Issues Facing Nanotech Companies Going Public:
A Recap of an Executive Roundtable
Volume 3, Issue 3
Andrew S. Baluch, Nanotechnology Law & Business
Leon Radomsky, Foley & Lardner LLP
Gabor Garai, Foley & Lardner LLP
While offering unique technological opportunities, nanotech companies today also face unique business challenges not seen in the life-science or telecom markets. Part of the difficulty in securing funding in the post-dot-com era is that nanotechnology’s cross-cutting applications do not fall neatly into any known investment paradigm. Whereas an investor in the life-science space is comfortable assessing a biotech company’s viability as it hits its regulatory approval milestones (even without revenues), the road to an IPO for a nanotech company is not as clearly defined. In addition, it is unknown whether nanotechnology will see fierce litigation over patents, as with biotech, or massive cross-licensing, as with electronics. When faced with these kinds of challenges, nanotech companies do what they do best: they get creative. The following article provides a glimpse into what today’s nanotech executives see as possible solutions to the business challenges in going public.
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