VCs to Nanotech: Don't Call Us!

Cientifica, the world's leading independent supplier of nanotechnology research and technology information, argues in a new released report "VCs to Nanotech: Don't Call Us!" that nanotechnology as an investment opportunity scarcely registers on the radar of most venture capitalists.

For a sector predicted to be a trillion dollar market, there is a decided lack of private equity investor interest. Despite a massive public investment program totalling over US$18 billion, venture capitalists in 2005 invested only 0.14% of their funds in nanotech related companies.

An analysis of the US$375 million invested worldwide in 2005 highlights a shift from investing in pure nanotechnologies to a more market driven approach, and that investors are wising up and becoming more adept at picking winners. The report also reveals that:

* The median deal size in 2005 was US$8.25 million;
* US VCs currently outspend their European counterparts by a factor of six;
* Several hundred million dollars of venture capital money is currently locked up in illiquid nanotech companies that is a result of investors following a dot com mentality in the early stages of nanotechnology;
* 2006 will see a slew of attempted IPOs and rich pickings of intellectual property at fire sale prices;
* Deal flow is picking up in both numbers and quality, and investors will realise the greatest returns from nanotech by looking beyond ‘nanotechnology companies‘;
* Current investors have a second mover advantage in investing in the applications of nanotechnologies in major markets;

Commenting on the findings, Cientifica CEO Tim Harper said, "Investors are only now seeing the kind of nanotechnologies which have the potential to generate the kind of returns that will justify the hype. While many companies will be creating value through the use of nanotechnologies, almost none of them will be easily identified as nanotech companies."

The report is available from http://www.cientifica.com


Contacts

Europe & North America (London)
Tim Harper, [phone]
[e-mail]

Asia (Singapore)
Derrick Tan, [phone]
[e-mail]

India (Mumbai)
Jyothi Chowti, [phone]/29693
[e-mail]

Countries

Austria, Belgium, Czechia, Germany, Denmark, Estonia, Greece, Spain, Finland, France, Hungary, Ireland, Italy, Lithuania, Luxembourg, Latvia, Malta, Netherlands, Poland, Portugal, Sweden, Slovenia, Slovakia, United Kingdom