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Big corporations are ok with costs of creating a low margin hardware product because it is loss leader to other products and services with higher margins. Brin
by stingrae 9y ago
Big corporations are ok with costs of creating a low margin hardware product because it is loss leader to other products and services with higher margins.
Bringing a hardware product to market costs a minimum of $7m in the US. At Seed/Series A, this is a huge amount of money for investors to swallow.
- maneesh 9y agoNot true. We built a wearable device with 50,000 units sold, and raised way under a million dollars. It can be done. https://news.ycombinator.com/item?id=14717976 https://news.ycombinator.com/item?id=14717976 Our first Pavlok took about 2 years, and probably just over $1MM in total costs---but we presold units to cover the float.