October 2012One advantage of Y Combinator's early, broad focus is that wesee trends before most other people. And one of the most conspicuoustrends in the last batch was the large number of hardware startups.Out of 84 companies, 7 were making hardware. On the wholethey've done better than the companies that weren't.They've faced resistance from investors of course. Investors havea deep-seated bias against hardware. But investors' opinions area trailing indicator. The best founders are better at seeing thefuture than the best investors, because the best founders are makingit.There is no one single force driving this trend. Hardware doeswell on crowdfunding sites. The spread of tablets makes itpossible to build new things controlledby and even incorporatingthem. Electric motors have improved.Wireless connectivity of various types can now be taken for granted.It's getting more straightforward to get things manufactured.Arduinos, 3D printing, laser cutters, and more accessible CNC milling are making hardware easier to prototype.Retailers are less of a bottleneck as customers increasingly buyonline.One question I can answer is why hardware is suddenly cool.It always was cool.Physical things are great. They just haven'tbeen as great a way to start a rapidly growing businessas software. But that rule may not be permanent. It's not eventhat old; it only dates from about 1990. Maybe the advantageof software will turn out to have been temporary. Hackers love tobuild hardware, and customers love to buy it. So if the ease ofshipping hardware even approached the ease of shipping software,we'd see a lot more hardware startups.It wouldn't be the first time something was a bad idea till itwasn't. And it wouldn't be the first time investors learned thatlesson from founders.So if you want to work on hardware, don't be deterred from doingit because you worry investors will discriminate against you. Andin particular, don't be deterred from applying to Y Combinatorwith a hardware idea, because we're especially interested in hardwarestartups.We know there's room for the next Steve Jobs.But there's almost certainly also room for the first <Your Name Here>.Thanks to Sam Altman, Trevor Blackwell, David Cann, Sanjay Dastoor, Paul Gerhardt, Cameron Robertson, Harj Taggar, and Garry Tan for reading drafts of this.