Why Most Hardware Startups Fail (and What Damon Bonser, CEO of British Design Fund Looks for Instead)
"There’s a huge amount of design talent in the UK—we just need more founders brave enough to commercialise it."In this episode of Why Design, I sit down with Damon Bonser, founder and CEO of the British Design Fund—a team of operators-turned-investors backing early-stage product businesses with real-world impact.Damon knows firsthand why most hardware startups fail—because he’s been through it himself. After launching over 400 products, navigating stock finance headaches, and scaling a business across the UK, US, and Asia, he sold his company and switched sides of the table. Now he backs founders with the potential (and grit) to build something meaningful.We talk about the real markers of investability—TRL5+, commercial clarity, protected IP—and why pitch decks and pretty prototypes don’t cut it. Damon shares his take on cashflow mastery, reshoring opportunities in the UK, and the red flags he sees too often when meeting founders.If you’re building a physical product, thinking about raising, or want a brutally honest take on early-stage investing—this one’s for you.Key Takeaways:🔹 Built, Scaled, Sold – Damon’s journey from novelty bottle openers to running a 400-SKU business with global operations.🔹 Why Most Hardware Startups Fail – Poor cashflow planning, overengineering, no route to revenue—and no real need for the product.🔹 What the British Design Fund Looks For – A clear problem, TRL5 or above, manufacturing viability, and a founder with domain obsession.🔹 Cashflow is King – Why understanding your margins and stock finance is non-negotiable in physical product businesses.🔹 Sustainable Hardware That Matters – The BDF backs engineering-led solutions to real-world problems—not gadget fluff.🔹 Red Flags for Investors – Founders who don’t know their numbers, haven’t tested assumptions, or treat manufacturing as an afterthought.🔹 UK Hardware Advantage – Why the UK’s funding ecosystem, engineering talent, and reshoring momentum are aligned for growth.🔹 From Founder to Funder – Damon’s switch from doing it all to helping others do it better—with lessons learned the hard way.📌 Quotes That Hit Hard:💬 “Most founders overengineer the product, underthink the business, and don’t plan for scale.”💬 “We didn’t raise a penny—we bootstrapped the whole thing through sheer bloody-mindedness and cashflow juggling.”💬 “You can’t outsource conviction. If you’re not obsessed with solving the problem, no one’s backing you.”💬 “Don’t come to us with a pretty prototype—come with a plan to take it to market.”Resources & Links:🌍 British Design Fund Website💼 Connect with Damon Bonser on LinkedIn📬 Apply for Funding – Check the criteria and submit your startup.👥 Join the Why Design community!Sign up for events, online huddles, and workshops: teamkodu.com/events🔗 Follow Chris Whyte on LinkedIn –
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