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June 20, 2012 AT 7:43 am

New Incubators Focus on Hardware

Pt 1154

New Incubators Focus on Hardware – Bloomberg.

Arye Barnehama had an idea for a headband that could measure a person’s level of focus. So last year, he recruited people with the know-how to design software and arrange circuit boards to help build it.

“We had a really great foundation for the company,” he said. But the inevitable question came: Now what? Startups like his that build physical things, rather than websites or applications, have had a hard time luring investors.

Barnehama turned to HAXLR8R (think: “hack” and “accelerator”), a new incubator program that specializes in developing electronics. HAXLR8R picked his group, called Axio, and eight other startups to spend more than three months in Shenzhen, China, where they designed prototypes, met with Chinese manufacturers and outlined business plans, all on a $20,000 budget.

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