Case Analysis of ThreeFive Photonics

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Case Analysis of ThreeFive Photonics
ThreeFive Photonics is a Dutch company which was founded by Wouter Deelmanm, who was a telecommunications professional, and Chretien Herben, who was a PhD student attached to Delft University of Technology at that time. The two founders then focused on developing revolutionary opto-electronic chips that could potentially transform the telecom industry in the country. In the same year, the promising start-up received investments amounting up to 7 million Euros from venture capital firms, but there was a need for more capital so as to support the development t of the ‘Holy Grail’ technology by the company. However, the product development phase of the technology was struck by disaster; the industry crashed after the bursting of the ‘telecom bubble’. The founding team and investors started making attempts to keep their business alive, and thus started investigating less radical products as they looked for the extra funding that they needed for their company. As the company’s fate started running out, it was time to decide whether to merge with a competitor or enter new markets and introduce new markets to redeem its...