May 11, 2023

175: Raising Hardware Funding via an Angel Investor

20 minutes

Larry Richenstein has been in the hardware sales, development, and investment world for over 40 years. He is an angel investor in the New York Angels network and is currently the CEO of WePower Technologies, his latest hardware venture. Today Larry is going to share some valuable knowledge for inventors, startups, and small manufacturers on what angel investing is, what stages of development you need to get your product to in order to pitch to a professional angel investor, and how to do a good pitch once you are in the door.

Today you will hear us talk about:

An angel investor is usually an independent investor or a group of investors that invest in startup businesses.

Angel investing are considers

Angel investment is the first round, then venture capital.

When it comes to products, there is a lot more that goes into them from a product development standpoint.

Measure twice, cut once.

You have to have all the development

People that have ideas, get no funding.

People that come up with a rough prototype or a rough prototype, it’s interesting but generally still too early.

What investors really want to see, is a working prototype.

De-risking the investment occurs the further you push the product down the road.

First, find angels that invest in hardware.

Angel investors for hardware are out there.

Come in with a pitch that proves that you have a strong likelihood of success

Hardware and software are starting to come together.

Crowdfunding is a powerful way to prove market validity.

You no longer have to build for the masses, you can build for niche industries.

Avoid feature creep, especially for your first version.

Crowdfunding is a way to avoid outside investors.

EPISODE LINKS:

Larry Richenstein Links:

LinkedIn | WePower Technologies

The Product Startup Podcast Links:

https://www.ProductStartup.com/

Mako Design Links:

https://www.makodesign.com/

Kevin Mako Links:

Instagram | LinkedIn | Quora | Facebook | Twitter

Partner: PTC’s best-in-class software solutions Onshape: The only cloud-native product development platform that delivers full-featured computer-aided design (CAD), integrated product data management (PDM) and enterprise analytics in a single system, and Creo: 3D CAD solution that provides designers with the most innovative tools to build better products faster, such as generative design, additive manufacturing, real-time simulation, IIoT, and augmented reality.

Producer: MAKO Design + Invent is the original firm providing world-class consumer product development services tailored to startups, small manufacturers, and inventors. Simply put, we are the leading one-stop-shop for developing your physical product from idea to store shelves, all in a high-quality, cost-effective, and timely manner. We operate as one powerhouse 30-person product design team spread across 4 offices to serve you (Austin, Miami, San Francisco, & Toronto). We have full-stack in-house industrial design, mechanical engineering, electrical engineering, patent referral, prototyping, and manufacturing services. To assist our startup and inventor clients, in addition to above, we help with business strategy, product strategy, marketing, and sales/distribution for all consumer product categories.