWICKI,
COFOUNDER & CTO, WAZER
DESPTOP WATERJET CUTTER
TO BE SUSTAINABLE, TOOL CREATORS
MIGHT SELL PEACE OF MIND SERVICES
(EXTENDED WARRANTEES, SERVICING PLANS),
CONSUMABLES, OR ACCESSORIES
TO AID WORKFLOW.
HAX | HARDWARE TRENDS 2017 | PAGE 202

203.
COPYCAT AND INNOVATOR
AT HIGH SPEED
CHINA06/
HAX | HARDWARE TRENDS 2017 | PAGE 203

204.
WORLDLEADER
INPATENTS
SOON?
2016 NUMBER OF APPLICATIONS BY COUNTRY (‘000)
SOURCE: WORLD INTELLECTUAL PROPERTY ORGANIZATION
WORLD’S #1 & #2
IN PUBLISHED APPLICATIONS
TOP 10: 7 FROM ASIA, 3 FROM U.S.
4,123 PATENTS 3,692 PATENTS
USA
Japan
China
Germany
South Korea
France
UK
Netherlands
Switzerland
Sweden
0 15,000 30,000 45,000 60,000
-1%
+3%
+40% IN 2017?+45%
HAX | HARDWARE TRENDS 2017 | PAGE 204

205.
USA
$14.5B
CHINA
$10.6B
EUROPE
$3B
US & CHINA DOMINATE, INDIA
RISING, JAPAN FAR BEHIND
1Q2017
3%
35%
4%
10%
48%
USA
Europe
India
China
RoW
SOURCE: DOW JONES VC EDGE 1Q 2017
EQUITY INVESTMENT BY REGION
INTO VENTURE-BACKED COMPANIESCHINAVC
INVESTMENTIS
#2GLOBALLY
HAX | HARDWARE TRENDS 2017 | PAGE 205

206.
01/
02/
03/
04/
HEATEDMARKET
REQUIRESNEW
APPROACHES
CHINA’S VC FUNDING IS MASSIVE
~2/3 OF USA, 80% OF ASIA.
FUNDING FEVER
COMPETITIVE AT EVERY STAGE.
WINNER TAKES ALL
MASSIVE ROUNDS TO WIN MARKET,
OR M&A WITH LEADER.
CHINESE INVESTORS LOOK ABROAD
FOR HIGH-TECH STARTUPS
USA, CANADA, EU, ISRAEL…
MEGA-ROUNDS, MERGERS,
OVERSEAS INVESTMENTS
HAX | HARDWARE TRENDS 2017 | PAGE 206

207.
HAX | HARDWARE TRENDS 2017 | PAGE 207
RISING
VALUATIONS
INCHINA MEDIAN PRE-MONEY VALUATIONS ($M)
0
5
10
15
20
25
1Q17 1Q16
0
25
50
75
100
1Q17 1Q16
0
250
500
750
1,000
1Q17 1Q16
FIRST ROUND SECOND ROUND LATER ROUND
3X
2.5X
US CN EU US CN EU US CN EU
SOME VCS LOOKING OVERSEAS
SOURCE: DOW JONES VC EDGE 1Q 2017

208.
There’s an overflow
of funding in the market,
especially angel funding”
MEGA-ROUNDS, MERGERS,
OVERSEAS INVESTMENTS
CAPITAL CONTROLS
ON OUTBOUND INVESTMENTS
FUEL DOMESTIC FEVER
“
XU XIAOPING
FOUNDER OF ZHENFUND
MOST ACTIVE SEED FUND IN CHINA
HEATEDMARKET
REQUIRESNEW
APPROACHES
Source: The Information Interview, April 2017
HAX | HARDWARE TRENDS 2017 | PAGE 208

209.
HAX | HARDWARE TRENDS 2017 | PAGE 209
RENTALSTARTUPS
FRENZY
>$2.2B
INVESTED
$127M INVESTED
$145M INVESTED
$1.4M INVESTED
HAX | HARDWARE TRENDS 2017 | PAGE 209

210.
INVESTED IN 77 COMPANIES
INCLUDING 4 UNICORN
ECOSYSTEM
30 SHIPPED PRODUCTS
16 REVENUE >$15M
3 REVENUE >$150M
XIAOMIZATION
CONTINUES
HAX | HARDWARE TRENDS 2017 | PAGE 210

211.
HAX | HARDWARE TRENDS 2017 | PAGE 211
LENOVO
ALEXA ASSISTANT
LINGLONG
DINGDONG ASSISTANT
JV OF JD.COM (CHINA’S ‘AMAZON’)
& IFLYTEK (VOICE EXPERT,
MARKET CAP: $8.2B)
BAIDU & INEMO
LITTLE FISH
TENCENT
QROBOT
(2ND GENERATION)
USES TENCENT’S
XIAOWEI CLOUD
ASUS
ZENBO SMART
COMPANION
ROKID
MELODY
RAISED $50M
SERIES B
VOICEASSISTANTS
BOOMWITH
LOCALTECH MOBVOI
TIC WATCH
RAISED $252M
ALIBABA
TMALL GENIE
XIAOMI
MI BUNNY
DESIGNED FOR KIDS
HAX | HARDWARE TRENDS 2017 | PAGE 211

212.
HARDWARE PLATFORMS SKILL PLATFORM
2) BAIDU, MOBVOI, OTHER???
VOICECONTROL
NEXT“XIAOMIZED”?
SELECT MEMBERS OF TENCENT’S
XIAOWEI VOICE CLOUD
DIDI (RIDE HAILING)
MIDEA (APPLIANCES)
SOGOU (SEARCH ENGINE)
PHILIPS (SMART HOME)
XIAOMI (SMART DEVICES)
China will have dozens of Echo-like products
by the end of the year. We hope this will help smart
home products sell.”
ERIC JIANG, CEO, YEELIGHT
“
HAX | HARDWARE TRENDS 2017 | PAGE 212

213.
HAX | HARDWARE TRENDS 2017 | PAGE 213
VOICEASSISTANTS:
TIPOFTHEA.I.ICEBERG…
CHINA IS #2
FOR TOTAL A.I. PATENTS
REGISTERED SINCE 2006
CHINA WAS #1
IN ’14 & ’15 FOR
A.I. PATENTS FILED
UNIVERSITIES DOMINATE A.I.
RESEARCH IN CHINA
(FOR NOW)
HAX | HARDWARE TRENDS 2017 | PAGE 213

214.
HAX | HARDWARE TRENDS 2017 | PAGE 214
CAR MAKERS (12 CHINESE + 2 WESTERN)
SUPPLIERS (DELPHI, BOSCH, ETC.)
COMPONENT PROVIDERS (INTEL, NVIDIA…)
RIDE-SHARING FIRMS (UCAR, GRAB)
MAPPING (TOMTOM)
BAIDU
SELF-DRIVINGCAR
ALLIANCE
BAIDU’S APOLLO PLATFORM
GAINS MOMENTUM
50
MEMBERS

215.
HAX | HARDWARE TRENDS 2017 | PAGE 215
A.I:TIPOF
MUCHDEEPER
INFORMATION
ASYMMETRY
China has a fairly deep awareness
of what’s happening in the
English-speaking world, but the
opposite is not true.”
ANDREW NG
FOUNDER, COURSERA
FOUNDER, DEEPLEARNING.AI
FORMER CHIEF SCIENTIST, BAIDU
FOUNDER & LEAD, GOOGLE BRAIN
“
HAX | HARDWARE TRENDS 2017 | PAGE 215

216.
MAGNET FOR LEADERS
CORPORATIONS & TOP
UNIVERSITIES OPEN BRANCHES
IN SHENZHEN
01/ 02/
SHENZHEN
THESILICONVALLEY
OFHARDWARE
SHENZHEN’S REPUTATION RISE
WORLD’S BEST PLACE FOR
“PRODUCTIZATION”
HAX | HARDWARE TRENDS 2017 | PAGE 216

217.
SCOTTY ALLEN ASSEMBLED
AN IPHONE 6S IN CHINA
FROM SPARE PARTS
HIS VIDEO PASSED 7M VIEWS
THE WIRED DOCUMENTARY
ON SHENZHEN GATHERED
OVER 1M VIEWS
THE ECONOMIST REPORTS
ON THE PEARL RIVER DELTA
SHENZHEN
THESILICONVALLEY
OFHARDWARE
HAX | HARDWARE TRENDS 2017 | PAGE 217

218.
“In Shenzhen, making is either
product development if you are an adult,
or a structured curriculum if you are a child.
There are almost no Chinese makers
in Shenzhen doing it purely as a hobby.
However, if you are working
on a hardware startup
or just want to get stuff made,
Shenzhen is pretty unbeatable.”
CHINA’SMAKER
MOVEMENT
创客
LOST IN TRANSLATION?
A DIFFERENT MEANING
FOR ‘MAKER’
AND A DIFFERENT PATH
FROM THE WEST
EVERYONE IS A MAKER!
NAOMI WU “SEXYCYBORG”
SHENZHEN HOBBYIST MAKER
Source: Exolymph News Interview, July 2016
HAX | HARDWARE TRENDS 2017 | PAGE 218

219.
HAX | HARDWARE TRENDS 2017 | PAGE 219
PRODUCT
CROWDFUNDING
INCHINA
ISMOSTLY
MARKETING
&PRE-SALES
PRODUCTS OFTEN SHIP
WITHIN 60 DAYS
JD IS #1 PLATFORM
$670M RAISED IN TOTAL
61 TECH PROJECTS OVER $1M
ON ALIBABA’S TAOBAO
XIAOMI’S PLATFORM
WELCOMES STARTUPS
POWEREGG
DRONE
RAISED $15M ON JD
KAADAS
FINGERPRINT SMART LOCK
RAISED $4.5M ON TAOBAO
MOVEIT
SMART HOME GYM
$115,000 ON INDIEGOGO
$975,000 WITH XIAOMI
E-COMMERCE GIANTS DOMINATE CROWDFUNDING

220.
HAX | HARDWARE TRENDS 2017 | PAGE 220
SOME TEST THE WATERS. SOME ARE GLOBAL-FIRST. SOME WANT SALES
SOME HAD VC FUNDING. MOST COVER THEIR ORIGIN. MOST SHIP FAST!
TICWATCH 2 BY MOBVOI
VOICE-CONTROLLED ANDROID
WATCH
$2.1M ON KICKSTARTER
RAISED $72M FROM VC
BEFORE
AIRBLOCK BY MAKEBLOCK
MODULAR DRONE
$830,000 ON KICKSTARTER
LAUNCHED 6 PRODUCTSOMNICHARGE
AC/DC & USB CHARGER
$3.2M ON INDIEGOGO
ALPHA 2 BY UBTECH
SMART FAMILY ROBOT
$1.4M ON INDIEGOGO
RAISED $20M FROM VC BEFORE
CHINESESTARTUPS
CROWDFUNDABROAD

221.
CHINA
LEADSIN
VRARCADES
VR ARCADES
2016: 35,000 VR ARCADES OPENED
2017: 12,000 STILL OPERATING
VERY FEW TURN A PROFIT
VR HEADSETS
2016: >200 FIRMS PRODUCING HEADSETS
2017: <20 FIRMS STILL FUNCTIONING
(SOURCE: IHEIMA, FEB ’17)
BUT IT’S HARDLY
GOOD BUSINESS
HAX | HARDWARE TRENDS 2017 | PAGE 221

222.
NEXTGLOBALLEADERS
“BORN GLOBAL” STARTUPS ARE COMING
INSTA360
NINEBOT
MAKEBLOCK
DJI
UBTECH
For innovation,
China Today is like Japan in the 80’s”
SEAN O’SULLIVAN, FOUNDER, SOSV“
HAX | HARDWARE TRENDS 2017 | PAGE 222

223.
SONICAM
360 4K CAMERA WITH
360 HD SOUND
(64 MICROPHONES)
ELEPHANT ROBOTICS
LOW-COST ROBOT ARM
WITH COMPUTER VISION
MOBVOI
CHINESE-FOCUSED
VOICE A.I.
CUTTING-EDGE
CHINESESTARTUPS
EMERGE
HAX | HARDWARE TRENDS 2017 | PAGE 223

224.
HAX | HARDWARE TRENDS 2017 | PAGE 224
BUYING
INNOVATION
CHINESE APPLIANCE MAKER MIDEA
BOUGHT GERMANY’S KUKA FOR US$4B
HAX | HARDWARE TRENDS 2017 | PAGE 224

225.
HAX | HARDWARE TRENDS 2017 | PAGE 225
BUYING
DESIGN
PHILIPPE STARCK
DESIGNED THE MI MAX
HAX | HARDWARE TRENDS 2017 | PAGE 225

226.
ATTRACTIVE OPTIONS
FOR HARDWARE STARTUPS
LATESTAGE
FUNDING
ALTERNATIVES
07/
HAX | HARDWARE TRENDS 2017 | PAGE 226HAX | HARDWARE TRENDS 2017 | PAGE 226

227.
VENTURE CAPITAL IS NOT THE ONLY OPTION
HARDWARE
ISATTRACTIVE
TOPUBLICMARKETS
VCS STILL CAUTIOUS ON HARDWARE
HARDWARE HAS ADVANTAGE OF REVENUE
01/
02/
03/
04/
GROWTH AND PROFIT ATTRACT
TRADITIONAL INVESTORS
PUBLIC MARKETS & NEW FUNDING
OPTIONS ARE OPEN TO HARDWARE
HAX | HARDWARE TRENDS 2017 | PAGE 227HAX | HARDWARE TRENDS 2017 | PAGE 227

228.
MICRO-CAPS AS FIRST STEP TO
UNICORNHOOD?
TRADITIONAL IPO
NASDAQ OR OTHER EXCHANGES
UP-LISTING
INCUBATE ON SMALLER EXCHANGES
EQUITY CROWDFUNDING
“MINI-IPO”
HYBRID IPO
COMBINING WALL STREET & MAIN STREET
REVERSE MERGER
PUBLIC SHELLS & OTHERS
ICO
THE NEXT FRONTIER?
01/
02/
03/
04/
05/
06/
ALTERNATIVESTO
VCFUNDINGGAIN
POPULARITY
HAX | HARDWARE TRENDS 2017 | PAGE 228

229.
B2BHARDWARE
STARTUPSNEED
CREDIBILITY
TOGROW
To grow in the enterprise sector it can be essential to be public.
When a contract is $1 million it is not a joke anymore: clients
make reference calls.”
CYRIL EBERSWEILER
FOUNDER, HAX
HAX | HARDWARE TRENDS 2017 | PAGE 229

230.
FORKLIFT ROBOTS
EURONEXT IPO
JUN 2017
2016 SALES: $5.9M
RAISED FROM VC: $11.2M
RAISED FROM IPO: $45M
MARKET CAP (IPO): $122M
IPO
SMALLER
EXCHANGES
WELCOME
STARTUPS
UNDERWATER DRONES
ASX IPO
APR 2017
2016 SALES: $800,000
RAISED FROM IPO: $5.5M
MARKET CAP (IPO): $21M
TIMING, STORY, PROMOTION,
FIT WITH THE EXCHANGE
ALL MATTER TO SUCCESS
HAX | HARDWARE TRENDS 2017 | PAGE 230

231.
HAX | HARDWARE TRENDS 2017 | PAGE 231
CYBERDYNE
TOKYO STOCK EXCHANGE
2016 SALES: $15M
2016 LOSS: $7M
MARKET CAP: $2.9B
= 190X SALES
FITWITH
EXCHANGE
HAX | HARDWARE TRENDS 2017 | PAGE 231

232.
FROM ETC TO NASDAQ
RAISED $20M ON OTC (2014)
RAISED $11.7M ON NASDAQ (2015)
PROCESS TO UP-LIST WAS
3 MONTHS ONLY
UP-LISTING
EKSO BIONICS
HAX | HARDWARE TRENDS 2017 | PAGE 232

233.
JOBS ACT
REGULATION A+
STARTED JUNE 2015
RAISE UP TO $50M
FROM THE PUBLIC
KNIGHTSCOPE
SECURITY ROBOTS
RAISING $20M
$80M PRE-MONEY
MINI-IPO
HAX | HARDWARE TRENDS 2017 | PAGE 233

234.
HYBRID IPO
FIRST REG A+ IPO
ON NYSE (JUN 2017)
MYOMO
MEDICAL ROBOTICS
RAISED FROM IPO: $4M
PRE-MONEY: $35M
REVENUE: ~$1M
WALLSTREET
MEETS
MAINSTREET
HAX | HARDWARE TRENDS 2017 | PAGE 234

235.
HAX | HARDWARE TRENDS 2017 | PAGE 235
WITH FUNDRAISE OPTION
BORQS - IOT DEVICES &
SOLUTIONS
PREPARING NASDAQ
MERGER IN 2017
FASTBRICKS ROBOTICS
BRICK-LAYING
CONSTRUCTION ROBOT
MERGED ON ASX IN 2015
RAISED AU$5.75M
MARKET CAP: AU$92M
REVERSE
MERGER
FASTER (4 MONTHS VS. 6~12)
CHEAPER (OFTEN < $500K)
KEEP GREATER OWNERSHIP

236.
ICO - INITIAL COIN OFFERING
NEXTSTEPAFTERCROWDFUNDING?
FITWITHHARDWAREUNCLEARYET
HAX | HARDWARE TRENDS 2017 | PAGE 236

237.
WORLD’S MOST ACTIVE EARLY STAGE INVESTOR IN HARDWARE
ABOUTSOSV&HAX
HAX | HARDWARE TRENDS 2017 | PAGE 237

238.
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
776.65.8
576.65
№1 EARLY STAGE INVESTOR
№1 FEMALE FOUNDERS №1 CROWDFUNDING№1 IOT
№2 SEED INVESTOR GLOBALLY
HAX | HARDWARE TRENDS 2017 | PAGE 238

239.
70% 30%
HARDWARE LIFE SCIENCES FOODSOCIAL & MOBILE
INVESTEDACROSS4DEEPTHEMES
HAX | HARDWARE TRENDS 2017 | PAGE 239

240.
$150M
SOSV FUND III
$300M
ASSETS UNDER
MANAGEMENT
Q12018
FIRST CLOSE
FOR FUND IV
HAX | HARDWARE TRENDS 2017 | PAGE 240

241.
HAX | HARDWARE TRENDS 2017 | PAGE 241
68
GROWTH
STAGE
155
SEED
STAGE
HAX | HARDWARE TRENDS 2017 | PAGE 241

242.
HAX | HARDWARE TRENDS 2017 | PAGE 242
INDUSTRIAL
CONSUMER
HEALTH
ENTERPRISE
10
20
30
40
2012 2013 2014 2015 2016
HAXSEED
INVESTMENTS
PERYEAR
HAX | HARDWARE TRENDS 2017 | PAGE 242

243.
WWW.SLIDESHARE.COM/HAXCO
MORE
HAX
REPORTS