Hardware startups have high cash burn rates. With virtual CAD machines, they preserve significant cash. They can spend this on achieving product-market fit.
There’s a wave of nascent technology about to hit the world. Robotics, Artificial Intelligence (AI), connected devices, Augmented Reality, and more.
Engineering talent and smart money propel this movement. In hardware incubators, ideas and capital come together to forge new hardware business models. Examples are HAX (Shenzen), AlphaLab Gear (Pittsburg), and New Lab (New York).
The hardware startup field is unforgiving. Companies like Jawbone, Juicero and Pebble are well-known startups that didn’t make it. CBI Insights, a leading analyst of startups, concluded that a high cash burn rate was the second-ranked cause of failure for hardware startups.
The big quest – for any startup – is to find Product-Market fit before the funding runs out. With a high cash burn rate, this challenge is twice as hard for hardware startups.
One way for them to keep cash outlays to a minimum, is to rent CAD software for a short-term. For example, Autodesk (Inventor) offers 1-month subscriptions.
This is great, but what about the expensive CAD Workstations that are needed to run this software? Virtual CAD Machines are ideal for this scenario.
Startups can rent them for a small monthly fee. In this way, startups eliminate upfront investments in expensive software and hardware as they built their Minimum Viable Product.
Beyond this, virtual CAD machines help reduce costs in other areas as well:
- Engineers who work on virtual CAD machines don’t need expensive office-space. They can work from anywhere, saving on rent expenses
- Startups that design on virtual CAD machines, can attract engineering talent in locations beyond Silicon Valley, the Boston area or New York. This reduces the payroll expense a lot.
With virtual CAD machines from designairspace, hardware startups can run lean and mean. This means that hardware startups get a longer runway to make it to product-market fit.