# 124: Raising $1 Million for a Hardware Startup

- Show: [Product Startup](https://hardwarepodcasts.com/podcast/product-startup)
- Published: 2022-04-27
- Length: 37m
- Page: https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup
- Listen: https://productstartup.com/

## Summary

Ryan Lewendon, Co-Founder and Partner at Giannuzzi Lewendon LLP, explains how hardware startups can successfully raise their first million-dollar funding round. He emphasizes the importance of distinguishing between a single profitability-focused round and a multi-round scaling strategy, advising founders to choose investors who understand the industry and structure deals using SAFE agreements or convertible notes to preserve equity. Lewendon also details how to execute on these funds by building human capital to fill operational weaknesses, securing supply chain agreements, and protecting intellectual property to create a competitive moat.

## Chapters

- [0:47](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=47) Introduction: Ryan Lewendon and Giannuzzi Lewendon LLP
- [2:05](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=125) Ryan Lewendon's background and the firm's history with Vitamin Water
- [6:18](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=378) Strategic planning: Single round vs. multi-round financing
- [14:35](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=875) Financing instruments: SAFE agreements and convertible notes
- [21:25](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=1285) Supply chain risks and the importance of well-vetted products
- [23:24](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=1404) Executing on funds: Building human capital and advisory boards
- [28:42](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=1722) Protecting IP and building competitive moats with suppliers
- [31:06](https://hardwarepodcasts.com/podcast/product-startup/2022-04-27-124-raising-1-million-for-a-hardware-startup#t=1866) Planning the next round while executing the current one

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Hiring & workforce](https://hardwarepodcasts.com/topic/hiring-and-workforce)

## Most relevant to

early-stage companies

## Mentioned

- Giannuzzi Lewendon LLP (company)
- Vitamin Water (product)
- Smart Water (product)
- Oatley (company)
- BodyArmor (product)
- Vital Proteins (company)
- Fever Tree (product)
- SAFE (other)
- Convertible Note (other)

## Related episodes from other shows

- [S2E37 Defied the odds:  A Physical Product Development Firm That Focuses on Startups & Small Businesses, Mako Design + Invent –Kevin Mako](https://hardwarepodcasts.com/podcast/being-an-engineer/2021-08-23-s2e37-defied-the-odds-a-physical-product-development-firm-that-focuses-on-startu) (Being an Engineer)
- [S1 E9: Building a Strong Capital Stack for a Hardware Product with Orin Hoffman](https://hardwarepodcasts.com/podcast/the-builder-circle/2023-07-25-s1-e9-building-a-strong-capital-stack-for-a-hardware-product-with-orin-hoffman) (The Builder Circle)
- [#84 Legal Tips for Fundraising: Navigating SAFE Notes, Priced Rounds, Exits, & More (+ Balkan Bites)](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2023-03-28-84-legal-tips-for-fundraising-navigating-safe-notes-priced-rounds-exits-more-bal) (The Startup CPG Podcast)
- [S1 E4: Cracking the Code of Hardware Manufacturing with Scott Miller](https://hardwarepodcasts.com/podcast/the-builder-circle/2023-05-15-s1-e4-cracking-the-code-of-hardware-manufacturing-with-scott-miller) (The Builder Circle)
- [Episode 2 - The Hardware Story of Ethereal Machines w/ Kaushik Mudda | Building a Deep tech Mfg company](https://hardwarepodcasts.com/podcast/the-hardware-story/2024-10-02-episode-2-the-hardware-story-of-ethereal-machines-w-kaushik-mudda-building-a-dee) (The Hardware Story)

## Citing this page

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