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Sparse's Story Illustrates the Potholes Faced By Hardware Start-Ups

waderoush (1271548) writes "Hardware is Silicon Valley's new religion. Bits and atoms aren't so different after all, the creed goes; just as the cost and complexity of starting a software company has drastically declined over the last decade, it's now becoming much cheaper and easier to start companies that make physical things. But talk to almost any real hardware company, and you'll discover that the promised land is still some distance away. Sparse, a San Francisco product design startup, learned that the hard way. The company raised $66,000 on Kickstarter for its uber-cool theft-proof bicycle lights, but it took more than a year to deliver the first units to backers, thanks to a string of unforeseen manufacturing and supply-chain snafus. 'We had all the t's crossed and all the i's dotted and still there was a big daily surprise,' says industrial designer Colin Owen, Sparse's co-founder and CEO. Today Sparse is shipping and profitable, with a vision to 'change the face of mobility' for urban cyclists, but its story illustrates just how high the bar still is for aspiring hardware entrepreneurs. Says Owen: 'I wish there was more of a handbook for these things, but the biggest hiccups were very localized and unpredictable.'"

14 of 103 comments (clear)

  1. One year by drolli · · Score: 4, Insightful

    from "no company" to "company delivers a product to customers" is not bad at all.

  2. Concentration by dbIII · · Score: 3, Insightful

    thanks to a string of unforeseen manufacturing and supply-chain snafus

    That's why China already owns the USA's ass in manufacturing. There are too many holes in the manufacturing capability now while in China the place to make that other thing is just down the road - like it used to be in the USA.

    1. Re:Concentration by spiritplumber · · Score: 4, Interesting
      I'm going the "100% made in the US" route for my crowdsourced thing.... wish me luck!

      http://igg.me/at/minilaser/ If you want a cheap laser cutter.

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    2. Re:Concentration by TheGratefulNet · · Score: 3, Insightful

      and because environmental and human safety does NOT MATTER in china. people die? who cares. air can't be breathed? who cares. but hey, they are selling walmart shit to us and so, wow, go china, go! ;(

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    3. Re:Concentration by TubeSteak · · Score: 2

      There are too many holes in the manufacturing capability now while in China the place to make that other thing is just down the road - like it used to be in the USA.

      Manufacturing is coming back to the Americas (North/Central/South) specifically because of problems mentioned in TFA

      But Sparseâ(TM)s manufacturing partners there initially had trouble making the die-cast metal parts to the right tolerances, and there was a high rejection rate for units with the silver finish.

      âoeI really care about making things perfect, and it takes a certain amount of time to solve things when the problems crop up and the information has to filter up the supply chain,â Owen says. âoeIt can take you a week to see if they are shipping the same part you presented to them.â

      Problems like those can still happen with local manufacturing, but they get noticed and resolved in days, not weeks.

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    4. Re:Concentration by spiritplumber · · Score: 2
      Where does it stop though? I mean, do I have to mine the silicon and copper, make the wafers, etc. in the US?

      I get parts from the open market and build something that is more than the sum of its parts. The PCBs are made here (But, where is the copper mined? where is the solder mask stuff made? etc.), assembled here (but where does the solder come from?), the machining is done here (but who mined the alluminium and made the extrusions, and where?), and the plastic parts are printed here (but where does the filament come from?).

      These days it's as close as you can realistically get...

      Interestingly, NASA and the DoD have problems getting US-made basic components such as resistors because they're just not being made here anymore.

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  3. Fixed battery?! USB charger?! by BaronM · · Score: 2

    I was thinking "looks good", until I saw that this setup uses a dual-headed USB charger that sure looks designed for indoor use only. I'm fine with a fixed battery in my cell phone, tablet, and even laptop, but my bike a) lives outdoors and b) need to accept a spare battery because working lights can be a life-or-death matter.

    Nice design, but seriously deficient function.

  4. Line up suppliers beforehand, and use their flex by spiritplumber · · Score: 4, Informative
    I have the same problem -- my kickstarter hit 200% and I was not ready for it. So I am having to scale up.

    The good thing is that my supply chain was already in place, so all I had to do was increase quantities. I did, however, have to design a simple machine (a jig, basically) to semi-automate a task I had intended to do by hand.

    http://igg.me/at/minilaser/ if anyone cares.

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  5. Trivial hardware is still challenging by erice · · Score: 4, Insightful

    Hardware is Silicon Valley's new religion. Bits and atoms aren't so different after all, the creed goes; just as the cost and complexity of starting a software company has drastically declined over the last decade, it's now becoming much cheaper and easier to start companies that make physical things. But talk to almost any real hardware company, and you'll discover that the promised land is still some distance away.

    No. Hardware is Silicon Valley's founding religion. Software came later and now real hardware startups can not get funding. Sparce's experience shows that even if your development is trivial (no significant R&D) and you don't do any of the manufacturing yourself, it can still be a bumpy road to selling product.

    I see no evidence that this is improving. All that has happened is that ambitious hardware startups no longer happen and people are getting excited over hobby scale development that didn't use to make the news. Well, to be fair, Kickstarter has allowed "super hobby" scale developments to take off that used to fall into a no-man's land. They were too small to form a viable business around and yet too big for a couple of guys to pull off in their spare time. Still, this is nowhere near a hardware renaissance. The promise land is not just some distance away. There is little evidence that we are going there.

  6. Hardware is Silicon Valley's new religion by TheGratefulNet · · Score: 2

    uhm, who writes this tripe?

    SILICON VALLEY has always been about hardware.

    where do you think the word 'silicon' comes from?

    sheesh.

    #include <stopped_reading_there.jpg>

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  7. Advert -- nothing to do with Silicon Valley by statemachine · · Score: 5, Informative

    The summary made it sound like an electronic hardware startup, and the difficulties behind competing with the bigwigs like IBM, AMD, Intel, Cisco, Apple, etc.

    No, it's click-bait.

    As nice as a bicycle headlamp is (that will still be stolen -- thieves don't use normal tools, and they're usually supporting a drug habit), the article didn't even talk about manufacturing in Silicon Valley, or even San Francisco (which is 45 miles north), and they had no unoriginal issues with certifications in other countries. I'm voting this article down. Re-submit with an accurate summary next time.

  8. A bicycle light - pathetic by Animats · · Score: 4, Insightful

    Too many of these supposed "high tech hardware startups" are producing the kind of crap that came from China two decades ago and Japan four decades ago. Bicycle lights. iPhone cases. Even the Raspberry Pi and the Arduino are just PC boards stuck under systems on a chip made in China. This is not high tech.

    There were some guys at TechShop last year making a plastic gizmo for attaching an iWhatever to a an auto dashboard. They had a big "Made in Silicon Valley" poster. I felt they were embarassing Silicon Valley.

    We need to do better than this.

    1. Re:A bicycle light - pathetic by AmiMoJo · · Score: 2

      The point of the Pi and Arduino is not so much the hardware as the support and community. The hardware for both is trivial, especially the Pi which is literally the minimal reference design from the datasheet. Before they came along the was no standard low cost platform for Linux and microcontroller development that was as easy as Lego to get started with.

      These days hardware is usually the easy part, it's what you do with it that counts.

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  9. Blatant Slashvertisment by evilviper · · Score: 2

    TFA is 20 full-screen pictures of their product, and page after page of copy about how awesome the product is. Only barely a mention of some minor hiccups, that get treated as an industry problem, rather than the realities of an incompetent start-up that simply didn't know WTF it was doing.

    And frankly, $140 for a set of 'sleek' bicycle lights makes me want to go on a killing spree.

    Buy a couple 3-mode SK68 lights for $5/ea. Brighter than you could ever want, with high/low/strobe, and multiple zoom settings:

    http://www.amazon.com/dp/B006E...

    Some $2 bike mounts:

    http://www.amazon.com/dp/B00AD...

    And if you don't want to cut-out some red cellophane to fit, you can get a kit with red lens for the tail light:

    http://www.amazon.com/dp/B0000...

    Batteries and Charger, < $13:

    http://www.amazon.com//dp/B004...

    http://www.amazon.com/dp/B004N...

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