15 hardware startups to watch in 2026, according to VCs

2026-05-01 · Source: Sifted · Field: Business & Management — Entrepreneurship & Start-ups, Capital Markets & Investment Management, Emerging Technologies & Innovation · Depth: Novice, medium

Summary

Venture capitalists are increasingly shifting their focus from software to hardware startups, driven by the need for tangible solutions in areas like climate tech, deep tech, and industrial applications. This trend, which began accelerating in 2021, reflects a growing recognition that hardware innovation is critical for addressing complex global challenges and offers significant, albeit longer-term, returns. The article highlights 15 hardware startups across various sectors, including orbital transfer vehicles, chemical recycling, AI infrastructure, and advanced manufacturing. These companies are attracting investor interest due to their potential to deliver foundational technologies and sustainable solutions, often involving complex engineering and substantial capital investment, a departure from the previous preference for fast-growing software models.

Key takeaway

For investors seeking high-impact opportunities beyond traditional software, you should evaluate hardware startups in deep tech and climate solutions. These ventures, while capital-intensive, offer the potential for substantial long-term returns by addressing critical global challenges. Focus on companies with robust engineering and a clear path to market, as they represent a significant shift in venture capital priorities and could redefine foundational industries.

Key insights

VCs are increasingly investing in hardware startups for deep tech and climate solutions.

Principles

• Hardware innovation is crucial for complex global challenges.
• Long-term returns justify capital-intensive hardware investments.

In practice

• Explore startups in orbital transfer and chemical recycling.
• Investigate AI infrastructure and advanced manufacturing hardware.

Topics

• Hardware Startups
• Deeptech Investment
• Sustainable Technologies
• Quantum Computing
• Chemical Recycling

Best for: Investor, Entrepreneur, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.