Hardware & IoT Startup Benchmarks 2026

Based on data from 29 startups in The Founders' Group network.

Key Metrics

Median MRR
N/A
Monthly recurring revenue
Median ARR
N/A
Annual recurring revenue
Median Burn Rate
N/A
Monthly cash burn
Median Runway
N/A
Months of runway remaining
Avg Team Size
3.9
Full-time team members
Median LTV:CAC
N/A
Lifetime value to acquisition cost
Avg Gross Margin
50.8%
Revenue after COGS
% With Revenue
24.1%
Startups generating revenue
% Profitable
3.4%
Startups currently profitable
Avg YoY Growth
N/A
Year-over-year revenue growth

Grade Distribution

A
7 (24%)
B
12 (41%)
C
8 (28%)
D
1 (3%)
F
1 (3%)

Top Cities

HoustonSan FranciscoAustinNew York CityCarrboro

How Do You Compare?

Enter your metrics below to see how you compare against Hardware & IoT startups in our network.

Frequently Asked Questions

How many Hardware & IoT startups are in the benchmark?
Our benchmarks are based on 29 Hardware & IoT startups in The Founders' Group network. Data is refreshed regularly as new startups join.
What metrics matter most for Hardware & IoT startups?
Key metrics include MRR growth rate, burn rate relative to runway, and unit economics (LTV:CAC ratio). The specific thresholds vary by funding stage — pre-seed founders should focus on product-market fit signals, while seed-stage startups need strong retention and growth rates.
How are grades calculated?
Grades are based on a composite score across 6 tiers: Survival & Truth (revenue, burn, runway), Engine Health (LTV, CAC, unit economics), Retention (churn, NRR), Growth Efficiency (MoM/YoY growth), Market & Narrative (TAM, competition), and Traction & Team. Each tier is weighted and the final score maps to a letter grade.

Related Benchmarks

Pre Seed
Seed
Series A
Ai
Fintech

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