The goal of this thesis is to describe the possibilities of SMEs to finance their innovation activities. In the first chapter we specify and define SMEs, their advantages and disadvantages. We use statistical analysis to prove, how they contribute on the changes of selected macroeconomic measures. The second chapter deals with the different tools and ways to finance SMEs, as well as the main providers of institutional support for SMEs. The last chapter designs the Regional innovation fund as an institution providing seed and start-up financing.

The diploma thesis is focused on the venture capital investments. Theoretical part of the thesis describes important concepts and key aspects of venture capital industry. Analytical part of the thesis is focused on the development and the present situation of venture capital industry in the United States of America, European Union, Israel, China and India.

My diploma work discusses the topic of internet social communities in Czech Republic. I look through this topic from the enterpreneur side of view and I am trying to examine how to extract this area for commercial advantage. This is also the reason why I compile the work as a business plan. I am trying to find out if project of this concept is in Czech Republic long-term viable, profitable and competitive. The business plan which I am trying to sketch in the practical part is example of business startup project and it's goal is to acquire an investment for the project development and promotion. The key aspect for this project is to analyze the size of the market. It means to discover if the market in Czech Republic is big enough to provide enough money. The social community portal which is the main object of the business plan is aiming relatively narrow group of users (mothers with children, pregnant woman).

This diploma thesis addresses the issue of evaluation of investments in newly created companies in the high-tech industry, so-called start ups. Firstly, theoretical basis of investment decision-making are defined together with special aspects of venture capital investments. Furthermore, the known methods of investment evaluation are analysed in detail, their strengths and weaknesses are outlined and the suitability of using these methods to evaluate investments in start-ups is assessed. A case-study is then used to examine application of these methods in practice. Part of the thesis is also devoted to detailed analysis of financing options that are available to start-ups in the USA. The most widely used types of start-up financing are identified together with current trends in this area. Issues concerning various types of start-up financing are then explained and demonstrated on examples.

The main objective was to create a normative model of determining the value of early stage for companies in the seed and start up stage. The model should be applicable to entrepreneurs and investors, taking into account the assessment of the value of qualitative factors. Another aim was to identify the significant factors affecting the value of early stage companies in the seed and start up stage, i.e. at a time when there are no or very little revenues. Based on a research among investors and other experts on the valuation of early stage companies and venture capital, the most significant factors were not only identified, but also determined by their weight. The quality of evaluating investment opportunities has a major impact on the profitability of the investor´s capital. Current knowledge of the key value drivers and the mechanisms of valuation can help businesses to set realistic expectations when trying to raise capital to finance the startup of the project. It is therefore necessary to provide a clear methodological framework applicable to both parties of investing. The actual research was divided into two phases - individual interviews with investors and questionnaires. It was confirmed that the most crucial factors are those associated with quality management and company founders.

The goal of this thesis is to identify the challenges and success factors of the support system for innovative start-ups in the Czech Republic as well as to formulate recommendations for the implementation of the currently envisaged Seed fund project. The thesis covers the specifics of start-up companies and barriers for their development and puts them in relation with the current state of the Czech entrepreneurial environment and its innovation performance. Hard data as well as opinions of experts and potential investors are assessed to analyze the needs and motivations of both demand and supply sides of the venture capital market in order to provide some valuable insights which may help the support system to improve the access of entrepreneurs to external finance and boost the creation of innovative start-ups in the Czech Republic. The main suggestions introduced relate to the focus on retaining strict transparency, to the careful selection of entities evaluating the viability of projects and those providing services assisting the entrepreneurs in the preparation phase. Finally, the right setting of conditions of the Seed fund to attract both private investors and entrepreneurs will determine the success of the whole project.

Bakgrund: Affärsmodeller som integrerar hållbarhet i verksamheten blir allt vanligare i dagens samhälle. Ett sätt att göra detta på är genom att förena produktförsäljning med tjänstefiering, vilket resulterar i konceptet produkt som tjänst (PST). För nya företag är ofta riskkapitalbolag ett attraktivt finansieringsalternativ och utgör därmed en betydande roll som möjliggörare för affärsmodeller av denna karaktär. Frågan är hur riskkapitalbolag i sin riskbedömning utvärderar startups med PST. Syfte: Denna studie syftar till att bidra med ökad förståelse för riskkapitalbolags riskbedömning. Vidare är syftet med denna studie att undersöka hur riskkapitalbolag utvärderar startups med - produkt som tjänst (PST) - i sin riskbedömning? Genomförande: Denna studie är av en kvalitativ karaktär med en abduktiv ansats som bygger på fyra intervjuer med fyra riskkapitalbolag. Respondenterna arbetar i företag som investerar riskkapital i startups. Respondenterna har valts för att få en insyn i hur riskkapitalbolags riskbedömning genomförs. Värdedrivare och finansiella barriärer för PST har applicerats på den riskbedömning som respondenterna redogjort för. Slutsats: Studien visar på att riskkapitalbolag inte har en specifik riskbedömning för företag med högre hållbarhet, utan de bedöms efter samma kriterier som traditionella affärsmodeller. Däremot kan PST med dess värdedrivare och finansiella barriärer visa på både styrkor och svagheter i riskkapitalbolags riskbedömning / Background: Business models which integrates sustainability in their business becomes more common today. For new business venture capital is often an attractive financing alternative and therefor constitutes a significant role as an enabler for these businesses. The question is how venture capital firms in their risk assessment evaluate these startups. Purpose: This study aims to contribute to an increased understanding of venture capital firms risk assessment. Furthermore, the purpose of this study is to examine how venture capital firms evaluate startups with product as a service in their risk assessment. Completion: This study is of a qualitative structure with an abductive approach that builds on four interviews from four different venture capital firms. The interviewees all work in firms that invest venture capital in startups. They have been chosen to gain insight in the riskassessment of venture capital firms. Value drivers and financial barriers related to PaaS have been applied to the risk assessment that the interviewees have described. Conclusion: The paper shows that venture capital firms does not have a specific riskassessment for companies with a higher grade of sustainability, instead they are assessed on the same basis as traditional business models. PST can however, with its value drivers and financial barriers, display both strengths and weaknesses in the risk assessment conducted by venture capital firms.

Bakgrund: Affärsmodeller som integrerar hållbarhet i verksamheten blir allt vanligare i dagens samhälle. Ett sätt att göra detta på är genom att förena produktförsäljning med tjänstefiering, vilket resulterar i konceptet produkt som tjänst (PST). För nya företag är ofta riskkapitalbolag ett attraktivt finansieringsalternativ och utgör därmed en betydande roll som möjliggörare för affärsmodeller av denna karaktär. Frågan är hur riskkapitalbolag i sin riskbedömning utvärderar startups med PST. Syfte: Denna studie syftar till att bidra med ökad förståelse för riskkapitalbolags riskbedömning. Vidare är syftet med denna studie att undersöka hur riskkapitalbolag utvärderar startups med - produkt som tjänst (PST) - i sin riskbedömning? Genomförande: Denna studie är av en kvalitativ karaktär med en abduktiv ansats som bygger på fyra intervjuer med fyra riskkapitalbolag. Respondenterna arbetar i företag som investerar riskkapital i startups. Respondenterna har valts för att få en insyn i hur riskkapitalbolags riskbedömning genomförs. Värdedrivare och finansiella barriärer för PST har applicerats på den riskbedömning som respondenterna redogjort för. Slutsats: Studien visar på att riskkapitalbolag inte har en specifik riskbedömning för företag med högre hållbarhet, utan de bedöms efter samma kriterier som traditionella affärsmodeller. Däremot kan PST med dess värdedrivare och finansiella barriärer visa på både styrkor och svagheter i riskkapitalbolags riskbedömning. / Background: Business models which integrates sustainability in their business becomes more common today. For new business venture capital is often an attractive financing alternative and therefor constitutes a significant role as an enabler for these businesses. Thequestion is how venture capital firms in their risk assessment evaluate these startups. Purpose: This study aims to contribute to an increased understanding of venture capital firms risk assessment. Furthermore, the purpose of this study is to examine how venture capital firms evaluate startups with product as a service in their risk assessment. Completion: This study is of a qualitative structure with an abductive approach that builds on four interviews from four different venture capital firms. The interviewees all work infirms that invest venture capital in startups. They have been chosen to gain insight in the risk assessment of venture capital firms. Value drivers and financial barriers related to PaaS have been applied to the risk assessment that the interviewees have described. Conclusion: The paper shows that venture capital firms does not have a specific risk assessment for companies with a higher grade of sustainability, instead they are assessed on the same basis as traditional business models. PST can however, with its value drivers and financial barriers, display both strengths and weaknesses in the risk assessment conducted by venture capital firms.

Innovation entrepreneurship is built not only on a quality idea, but also on the availability of start-up capital and management skills of the idea owner. The insufficient finance often limits the success and growth potential of start-ups. When seeking support to individual business plans, allowing for entry of a business angel could be an option. Business angels are private, mostly experienced investors who invest in SMEs with high growth potential not only financial capital, but also business know-how, contacts and management experience. Thesis evaluates possibilities to use venture capital offered by business angels to support innovative start-ups and on several case studies assesses readiness of innovation and business environment from the investors’ point of view.

The diploma thesis is focused on the assessment of the economic development of those corporations, in which the external financing, venture capital has been used. The first part contains theoretical bases connected to the existing problems, and further for the selected corporations the financial analysis is performed in the period before the stakeholder entry, during his function, and after his withdrawal. On the basis of results’ study of the financial analysis, suitability of venture capital financing of the selected corporations, and possible methods of problem solving are evaluated.