Building a Semiconductor Startup During the 2008 Financial Crisis
A founder shares his journey of liquidating assets to launch a hardware venture.
1The 2008 Leap
Hans Hasselby-Andersen resigned from Texas Instruments in September 2008, right as the global financial crisis peaked. With four children at home, he faced immediate credit market freezes. Despite the instability, he pursued his vision for a semiconductor startup, realizing that waiting for perfect economic conditions was not a viable strategy.
2Market-First Approach
Unlike many tech founders who start with a specific technology, Hasselby-Andersen identified a market need for energy-efficient audio drivers first. He sought a cofounder to develop the technical solution for this gap. This reverse approach allowed him to validate the business case before committing to the complex engineering development phase.
3Securing Initial Capital
Raising the first round took nearly a year, involving pitches to between 50 and 100 investors. He personally funded international trips to Japan, South Korea, and Singapore to pressure-test his business model. Eventually, he secured between $150,000 and $200,000, which provided only six months of operational runway for the new venture.
4Personal Financial Liquidation
To sustain the startup, Hasselby-Andersen sold his apartment and cashed out his pension. He and his wife also replaced their car with a leased vehicle to minimize overhead. These drastic measures were essential to secure the necessary liquidity when traditional bank credit facilities became nearly impossible to obtain during the crisis.
5The Fundraising Reality
Founders must remain in a constant state of fundraising to avoid running out of cash. Hasselby-Andersen warns that milestones almost always take longer than expected to achieve. He advises first-time founders to double their estimated timelines, as financial plans rarely account for the inevitable delays inherent in deep-tech hardware development cycles.
6Engineering Communication Skills
Transitioning from an engineer to a CEO required mastering the elevator pitch. Hasselby-Andersen emphasizes that technical expertise is insufficient if a founder cannot explain the value proposition to investors in three minutes. Learning to communicate market needs effectively was a critical skill that distinguished his leadership during the early startup years.
7Exit and Integration
Nine years after the company's inception, Merus Audio was acquired by Infineon in 2018. Hasselby-Andersen stayed on to assist with the post-acquisition integration process. This experience solidified his preference for the startup ecosystem over returning to the corporate world, leading him to his current role as CEO at Lotus Microsystems.
8Reflecting on Risk
Looking back, Hasselby-Andersen confirms he would repeat the same risks today. The drive to build something independently provides significant motivation and energy that outweighs the financial uncertainty. His journey highlights that while the path is difficult, the internal drive to create remains a powerful force for successful long-term entrepreneurship.