three things you need to know before crowdfunding - makercon nyc - september 17, 2014
DESCRIPTION
In this SlideShare, Dragon Innovation will provide the three things you need to know before crowdfunding your hardware product. This presentation was given at MakerCon 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/dragoninnovationTRANSCRIPT
DRAGON INNOVATION, INC.
THREE THINGS YOU NEED TO KNOW
BEFORE CROWDFUNDING
SEPT 17, 2014 MAKERCON-NYC
SCOTT N. MILLER | CEO | @DRAGONINNOVATE | WWW.DRAGONINNOVATION.COM
No Need to Take Notes
bit.ly/3-‐things-‐before-‐crowdfunding
Quick Survey
Manufacturing is Complex
Going from prototype to produc1on can be a long journey with many unknown unknowns: • COGS, tooling and manufacturing costs • Lead Gmes • Permanence of Quality • IteraGon cycles • DFM • Factory SelecGon 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!!!
Why?
The Three Things You Need to Know
1. How much cash do you need? 2. How long is it going to take? 3. What is the status of your Design for
Manufacturing?
How much cash do you need?
Manufacturing Factors That Drive Funding Requirements
– NRE for Prototype to DFM – COGS – Tooling Costs – Manufacturing Costs – Crowdfunding TransacGon 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 (PlasGc, Metal, etc.), Purchased, Electronics, Packaging,
etc. • Include Labor • Include Scrap, Markup, Overhead and Factory Profit • For each line item, separate into core operaGons for greatest transparency.
How long will it take?
A B C
Idea Deliver Crowdfund
Manufacture
Prototype
D E F G H I J K L M N O P Q R S T U V Z W X Y
Perceived Product Timeline
A B
Idea Deliver Crowdfund Manufacture Proto
CF Prep
X Y Z K L M N O P Q R S T U V W I J F G H C D E
More RealisGc Product Timeline
Manufacturing Is Hard
Schedule
• Many consumer products are driven by the Holiday Season (which has a fixed date).
• Plan conGngency in your schedule. Things never go according to plan.
• Have an onsite presence at the Factory • Track schedule carefully and take correcGve acGons early. • Avoid: “There is never Gme to do it right the first Gme, but there is
always Gme to do it again. ”
The Road to ProducGon
What is the status of your DFM?
Typical Stages
– Paper sketches – Handmade prototype (popsicle sGcks and hot glue) – 3D printed prototype (works-‐like) – Industrial Design model (looks-‐like) – Design for manufacture (for Tool Start)
• InjecGon Molded with draes, rounds, minimal undercuts • Die Cast • Stamped • CNC
– Final Product Design in Manufacturing
