GoKawiilRoughly 90 percent of hard tech startups fail due to funding constraints, longer R&D timelines for developing hardware, and the complexity of manufacturing their products, according to a number of studies.
Generally, these startups require up to 50 percent more investor financing than software ones, according to a Medium article. Typically, they need at least US $30 million, according to a Lucid article. That’s double the funding needed by software companies on average.
To help them connect with investors, IEEE Entrepreneurship in 2024 launched its Hard Tech Venture Summits. The two-day events connect founders with potential investors and other entrepreneurs. Attendees include manufacturers, design engineers, and intellectual property lawyers.
“Even though there are a lot of startup investor conferences, it’s hard to find those focused on hard tech,” says Joanne Wong, who helped initiate the program and is now the chair. She is a general partner at Redds Capital, a California-based venture capital firm that invests in global early-stage IT startups.
The IEEE member is also an entrepreneur. She founded SciosHub in 2020. The company’s software-as-a-service and informatics platform automates the data-management process for biomedical research labs.
“Many investors are focused on AI software—which is good,” she says. “But for hard tech companies, it is still hard to find support.”
The summit also includes a workshop to help founders navigate manufacturing processes and regulatory compliance. The event is open to IEEE members and others.
IEEE is a natural fit for the program, Wong says, because hard tech is synonymous with electrical engineering.
“Some of the domains we’re covering are robotics, semiconductors, and aerospace technology. IEEE has societies for all these fields,” she says. “Because of that, there are many resources within the organizations for startups, whether it be mentors or guides on how to commercialize products.”
There are several venture summits planned for this year. Two are scheduled in collaboration with the IEEE Systems Council: this month in Menlo Park, Calif., and in October in Toronto.
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