three things you need to know before crowdfunding - hardwired nyc - september 9, 2014
DESCRIPTION
In this presentation, Dragon Innovation will provide the three things you need to know before crowdfunding your hardware product. This presentation was given at Hardwired NYC in September 2014. The three things are: 1. How much cash do you need? 2. How long is it going to take? 3. What is the status for your Design for Manufacturing? Share the presentation here: http://bit.ly/3-things-before-crowdfunding About Dragon Innovation Dragon Innovation works with entrepreneurs to launch hardware products and scale companies. Founded by a team of hardware experts, Dragon provides a clear path from prototype through production with unmatched manufacturing expertise and trusted connections. Dragon's client roster includes Coin, MakerBot, LIFX, Scout, Romotive, Sifteo, Orbotix, FormLabs and over 100 more companies paving the road for how new technology gets made. Connect with Dragon Innovation Website: http://www.dragoninnovation.com Blog: http://blog.dragoninnovation.com Twitter: http://twitter.com/dragoninnovate Slideshare: http://www.slideshare.net/dragoninnovation/TRANSCRIPT
DRAGON INNOVATION, INC. !
THREE THINGS YOU NEED TO KNOW BEFORE CROWDFUNDING
!SEPT 9, 2014
HARDWIRED NYC !!!!!!
SCOTT N. MILLER | CEO | @DRAGONINNOVATE | WWW.DRAGONINNOVATION.COM
Manufacturing is Complex
Going from prototype to production can be a long journey with many unknown unknowns:
•COGS, tooling and manufacturing costs •Lead times •Permanence of Quality •Iteration cycles •DFM •Factory Selection and Management •Team Scalability •Schedule & Project Management •Specialized skills (ME / EE / SW/ Q / SC / Logs)
Hardware Requires Cash
Typical funding sequence: •Bootstrapping •Friends and Family •Angels •Crowdfunding •Venture Capital
BE CAREFUL YOU DON’T SELL SOMETHING YOU
CAN’T BUILD
The Three Things You Need to Know
•How much cash do you need? •How long is it going to take? •What is the status of your Design for Manufacturing?
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How much cash do you need?
Manufacturing Factors That Drive Funding Requirements
-NRE for Prototype to DFM -COGS -Tooling Costs -Manufacturing Costs -Crowdfunding Transaction Costs
Understanding Cost of Goods Sold (COGS)
-The COGS of your product will determine the financial success of your company
-Create a Detailed Bill of Materials (BOM) -Separate Mechanicals (Plastic, Metal, etc.), Purchased, Electronics, Packaging, etc.
-Include Labor -Include Scrap, Markup, Overhead and Factory Profit -For each line item, separate into core operations for greatest transparency.
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How long will it take?
Idea DeliverCrowdfund
Manufacture
PERCEIVED PRODUCT TIMELINE
Prototype
D E F G H I J K L M N O P Q
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
R S T U V ZW X YA B C
Idea DeliverCrowdfund Manufacture
MORE REALISTIC PRODUCT TIMELINE
Proto
CF Prep
X Y ZK L M N O P Q R S T U V WI J F G HC D E A B
Manufacturing Is Hard
Schedule
•Many consumer products are driven by the Holiday Season (which has a fixed date).
•Plan contingency in your schedule. Things never go according to plan.
•Have an onsite presence at the Factory •Track schedule carefully and take corrective actions early. •Avoid: “There is never time to do it right the first time, but there is always time to do it again. ”
The Road to Production
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What is the status of your design for manufacturing?
Typical Stages
-Paper sketches -Handmade prototype (popsicle sticks and hot glue) -3D printed prototype (works-like) -Industrial Design model (looks-like) -Design for manufacture (for Tool Start) •Injection Molded with drafts, rounds, minimal undercuts •Die Cast •Stamped •CNC -Final Product Design in Manufacturing
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Questions?
Agenda
Dragon Innovation [email protected]
@dragoninnovate
http://www.slideshare.net/dragoninnovation