Chapter 5. Investment in Nanotechnology

Investment decisions will be a major force in shaping how and where nanotechnology develops. Nanotechnology investments will largely be handled through partnership and technology licensing between companies rather than by young companies experiencing explosive growth.

The perspective of venture capitalists (VCs) is an excellent one for instruction, even though only a small percentage (less than 5 percent) of companies fit the profile of a company that merits venture capital investment. Serving to quarterback the technology economy through investment decisions, a VC makes investments in those companies that, although they are risky, hold the most promise for the future. This chapter outlines both venture and public funding decisions.