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It's because people know how much money to expect.

A company that requires significant physical capital investment won't bother with YC. Now they can.

For instance I bet this will produce more hardware companies like WakeMate. Companies that sell more than just software.

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It's cheaper then you think to build a hardware prototype (of anything really), and 150K is hardly enough to have a decent first manufacturing run of a brand new hardware product.

I don't think this significantly impacts the hardware/software equation at all.

What about being able to produce a small batch to give to beta testers and iterate? It's possible that the extra money will allow you to better explore things at the prototype stage.

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