Nanotech Venture Capital is Out of Sync with Returns

Nanotech Venture Capital is Out of Sync with Returns

 Nanomedical start-ups generate 77% of returns but get only 27% of investment

Venture capital (VC) firms invested $702 million in nanotechnology start-ups last year across 61 deals, slightly down from $738 million across 73 deals in 2006. But this VC spending is sharply out of sync with investment returns. Although application-oriented life-sciences companies have delivered the majority of VC returns in nanotech, VC firms consistently devote most of their funding to companies in other areas, according to a new report from Lux Research entitled “How Venture Capitalists Are Misplaying Nanotech.”  

 

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