YC
Jared Friedman - Advice for Hard-tech and Biotech Founders
@ Y Combinator
09/20/19
Takeaways
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Jared Friedman
09/20/19
@ Y Combinator
A hard tech company requires significant time and money to build its first product, and even with ample resources, it's uncertain if the product can be built at all.
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Jared Friedman
09/20/19
@ Y Combinator
Starting a hard tech company can be easier than starting a simple company, as the challenges of gaining interest and investment are often less daunting for ambitious projects.
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Jared Friedman
09/20/19
@ Y Combinator
Boom, a YC company, demonstrated that by assembling a team of top advisors and creating computer simulations, they could attract interest from airlines without incurring significant costs.
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Jared Friedman
09/20/19
@ Y Combinator
Solugen started with a small beaker to prove their hydrogen peroxide production concept, which allowed them to scale up to a large plant without needing millions upfront.
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Jared Friedman
09/20/19
@ Y Combinator
AirX pivoted from developing a new medical device to launching a basic version using an existing FDA-approved device, enabling them to go live quickly without extensive regulatory delays.
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Jared Friedman
09/20/19
@ Y Combinator
Notable Labs began by providing tumor screening services to pharmaceutical companies, generating revenue and data to support their drug development efforts.
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Jared Friedman
09/20/19
@ Y Combinator
Astranis built a test satellite during YC for under $50,000, demonstrating that it's possible to launch a satellite without the typical high costs associated with such projects.
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Jared Friedman
09/20/19
@ Y Combinator
Ginkgo Bioworks sold contracts to create genetically engineered organisms before they were built, using these contracts as proof of customer demand to raise millions from investors.
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Jared Friedman
09/20/19
@ Y Combinator
To prove that people will want your product before it's built, the best approach is through pre-sales, as demonstrated by Jetpack Aviation's successful pre-sale campaign for flying motorcycles.
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Jared Friedman
09/20/19
@ Y Combinator
If pre-sales are not possible, especially in regulated industries like medical, use a Letter of Intent (LOI), which is a non-binding contract that indicates customer interest in purchasing your product when it's ready.
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Jared Friedman
09/20/19
@ Y Combinator
A well-crafted LOI is valuable; it should be specific and can serve as a roadmap for what you need to build to generate revenue from your product.
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Jared Friedman
09/20/19
@ Y Combinator
Most hard-tech companies will need to raise money from investors, so it's crucial to develop a smart fundraising plan that breaks down the total amount needed into smaller, achievable milestones.
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Jared Friedman
09/20/19
@ Y Combinator
Successful hard-tech founders focus on minimizing the size of each fundraising step, making it easier to achieve milestones necessary for raising the next round of funding.
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Jared Friedman
09/20/19
@ Y Combinator
Hard-tech companies often have an easier time recruiting talent because ambitious individuals are attracted to innovative and challenging ideas.