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Hardware startup strategy for electronics design and manufacturing

By VentureOutsource.com staff

Portfolio executives at electronics hardware startups would be remiss not to consider evaluating a contract product design or contract manufacturing partner during the early stages of developing their company product.

Startup and early stage companies outsource many services to conserve the rate at which they burn cash while on the path to reaching break even or becoming cash positive. Startup product portfolio companies are often encouraged by venture capital investors to increase scope and depth of expertise but not to put much of the required investment to do so ahead of earning revenues.

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Typically, by the time Series B startup funding occurs, many portfolio company executives (focused on the objective of bringing a manufacturing product to market) have finished most of their product prototype work and are beginning to think about product manufacturing and related production issues.

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