The Hardware Renaissance

Paul Graham’s essay The Hardware Renaissance argues that hardware startups are experiencing a resurgence.

Empirical Evidence

In Y Combinator’s batch from October 2012, 7 out of 84 companies focused on hardware, and “on the whole they’ve done better than the companies that weren’t.”

Investor Bias is Outdated

“Investors’ opinions are a trailing indicator. The best founders are better at seeing the future than the best investors.”

Technology Enablers

Crowdfunding success (Kickstarter)
Tablet proliferation enabling new applications
Improved electric motors and wireless connectivity
Accessible prototyping tools (Arduinos, 3D printers)
Online retail reducing distribution barriers

Historical Context

Software’s advantage “only dates from about 1990” and “may not be permanent.” Physical products possess inherent appeal: “Hackers love to build hardware, and customers love to buy it.”

My Takeaway

Don’t fear investor skepticism about hardware. The best founders see the future before investors do.