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This is an important point and needs to be addressed. $20k doesn't go very far at all in the hardware startup world. That said, it is possible to be frugal--to

This is an important point and needs to be addressed. $20k doesn't go very far at all in the hardware startup world. That said, it is possible to be frugal--to a point. My team and I try to use inexpensive solutions where we can. We're using Rhino instead of SolidWorks (OK until we need the hardcore simulation functionality), KiCAD instead of Altium (same, until we need the simulation), MikroElektronika's C compiler for ARM rather than Keil, MeshCAM rather than Mastercam, a cobbled together kit CNC mill rather than "real" mill, a Chinese-made laser cutter rather than an Epilog, and a wide array of machine shop equipment sourced from Craigslist. Our product also touches biotech, so we have outrageous reagent costs too. We still have shell out for antibodies, fluorescent probes, proper biosafety lab space, etc. I'd love to see YCombinator comment on accepting biotech/healthcare companies.

robomartin 14y ago
As you said, to a point. In my experience some of the approaches to frugality can quickly become counterproductive and eat away critically needed development clock cycles. Here's an concrete example: I made due for years with cobbled-together CNC equipment of various kinds. I bought an old Bridgeport CNC mill really cheap. Within a month of use the spindle transmission had to be rebuilt. It did not have an automatic tool changer or tool probing. After that I took a Bridgeport knee mill and converted it to CNC. No tool changer or tool probe. It did OK. Both of these represented HUGE time drains and detracted from the main mission in major ways. Later on I decided to do it right and leased a Haas VF6-SS. If I remember correctly the lease ran about $2,000 per month. Best decision I ever made. All of a sudden CNC was not a research project. The thing just worked and it could work 24/7 if required. It had an automatic tool changer and automatic tool probing. When properly married to Solidworks and a CAM program the setup was smooth as silk. This improvement in productivity was well worth the $2,000 per month and other costs (tooling, setup, training) in that it quickly returned everyone to being focused on what we were actually trying to design rather. It also opened-up design possibilities that did not exist before this machine arrived due to what was lacking on the cobbled-up machines (fourth axis being one example). That's not to say that I am not for being frugal and creative whenever possible. For example, we used the CNC machine to manufacture custom assembly tooling that would have cost tens of thousands of dollars to purchase. We also made our own sub-table for the machine and saved tons of money.
- tomkinstinch 14y ago
  Thanks for the recollection. I'd love to have the space/budget to lease a Haas machine. :)
tlb 14y ago
You'll have to raise more money, of course. Currently, all YC companies are offered $150k automatically and companies that look promising to investors are able to raise a lot more. I believe it's possible to get most good ideas to the stage of "promising" on $170k.
new299 14y ago
That sounds like a awesome setup and the way more Biotechs should be done.

robomartin 14y ago

As you said, to a point. In my experience some of the approaches to frugality can quickly become counterproductive and eat away critically needed development clock cycles. Here's an concrete example: I made due for years with cobbled-together CNC equipment of various kinds. I bought an old Bridgeport CNC mill really cheap. Within a month of use the spindle transmission had to be rebuilt. It did not have an automatic tool changer or tool probing. After that I took a Bridgeport knee mill and converted it to CNC. No tool changer or tool probe. It did OK. Both of these represented HUGE time drains and detracted from the main mission in major ways. Later on I decided to do it right and leased a Haas VF6-SS. If I remember correctly the lease ran about $2,000 per month. Best decision I ever made. All of a sudden CNC was not a research project. The thing just worked and it could work 24/7 if required. It had an automatic tool changer and automatic tool probing. When properly married to Solidworks and a CAM program the setup was smooth as silk. This improvement in productivity was well worth the $2,000 per month and other costs (tooling, setup, training) in that it quickly returned everyone to being focused on what we were actually trying to design rather. It also opened-up design possibilities that did not exist before this machine arrived due to what was lacking on the cobbled-up machines (fourth axis being one example). That's not to say that I am not for being frugal and creative whenever possible. For example, we used the CNC machine to manufacture custom assembly tooling that would have cost tens of thousands of dollars to purchase. We also made our own sub-table for the machine and saved tons of money.

tomkinstinch 14y ago
Thanks for the recollection. I'd love to have the space/budget to lease a Haas machine. :)

tlb 14y ago

You'll have to raise more money, of course. Currently, all YC companies are offered $150k automatically and companies that look promising to investors are able to raise a lot more. I believe it's possible to get most good ideas to the stage of "promising" on $170k.

new299 14y ago

That sounds like a awesome setup and the way more Biotechs should be done.