Building a hardware startup like RYSE is very different from running a restaurant, software, or service business. We’re building physical products, and that takes years of R&D, engineering, and testing before we can even launch.
Just look at OpenAI/ChatGPT whose raised over $40 billion over 10 years, generates $3.7 billion in annual revenue but clocks in $5 billion in annual losses. Building a technology company that relies on hardware simply takes time and capital.
Where The Money Goes
The capital we raise is focused on three key areas:
1. Product Development
- Designing, prototyping, testing, and certifying every component
- Setting up tooling, molds, and manufacturing lines
- Refining and improving products after launch
Hardware requires major upfront investment long before a single sale. For example, Dyson spent $71 million and four years developing the Supersonic Hair Dryer before launching it into market. That’s the level of commitment required to build something exceptional.
2. Marketing and Advertising
Once the product is ready, the next challenge is building the market, and that can cost even more than development itself.
- Educating consumers about a new product category
- Driving awareness through digital, retail, and brand campaigns
- Creating demand where it didn’t exist before
For consumer hardware, marketing often becomes the largest expense after launch. You’re not just selling a product, you’re shaping new behavior and introducing a new way of living.
3. Inventory
After development, we must invest in inventory to meet growing demand.
- Purchasing components and materials months ahead of production
- Managing logistics, warehousing, and fulfillment
- Maintaining healthy stock levels to avoid supply delays
Inventory is a balancing act, it ties up capital, but it’s critical for scaling and capturing momentum once the market starts responding.
Why It’s Worth It
Yes, it’s expensive. Yes, it takes time. But once you build something truly innovative, something that solves a real problem and captures people’s imagination, the payoff can be massive.
That’s when you stop selling a product and start building a brand. It’s when your company becomes part of everyday life — and when major players in tech or consumer goods start paying attention.
Every major hardware success story started here: years of investment, belief, and persistence that ultimately led to billions in value creation.
Examples From The Industry
Nest
- Founded in 2010; launched its first smart thermostat in 2011 after 2.5 years of development
- Series A: $20 million
- Raised a total of $80 million before acquisition
- Generated $100 million+ in early revenue but not yet profitable at time of acquisition
- Acquired by Google for $3.2 billion in 2014
Ring
- Founded in 2013 (originally Doorbot); first video doorbells launched within 2 years
- Series A: $10 million (with $1 million in revenues)
- Raised $225 million before its acquisition
- Generating around $170 million in revenue at the time of sale but not yet profitable
- Acquired by Amazon for $1 billion in 2018
Dyson
- Spent 15 years of development before launching the first Dyson vacuum.
- Spent $71 million and 4 years developing the Supersonic Hair Dryer
- Took 13 years for Dyson to reach profitability as a company
- Now a multibillion-dollar global brand known for its relentless R&D and premium products
GoPro
- Founded in 2002; launched its first camera in 2004 after 2 years of development
- Series A: $88 million
- Raised $288 million before IPO
- Took 8 years to reach profitability and grew to $1 billion+ in annual sales
- IPO’d in 2014
iRobot
- Founded in 1990; launched its first Roomba in 2002 after 12 years of R&D
- Early venture rounds included $7 million (2001) and $10 million (2004)
- Raised $38 million in total before IPO
- Took 14 years to reach profitability, hitting $100 million in revenue by 2004
- IPO’d in 2005
Where RYSE Fits In
RYSE is following this same proven path. We’ve invested heavily in:
- Developing our motorized smart shade technology from the ground up
- Building a scalable supply chain
- Testing and refining every iteration before mass production
- Investing in marketing and advertising to educate the market and grow awareness
- Funding inventory to meet growing retail and eCommerce demand
To date, we’ve raised $15 million — far less than what companies like Nest or Dyson spent before their first launch — yet we’re now positioned for scale.
And we believe we can get to break-even for far less than these successful hardware brands.
The Investor Opportunity
Every dollar we raise goes directly into building the brand and growing it toward a potential exit.
You’re funding growth, the stage between innovation and success. This is the same playbook followed by every major consumer hardware success story.
With continued support, RYSE has the potential to become the next household name in smart home technology, and the next billion dollar exit, delivering meaningful returns for every investor who helped us get there.
And just remember, hardware is a marathon not a sprint.
