Crunchbase News: Why Hardware Is The Next Frontier For Investors

In this article we discuss why hardware is becoming the next frontier for investors, as the traditional bias that labeled it too slow, expensive, or risky no longer reflects today’s reality. While software has become increasingly commoditized with no-code tools, AI coding assistants, and open-source frameworks, hardware offers durability, defensibility, and high switching costs once deployed, creating moats that software alone cannot. Leading companies like Nvidia and Tesla demonstrate that value and permanence stem from controlling physical infrastructure, with software serving as a layer that enhances and extends the core hardware platform. Advances in prototyping, global manufacturing, and recurring-revenue models have reshaped the economics, making hardware businesses scalable, profitable, and resilient. The conclusion is clear: both founders and venture capitalists must rethink their stance on hardware, as the next generation of tech leaders may be built not just on code but on silicon, steel, and infrastructure. 

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