In an interview in the Wall Street Journal, Altman says hardware could yield more $10 billion startups, but finding them means looking beyond companies that just want to make “little things that get sold at Best Buy”.
It’s the software-ization of hardware. All the reasons that have made software so successful are beginning to happen with hardware. So much can be done so quickly, prototyped so rapidly, and the costs are so low…The two things I look at most in a startup are cycle time [building a prototype] and cost. When those come down I think an area is now ripe for disruption. And I believe that’s really now happened in hardware.