Today I would like to cover what’s happening in the nano-investment world.
Here is a list of some of the investments going to "nanotech" companies, universities, and VC funds, for the 2-week period between January 13, 2007 and January 26, 2007.
Why did I put nanotech in quotes? Because the definition of nanotechnology remains elusive at best, and is often purposefully misapplied to fit the self-promotional goals of some companies who may not actually be working with nanoscale materials. The listings below are all "legit" nanotech.
Given the importance of investing, I will revisit this topic at least once a month.
--DayStar Technologies Inc., $5 million. Daystar is a solar cell manufacturer. Investors in this round: Michael Dura of Guilderland/PreX Capital Partners LLC, Millennium Partners LP, and others not announced. Website:
http://www.daystartech.com/--Medical Academy (AM) in Warsaw, €100m for the construction of a Pre-Clinical Research and Technology Centre (CEPT). The link here is to their research in nanobiotechnology (nanomedicine) applications.
--Dr. Eric Davidson's laboratory at the California Institute of Technology, $255,000 annually for three years by Arrowhead Research Corporation. The link here is to his research in nanobiotechnology (nanomedicine) applications. Website:
http://www.its.caltech.edu/~mirsky/ehdavidson.htm--Spacehab Inc. president and CEO Thomas B. Pickens III announced plans for nanotech venture fund, with a goal of raising $100 million in the first phase. Funds will support Texas-based nanotech companies.
--The EU FP7 budget for years 2007 through 2012 is €50bn, with €3.5bn (~$4.5bn) dedicated to nanotechnologies.
--Plextronics, Inc., $750,000. Funds to go towards R&D on Organic solar cells. Investor: Sustainable Energy Fund (SEF) of Central Eastern Pennsylvania. Website:
http://www.plextronics.com--NanoQuébec will provide $2 million to fund 18 proposals from universities and private companies. Website:
http://www.nanoquebec.ca/--South Korean Government, 52 bn won (~$520 million) into "nanotechnology sectors."
--Xradia, $4 million. Xradia is a tools manufacturer. Investor: Harris & Harris. Website:
http://xradia.com/Please contact me at rocky at bir-consulting.com for detailed reports on this or any other "nanotech" area, including advanced materials, nanomedicine, energy, etc.
Staying with the investing theme, a short interview with Peter Hebert, Lux Capital
RR: When you talk to someone who wants to know about nanotech companies or technologies to invest in, what are some of the things you stress with them?
What makes nanotech unique is that it provides a new scientific toolkit to address industry pain points and develop new commercial applications. Investors are most interested in technologies that solve existing problems or drive new product demand. Because of the differentiated properties at the nanoscale, nanotechnology offers the ability to do both.
RR: Are there any media-hyped or investment guru-hyped technologies or companies that you steer potential investors away from?
We've been wary of any new technologies that appear disconnected from market needs. Without deep knowledge of industry's needs and requirements (e.g. inexpensive volume manufacturing), most of these promising technologies will always loom on the horizon and never on product shelves.
RR: For someone who is looking to invest in the next 2 - 5 years, are there technologies or companies that you suggest are worth watching?
Over the next 2-5 years, I'd look for some big breakthroughs in using nanomaterials for energy, electronics and life sciences applications.
And with Jack Uldrich, NanoVeritas Group
RR: When you talk to someone who wants to know about nanotech companies or technologies to invest in, what are some of the things you stress with them?
Patience. Nanotech is a long-term trend. Don't expect to get rich overnight!
RR: Are there any media-hyped or investment guru-hyped technologies or companies that you steer potential investors away from?
I advise investors not to trust company spokespeople. Their interests are not the same as yours. Do your due diligence and take everything they say with a grain of salt. Altair and NVE are but just two examples of companies that I would encourage investors to be careful of.
RR: For someone who is looking to invest in the next 2 - 5 years, are there technologies or companies that you suggest are worth watching?
Personally, I am excited about Starpharma's dendrimer technology in the next 3 to 5 years. Shorter term, I like Headwaters' nano-catalyst technology.
Nanotech investing events of interest:
Nano Nexus 2007 is a new nanotechnology event with an emphasis on education for all the critical players in nanotechnology commercialization universities, government, industry and the investment community. April 2-4, 2007 Website:
http://www.nanonexus.org/NanoQuebec NANO2007 & US Showcase & VC Coaching Program. February 7, 2007
http://nanoquebec.ca/nanoquebec_w/site/explorateur.jsp?currentlySelectedSection=494
