Indeed. But crowdfunding has opened up a new channel for hardware startups: preorders. It makes developing a hardware product, which used to be very difficult a

Indeed. But crowdfunding has opened up a new channel for hardware startups: preorders. It makes developing a hardware product, which used to be very difficult and take a lot of up-front investment, much more accessible. It's still difficult (see all of the infinitely-delayed crowdfunded projects), but has been getting steadily easier over the past few years. Crowdfunding serves as nondilutive financing to the startups and can also signal market validation to future investors. It is a very important part of the chain.