Moving fast in hardware: lessons from lab to $100M ARR

(blog.zacka.io)

102 points | by rryan 16 hours ago

13 comments

  • syntaxing 14 hours ago
    Fun read but a bit too much fluff? I was a design MechE for about a decade and I’m by no means as successful as the OP. But I have worked on a 5 person design team that had an annual net revenue of 30M and another job where I worked on 25M+ contract with just a team of 2, me and my mentor at the time. End of the day, hardware execution is hard and there’s a ton of product development cycle theories, you just need a culture with what I call good engineering discipline. Good communication, good documentation, and realistic milestones with accountability.
    • doctorpangloss 12 hours ago
      Fluff? It is written by a chatbot.
    • minutesmith 14 hours ago
      [flagged]
      • syntaxing 13 hours ago
        That’s why I’m a huge proponent of pushing the idea of engineering discipline. And like any organization, discipline comes from the top to bottom. Coming from bottom to top is just a recipe for disaster and clear tell sign of misaligned objectives between management and the engineers.
  • roadbuster 15 hours ago
    I think Clearmotion has a very interesting technology and product (ride stabilization), but let's paint a full picture here: the company was founded in 2009, took on $370 million in funding, and only recently landed large contracts (a $1 billion dollar deal in 2023 with Chinese auto manufacturer, Nio).

    I'm sure they were in a constant struggle for survival and had to "move fast" to stay afloat, but their technology is more than a decade in the making.

    • MisterTea 9 hours ago
      I would venture a guess that there is little interest in adding complexity to the humble shock absorber. A simple passive mechanical system is replaced with a complex servomechanism featuring sensors and actuators which live a hard life under a car.

      What is the longevity vs a passive system? How much is it to service vs standard suspension? How much does this change the overall suspension design? How much weight does it add? I bet the answers to those questions since 2009 were not at all enticing to automotive designers or bean counters.

      Personally, I would not want such a system on my car. It sounds like another expensive maintenance item you have to deal with that adds little or no value.

    • rryan 14 hours ago
      I think the super long timelines in automotive make it really hard to succeed. Really impressed with what ClearMotion accomplished given that
    • svnt 3 hours ago
      And it is extremely likely Nio made that deal to see whether they could embrace, extend, extinguish them.
  • 3dxsys 16 hours ago
    Outsource the mature, insource the uncertain is very true. A lot of startups outsource precisely the part of the system they understand least, but that is oftentimes the worst possible decision.
  • bfeynman 14 hours ago
    Nice read but falls into a vast reductionist trap, a lot of survivorship bias dressed up as design philosophy or strategic bets. The context of decisions made decades ago != now, people were working under different constraints etc. Trying to frame the avionics example as the "subtractive" innovation is the most egregious, transistors were over 1000x times smaller, weight wasn't even a consideration.
    • esseph 13 hours ago
      > a lot of survivorship bias dressed up as design philosophy or strategic bets

      I wish more people realized this

  • AbrahamParangi 15 hours ago
    I'm mostly curious how much of that revenue is actual ARR, which is to say contractually recurring. It is pretty dang rare for a hardware company to have nontrivial ARR.
    • zacka 15 hours ago
      automotive contracts are typically on 6 year cycles, so tech gets designed into a new car and it's locked in until the next vehicle generation (5-7 years depending on the automaker). year to year sales can fluctuate but are fairly predictable.
  • nivekney 14 hours ago
    Just when I think I cannot see more emdashes, there are more emdashes.
    • rryan 11 hours ago
      As a human emdash enjoyer, I'm pretty damn grumpy that everyone assumes I'm a chatbot now. :P
  • JSR_FDED 14 hours ago
    Optimizing for learning/iteration speed is a solid approach that applies just as much to software development.
  • yrcyrc 12 hours ago
    Could anyone recommend the same for a software startup? (Lessons learned, mistakes to avoid etc)
  • nonameiguess 14 hours ago
    According to the draft Wikipedia article for this company that hasn't been published because it is not yet considered sufficiently noteworthy, this company has existed for 17 years, built their first production facility in 2023, and first delivered working units into real cars last March. That doesn't strike me as moving all that fast. It also says they acquired the Bose product they're shitting on in this article for doing things wrong.

    If it works, it works, but I really wish companies and founders would just be honest about how and why they succeed when they do, instead of everything needing to be the constant projection of a desired image.

    • dcreater 13 hours ago
      Yup this reads like post hoc revisionist marketing content rather than an engineers diary
  • yalogin 14 hours ago
    Depends on how much funding you have, your target audience, target vertical, and how custom your hardware is, no? There can only be so many things you can cut and optimize.
  • supliminal 13 hours ago
    Can someone in plain English please tell us what this company does? I just see one anecdote after another that’s scattered with feel-good whodathunkit babble. I was anticipating the airplane holes analogy, but maybe I got lucky and missed it.
    • HeyLaughingBoy 13 hours ago
      "ClearMotion, a company developing automotive robotics that stabilize vehicle ride and handling"
      • svnt 3 hours ago
        At what point does active suspension become robotics? Because there are a lot of automakers who should be repositioning to get their multiples up.
      • supliminal 13 hours ago
        Thank you!
      • andruby 12 hours ago
        [dead]
  • Fokamul 14 hours ago
  • hackerman70000 15 hours ago
    [flagged]