Nanotechnology Now

Our NanoNews Digest Sponsors

Heifer International

Wikipedia Affiliate Button

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:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

News and information

Caught on camera -- chemical reactions 'filmed' at the single-molecule level March 22nd, 2017

Rare-earths become water-repellent only as they age March 22nd, 2017

Pulverizing e-waste is green, clean -- and cold: Rice, Indian Institute researchers use cryo-mill to turn circuit boards into separated powders March 21st, 2017

CRMGroup in Belgium uses a Deben three point bending stage in the development of new steel & coated steel products for automotive and other industrial applications March 21st, 2017

VC/Funding/Angel financing/Loans/Leases/Crowdfunding

Caught on camera -- chemical reactions 'filmed' at the single-molecule level March 22nd, 2017

Announcements

Caught on camera -- chemical reactions 'filmed' at the single-molecule level March 22nd, 2017

Rare-earths become water-repellent only as they age March 22nd, 2017

Pulverizing e-waste is green, clean -- and cold: Rice, Indian Institute researchers use cryo-mill to turn circuit boards into separated powders March 21st, 2017

CRMGroup in Belgium uses a Deben three point bending stage in the development of new steel & coated steel products for automotive and other industrial applications March 21st, 2017

Events/Classes

Next-gen steel under the microscope March 18th, 2017

UC researchers use gold coating to control luminescence of nanowires: University of Cincinnati physicists manipulate nanowire semiconductors in pursuit of making electronics smaller, faster and cheaper March 17th, 2017

Harris & Harris Group Issues Its Financial Statements as of December 31, 2016, Posts Its Annual Shareholder Letter, And Will Host a Conference Call for Shareholders on Friday, March 17, 2017 March 15th, 2017

Rice's Tour to testify before Congress Wednesday March 14th, 2017

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