Founding a Hardware Start-Up Is Getting Easier

Only 3% of U.S. venture-capital investment was for hardware start-ups last year, but that represents a big increase from 1992–2011, when the figure was less than 1%, says the Wall Street Journal. Investors have long shied away from start-ups making gadgets such as wearable electronics, because of the challenges posed by manufacturing, distribution, inventory, and technical support. But help has arrived: Today’s contract manufacturers, such as PCH International, will not only make your product for you, they’ll also provide engineers and project managers in China; as a consequence, U.S. venture capitalists are taking a rosier view of hardware start-ups.