Hardware Startups See Revival From VC

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • VC portfolios increasingly balance hardware and software
  • Brinc helps hardware startups start manufacturing in China

After record year for venture capital last year, 2019 could be the best yet for hardware startups. Forty-three percent of VC money invested this year has gone to hardware — covering industrial, energy, consumer products, automotive and electronics.

VC is keen on software startups, which often have quicker returns and less development risk. Early movers such as Hong Kong-based accelerator Brinc are looking at hardware. Brinc helps startups manufacture in China by solving technical and mechanical issues.

Hardware, notably for the internet-of-things, has been getting more attention recently. From 26% of investment in 2014, it has gained 17 percentage points.

Large VCs NEA, Y Combinator and Andreeseen Horrowitz still spend less than 10% on hardware. It requires a more patient VC attitude. Brinc has made no exits from its 78 investments.

Clients can find the report ‘BloombergNEF Technology Radar: The Industrial Sensors Edition’ on The Terminal or on web

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