It's a lot harder for startups to win over large companies in hardware, even with a superior product, since shipping hardware is tremendously capital-intensive.

It's a lot harder for startups to win over large companies in hardware, even with a superior product, since shipping hardware is tremendously capital-intensive. An example that comes to mind is Pebble, which had an excellent smartwatch that worked way better than the one from Fitbit, but nevertheless ran out of money and got sold to the latter.