NanoPundit -Where Society, Science and the Law get really, really small.

Thursday, January 13, 2005

Big Business Models for Nano Companies

Neil Gordon has an article in Small Times on the need for a business model in addition to great technology for the emerging nanobusiness. “When management’s sole focus is on the development of technology at the exclusion of other business activities that can generate revenue, at some point cash reserves will dwindle and the company will be at risk of a meltdown.” He draws analogies from the biotech industry of 5-10 years ago. Thankfully, he doesn’t analogize to the internet bubble.

My thoughts are that, like the biotech industry, there are a lot of overvalued companies that are never going to generate cash. Also, like the biotech industry, the nanotech segment as a whole is undervalued because there are undiscovered gems which will be enormously profitable in the next 5-10 years. People smarter than me are working day and night to sort out the gems.


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