We all are concerned about the declining funding of new semiconductor start-up which is a severe concern for driving innovation in semiconductor industry. But the number of M&A deals happening in semiconductor industry is still maintaining healthy rate. This indicates the demand of innovation or new technology is still high in the industry.
Hence the question arises what can be the solution. Without availability of fund the rate of new product launch will decrease. But if we look more accurately it is not the lack of availability of fund which is preventing VCs to invest in semiconductor industry, it is the perceived risk associated with the investment which is the main concern to all VCs. The semiconductor industry has become very complex in terms of technology and deciphering the value behind a new innovation becomes a challenging task to the VCs communities.
Perhaps the solutions may be creation of dedicated funds by semiconductor giants which can be invested into new start-ups. If the semiconductor companies invest in start-ups operating in their domain then they will be much better equipped to understand the value behind the new product. This will automatically reduce the risk of investment. Moreover these companies can play a role of strategic investor where the investor can bring help to promote the product among potential customers, augment the product to complementary products etc. This will definitely increase the success of new start-ups.
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Hence the question arises what can be the solution. Without availability of fund the rate of new product launch will decrease. But if we look more accurately it is not the lack of availability of fund which is preventing VCs to invest in semiconductor industry, it is the perceived risk associated with the investment which is the main concern to all VCs. The semiconductor industry has become very complex in terms of technology and deciphering the value behind a new innovation becomes a challenging task to the VCs communities.
Perhaps the solutions may be creation of dedicated funds by semiconductor giants which can be invested into new start-ups. If the semiconductor companies invest in start-ups operating in their domain then they will be much better equipped to understand the value behind the new product. This will automatically reduce the risk of investment. Moreover these companies can play a role of strategic investor where the investor can bring help to promote the product among potential customers, augment the product to complementary products etc. This will definitely increase the success of new start-ups.
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