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VCs and startups consider HaaS model for consumer devices

I’ve been following consumer audio electronics busines Nura with great interest for a few years now — the Melbourne-based startup was one of the first business I met with after starting with TechCrunch. At the time, its first prototype was a big mess of routes and wires — the sort of thing you could never imagine reduce down into a reasonably sized customer device.

Nura coped, of course. And the end product ogled and sounded great; inferno, even the box was nice. If I’m lucky, I examine a consumer hardware product once or twice a year that seems reasonably capable of disrupting an industry, and Nura’s custom racket charts fit that bill. But the company was distinct for another reason. A postgraduate of the HAX accelerator, the startup announced NuraNow approximately this time last year.

Hardware as a service( HaaS) has been a popular concept in the IT/ enterprise cavity for some time, but it’s still somewhat uncommon in the consumer category. For one thing: A hardware due represents a brand-new paradigm for to be considered obtains. That is a big lift in a country like the U.S ., which deplete times weaning customers off contract-based smartphones.

That Nura rushed at the possibility shouldn’t be a big surprise. Backers HAX/ SOSV have been proponents of the model for some time now. I’ve toured their Shenzhen bureaux a few goes, and the topic of HaaS always seems to come up.

In a recent email exchange, General Partner Duncan Turner described HaaS as” a great way to keep in contact with your customers and up-sell them on brand-new aspects. Most importantly, for startups, returning income is critical for scaling a business with venture capital( and will help appeal to a vast place of investors ). HaaS often has a low-pitched churn( as easier to put onto long-term contracts ).”

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