Are you a hardware startup or a software startup?
Categorising startups as either “software” or “hardware” is a bit like categorising vehicles as either “has wheels” or “has roof”.
Certainly all vehicles can be allocated to one category or the other, but making those the sole determining characteristics is rather missing the point.
What problems do they solve? Which customers do they address? Which industries do they hope to disrupt? I think that’s more meaningful.