Early investors in nano-technology may get their fingers burned,
setting back the development of the technology, according to
Intel’s director of technology strategy.
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| Paolo Gargini |
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However, UK investors should escape unscathed, said Paolo Gargini
at Intel. “The risk with nanotechnology is that it’s
not going to happen in the next five to ten years,” said
Gargini. “After five years, there could be an implosion and
all the billions put into it will be lost. We can make a few
components using nanotechnology, but we can’t make millions
of components.”
The US government is investing $1bn a year in the technology and
US venture capitalists invested more than £350m in
nanotechnology start-ups in 2002 and 2003, but new investments
started drying up last year and the UK may have avoided the
potential carnage.
“The UK has lagged behind the US and Europe on nanotech VC
investment,” said Stuart McKnight, of corporate financiers
Ascendant. “People are sitting on their hands waiting for
better prospects to come through.”
One of the most promising approaches to nano-technology, which
Intel, Infineon Technologies, IBM and other companies are pursuing,
is carbon nanotubes.
Asked about the possibility of producing commercial electronic
devices using carbon nanotubes, Gargini replied: “The
earliest we could consider this happening will be in the next
decade.”
Recent figures suggest that European venture capital funds have
raised $16bn from potential investors, and this money is sitting
around waiting for suitable projects to emerge.
That may be because investors are wary about high-tech.
Jamie Urquhart, partner in venture capitalists Pond Ventures,
recently pointed out that $30bn was invested in European high-tech
projects between 2000 and 2001 and half of it has already been
lost.