It has been a hard few years for smaller gadget startups. It isn’t likely to get easier soon.

Last year, the buzz from the CES global tech show in Las Vegas was a futuristic sound system poised to disrupt the audio industry. Created by an Israeli startup, the device used camera-powered head tracking and sophisticated acoustic engineering to beam sound directly to the ears of the listener, and nobody else.

This post first appeared on wsj.com

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