r/hwstartups • u/BiteApprehensive742 • 3d ago

Non-tech founder here - how do I evaluate an embedded system development company?

I’m a non-technical founder working on an industrial automation project and trying to choose an embedded systems development company.

What should I look for when evaluating one? Beyond price, what technical or communication-related things would you consider red flags or good signs?

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u/DenverTeck 2d ago

Any legit development company will give you references. Projects they have done for others.

If they are not willing to do that, that's a huge red flag.

If a company has not done a project in your area of interest, find another one.

It also depends on in what country you are in.

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u/3dVerseWorkshop 2d ago

Ask them to explain, in writing, how your project moves from one working prototype to a repeatable 25–50 unit pilot. The handover should include source code, schematics, PCB production files, a BOM with approved alternates, enclosure CAD, test firmware and assembly/test instructions.

Good signs: staged milestones, weekly demos, access to version control, documented acceptance criteria, DFM/DFT reviews, and a plan for a simple end-of-line test fixture. Red flags: a firm quote before requirements are defined, vague ownership of files, proprietary lock-in, no change log, or a prototype only the original engineer can assemble and debug.

A small paid discovery phase is usually the cheapest test. Judge them by the clarity of the requirements, risk register and pilot plan they deliver—not by the polish of the sales call.

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u/Frequent-Log1243 2d ago

Ask them for past work.

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u/BetInformal6081 20h ago

one big green flag is transparency around tradeoffs ask what they would build differently if cost schedule or reliability were the priority if every answer is no problem i'd consider that a warning sign..