Date of Award


Document Type

Master Thesis

Degree Name

Master of Business (Research)


School of Business

First Advisor

Dr Angel Wright


This research investigates the financing options available to a "High-Tech Start-up" when a technical person seeks to start a business from innovations emerging from his or her daily work. In seeking to understand the different factors which might influence the choice of a particular type of financial source, firstly a thorough literature survey has been performed. In the main part of the study, a qualitative research approach was considered to be the most appropriate one and as part of it, a number of interviews with entrepreneurs, CEOs and CTOs have been conducted. Findings from these people with financial experiences are studied, analyzed and compared, to select a suitable financing option for a photonics start-up originating from the work inside a research institute. Considering the high amount of capital required to start a semiconductor start-up, private equity based Venture Capitalist (VC)s are thought to be the most appropriate funding source for such a type of high- tech start-up. This research explores the different aspects of VC funding and the creation of favorable environments to attract more VC investment in the area of semiconductor start-ups. It is found that, the VCs bring much more to the table than merely finance. The role of the VCs in the start-up extends way beyond the traditional financial aspect, with their experience and expertise in different areas, they become deeply involved with the managing and mentoring of the firms they finance. With all their positive influences, the VCs contribute significantly to the success of a high-tech start-up. It is concluded that VCs are not the only solution for financing a high- tech start-up throughout all Its stages of development. Also, the interaction between entrepreneurs and venture capitalists is not immune to conflicts; both sides need to promote mutual understanding in order to bring success to the "high tech start-up".

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