The State of Hardware-as-a-Service 2024
Key takeaways
45%
Of HaaS companies are in the industrial space
With falling prices for robots, industrial robotics may be the sweet spot.
59%
Higher median valuation multiples than other frontier tech business models
Recurring revenue is appealing to investors.
15 months
Median payback period for a HaaS system
The median payback period is longer for more expensive machines.
VC investors value HaaS model at a premium
In the frontier tech space, HaaS companies are valued at a median revenue multiple 59% higher than other firms.
The biggest differences arise in more capital-intensive sectors such as aerospace, industrials and transportation.
Sources: Pitchbook Data, Inc., SVB State of HaaS Survey 2024 and SVB analysis.
Firms may have to wait for accurate performance metrics
Typically, the oldest machine in service hasn't reached even half its estimated service life.
Many HaaS startups haven’t been around long enough to know their systems’ true service life, a key factor in calculating each machine’s financial performance.
SVB’s HaaS Metrics that Matter
Through a proprietary survey of HaaS companies, we've established benchmarks for machine metrics to help you understand the ideal payback periods and machine lifetime values in the HaaS model.
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Written and researched by SVB experts
Our deep relationships with top entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.
