NANOTECHNOLOGY The Business

Transcription

1 NANOTECHNOLOGY The Business Michael T. Burke Ltf\ CRC Press \f^ J Taylor & Francis Group Boca Raton London NewYork CRC Press is an imprint of the Taylor & Francis Group, an informa business

2 Contents Foreword: A Letter from the Editor Preface Acknowledgments Introduction xiii xvii xxiii xxv Parti Nanotechnology and New Business Opportunities Chapter 1 The Relationship between Technology Development and New Business Creation 3 New Technology = New Opportunity = New Business 3 Resistance to New Technology 6 Summary 8 Endnotes 8 Chapter 2 Some Technologies That Have Changed Society 11 The Wheel 12 Money 13 Gunpowder 15 The Steam Engine 17 Mechanized Transportation 18 Rapid Communication 21 Recombinant DNA Technology 24 The Computer and the Internet 25 Summary 27 Endnotes 27 Chapter 3 Nanotechnology: What's Different? 31 What Is the Same? 31 What Are the Differences? 32 Summary 34 Endnotes 34 Chapter 4 Where Do New Nanotechnology Inventions Originate? 37 Universities 38 Government Laboratories 39 The Corporate Environment 40 Summary 41 Endnotes 42

3 vi Nanotechnology: The Business Chapter 5 Obtaining Rights to Nanotechnology Inventions 45 Evaluation 46 Negotiating Terms 49 The Term Sheet 51 Negotiating the Contracts 52 Summary 53 Endnotes 53 Chapter 6 Some Examples of Current and Potential Nanotechnology Businesses 55 Some Current Nanotechnology Companies 55 Arrowhead Research Corporation 55 Unidym 56 Nanogap 57 nanoresins AG 58 ObducatAB 58 Anson Nanotechnology Group 59 Texnology Nano Textile 60 Icon Analytical Equipment Private, Ltd 60 Nanopac 61 Potential Businesses 61 Nanopiezotronics 62 Nanothermoelectric Generation 63 Superconducting Materials 64 Nanomachines 65 Other Possibilities 65 Summary 66 Endnotes 66 Part 2 How, Where, When to Start: A Practical Guide to Getting off the Ground Chapter 7 Business Structures: Advantages and Disadvantages 71 Business Structures 71 The Company Concept 72 Sole Proprietorships 72 General Partnerships 75 Limited Partnerships 76 Limited Liability Partnerships 77 General C Corporations 77 Subchapter S Corporations 80 Professional Corporations 81 Closed Corporations 81

4 Contents vii Nonprofit Corporations 82 Limited Liability Companies 82 Cooperatives 84 Business Structures outside the United States 84 Foreign Ownership 84 Summary 85 Endnotes 85 Chapter 8 Incorporating: The Process 87 What to Do First 87 The Business Plan 89 Company Description 90 Market Served 90 Products.. 91 Research and Development 91 Manufacturing Issues 92 Legal Issues 92 Management Team 92 Other Personnel Needs 93 Hurdles and Milestones 93 Financial Analysis 93 Revenues 93 Expenses 94 Break-even Analysis 94 Financing Needs 94 The Executive Summary 94 Write the Business Plan from Scratch or Use a Software Package? 94 Budgeting 95 Where to Incorporate? 98 The Process of Forming a Company 102 In the United States 102 Outside the United States 103 Foreign Registration 104 Summary 104 Endnotes 105 Chapter 9 Financing the Company: Finding the Money 107 Product Sales 107 Technology Sales 108 Personal Funds and Loans 109 Friends and Family Members 109 Grants \ 110 Angel Investors 112 Venture Capitalists 114 Public Equities Markets 116

5 viii, Nanotechnology: The Business Shares 116 Stock Exchanges 116 Bonds 118 Offering Shares for Sale 118 Summary 119 Endnotes 120 Chapter 10 Getting off the Ground 123 Staffing 123 Facilities 128 Paperwork 132 Shareholder Rights and Repurchase Agreements 132 Bylaws 133 Shareholder Registers 133 Meeting Minutes and Resolutions 133 Benefits Plans 134 Benefits 134 Personnel Policies and Procedures 141 Mechanical Issues 142 Bank Accounts 142 Obtaining Licenses and Permits 144 Arranging Services and Utilities 145 Designing Logos and Printing Letterhead, Business Cards, etc 145 Web Site 146 Establishing Vendor Relationships 147 Summary 147 Endnotes 147 Part 3 Business Growth and Operation: A Guide to Managing a Nanotechnology Business Chapter 11 Managing the Company 153 Management Structures 153 Flat Structures 154 Vertical Structures 154 Matrix Structures 156 Managing Processes 157 Managing People 159 Managing Growth 161 Managing through Difficult Times 163 Managing Multiple Sites 166 Summary 168 Endnotes 169

6 Contents ix Chapter 12 Dealing with Outside Parties 171 Parties Requiring General Record Keeping 172 Regulators 173 Investors and Shareholders 175 The Public 177 The Media 177 Partners 179 Vendors 179 Customers 180 Summary 181 Endnotes 181 Chapter 13 Products 185 Patents and Other Protections 185 Product Development 188 Utility Testing 190 Safety Testing 191 Marketing 194 Market Identification 194 Market Research 195 Competitive Intelligence 195 Forecasting 196 Preparation of Marketing and Sales Literature 197 Providing Feedback to R&D about Market Needs 197 Using the Internet in Marketing 198 Technology as Product: Licensing Out Rights 199 Summary 200 Endnotes 201 Part 4 Exiting the Business Chapter 14 General Considerations in Exiting the Business 207 Choices 208 Remaining with the Company 208 Leaving the Company 209 To Sell or Not to Sell 211 Summary 212 Endnotes 212 Chapter 15 Selling or Merging the Business 215 Questions 217 Who Can Be Told? 218 Process 218

7 x Nanotechnology: The Business Payment 219 It's Financial 220 Summary 220 Endnotes 220 Chapter 16 Public Offerings: Pitfalls and Benefits 223 Why Should a Company "Go Public"? 223 The IPO Process 224 The Reverse Merger 228 Self-Managed IPO 229 After Becoming a Publicly Traded Company 229 A Final Alternative 232 Summary 232 Endnotes 232 Chapter 17 Some Other Exits 235 The Decision 235 The Process 236 The Final Act 238 An Alternative 238 Summary 238 Endnotes 239 Part 5 Useful Resources Chapter 18 Some Useful Books, Publications, Internet Resources, Etc 243 Books...: 243 General Nanotechnology 244 Investment-Oriented Nanotechnology Guides 246 Novels in Which Nanotechnology Has a Major Role 246 Innovative Thought 246 Business Topics 247 Periodicals 248 General-Interest Nanotechnology Publications 249 Internet Resources 250 General-Interest Sites with Many Links to Other Sites 250 General Science News and Information Sites 250 General Nanotechnology News and Information Sites with Many Links to Other Sites 251 Online Newsletters 252 Sites Primarily. Aimed at Investors 252 Blogs 253

8 Contents xi Associations 253 Meetings 254 Summary 254 Chapter 19 Some Examples of Documents the Nanotechnology Entrepreneur May Find Useful 255 Buy-Sell Agreement 256 Explanatory Statement 256 Bylaws of [Company Name] 270 Article 1: Offices 270 Article 2: Shareholders 270 Article 3: Board of Directors 277 Article 4: Officers 281 Article 5: Contracts, Loans, Checks, and Deposits 284 Article 6: Shares, Certificates for Shares, and Transfer of Shares 284 Article 7: Fiscal Year 286 Article 8: Distributions 286 Article 9: Corporate Seal 286 Article 10: Amendments 286 Article 11: Executive Committee 287 Article 12: Emergency Bylaws 288 Nondisclosure Agreement 290 Sample of Board Resolution 292 Sample University or Laboratory License Agreement 293 Nonexclusive License Agreement 307 Index 315