Hardware Podcasts

084: How To Raise Big Money for Your Hardware Startup

Product Startup · 14 Jul 2021 · 27m

What this episode covers

Brett Fox, who has raised nearly $500 million for hardware startups and served as an entrepreneur in residence for a Silicon Valley VC firm, explains how to raise seed and venture capital. He distinguishes between angel, seed, and VC funding stages, emphasizing that hardware companies must generate 'proof' through customer traction, pre-orders, or crowdfunding to reduce investor risk. Fox details the mathematical requirements for VC returns, noting that investors seek 10x-30x returns, which dictates valuation and market size expectations. He advises founders to prioritize alignment with 'smart money' investors regarding exit strategies and to use rejections to gather feedback and referrals.

Most relevant to

early-stage companies and companies scaling up

Topics

Mentioned

Companies
Mako Design + Invent
Also
Brett Fox

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