1st International NanomanufacturingSymposium.

Cambridge, MA April 26, 2003

Session V: Entrepreneurship

How do you translate a nanomanufacturingcapability into a business opportunity?

Lori PressmanIndependent Business Consultant

What’s Nanotechnology?

Very small pieces of Au, TiO2, Barium Hexa-aluminate (BHA)Behave differently from larger pieces of Au, TiO2, BHA. Why? What can you do with this fact?

Nanotechnology definition (http://www.nano.gov/omb_nifty50.htm)

Research and technology development at the atomic,molecular or macromolecular levels, in the length scale of approximately 1 - 100 nanometer range, to provide a fundamental understanding of phenomena and materials at the nanoscale and to create and use structures, devices and systems that have novel properties and functionsbecause of their small and/or intermediate size.

Make New Materials You can also make machineswhich make or measure nanosized structures.

Is there a business opportunity in knowing how to manufacture and measure these

new materials and structures?

Is there a start-up business opportunity in knowing how to manufacture and measure these

new materials and structures?

Carbon Black: Cabot knows how to make it. Degussa knows how to make it.But it is a low margin commodity<10% marginprofits fluctuate with the cost of raw materials

Is a better way to make carbon black a business opportunity?

Probably, but not for a venture funded start-up.

(Cabot and Degussa have the complementary assets, such as customer base, product support, etc…)

Multiwalled carbon nanotubes:

Hyperion Catalysis knows how to make them.

Is a new and different manufacturing technique for MW Carbon nanotubes a (start-up) business opportunity now?

SW?

Exclusively semiconducting, exclusively metallic?

A Device Made with Nanotubes: Nantero’s Nonvolatile Random Access Memory

They do have manufacturing technology, but the value proposition focused on the “nanotube enabled” product, not on the nanomanufacturing technology alone.

Was this new and different manufacturing technique for NRAM a start-up business opportunity?

Yes.

Suggested generalization for Venture Investors:

Need to find a company which has identified a product which could not be made if not for the nanomanufacturing capability.

Determine if there is a market for the product, and if it can be sold at a profit.

Possible that a BIG cost advantage alone would open up new markets for existing products…

Hyperion Catalysis InternationalPrivate, in business since 1982 (must be making some $!)

Applications for their nanotubes in Electronics and Automotive Industries.

Load plastic and coatings with Nanotubesto make them more electrically conducting without altering other properties, such as surface finish.

A material whichadds value to other products

Carbon Nanotube-Based Nonvolatile Random Access Memory for Molecular Computing Thomas Rueckes, Kyoungha Kim, Ernesto Joselevich, Greg Y. Tseng, Chin-Li Cheung, and Charles M. Lieber Science 2000 July 7; 289: 94-97

Nantero’s nanoenabled product is a nanoelectromechanical switch.

Nano-Care™ Chinos from Eddie Bauer, could not have been made if not for…

….Nano-Tex, LLC: Novel, Patented Chemistry

Suggested Generalization on nanoenabled product business execution:

Think “Biotech”:

A material, manufacturing and technology platform which:

1) adds value to other products

Hyperion, Nano-Tex

2) Creates new products andstrategic partnership opportunities

Nano-tex, Nantero, Nanosys

Nano-tex:

Takes a page from biotech and signs

15 + license agreements with individual millsFor families of fabric treatments

www.nano-tex.com

Marks Work Wearhouse • GAP VF/The Lee Company Eddie Bauer

Savane • KathmanduCroft & Barrow • Levi DockersElbeco • Haggar

Savane • Bremen Trousers

Levi Dockers

Nanosys, Inc.

Takes a page from biotech and signs a strategic partnership agreement with Matsushita:

Nanosys and Matsushita Electric Works to Develop Nanotechnology Based Solar Cells for the Asian Building Materials Market

http://www.nanosysinc.com/images/Press%20Releases/Nanosys-MEW%20Solar%20Cells%20-%20Dec%204%202002.pdf

Hybrid Nanorod-Polymer Solar Cells Wendy U. Huynh, Janke J. Dittmer, and A. Paul Alivisatos Science 2002 March 29; 295: 2425-2427

Lessons learned: Entrepreneurs:

Think Product (not just manufacturing capability)

Find strategic partners who need your capabilities.

Think “biotech” license when filing IP. Have a platform, and move up the value chain.

Lessons learned: Investors:

Find companies which have done their marketing homework by talking with customers

Big ElectroCoBig AutomoCo

Big TechCoBig ChemCo

Are cordially invited to explore nanotechnology

Start-up and product synergies.

Is nanobusiness entrepreneurship different from otherentrepreneurship, and why?

You have to manufacture a product, -typically a productwhich is rather challenging to manufacture.

(It’s not software).

It’s important not to lose sight of the product.