Growing a hardware business is indeed “hard.” The challenge really comes down to access to capital. Somewhere between the launch phase and scale-up, Hardware Startups enter into financing purgatory. In this stage you typically have two options: One – You can chase down debt. The issue with debt for a young company is typically loan size and interest rate. Two – You can chase down investors. This option can often lead to wasted cycles or lopsided dilution. Angel investors aren’t typically excited about a huge outlay of cash for startups where the costs grow proportionally with revenue.
This is where we come in. As former hardware founders ourselves, we weren’t satisfied with these options (or lack thereof). At DIF we purchase inventory on your behalf, take on the financial liability, and partner on the profits. It’s as straightforward as it sounds.