Hardware startups like brightup have one common problem: the extremely high up-front investments into production setup. For producing a plastic case, a mold is required which can cost up to several ten thousand euros. But also the production of the electronics is expensive and only makes sense with a certain minimum amount of units.
This is one of the reasons why many investors are hesitating to support hardware startups. So, we at brightup had to find alternative ways to finish the development and start the first production run. With pre-orders, we planned to finance the up-front investments of the mold and electronics and to reach the minimum amount of units to sell the bundles at a reasonable price point.
Crowdfunding platforms like Kickstarter and Indiegogo are ideal for that task. They handle the payment, already attract tech-savvy people and support the teams with their campaigns. That’s why crowdfunding is so popular among hardware startups. Take for example the teams of the Berlin Hardware Accelerator, Class of 2013, where brightup is participating. Alima, Luuv, brightup and many more are launching their products using such platforms.