Seraphima Ventures LLC is focusing on mainly nanotechnology startup companies with existing products, not blue sky research. The current venture capital business models are not appropriate for investing in Nanotechnology. We are proposing a new business model which combines the best of both worlds of venture capital and angel investing which is a more hands-on approach to managing companies to success. Seraphima is a play on the word "seraphim", an angel, for the investment approach of this fund. This does not mean we are limited to funding with angel money.

Why Nanotechnology?

Nanotechnologies have potential to add significant value in performance and eventually lower cost to many products across all sectors. These commercial benefits are happening much sooner than most people think.

President Bush in his January 2006 State of the Union address says he wishes to double funding in R&D including nanotechnology. By the end of 2005, governments spent US$18 Billion of taxpayer money into nanotech R&D. US$6 Billion are forecast for 2006. President Bush signed the Nanotech bill on Wednesday, December 3, 2003 for US$3.7 Billion over the next 4 years starting 2005 for nanotech research. This does not even include the nanotechnology funding set aside for military and defense related applications. The signing of the bill by President Bush makes nanotechnology the highest federally funded basic science and technology effort since the space race. The US only makes up about 25% of the global government spending on nanotech research with Japan just slightly ahead of the US. An NSF report states that Nanotech has the potential to grow to a US$1 Trillion per year industry.

Venture capital investment for nanotechnology rose strongly in 2005, with institutional venture capitalists devoting $480 million into nanotechnology startups up from $410 million in 2004. Venture capital spending in nanotech from 1999-2002 was close to US$900 Million with US$386 Million in 2002 and dipped to about $325 million in 2003. Immunicon went public in April 2004 with a market cap of $182 million after raising $86 million in venture capital. On the other hand, life sciences company Invitrogen of Carlsbad, Calif., bought Quantum Dot Corporation for $26 million in 2005 after the startup burned through $40 million in venture funding. Nanosys announced an IPO in April 2004 but withdrew shortly thereafter in August 2004. A US$38 Million second round went to Nanosys and US$22 Million went to Nanostream Spring 2003. $17.5 Million Series B round went to Zettacore lead by Kleiner Perkins Caulfield & Byer and US$30 Million Series B round went to Molecular Imprints just before the end of 2003. These are just a sampling of some of the bigger venture funding deals done. Only 9% of nanotechnology venture capital deals have exited.

However, venture capital funding of nanotech remains "outstripped by corporate R&D spending and government funding by a factor of 19 times" (Nordan, Lux Research).

Our research in 2003 showed over 20,000 patents issued in nanotech explicitly which means there are many more because much of nanotech isn't called nanotech. Highest corporate assignees

Genentech, IBM, Hitachi, NEC, Motorola

These major companies, known for cutting edge innovation and contributions that make possible the technology we use everyday, understand the value of nanotechnology. And so do we. Note the diversity of the companies and industries investing money in nanotechnology.

Have you seen the Hewlett-Packard commercials, "N is for Nanotechnology", aired during the US Open 2003 Tennis championships?

Nanotechnology is here and now.

Why Seraphima Ventures?

Seraphima Ventures are experts in investing in nanotechnology. The Seraphima Ventures team actually understands what is Nanotechnology.

Each of our team members are both deep tech and business savvy with both an understanding for the big picture impact on global markets and an eye and attention for detail for such things as implementation of business strategies and addressing management issues. We will work onsite alongside with the portfolio companies. Each team member brings along a very important network of contacts that will ensure each of our invested companies’ success.

The old VC business models cannot work with the broad understanding necessary for the diverse technologies, applications and markets of nanotechnology. This is a challenging sector in which to invest because it is so vast and expertise is limited. We can capitalize on our experience to a sector of high velocity growth through our expertise. We have a team and business model uniquely qualified to sort through the noise to nurture winning investments. There’s more expert management oversight and business strategy consulting and advisement to our startup in their industries. We offer more value for less.