Transcript No Slide Title

Nanotechnology and Venture Capital
Bangalore Nano 2007 Meeting
Bangalore, Dec. 6-7, 2007
Anthony K. Cheetham
Materials Science and Metallurgy Department
University of Cambridge
Overview
• Nanotechnology and the science of materials
• Nanomaterials
Nanostructured Materials
Nanoparticles
Nanocomposites
• Venture capital trends
• Some case histories of start-up companies
• Conclusions
Nanotechnology and Nanomaterials
• Nanotechnology is one of the
most exciting and fashionable
areas of current science
• In the USA, the on-going level
of federal funding is around $800
million p.a.
• Japan is very similar, while
Europe is around $1.2 billion.
• India ~$100 million p.a.
• China ~$150 million
• Less developed countries are
investing in nanotechnology.
4 nm
A Definition of Nanotechnology
• A system or a structure with one dimension (or
more) between 1 and 100 nanometres
– one nanometre = 10-9 metre
• …with fundamental control of physical and
chemical properties
– i.e. the nanoscale gives unique properties
• …and frequently one can combine such
nanostructures in order to create a larger
structure
– self-assembly is often very important important
Self-Assembly
• Integrated circuits are made
by a top down” approach,
beginning with a wafer of
silicon and using masks in
order to create features on
the micron scale
• Nature uses a “bottom-up”
approach, benefiting from
self-assembly of molecular
size species to form complex
architectures such as the
siliceous diatom (right)
• Nanotechnology would like
to use the same approach!
100 nm
A Classification of Nanomaterials
• Nanoparticles: particles with one dimension (or
more) between 1 and 100 nanometres
– including isotropic nanoparticles, nanotubes, nanowires,
nanorods and nanosheets
• Nanostructured Materials
– Macroscopic, homogeneous materials with important
features at the nanoscale, e.g. activated carbons
• Nanocomposites
– Macroscopic, heterogeneous materials that contain
nanoparticles in a homogeneous host matrix, e.g.
inorganic nanoparticles embedded in polymers
Nanoparticules
C60: Buckminsterfullerene
Diameter is
10-9 metres, i.e.
a nanometre
Kroto, Heath, O’Brien, Curl et Smalley, 1985
Carbon Onions
Electron
microscopy image of
carbon onions
Sumio Iijima,
Nature 1991
Carbon Nanotubes
……… a combination of two end caps of
fullerene with a roll of graphite
Carbon Nanotubes
Image of carbon
nanotubes Sumio Iijima
Nature 1991;
Mutiple wall
nanotubes are more
coomon than singlewalled ones
Nanotubes are ten
times stronger than
steel but six times
lighter!
Nanotubes de Carbone Non-Alignés
Aligned Carbon Nanotubes
(Richard Smalley, Rice 1997)
Potential Applications
of Fullerenes and Carbon Nanotubes
• High performance and functional structural
materials, e.g. polymer composites with nanotubes
• Sensors (e.g. for gases)
• Displays (Field Emission)
• Transistors molecular computers
• Data storage
• Storage of hydrogen for fuel cells
• Photovoltaic cells for solar energy
• Tips for atomic force microscopes (AFMs)
• Water purification
• Transparent conducting thin films
Nanotubes Inorganiques
We find fullerenes and
nanotubes with other inorganic
layered structures
(Tenne, Weizmann Institute,
Israel)
Molybdenum Disulfide
Nanocrystals and nanorods of
metals and semiconductors (1999)
Cadmium selenide
nanocrystals (15K atoms)
Cadmium
selenide
nanorod;
the morphology
is contolled
by the surface
chemistry
in solution
Other Inorganic Nanomaterials
• Metal nanoparticles
e.g. Au, Ag, Al, Si, Fe, Pd, Pt….
• Oxides nanoparticules
e.g. TiO2, SiO2, CeO2, Fe2O3, Fe3O4….
• Ceramics
e.g. BN, Al2O3, SiC, Al4C3….
• Semiconductors
e.g. GaN, ZnO, CdSe….
• Minerals
e.g. clays, zeolites, hydroxyapatite, talc, spinels
• Other inorganics
e.g. BaCO3, LnPO4, MS2 (M=Mo,W,Nb etc)
Gold Nanoparticles
These colloidal gold nanoparticles were prepared by approximately the same
method used by Michael Faraday in 1847! A solution of gold(III) chloride is
reduced by borohydride in the presence of a surfactant phase transfer agent.
The particles transfer into toluene where they are capped by alkane thiols.
50nm
2nm
Ceramic Nanowires
Many nanomaterials can be made in a wide variety of different
morphologies. For example, many oxides and other ceramics can be
made not only in regular particulate form, but also as nanowires etc.
Examples of nanowires of Al2O3 and ZnO are shown below. In this case
we use a different synthetic approach: carbothermal synthesis.
C.N.R. Rao, G. Gundiah, F.L. Deepak, A. Govindaraj and A.K.
Cheetham, J. Mater. Chem. 14, 440 (2004)
Properties of Nanomaterials
• Most of the properties of nanomaterails are fundamentally
different from their macroscopic analogues:
• The nanoscale (1-100 nm) results in:
– Changes in solubility
– Changes in biological properties
– Changes in physical properties, eg colour, transparency,
magnetism, quantum effects)
– Changes in chemical properties, giving strong catalytic
activity
• Morphology also has consequences for certain properties
Quantum Dots of CdSe give
Intense Fluorescence under UV Light
Colour changes according to the sizes of the particles!
Reproduced From http://www.qdots.com/new/technology/what.html
Some Applications of
Inorganic Nanoparticles
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Nanocrystals of gold functionalized with DNA for biorecognition
Platinum group metal nanorods for security barcodes
Nanocrystals of aluminum for rocket propellants etc
Magnetic nanoparticles of iron for drug delivery
Purification filters based on Al2O3 nanowires
Porous nanoparticles of silica for delivery of functional molecules
Nanocrystals of ZnO or TiO2 for UV absorption
Nanocrystals of zeolites and other oxides for catalysis
MoS2 onions for lubrication
Nanocrystals of CdSe, Si and TiO2 for solar cells
Nanocrystals of SiC for ceramic applications
Calcium phosphate nanoparticles for bone applications
Nanoparticles of rare-earth phosphors for security tagging and solid state
lighting
• Nanoparticles of minerals for composites
Trends in Venture Capital
• In about 2001, at the end of the dot.com era, funds specializing in
materials science begin to emerge:
– NGEN Enabling Technologies Fund, Rockport Capital
• Well established funds began to move into the area
– Draper Fisher Jurvetson (DFJ), Pangea, CMEA, Harris and Harris, Lux
• Much of the emphasis was on investments in the nanomaterials
and nanotechnology areas
– Nanosys, Nanosphere, Konarka, Evident Technologies, Oxonica (UK)
• In the last 2-3 years, the emphasis has shifted towards the
Cleantech area, i.e. technologies for clean energy, sustainability,
the environment etc
– Solar energy, water treatment, energy storage, fuel cells, emission controls,
etc
A.K. Cheetham & P. Grubstein, Nano Today, 16 (2003)
Case History I - Nanosys
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Founded in 2001 with technology from Harvard and Berkeley; based in Palo Alto,
California
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High visibility founders, including Lieber and Alivisatos
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Focus on nanotechnology for applications in solar energy, flat panel displays, fuel cells
•
Over 500 patents, many using CdSe nanostructures
•
Nanosys chosen as 2004 Technology Pioneer by World Economic Forum; Business
Leader in Nanotechnology and Molecular Electronics on the "Scientific American 50“
2004; Red Herring Top 100 (2005)
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Experienced management – Larry Bock
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Raised $30 million in 1st closing of 2nd investment round (2003) –
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Top VCs participated - Harris and Harris, Lux
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Withdrew $100 million IPO in August 2004 due to market conditions (would have had
a market cap of $360 million)
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Raised $40 million in 3rd investment round (Nov 2005) – Arch, Intel, Venrock
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Change in direction…?
Case History II - Oxonica
• Founded in ~2000 with technology from Oxford University and elsewhere
• Based in Oxford, UK
• Focus on nanoparticle nanotechnology for applications in fuel efficiency, UV
sunscreen, security printing, sensors
• Experienced management – Kevin Matthews (formerly Rhodia, Albright and
Wilson, and ICI)
• Won a series of major awards as a start-up, including ranked in top four
Nanotech companies by Lux Research (2006), CEO named Small Tech
Business Leader of the Year( 2005), CEO named Ernst & Young S&T
Entrepreneur of the Year (2005)
• Top British VCs participated (e.g. Trivest VCT), as well as BASF Venture
Capital
• Raised £7.1 million in 2004 IPO with a market cap of £35 million ($71 million)
• Suspended trading in 2007 due to failed trial of fuel additive
Case History II - Oxonica
Oxonica Share Price
Current market cap ~$27 million
Case History III - Nanosphere
• Founded in 2000 with technology from Northwestern University
• High visibility scientific founders: Mirkin and Letsinger
• Experienced management
• Focus on nanotechnology with DNA-functionalized gold
nanoparticles for applications in biosensors
• Applications in diagnostics and counter-terrorism (bio-hazards)
• Raised ~$80 million in VC funding, including $57 million in
Series D (May 2006)
• Top US VCs participated
• FDA approval in Sept. 2007 for DNA-based test for Warfarin
• IPO (raising ~$100 million) in Nov 2007
• Current market capitalization $287 million
Concluding Remarks
• Many of the major technological developments over the last
25 years in the broad materials area have taken a long time
to have a commercial impact:
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Conducting polymers and molecular electronics (~1980)
High temperature superconductors (~1986)
Carbon nanotubes (~1991)
Wide band gap semiconductors, e.g. GaN (~1994)
• It is easy to spot the commercial potential, as with
nanotechnology, but the time to market is very long
• This is illustrated by the lack of commercial success, to
date, of many of the start-ups in the nanotechnology area
• There are unanswered questions concerning toxicology
issues, as well as societal concerns (not unlike GM foods)