The heyday for nanotech venture capital (VC) likely saw its peak in 2008, when overall investment reached $1.4 billion. Last year, the sector raised only $792 million, signifying a 42% decline from 2008. The value of nanotech-related deals in the manufacturing/materials and energy/environment sectors took particularly sharp dives, sinking 78% and 69% respectively from the previous year.
But as venture-backed nanotech went on life support, it was kept alive by investment in healthcare and life sciences, which increased last year at the same rate that overall nanotech VC dropped – 42%. This segment attracted $404 million last year – or 51% of all deals; and based on responses from the top VCs in the nanotech space that we interviewed, it’s likely to stay one of VCs’ favorite sectors, along with energy and environment, for the near future.
Source: Lux Research report 2009 Nanotech Venture Capital: Healthcare and Life Sciences Provide Life Support.
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