For a long time, entrepreneurs and investors shied away from hardware. This seems to be changing. As Paul Graham says, there are many reasons for this:
Hardware does well on crowdfunding sites. The spread of tablets makes it possible to build new things controlled by and even incorporating them.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 buy online.
Another important factor is what Chris Anderson calls “the peace dividend of the smartphone war”: MORE