Duncan Turner is the managing director at Hax, a startup accelerator that specializes in “hard tech”—innovations in physical science and engineering. Hax offers up to US $500,000 in funding alongside resources that include chemical, mechanical, and electronics labs, and access to a global team of engineers and scientists. Turner’s group has worked with more than 300 hard tech companies with the goal of accelerating their pace of innovation to match that of software companies.
The pandemic, and the supply–chain issues that followed, were a hurdle for start–ups. Do these issues continue to challenge inventors?
Duncan Turner: [Pre-pandemic] investors were realizing that with climate issues, you need to start investing in the hardware that makes a difference. That interest and capital was met by supply-chain challenges. It was felt by our later-stage companies in the consumer sector, who found it hard to get parts. The good news is the supply-chain challenges have died down. We’ve seen an incredible uptake in interest and investors in hard tech, that previously had gone into software.
Why does Hax have a presence in India and China?
Turner: There are areas with national incentives to do things within borders, but in general you need a global supply chain. [In Shenzhen, China] we had a presence, then pulled it back and changed it. We had moved towards deeper tech, the size of which had grown beyond even what could fit in a [shipping] container, so we asked, What is the point of coming over to China to do this? But we realized for electrical engineering and for manufacturing of PCBs on a quick turnaround, there’s just no other option. And when companies like Apple put manufacturing in India, you get an ecosystem of suppliers. We wanted two equal supply chains to source from.
Have geopolitical trade tensions changed how you can support innovators?
Turner: A lot of the [U.S.] Inflation Reduction Act is centered around technologies we’re investing in, but there’s a theme of fully “made in America.” We’re not there yet. I think it’s going to take a decade, but we want to be a part of that. That doesn’t mean we’re abandoning a global approach. But when we see a company doing something that was done offshore, onshore in the United States, and it’s helping with the environment, we want to dig in.
Artificial intelligence is a massive trend. How are you helping inventors navigate it?
Turner: AI is focusing investment into areas investors had been hesitant about. Between a third and a half of our portfolio is in robotics. Investors understood the opportunity of robotics but were stuck on the machine learning aspects. Now they’re seeing the potential. We’re also looking at what we can do with materials in the energy sector, and to decarbonize manufacturing. You’ll see AI used to discover materials that meet these goals.
Going into 2025, what are the big themes innovators need to think about?
Turner: Corporations are responsible for positive changes in how their products impact [greenhouse gas] emissions. The commitment will vary, but it won’t disappear. Another theme is infrastructure and reindustrialization. I think there’s so much opportunity for innovators to come with a fresh approach and say, “Look, we can disrupt this one area.” Any way you can bring manufacturing onshore and make it sustainable is a wonderful place to be.
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