Nanotechnology Fund Established By MK Peres Raises $5 Million

Haaretz reported that a venture capital fund established by Labor Party Leader MK Peres in early July, specializing in nanotechnology, raised $5m in its first week. The fund is headed by Dan Maydan, president emeritus of Applied Materials, who is widely considered to be one of Israel's leading lights in the international hi-tech world. The new fund will be officially launched in September under the auspices of Prime Minister Sharon. The fund expects to raise the investments from companies and Jewish organizations, as well as private individuals. Nanotechnology is felt by many to be the direction of future research, leading to products becoming lighter, more precise, cleaner and cheaper. Former prime minister Peres has tried in recent years to make nanotechnology the new national priority industry. He has attempted to raise sums from various bodies and donors, particularly from the Jewish world, for investing in nano-technological research. (Haaretz06.07)

More information: nanofund@nanobusiness.org.il

The Israeli Nanotechnology Trust

  The Israeli Nanotechnology Trust (INT) is the fundraising and fund distribution arm of the Israeli National Nanotechnology Initiative (INNI) – the national initiative established by the Government of Israel to set national priorities and goals for the advancement of nanotechnology in Israel. The Trust’s mission, in partnership with the Government of Israel, is to make Nanotechnology the next wave of successful industry in Israel by creating an engine for global leadership.

The Trust will promote the establishment of a local nanotechnology industry, which will make an impact on the economic growth of Israel. The Trust will raise, manage and distribute funds dedicated to the advancement of research and development in nanotechnology in Israel, in accordance with national goals and priorities set by the INI. The establishment of the Trust reflects the continued commitment of organizations and individuals around the world to the success of Israel as a center of scientific and technological excellence.

The Technology

  The emerging fields of nanoscience and nanotechnology – the ability to work at the molecular level, atom by atom, to create large structures with fundamentally new molecular organization - are leading to unprecedented understanding and control over the fundamental building blocks of all physical things. The nanoscale is not just another step towards miniaturization. Compared to the physical properties and behavior of isolated molecules or bulk materials, materials with structural features in the ranges of 1 to 100 nanometers – 100 to 10,000 times smaller than the diameter of a human hair – exhibit important changes for which traditional models and theories cannot explain. Developments in these emerging fields are likely to change the way almost everything – from vaccines to computers to automobile tires to objects not yet imagined– is designed and made. The effect of nanotechnology on the health, wealth, and lives of people could be at least as significant as the combined influences of microelectronics, medical imaging, computer-aided engineering, and man-made polymers developed in this century.

The Global Picture

  The leading economic powers in the world today, most notably the US, Japan and the EU are engaged in a form of a nanotechnology “spending-arms-race”. They are steadily increasing government and corporate spending on nano research and development. In 2002 alone, governments and corporations worldwide invested over $4 billion in nano research, about half of which was financed directly by governments. This reflects a five-time increase in five years. At least thirty countries have initiated national activities in this field. The US launched the National Nanotechnology Initiative (NNI) in fiscal year 2001 and has been steadily increasing its spending since with current spending budgeted for 2004 at $847 million. Japanese government funding for 2003 is estimated at $1 billion.

 Global Recognition of the Technology

 “We are about to be able to build things that work on the smallest possible length scales. It is in our Nation's best interest to move boldly into this new field.”

(Richard Smalley, Nobel Laureate, in a testimony to the US Senate Subcommittee on Science, Technology, and Space)

 "Nanotechnology holds promise for breakthroughs in health, manufacturing, agriculture, energy use and national security. It is sufficient information to aggressively address funding of this field.”

(Nick Smith, Subcommittee Chairman, Subcommittee on Basic Research of the

Committee on Science, concluding a congressional hearing on "Nanotechnology: The State of Nano-Science and Its Prospects for the Next Decade")

 “If I were asked for an area of science and engineering that will most likely produce the breakthroughs of tomorrow, I would point to nanoscale science and engineering.”

(Dr. Neal Lane, President Clinton’s Advisor for Science and Technology and former NSF director, at a Congressional hearing)

 Nanosciences and Nanotechnology in Israel

 In spite of its size and severe defense constraints, Israel is an acknowledged center of multidisciplinary technologies, with strong research capabilities, proven technological infrastructure, innovative hi-tech industry and impressive human resources. Nanotechnology can thus become an engine of national strength, academic excellence and economic growth for Israel. Israeli research institutions have capabilities enabling initial work in the nanotechnology arena, and their achievements are impressive. Yet, the creation of a new innovative industry that can meet the special security and economic needs of the State requires a very strong world-class infrastructure.

 Currently Israel is lagging behind the US, EU and Japan in nanotechnology spending and development. As these three centers continue to increase government and private spending on nanotechnology, Israel’s lag grows even greater. Currently Israel has nearly $100 million of existing equipment and capital investments in nanotechnology and an annual operating budget of $20 million, providing for 130 researchers.

 The INNI recommends that to reach a position of leadership Israel must invest at least $300 million in the next five years in basic and applied research with a view to commercializing technologies.

 The Trust

 The Israeli Nanotechnology Trust is a non-profit organization. It is modeled in part after similar initiatives in the US, the EU and Japan. The Trust will raise funds from a variety of sources such as the EU R&D Program, Jewish Agencies and Organizations, Foundations, Corporations and private philanthropists. Israeli Government funding will flow directly towards research and applied research and not through the Trust.

 Contributions to the Trust will go towards a variety of projects and programs as follows:

 General contributions – These contributions will be given to advance the broad national goal of building an Israeli leadership position in nanosciences and nanotechnologies. They will be directed towards support projects that advance national goals and areas of priorities as identified by Israeli National Nanotechnology Initiative. Should the projects lead to commerical applications, a share of the revenues will flow back to the Trust and used to continue Israel’s advancement in Science and Technology.

 Specific contributions – These contributions will go directly to support specific research and development projects that are of specific interest to the contributors (for example: water desalination).

 Program contributions – These contributions will be given to provide for programs initiated by the INNI that serve the industry as a whole. These include annual conferences, a national database and website that will provide an up to date picture of nanotechnology in Israel, and fellowship programs.

 In addition, the Trust recognizes the desire of individuals and organizations to find a way of investing in start-up nanotechnology companies. The Trust also recognizes that the Israeli Venture Capital industry has established an excellent infrastructure in information technology. The Trust seeks to develop the nanotechnology industry through cooperation with the Israeli VC and Corporate community. The Trust will therefore set up a “shadow VC” for-profit mechanism that will invest the investors’ funds in nanotechnology start-ups (while contributing a share of its future profits and interest on the non-invested principal to the Trust). The shadow VC will “piggy-back” on the investments of Israel’s leading VC and will provide funds according to the negotiated terms of the lead VC. In this manner investors will benefit both from access to the combined professional experience of Israel’s leading VC’s and from the ability to focus their investments in Israel’s emerging nanotechnology industry.

Trust Governance

 The Trust is governed and advised through two main bodies:

Board of Directors (BOD) – The BOD is comprised of government, scientific and financial leaders who are committed to advancing Israel’s leadership position in the field. It includes leading all the leading individuals that are advising the Israeli National Nanotechnology Initiative, as well as other leading individuals in the country. The individuals have full responsibility for managing the Trust in accordance with its mission. Currently the BOD includes the following individuals:

More information: nanofund@nanobusiness.org.il