Home > News > Video & Story: How to fix a broken venture capital model
July 22nd, 2008
Video & Story: How to fix a broken venture capital model
Abstract:
Entrepreneurs in nanotechnology, cleantech, and renewable energy fields are experiencing the same kind of problems in venture capital financing experienced by the semiconductor and IT industries for the last decade. At the Nano Renewable Energy Conference July 22, Lux Research president Matthew Nordan offered ideas on how to make startup financing work again.
There is no longer a simple linear path from angel investing to venture funds to initial public offering, Nordan said. Today, it is more common to require a level of growth equity or private equity funding before an IPO, since VCs are not prepared to extend funding into the hundreds of millions of dollars.
At the same time, the new business model for emerging technologies requires more investments and gestation times in excess of a decade before profitability. Nordan said that in the energy and cleantech fields, venture funds have responded by specializing.
Funds such as Rockport and Kleiner Perkins Caufield & Byers invest in early-stage technology, while Riverstone and FourWinds invest in deployment of semi-mature technologies. Only a few funds like Vantage Point try to span the gamut of development and deployment. And a new model of "clear-cutting" VCs, exemplified by Khosla Ventures, represent funders of last resort.
Source:
eetimes.com
Bookmark:
News and information
Beautiful "flowers" self-assemble in a beaker: Elaborate nanostructures blossom from a chemical reaction perfected at Harvard May 17th, 2013
Artificial Forest for Solar Water-Splitting: Berkeley Lab Researchers Report First Fully Integrated Artificial Photosynthesis Nanosystem May 17th, 2013
Moth-Inspired Nanostructures Take the Color Out of Thin Films May 17th, 2013
NIA Public Briefing: Nanotechnology and the Council of Europe May 17th, 2013
VC/Funding/Angel financing/Loans/Leases
Harris & Harris Group Notes the Sale of a Second D-Wave Quantum Computer May 16th, 2013
Nanostart-holding New Asia Investments invests in breakthrough water projects May 13th, 2013
Harris & Harris Group Reports Financial Statements as of March 31, 2013 May 10th, 2013
Nanostart-holding MagForce Receives Further Patent Related to NanoTherm Therapy May 7th, 2013
Announcements
Artificial Forest for Solar Water-Splitting: Berkeley Lab Researchers Report First Fully Integrated Artificial Photosynthesis Nanosystem May 17th, 2013
Moth-Inspired Nanostructures Take the Color Out of Thin Films May 17th, 2013
NIA Public Briefing: Nanotechnology and the Council of Europe May 17th, 2013
Scientists capture first direct proof of Hofstadter butterfly effect May 17th, 2013
Events/Classes
Interactive Printed Products – New Applications Enabled by Organic and Printed Electronics May 16th, 2013
Nanometrics Announces Upcoming Investor Events May 14th, 2013
INSCX™ exchange to present a nanotechnology-based Emission Reduction Programme, Ankara, Turkey, June 2013 May 14th, 2013
VDMA: New “Photonics Industry Report 2013” presented May 14th, 2013