The State of Hardware-as-a-Service
Report by Silicon Valley Bank with support from Eclipse Ventures
Silicon Valley Bank, with support from Eclipse Ventures, is proud to present the State of HaaS report. As machines become more reliable and affordable, hardware companies have adapted to better serve their customers. The traditional transactional sales model for hardware companies is fading, with a new recurring model — Hardware-as-a-Service (HaaS) — taking over. These frontier tech companies are building richer customer relationships by replacing one-time sales with subscription services. Here are three takeaways from the report:
The six metrics that matter
After surveying hundreds of companies in the ecosystem, our partners at Eclipse Ventures helped us identify the primary KPIs for HaaS companies and investors to benchmark performance. Check out the formulas on page 12 of the report.
US VC investment in 2021
Investment in HaaS companies reached a record $10.4 billion over 289 deals with $2.2 billion awarded to early-stage startups.
The future of HaaS
To meet evolving market conditions, HaaS companies may consider alternative sources of capital, explore novel data sets and re-shore infrastructure.