Hu Yue, Founder of Changyao Innovation: Startups Need to Prepare 100 Million Yuan to Mass-produce Lawn Mowing Robots | Exclusive Interview by Yingke

Text by | Hu Yiting

Edited by | Yuan Silai

This might be the most difficult and helpless era for hardware entrepreneurs. As soon as a new product takes its first step in market validation, it will quickly get caught in a price war.

It only took two years for the boundary - less lawn mowing robots to drop from a price of several thousand dollars to $599. At this time, the global sales volume of this type of product was only about one million units, just a fraction of the traditional lawn mowing robots. In contrast, it took more than thirty years for the floor - sweeping robots to be born, popularized, and for Chinese companies to conquer the global market with cost - effectiveness.

Everything is fast - forwarding.

In just three years, the billion - dollar lawn mowing robot market has gone through many stages such as intensive financing, entry and exit of large enterprises. Players with strong financial strength have successively started shipping products to occupy the market. The 250 million private courtyard lawns around the world have attracted dozens of Chinese lawn mowing robot manufacturers to enter the market.

The market still seems bustling. At the beginning of 2024, the overseas sales of lawn mowing robots under brands like Ninebot, Ecovacs, Agility Robotics, and Dreame increased significantly, with the order volume reaching tens of thousands of units. Among them, the cumulative revenue of Ninebot's Navimow lawn mowing robot in the first three quarters was nearly 600 million yuan, and the annual sales volume is expected to reach 100,000 units.

Some follow - up startup companies have also completed crowdfunding and exhibited at CES 2025. The single - month pre - sale amount of AIRSEEKERS TRON and Tron Max of Changyao Innovation on the Kickstarter platform exceeded $2.2 million, and the first - generation product is expected to be priced above $2,000. The crowdfunding amount of the YUKA series of lawn mowing robots under Agility Robotics' sub - brand Mammotion exceeded $2.2 million in 2024.

Currently, leading manufacturers have entered dozens of countries in Europe and America, and startup companies have started small - batch deliveries to validate the market. Discussions about technical solutions have not stopped, and there are still investors willing to place bets after hundreds of millions of yuan in financing.

However, investors have become more cautious and realistic. "Startup companies haven't achieved large - scale production yet. Investors dare not invest easily because they can't see the revenue," Hu Yue, the founder of Changyao Innovation, told Hard Krypton.

This industry has obviously entered a stage of competing in financial strength. To some extent, the rise and fall of lawn mowing robots reflect a cruel change in the hardware industry: in an era where survival is the top priority, the adventures of technological idealists will become a luxury that few are willing to pay for.

In such a situation, startup companies will find that their room for trial and error is extremely limited. "To achieve complete product shipments and form a certain scale, at least 100 million yuan in funds is needed. This is an ideal situation," Hu Yue told Hard Krypton.

To understand the technical solution choices of different manufacturers and the characteristics of an industry with high barriers and high investment, Hard Krypton had a chat with Hu Yue, the founder of Changyao Innovation, who is quite active in public discussions.

The following is the edited conversation with Hu Yue:

Startup companies are at a disadvantage

Hard Krypton: Compared with the large - scale influx of financing in previous years, it seems quieter this year. How are different types of lawn mowing robot manufacturers faring this year?

Hu Yue: Brands that were successfully launched into the market and achieved mass production in the previous two years have parent companies with other cash - flow businesses to support their innovation projects. So, there aren't major problems with the initial funds.

In contrast, some startup companies are in a more difficult situation. Since they haven't achieved large - scale production, investors dare not invest easily because they can't see the revenue.

Hard Krypton: What are the differences between incubated lawn mowing robot brands and vertical brands like Changyao in terms of product planning and resource investment? What are the advantages and disadvantages of startup companies?

Hu Yue: Startup companies do face relatively more challenges. Firstly, they are relatively short of funds. Especially when recruiting excellent talents, due to limited brand endorsement and influence, they are less attractive. At the same time, the construction of the team is a gradual process, lacking a mature organizational system. Additionally, the pressure of inventory funds is also a non - negligible challenge.

However, startup companies also have unique advantages. The flexibility and rapid response ability of the team are their highlights. Compared with large companies, startup companies can adjust directions and make decisions more quickly. In many large companies, product definition often requires long - term discussions and multi - party coordination, resulting in low decision - making efficiency. In startup companies, many key decisions can be made quickly by a few core members. This flexibility is a significant advantage in product development and market response.

Moreover, large enterprises focus more on ensuring the stability and continuous growth of their existing businesses and are more cautious and conservative in investing in innovative businesses. In contrast, startup companies pay more attention to the innovation and development of each product and can better focus on the combination of market demand and product scenarios. For startup companies, we can find more opportunities in niche markets and promote business development through flexible decision - making.

Overall, large companies and startup companies each have their own advantages and disadvantages. Although startup companies face more challenges and have a more difficult development process.

Hard Krypton: The lawn mowing robot industry is considered a capital - intensive and high - investment industry. Can you quantify the investment required at different stages for startup companies?

Hu Yue: The efficiency and systems of different companies vary. Let me give an example to illustrate the general average situation. For a startup company, from the early stage of entrepreneurship to making a machine for the second - round test (i.e., the EVT machine), it probably costs about 30 - 40 million yuan, which is relatively low.

In the initial stage, our team needs to reach a size of 60 to 70 people. The cost of R & D personnel is relatively high, and other expenses such as material procurement also need to be considered. So, the initial investment is about 30 million yuan. Next, the mold - opening stage may cost 5 - 6 million yuan. When it comes to small - batch production, the inventory cost mainly depends on the cost structure of different products. For high - cost products, the inventory cost is relatively high, while for low - cost products, the inventory cost is relatively low.

From product launch to achieving mass - production scale, excluding inventory funds, it probably requires about 60 million yuan. And you need an additional 40 million yuan for turnover. So, to achieve complete product shipments and form a certain scale, at least 100 million yuan in funds is needed. This is an ideal situation.

Hard Krypton: Have you encountered difficulties in recruitment at this stage?

Hu Yue: The challenges in recruitment mainly come from the particularity of the industry and the scarcity of talents. Firstly, this industry is relatively new. Even professionals who previously worked in the floor - sweeping robot industry cannot fully transfer their experience and skills. As a result, the pool of talents with relevant experience in the market is relatively limited, and new entrants lack sufficient experience and need to be patiently trained.

Moreover, although there is a certain demand for jobs in the market, due to the overall industry environment, many excellent talents still stay in their existing companies. Also, startup companies are riskier than large companies, so not everyone is willing to join a startup.

Hard Krypton: In the field of hardware going global, the description of "long - term and high - return" often appears, and many startup companies have failed before mass production or large - company teams have been disbanded. What do you think are the reasons?

Hu Yue: As long as a company is not doing well, the biggest reason must be a lack of funds. Even if a company is in trouble, as long as it has sufficient funds, it can achieve some results through more time and manpower investment and repeated adjustments. For startup companies, the lack of funds is indeed a huge challenge, which is also the dilemma that many companies face before mass production.

From the perspective of large companies, when a project is disbanded, it is often because the boss thinks that too much money has been invested and the risk of continuing to invest is high, so an adjustment is made. Ultimately, the sufficiency of funds is indeed a key factor affecting a company's sustainable development.

Price war and market rhythm

Hard Krypton: Why are some manufacturers starting to engage in price competition at this stage?

Hu Yue: In my opinion, price is not the only determining factor. Each user group is different. The truly high - quality users are those who can accept product premiums and recognize the brand value. Such users can bring more long - term brand value and form a better ecosystem.

Compared with the fierce price war in the domestic market, the overseas market is much more relaxed. Users are more willing to pay a premium for good products that impress them. Each company has different business strategies, so it's impossible to simply say that a certain company only competes on price. Price can also be a competitive advantage in some cases.

Hard Krypton: After multiple rounds of investment, facing the shipment volume of tens of thousands of units by brands like Ninebot and Ecovacs, have investors' attitudes changed? Are they in a hurry? Do they urge the company to speed up sales?

Hu Yue: We are not in a hurry because the market is large. Being hasty may bring some unnecessary problems. In fact, no one wants to rush, as it may affect product quality and long - term development. We focus on perfecting the product, and investors understand and support this. So, everyone maintains a calm and patient attitude. For us, ensuring the product is mature enough and making long - term plans are the most important things.

Hard Krypton: Why do you think Ninebot and Agility Robotics have achieved such rapid growth in the lawn mowing robot market?

Hu Yue: There has always been a demand for this type of product in the market. The key was the lack of high - quality products before. As long as good products are launched, they will definitely attract a large number of consumers. Currently, Changyao's first product, Tron, customized for the European and American markets, has successfully completed crowdfunding, raising nearly 20 million yuan in orders from nearly 1,400 overseas users. If we have enough funds, I believe we can definitely launch highly competitive localized products, penetrate the vertical courtyard service scenario, and provide excellent customer service that touches the hearts of users.

Currently, even products that have gained some market recognition still have room for improvement. For example, in terms of AI capabilities, the existing technical support is not strong enough. Additionally, the RTK positioning technology currently in use may experience positioning loss in some specific environments, such as under trees. Moreover, the off - road ability of the products is limited because the chassis is small and the power is relatively weak, making it easy to get stuck in some complex environments.

RTK or pure vision technology route?

Hard Krypton: Compared with traditional buried - wire products, will the experience of boundary - less lawn mowing robots be greatly improved?

Hu Yue: In terms of performance, boundary - less products do perform better. Undoubtedly, they are much more powerful than traditional buried - wire products. Just like floor - sweeping robots, compared with the early collision - type floor - sweeping robots, the user experience has been significantly improved, which is widely recognized.

However, at this stage, intelligent products still face adaptability challenges in some specific scenarios, and some user needs have not been fully met. Some consumers may think that if the new product, although having made technological progress compared with the old one, doesn't help much in their actual use, they may choose to wait until a more attractive product appears.

It's certain that whatever a buried - wire product can do, a boundary - less product can do it too, and even better. We believe that with the continuous progress of technology, boundary - less products will show their unique advantages in more scenarios.

Hard Krypton: Currently, many manufacturers, including those that have shipped tens of thousands of units, are using a hybrid solution and RTK for environmental perception. Why do they prefer RTK?

Hu Yue: From one perspective, the RTK solution is more mature, and there are multiple suppliers to choose from. Manufacturers can reduce investment in algorithm R & D and focus more on integration work, which is why many manufacturers choose the RTK solution.

Currently, RTK is generally considered suitable for most scenarios. For example, in 40% of usage scenarios, RTK can provide sufficient accuracy. If a manufacturer can capture 40% of the market share, the sales volume will be quite impressive. This is similar to floor - sweeping robots. With technological progress, problems won't be solved simply by adding a pole. The RTK solution provides a technological buffer, and in the future, there may be more advanced technology routes to replace RTK. Currently, some users can accept this solution, which is enough to support manufacturers' profitability.

Taking the more mainstream products on the market as an example, they use a combination of vision and RTK. However, in many cases, the vision function is not used for positioning but mainly for obstacle avoidance, identifying obstacles through vision, while positioning is based on RTK.

Of course, the RTK solution also has its limitations. In some special situations, positioning deviations may occur. The vision solution is also affected by many factors in the actual environment. For example, sunlight, shadows may cause misrecognition, or the camera may be blocked, dirty, or affected by rain, which will all affect the performance of the vision function.

Hard Krypton: Why doesn't Changyao Innovation consider RTK?

Hu Yue: Firstly, RTK devices are relatively large in size, including poles, base stations, and brackets, which may take up a certain amount of transportation space, thus increasing transportation costs. Secondly, using RTK devices requires a certain learning cost. For some ordinary users, especially the elderly, they will encounter difficulties in assembling the devices and finding a good installation location with a strong signal. Some users may even need to install the device on the roof to ensure signal connectivity, which undoubtedly increases the difficulty and cost of device deployment. If there is bad weather, such as strong winds, the device may be affected, causing positioning interruption, and users may not be aware of it.

Moreover, the cost of RTK technology is relatively high. Both the robot end and the base - station end require additional configurations. The cost of modules for one machine is basically about 1,000 yuan, which is a cost factor that startup companies need to consider especially. In contrast, the cost of the vision solution is much lower, and if we start accumulating more data now, we are expected to achieve continuous optimization through the data flywheel effect. Therefore, the vision solution is a very promising development direction in our opinion.

Finally, RTK technology may not be suitable in some scenarios. For example, in scenarios with many trees, the positioning accuracy of RTK may be affected. Therefore, we mainly choose to use the vision solution to cover most user scenarios. For users with larger courtyard areas, we combine the capabilities of RTK for auxiliary positioning, but we will actively explore more advanced technology routes to replace RTK, further freeing users' hands.

Hard Krypton: For manufacturers, can the current vision solution enable lawn mowers to overcome the impacts of complex terrains, different slopes, and light differences?

Hu Yue: In fact, we can currently complete about 80% of the tasks effectively. We are equipped with multiple panoramic cameras to achieve 360° full - view coverage. This inspiration comes from my experiments when researching airplanes at Northwestern Polytechnical University. Airplanes usually have two or four engines. Even if one or two of them malfunction, the plane can still return safely. Our lawn mowing robots also adopt a similar design concept. Since sunlight can only shine on cameras in one direction, other cameras can still ensure good imaging results.

Similarly, in rainy weather, although some cameras may get wet, we have multiple cameras to obtain more comprehensive information. Our cameras are distributed in different directions. Even if one direction is affected by sunlight, cameras in other directions can still work stably. At the same time, even if there are a small number of stains or dirt, it won't affect the overall usage effect.