City-based hardware start-ups are finding the going tough
By:Kailash Koushik
Unlike their counterparts in software, need more resources, time and funding Bengaluru is a hotbed forstart-ups - especially ones that work on software. This is because some of the biggest names in the software world have their R&D centres in the city. But last month, Infosys CEO Vishal Sikka , announced that the company would invest in start-ups with a focus on artificial intelligence, automation, pervasive connectedness and design technology. With an impetus from companies like Infosys and the demand for hardware, one might expect more hardware innovation in the coming years. What are the challenges entrepreneurs see, in the way of hardware start-ups; especially when one compares these to their counterparts in software? We spoke to industry professionals to find out.
Resources
“There is a knowledge barrier in hardware. While software start-ups have easy access to open source material which can be used readily, hardware professionals have to start from scratch,” says Dr Tej Pochiraju, director, Jaaga Startup program – that seeks to nurture creative endeavours. “Programmers have the option of starting-up by working on ideas with open source software, but hardware entrepreneurs do not have such resources at their disposal,” he added.Hardware start-ups are constantly in need of resources from basics like circuit boards to more complex fabrication devices. With every prototype they might require more components to test and improve their product.
Incubation period
It takes a minimum of 18 months for a hardware product to enter the market. Still, the fear of failure still is very high. “The only way hardware start-ups can grow is when they invest time in relevant research and survey, and understand the environment completely” explains Pochiraju whose Jaaga, has launched Jaaga Hardware Kitchen to encourage hardware start-ups. Sudhir Reddy, head of operations, Redd Robotics, would know just how tough the process can be. After two whole years, his start-up is about to release one of the most reasonable3-D printers into the market. “We spent a lot of time on each aspect - from research and development to design,” he said.
Funding
How do entrepreneurs survive till their product breaks even and makes any profit at all? “Without the product you won’t get funding but without funding there is no product,” says Mughilan T R, co-founder, Skylark Drones, aerial partners for Bangalore City Police explaining the crux of the issue. “Funding was really tough and we had to do what start-ups do best – innovate,” he adds. The city based start-up conducted workshops in schools and colleges to raise money and had collaborates for resources to build the drones.
Hard road
Hardware start-ups are taking baby steps to making inroads into the market. “If we make one mistake in design, we lose money, unlike software guys who can just rewrite the code” says Mughilan. His counterpart at Redd Labs would agree. “If you don’t have the interest and determination, you cannot run a hardware start-up,” concludes Reddy.
Unlike their counterparts in software, need more resources, time and funding Bengaluru is a hotbed for
Resources
“There is a knowledge barrier in hardware. While software start-ups have easy access to open source material which can be used readily, hardware professionals have to start from scratch,” says Dr Tej Pochiraju, director, Jaaga Startup program – that seeks to nurture creative endeavours. “Programmers have the option of starting-up by working on ideas with open source software, but hardware entrepreneurs do not have such resources at their disposal,” he added.
Incubation period
It takes a minimum of 18 months for a hardware product to enter the market. Still, the fear of failure still is very high. “The only way hardware start-ups can grow is when they invest time in relevant research and survey, and understand the environment completely” explains Pochiraju whose Jaaga, has launched Jaaga Hardware Kitchen to encourage hardware start-ups. Sudhir Reddy, head of operations, Redd Robotics, would know just how tough the process can be. After two whole years, his start-up is about to release one of the most reasonable
Funding
How do entrepreneurs survive till their product breaks even and makes any profit at all? “Without the product you won’t get funding but without funding there is no product,” says Mughilan T R, co-founder, Skylark Drones, aerial partners for Bangalore City Police explaining the crux of the issue. “Funding was really tough and we had to do what start-ups do best – innovate,” he adds. The city based start-up conducted workshops in schools and colleges to raise money and had collaborates for resources to build the drones.
Hard road
Hardware start-ups are taking baby steps to making inroads into the market. “If we make one mistake in design, we lose money, unlike software guys who can just rewrite the code” says Mughilan. His counterpart at Redd Labs would agree. “If you don’t have the interest and determination, you cannot run a hardware start-up,” concludes Reddy.
