Nail the pitch: overcoming the unique challenges of fundraising for hardware startups

Fundraising for startups is hard. Fundraising for hardware startups is harder.

  • long product development cycles
  • high technical and execution risks
  • high capital requirements, especially early on
  • strong unit economics
  • a clear path to scale
  • high barriers to entry may mean less competition
  • can require less equity capital over the total company lifecycle

Unit economics, cornerstone of hardware and the pitch

A snapshot of KeyMe’s unit economics, used in their pitch deck.

“Data based on surveys is 10 times better than no data at all.”

Market Size: defending a multibillion dollar opportunity

Top-down

Bottom-up

A workaround for intellectual property

“Many investors view IP as a golden ticket to monopoly, which is extremely rare in practice.”

  • By larger companies, to bully smaller competition by forcing them to waste their money on IP litigation (even if there’s not much substance to the claim)
  • As a Hail Mary for companies already being beat in the market, to hinder their main competitor’s success

Be so good they can’t ignore you

“Pitching is a skill just like anything else: the amount of time you put in, the practice, is really what makes you succeed.”

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Early-stage venture capital in NYC. firstmarkcap.com

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FirstMark

FirstMark

Early-stage venture capital in NYC. firstmarkcap.com

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