Category: Investment/Entrepreneuring

from the nanocommerce dept.
An article on the Small Times website ("New European association will try to move nano from the lab to market", by Genevieve Oger, 17 April 2002) reports on the establishment of the European Nanobusiness Association (ENA), a group meant to advance Europeís role in nanotechnology, and encourage the emerging nanotech economy in Europe. ìOur end goal is the commercialization of nanotechnology in Europe,î said Tim Harper, chief executive of the nanotechnology consulting group CMP Cientifica and the new associationís executive director. ìHow do we make sure that good European research in this area doesnít end up getting exploited in the United States or in the Far East?î

According to the article, îThe associationís key objective is to act as a matchmaker of sorts, or at least an introduction service. The idea is to connect nanotechnology researchers with industry types who have the know-how and business sense to turn ideas and scientific discoveries into viable businesses. Underlying the venture is an oft-repeated criticism about Europeís innovation track record. Despite its top-notch facilities and research, Europe is seen as having difficulty translating its scientific and technical prowess into commercial successes.î

Harperís comments about making sure good European research doesnít end up getting exploited in the U.S. or Far East notwithstanding (though presumably he would not be opposed to it being marketed in those regions?), the new ENBA has formal ties to the U.S.-based NanoBusiness Alliance (NBA) in the United States and the Asia-Pacific Nanotechnology Forum (APNF). The European association has partnered with both. Mark Modzelewski, the founder and executive director of the NanoBusiness Alliance, also sits on the advisory board of the new European group.

The 19 April 2002 version of Jennifer Darwinís Technology Beat column in the Houston Business Journal includes this brief item:

The original investors in Molecular Electronics Corp. (MEC) have pumped additional money into the Houston-based nanotechnology company.
Company officials made that announcement two weeks ago, but did not disclose who the angel investors are, nor how much they provided in bridge financing.
This same group of investors put up $7.65 million to help launch the company in 1999. Since that time, Molecular Electronics also has received $23 million in funding directed toward its research work.
The company was created by five scientists, including Jim Tour and Mark Reed. The firm's research and development in nanometer-scale electronics creates the potential for constructing electronic devices and information processing capabilities that are far less expensive, consume less power and are thousands of times smaller per device than existing technologies.
Timothy Belton, Molecular Electronics' president and chief development officer, says the proceeds will be used to strengthen industry relationships that will help with development of the company's devices.

For background information on MEC, see Foresight Update issues #41 (June 2000) and #42 (September 2000).

from the Institutional-innovation dept.
According to an article in the Houston Business Journal ("Nanotech funding foundation to be established in Bayou City", by Jennifer Darwin, 12 April 2002), "A unique endeavor is under way to fund nanotechnology research in Texas, and help turn the Lone Star State into the worldwide center for nanotechnology activity. NanoTex is being established as a foundation designed to fund nanotech research at Texas-based institutions. The Houston-based organization is still in the early launch phase, so its legal structure is not complete and fund-raising has not yet started."

"We truly have an opportunity in Texas to create something that would be the Silicon Valley of the 21st century," says Conrad Masterson, who developed the concept. "It's an area where we have a unique leadership advantage worldwide."

from the hostile-business-climate dept.
According to an article in Israel's Business Arena ("Nanotech – Too big for little Israel?", by Gilad Nass, 19 March 2002), venture capitalists in Israel are interested but rather cautious about potential investments in nanotech research and development. The article provides a useful overview of private sector activity, and includes an interview with David Solomon, CEO of Israeli investment firm 4HighTech, who describes his fundís attitude to nano-technology investments in Israel as ìinterested, but it will take time before the first investment.î

Additional background on VC interest in nanotech in Israel can be found in a Nanodot post from 11 December 2001.

Of course, pondering investment decisions in a war zone has its difficulties.

A short piece in InfoWorld ("Time to think small", by InfoWorld Editor in Chief Michael Vizard, 5 April 2002) provides a not-very-informative interview with NanoBusiness Alliance Executive Director F. Mark Modzelewski and NBA board member Dave Holtzman, who try to "explain why nanotechnology is going to be the next big thing". I canít tell whether itís the questions or the answers, but the explanations donít grab me . . . A few of the better responses:

Modzelewski: "What we really try to do is bring together the pieces that are coming together in this industry across researchers, startups, universities, government officials, venture capitalists, and corporations. We want to start to get a dialogue going as to what the industry's going to need to get bigger [and] quicker."

Holtzman: "This is going to be a real game-changer, because you can do so much with limited resources. It takes away the home field advantage of having huge beds of natural resources in your country. You can create almost anything you want to with very limited resources. That's going to have to create some kind of a shift in world power as this technology continues."