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February 28th, 2005
Venture funding for nanotechnology dropped from $386 million in 2002 to $200 million in 2004, according to New York Citybased nanotech market research firm Lux Research. That means nanotech startups are finding it harder to do research in areas that could have tremendous long-range impact: new nanomaterials for optics and chip-cooling systems; biological diagnostics based on ultrasensitive nanosensors; and smart, automated delivery systems for protein drugs. "Over the years, the financial community has pushed for shorter-term results," says Peter Garcia, chief financial officer of Nanosys, a nanotech startup based in Palo Alto, CA. "There are projects that are more long term technically that have the greatest potential to change how products are made, but the funding is not there."
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