Major festivals such as Glastonbury throw away some 10,000 abandoned tents at the end of events each year. For his final year project at the University of the West of England James Dunlop came up with a material that can be recycled. And to cope with the British summer, the cardboard has been made waterproof.

Mr Dunlop, 23, said: "When I spoke to waste managers at the festivals, they said that their biggest problem was the number of tents that are discarded. That's a big part of the post-festival clear up."

Taking inspiration from the Japanese architect Shigeru Ban, who has used cardboard to make big buildings including churches, Mr Dunlop used cardboard material for his "habitats", which he calls Myhabs.

The design won an award at the annual New Designers Exhibition after Mr Dunlop graduated from his product design degree last year and he decided to try to turn it into a business.

To raise money for the idea, he toured the City's private equity companies, which fund new businesses, and found a backer in the finance group Mint. He pitched his idea before four of Mint's directors, in what he called a Dragon's Den scenario and won their support.

"I've always been ambitious and I had this opportunity. So, rather than getting a job as a product designer, I wanted to be an entrepreneur," Mr Dunlop said. Mint has committed around £500,000 to MyHab and taken a stake of 30 per cent in Mr Dunlop's business. The first Myhabs should be seen in trials at festivals this summer, before being marketed fully next year.

Mr Dunlop said that the design, which accommodates two people, could have other uses, such as for disaster relief and housing for the London Olympics.

For music events, the cardboard dwellings will be ordered online and put up at the sites by the Myhab team before the festival-goers arrive and removed by the company afterwards. They can be personalised and the company will offer reductions on the expense if people agree to sell the exterior advertising space. The Myhabs should cost between £60 and £100 for a weekend.

The cardboard, which has a water-proof coating inside and outside, is held up by a rigid plastic frame, which is reused. The frame provides a lockable compartment for keeping valuables and there is a solar-powered light. The cardboard should be able to withstand five days of rain.

The biggest festivals attract tens of thousands of revellers, with Glastonbury catering for some 150,000 each year. Altogether there are around 100 annual music festivals where people camp in the UK. The events are becoming increasingly environmentally conscious.