Straight Talk on Small Talk: Navigating Through the Nano Hype Part 1 of 2

Straight Talk on Small Talk: Navigating Through the Nano Hype

(Part 1 of 2)

The attention surrounding nanotechnology has geared up recently, with heightened expectations for both innovation and capital. With media and analyst speculation at an all-time high,
and government funding for R&D
hanging in jeopardy, the challenge
is identifying what will become a reality once nano hype fizzles out.

Small Tales

Last year there was considerable attention spurred on the subject of nanotechnology (as there was with bioscience). Journalists from Forbes to Scientific American pondered what kinds of innovations, cures and miracles would bear fruit from nano-scale molecular manipulation, and tried to assess what multi-billion dollar companies could come out of its progress. IBM and HP announced milestones in their nano research divisions, while major VC firms such as Kleiner Perkins and Polaris made their initial investments in nanotechnology. Meanwhile on the government-endorsement side of nano, federal funding saw a $200-plus million increase. Also, the inevitable surfacing of trend-catching conferences and events ensued. One of them was the annual Infotech Forum in New York City (originally scheduled for September 13 but canceled due to the 9/11 attacks), which devoted its conference to the brewing nano craze, calling it Nanoscience and Nanotechnology: Why The Smart Money Thinks They May Be The Next Really Big Thing.

With this ascent of interest, activity and attention, there was also a clamoring need to define and assess this area. What first of all is nano, and the ultimate question, what kinds of nano-based products were near term, what was ten or even twenty years away, and what was simply science fiction.

Last summer, Lux Capital released an industry study, The Nanotech Report, encouraging nano investment with 250 pages of information at $4,750 a pop. The report was authored by Lux Capital's co-founder and managing partner, 23-year old Josh Wolfe, who has slowly nudged his way into becoming a brash figure on the nano landscape. Infuriating many with his bold statements ("nanotechnology is the greatest investment opportunity we will see for the next decade)," Wolfe's unwavering perspective of nano's promise has left him with mixed reviews--he has been dubbed everything from "pretender to the throne," and "hype artist," to "genius." Wolfe is also one of the members of the The Nanotechnology Business Alliance, an industry organization formed last year. The Business Alliance's executive VP, Nathan Tinker, authored a more succinct 26-page industry report, the 2001 Business of Nanotechnology Survey, which attempted to track and project capital activity in the area, both private and public. The information is (unsurprisingly) pro-nano, projecting the global market for nanotech products reaching $700 billion by 2008, and VC investment rising to $1.2 billion by 2003. Even though these numbers arguably shed light on the general direction that dollar commitment is flowing in nano, the data was arrived by surveying a select 150 companies, both large and small and throughout various sectors. It was not, however, a survey of all the companies working in this space, and there is no data available yet that has tracked how much money, in total, is really being poured into this area, nor how much revenue is coming out of it.

(click here to continue to Part 2 of 2)

by Wendy Hall
Larta Staff Writer

February 21: US-Japan Hi Tech Partnership 2002: Japan Meets the Nano Republic of California, Co-Produced by Larta
Join us for "Japan Meets the Nano Republic of California", a focused half-day event that brings leading business and research leaders from Japan and the Nano Republic for a practical discussion on current research and potential future business opportunities in nanotechnology. Two high-powered discussion panels will feature key figures and companies building the future of nanotechnology both here and abroad. Featured Keynote: Dr. Eiji Osawa, President of NanoCarbon Research Institute.
12:45 - 6:30 pm, Torrance Marriott. Registration: Pre-registration is $60, at the door registration is $75.
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