No Nanodynamics IPO

Investors in Nanodynamics are left gnashing their teeth in frustration (or perhaps gnawing their wallets to survive) as the company became the latest nanotech company to pull out of an IPO. The global credit crunch provides an appropriate excuse, but the Buffalo News provides another explanation.

“One use for the capital would be to support ongoing technology development efforts. The company loses about $1.5 million a month as it invests in bringing new products closer to market, according to its filing at the U.S. Securities and Exchange Commission.”

An IPO like this brings back uncomfortable memories of Nanosys, who filed for an IPO at the same time of year when most institutional investors are still away, who tried to raise $100 million on the back of $4 million in revenues and whose IPO was pulled due to lack of interest.

If the real star of the VC backed grab as much nanotech IP and pile it high philosophy couldn’t squeeze out an IPO  in 2005 then no amount of repositioning the company as a clean tech business will get around the rather obvious link with nanotech in Nanodynamics’ name.

Barry Weinbaum, former CEO of recently closed NanoOpto sums up the crunch issue for many of the more venerable ‘nanotech’ companies:

“The company was more than six years old, and a lot of money had gone into it, and some of the investors had been very loyal, had been with NanoOpto for a long period of time. Combined with how long the projected time frame was for more revenue, the board made a decision that it wanted to sell the company several months ago.”

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