Hardware startups are expanding from the world of consumer tech; global hardware accelerator HAX knows this better than most and details the latest trends in its yearly report. One of the most active early-stage hardware investors, the group today released exclusively to TechCrunch its yearly report with insights on hardware startups.
The report highlighted several vital insights: hardware companies are increasingly entering the public market, and more privately-held hardware startups are exceeding a valuation of $1 billion. Of those unicorns, more than 50% are Chinese hardware companies.
HAX found that consumer tech hardware is the most reliable market for companies worth more than a billion. Likewise, medical device companies are a “surprisingly low driver of unicorns.” According to the report, some of these companies are going public before reaching a valuation that exceeds a billion dollars.
Download the 2019 HAX Hardware Trends report
Crunchbase data show that consumer hardware saw a dip in funding in 2018, down from a peak in 2017. HAX predicts that 2019 will end up topping 2018’s levels and references Dow Jones’ data to note decreasing equity financing for China-based, VC-backed companies. Chinese GPs are also struggling to raise funds through this and are predicted to bounce back in 2020. According to HAX, China is increasingly a region rich in hardware companies and has quickly become home to over half of the unicorn hardware makers.
The Chinese electric vehicle market is widely competitive, with 486 companies in the space. It’s this space that has seen most companies reach unicorn status. HAX views this as a bubble about to burst with lasting effects on the worldwide automotive scene.
As one of the most active early-stage hardware investors, HAX’s data and insights are invaluable to the rest of the industry. Hardware remains hard, but with the right data, it becomes easier for everyone. The report is loaded with data facing consumer tech, mobility, health, and construction tech companies.
HAX Hardware Trends 2019 by TechCrunch on Scribd