When investing in nanotechnology ventures, there are several
basic questions that investors have:
Where are breakthroughs using nanotechnologies
occurring?
Currently there are more than 580 medical,
cosmetic, electronic and automotive products on the market. Most companies
are using nanotechnologies or materials to improve existing products,
such as increasing battery efficiency, providing better coatings,
and creating more flexible or better performing materials. Hence the
nano “revolution” is evolutionary, as it’s more of a slow change process
rather than a disruptive one.
What are the major challenges in
investing in nanotechnology?
There is a broad spectrum of nanotechnologies
that are in development, so the challenge becomes to identify which
are most promising. Each will have a different time horizon and
potential for commercial viability. Most important, commercialization
of nanotechnology takes time. Many start-ups that are now 6-7 years
old are not yet producing meaningful revenues.
What factors contribute to a startup's
success? How can you be sure an investment will be successful?
From the earliest stages, the founders
must have (1) a vision of the potential of their nanotechnologies,
(2) an entrepreneurial spirit, (3) a strong desire to build a company,
(4) safe, effective business practices, and (5) depth of business
experience. It is vitally important that the nano startup not only
secure its intellectual property, but over time, grow the strength
and breadth of its IP. In addition, it must have a strong business
focus on delivering results in terms of products and solutions.
What is currently happening around
government regulation of nanotechnology?
As investment in nanotech grows, investors, corporate
and start-up executives and regulators are calling for swift action
to address concerns about safe practices in nanotech.
On Wednesday, October 31, 2007, the U.S. House of Representatives
Subcommittee on Research and Science Education of the Committee
on Science and Technology held a hearing to review the need and
motivation for research on the environmental, health and safety
aspects of nanotechnology. Leading scientists spoke at the hearing,
advocating that the U.S. Congress support research that “can expedite
progress toward maximizing the benefit-to-risk ratio in the development
of nanotechnology.” As described by the House Science Committee,
“Nanotechnology is an area of research that could add billions of
dollars to our economy, but that won’t happen if it is shrouded
in uncertainty about its consequences.”
NanoHoldings is committed to ensuring safe practices are incorporated
into our business model and are implemented by our portfolio companies.
We support and encourage workplace safety and product stewardship
practices that comply with existing and anticipated standards, either
voluntary or regulated. 
|
|
|
