Nanotechnology Now







Heifer International

Wikipedia Affiliate Button


DHgate

Home > Press > Nanotech VC to exceed $650 million in 2006

Abstract:
Lux Research report finds that out of 171 venture-backed nanotech start-ups funded since 1995, 18 have reached a successful exit through an IPO or acquisition as money continues to flow to the sector

Nanotech VC to exceed $650 million in 2006

New York, NY | Posted on December 4th, 2006

Venture capitalists continue to devote cash to nanotechnology start-up companies. But, with the long expected time from investment to exit of six years - twice what VCs expect for investments in other technology areas - exits are thin on the ground. Nevertheless, some investors are unwisely looking to the small number of exits to date for valuation multiples going forward, according to a new report from Lux Research entitled "Exits for Venture Capitalists in Nanotechnology Remain Elusive."

"Broadly accepted valuation multiples for companies employing nanotechnology simply don't exist today because acquisitions and initial public offerings (IPOs) for nanotech start-ups are just beginning to accelerate," said Lux Research Analyst Ted Sullivan. "It's tempting to look at today's few early valuation multiples as benchmarks. We think this will lead to bad decisions - the gestation time for nanotech start-ups is double what venture capitalists expect in other technology areas, making the vast majority of start-ups premature for an exit today. We recommend that investors and entrepreneurs take a rational valuation approach for nanotech start-ups based on competitiveness in their core application areas."

To build a framework for assessing venture capital investments in nanotechnology, Lux Research analyzed a snapshot of its ongoing, comprehensive database of investments in the field - which contains every institutional VC funding round, IPO, acquisition, and bankruptcy worldwide for companies that are commercializing nanoscale structures with size-dependent properties. The report finds that:

* Based on deals completed through September, we estimate that VC investments in nanotech start-ups will reach $650 million in 2006.
* The average deal to date in 2006 comes to $11.5 million, 19% higher than 2005's $9.6 million.
* In 2006 through September, 121 different institutional venture capitalists invested in nanotech start-ups, the majority of which had previously invested in the field. Familiar names, such as Harris and Harris Group (H&H) and Draper Fisher Jurvetson (DFJ), continue to dominate, while new entrants such as Bain Capital joined a number of Fortune 500 corporations in casting votes of confidence for companies employing nanotechnology.
* Ten venture-backed nanotech start-ups have managed an IPO of shares, raising an aggregate $417.2 million at their debuts with a total implied valuation of $1.69 billion.

The report provides valuation data on nanotech start-ups which have exited to date and a comparison of exits for nanotech start-ups to exits by venture-backed companies as a whole, worldwide. It is available immediately to clients of Lux Research's Nanotechnology Strategies advisory service. For information on how to become a client, contact Rob Burns, Vice President of Sales, at (646) 723-0708.

####

About Lux Research
Lux Research provides market intelligence and strategic advice on nanotechnology and the physical sciences. We help our clients make better decisions to profit from cutting-edge technologies by tapping into our analysts' unique expertise and unrivaled network. Our clients include top decision makers at large corporations, investment professionals at leading financial institutions, CEOs of the most innovative start-ups, and visionary public policy makers. Visit www.luxresearchinc.com for more information.

For more information, please click here

Contacts:
Rob Burns, Vice President of Sales, at (646) 723-0708.

Copyright © Lux Research

If you have a comment, please Contact us.

Issuers of news releases, not 7th Wave, Inc. or Nanotechnology Now, are solely responsible for the accuracy of the content.

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

Investments/IPO's/Splits

Harris & Harris Group Sponsors NYC American Heart Association's Health Sciences Innovation Investment Forum: Co-founder of Harris & Harris Group Portfolio Company TARA Biosystems to Speak About the Value of Tissue Engineering Technology April 21st, 2015

Long Island Capital Alliance Announces Participants for Brookhaven National Laboratory Technology Transfer Capital Forum on May 8: Keynote Speaker Dr. Doon Gibbs, Director of Brookhaven National Laboratory April 16th, 2015

Graphenea embarks on a new era April 16th, 2015

Harris & Harris Group Portfolio Company OpGen Files Amended Registration Statement for Proposed Public Offering April 8th, 2015

Announcements

Northwestern scientists develop first liquid nanolaser: Technology could lead to new way of doing 'lab on a chip' medical diagnostics April 25th, 2015

Nanotech-enabled moisturizer speeds healing of diabetic skin wounds: Spherical nucleic acids silence gene that interferes with wound healing April 24th, 2015

Fast and accurate 3-D imaging technique to track optically trapped particles April 24th, 2015

Pseudoparticles travel through photoactive material: KIT scientists measure important process in the conversion of light energy -- publication in Nature Communications April 24th, 2015

Financial Reports

Harris & Harris Group Reports Financial Statements as of December 31, 2014 and Posts Annual Letter to Shareholders on Website March 17th, 2015

Aspen Aerogels, Inc. Schedules Fourth Quarter and Fiscal 2014 Earnings Release and Conference Call for February 26, 2015 February 11th, 2015

Arrowhead to Report Fiscal 2015 First Quarter Financial Results February 2nd, 2015

Graphenea sales more than double in 2014 January 29th, 2015

Human Interest/Art

To Conserve London's 300-Year-Old Masterpiece, Nanotech & Drones April 12th, 2015

2015 Nanonics Image Contest January 29th, 2015

OCSiAl supports NanoART Imagery Contest January 23rd, 2015

EnvisioNano: An image contest hosted by the National Nanotechnology Initiative (NNI) January 22nd, 2015

NanoNews-Digest
The latest news from around the world, FREE




  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More










ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project