Nanotech IPOs Get Another Blow as Nanodynamics IPO Fails

The imminent future of nanotechnology companies going public in greater numbers, as predicted by the New York Times (login required) and examined on this blog, has gotten off to a bad start as Nanodynamics has abandoned their most recent IPO attempt on the Dubai exchange.

Nanodynamicsâ'' IPO on the Dubai exchange follows the companyâ''s attempted IPO closer to home on the Nasdaq exchange last November. In that failed attempt they were trying to raise $90 million as compared to the $100 million sought in this most recent effort.

In either case, you might imagine that there was some incredulity on the part of investors to hand over that kind of money for a company with 2006 revenues of just $4 million and losing $1.5 million a month.

It would seem that nanotechnology companies contemplating going public should try having some revenues to support the level of public investment being sought. A quarterly burn rate higher than your yearly sales does not exactly inspire confidence, no matter how much you may need the money to change the world.

Anyone who perceives this recent announcement as a death knell for the commercialization of nanotechnology, or that elusive specter â''the nanotechnology industryâ'', should instead see it as a serious shot across the bow of any company that believes money can be raised merely on a promise and not actual revenues.


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