Insights
Lessons on Scaling Hardware with Matt Rogers and Mike Schroepfer
Apr 25
At SF Climate Week 2024, Mike sat down with Matt Rogers, a consumer hardware leader known for founding Nest. Matt is now tackling the stinky issue of food waste with Mill. In this conversation he gives a peek into how Mill works and what he’s learned about scaling hardware.
Key Takeaways:
1. Hardware is Good Business: Matt dispels the myth that hardware companies struggle to be profitable. Reflecting on his time at Nest, Matt recalls achieving substantial revenue and high margins in just a few years, reinforcing the idea that well-executed hardware ventures can thrive.
2. Building Hardware Faster: Matt explains how local supply chains and advancements in 3D printing have drastically shortened development cycles. The days of waiting six months for a prototype are over, thanks to better tools, experienced talent pools from companies like Apple, Tesla, SpaceX, and local supply chains. This all makes it possible for companies to get their products to market with a small team of 20-30 people.
3. Prototyping, Iteration and Reliability: Matt shares how rapid iteration using low-fidelity prototypes can significantly de-risk technology. This approach allows for swift learning and adaptation, crucial for refining products before they hit the market. Matt also shares about the rigorous testing Mill products undergo to ensure they can withstand real-world conditions.
5. Systems Thinking in Climate Solutions: When it comes to climate, Matt emphasizes that solutions need to fundamentally solve “atoms problems,” which requires hardware. He also talks about the role of both incremental improvements and radical redesigns for systemic change.
6. Consumer-First for Maximum Impact: Choosing to target consumers first, Mill aims to build a strong base of enthusiastic users and gather valuable data. This not only proves the product’s effectiveness but also paves the way for broader adoption by municipalities and enterprises. Matt shares how starting with consumers makes for quicker traction.
7. Opportunities in Climate Tech: The climate tech sector is booming, and Matt encourages professionals from traditional tech backgrounds to move into the sector. Mill is actively hiring across various departments, underscoring the transferable nature of tech skills to climate-focused initiatives.
8. Deciding on the Problem You’re Solving: Matt emphasizes the importance of identifying whether you’re creating an intervention within an existing system or designing a new system. He advises climate tech innovators to think critically about the optimal scale and impact of their interventions, whether they are improving existing systems or envisioning entirely new solutions.