dragon innovation
Post on 19-Oct-2014
70 views
DESCRIPTION
Dragon Innovation Co-Founder and CEO Scott Miller presented at September 2014's edition of Hardwired NYC. Dragon Innovation works with entrepreneurs to launch hardware products and scale companies.TRANSCRIPT
![Page 1: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/1.jpg)
DRAGON INNOVATION, INC. !
THREE THINGS YOU NEED TO KNOW BEFORE CROWDFUNDING
!SEPT 9, 2014
HARDWIRED NYC !!!!!!
SCOTT N. MILLER | CEO | @DRAGONINNOVATE | WWW.DRAGONINNOVATION.COM
![Page 2: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/2.jpg)
![Page 4: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/4.jpg)
Manufacturing is Complex
Going from prototype to production can be a long journey with many unknown unknowns:
•COGS, tooling and manufacturing costs •Lead times •Permanence of Quality •Iteration cycles •DFM •Factory Selection and Management •Team Scalability •Schedule & Project Management •Specialized skills (ME / EE / SW/ Q / SC / Logs)
![Page 5: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/5.jpg)
Hardware Requires Cash
Typical funding sequence: •Bootstrapping •Friends and Family •Angels •Crowdfunding •Venture Capital
![Page 6: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/6.jpg)
BE CAREFUL YOU DON’T SELL SOMETHING YOU
CAN’T BUILD
![Page 7: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/7.jpg)
The Three Things You Need to Know
•How much cash do you need? •How long is it going to take? •What is the status of your Design for Manufacturing?
![Page 8: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/8.jpg)
8
How much cash do you need?
![Page 9: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/9.jpg)
Manufacturing Factors That Drive Funding Requirements
-NRE for Prototype to DFM -COGS -Tooling Costs -Manufacturing Costs -Crowdfunding Transaction Costs
![Page 10: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/10.jpg)
Understanding Cost of Goods Sold (COGS)
-The COGS of your product will determine the financial success of your company
-Create a Detailed Bill of Materials (BOM) -Separate Mechanicals (Plastic, Metal, etc.), Purchased, Electronics, Packaging, etc.
-Include Labor -Include Scrap, Markup, Overhead and Factory Profit -For each line item, separate into core operations for greatest transparency.
![Page 11: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/11.jpg)
11
How long will it take?
![Page 12: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/12.jpg)
Idea DeliverCrowdfund
Manufacture
PERCEIVED PRODUCT TIMELINE
Prototype
D E F G H I J K L M N O P Q
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
R S T U V ZW X YA B C
![Page 13: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/13.jpg)
Idea DeliverCrowdfund Manufacture
MORE REALISTIC PRODUCT TIMELINE
Proto
CF Prep
X Y ZK L M N O P Q R S T U V WI J F G HC D E A B
![Page 14: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/14.jpg)
Manufacturing Is Hard
![Page 15: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/15.jpg)
Schedule
•Many consumer products are driven by the Holiday Season (which has a fixed date).
•Plan contingency in your schedule. Things never go according to plan.
•Have an onsite presence at the Factory •Track schedule carefully and take corrective actions early. •Avoid: “There is never time to do it right the first time, but there is always time to do it again. ”
![Page 16: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/16.jpg)
The Road to Production
![Page 17: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/17.jpg)
17
What is the status of your design for manufacturing?
![Page 18: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/18.jpg)
Typical Stages
-Paper sketches -Handmade prototype (popsicle sticks and hot glue) -3D printed prototype (works-like) -Industrial Design model (looks-like) -Design for manufacture (for Tool Start) •Injection Molded with drafts, rounds, minimal undercuts •Die Cast •Stamped •CNC -Final Product Design in Manufacturing
![Page 19: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/19.jpg)
19
Questions?
![Page 20: Dragon Innovation](https://reader034.vdocuments.us/reader034/viewer/2022050720/54446fafb1af9f600a8b48fb/html5/thumbnails/20.jpg)
Agenda
Dragon Innovation [email protected]
@dragoninnovate
http://www.slideshare.net/dragoninnovation