Venture capital (VC) funding for high technology start-ups is a "fashion business", according to Dr Peter van Cuylenburg, an associate with Pond Venture Partners.
The Silicon Valley veteran, whose career has included senior positions in NeXT Computer, Xerox and Quantum, says that VC funds need to be more balanced and not just chase the quick return.
"Not everything in a fund should be in a hot area," he said. He believes a longer-term outlook often yields better results.
Dr van Cuylenburg also says that the UK does not have the same strength of start-up support as the US.
"US universities are good at letting staff start businesses while in the academic framework," he said. "This level of nurturing is not seen so much here. It needs developing."
But the changing nature of the technology sector is benefiting UK start-ups: "It's no longer so important to have capital-based companies. Now you are into a phase of intellect-based companies and this puts the UK on an equal footing with the world."
But Dr van Cuylenburg warns that although first-round investment is relatively easy to find, longer-term support is harder to secure: "Things get difficult when you start looking for second and third round funding."