NEWS OF THE WEEK
START-UPS SLOW DOWN VENTURE CAPITAL: Biotech and cleantech fund-raising decline in third quarter
T
HE VALUE OF VENTURE capital investing
across all industries decreased 31% to $4.8 billion in the third quarter compared with the second quarter of 2010, according to the Money Tree investment report issued by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters. The report tallied 780 venture capital deals during the quarter, compared with 962 deals in the second quarter. The authors attribute the decline in large part to the absence of large investments in the cleantech sector. But, the report points out, investment in all industries slowed during the quarter. During last year’s third quarter, there was a similar level of activity, with 716 deals worth a combined $5.2 billion. Biotechnology firms raised $944 million, a decline of 32% compared with the second quarter, the Money Tree report says. The number of biotech deals also dropped, from 152 to 108. But biotech claimed four of the 10 largest deals during the quarter, and cleantech snagged three.
SENSING PEROXIDE EXPLOSIVES ANTITERRORISM: Sensor array detects triacetone triperoxide at part-per-billion levels
A
HANDHELD DEVICE capable of detecting low
levels of triacetone triperoxide (TATP) has been developed by chemists at the University of Illinois, Urbana-Champaign (J. Am. Chem. Soc., DOI: 10.1021/ja107419t). The inexpensive instrument could be used to screen travelers and cargo for the dangerous explosive, thereby thwarting terrorist attacks. Because TATP is easy to make and tough to detect— it doesn’t fluoresce, absorb ultraviolet light, or readily ionize—it has become popular among terrorists. Richard Reid, the so-called shoe bomber, tried to ignite the compound during a trans-Atlantic flight in 2001 as part of bombs hidden in the soles of his shoes. Until now, methods for detecting TATP required expensive instrumentation, needed extensive sample preparation, or weren’t capable of detecting the compound in the gas phase. Chemistry professor Kenneth
Despite the drop in investment, the report’s authors see “reassuring signs of stability” says Mark G. Heesen, president of the National Venture Capital Association. “While the burgeoning clean technology industry will experience significant investment volatility as the sector matures, the established software and life sciences sectors continue to benefit from a steady commitment of venture capital dollars being put to work,” Heesen observes. Of all the venture funding investments completed in the third quarter, 35% went to companies in the early stages of development, the report says.—MELODY VOITH
THIRD-QUARTER DEALS Biotech claimed four of the top 10 venture capital deals START-UP
1 2 3 4 5 6 7 8 9 10
Trilliant Merkle KiOR Relypsa SkinIt Solazyme Trivascular Reata Pharmaceuticals Pacific Biosciences Life Care Services
INDUSTRY
Cleantech IT services Cleantech Biotechnology Media & entertainment Cleantech Biotechnology Biotechnology Biotechnology Health care services
FUNDING STAGE
Later stage Later stage Expansion Early stage Expansion Expansion Later stage Later stage Expansion Later stage
MONEY RAISED ($ MILLIONS)
$106 75 70 70 60 60 60 59 59 50
SOURCE: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report
S. Suslick has spent the past decade developing colorimetric sensor arrays that detect dangerous industrial gases. Working with postdoctoral researcher Hengwei Lin, Suslick discovered a way to modify the technology so that it senses TATP. “The twist here is that there is a solid-acid catalyst to convert the TATP to more responsive analytes—hydrogen peroxide and acetone,” Suslick explains. TATP vapor is decomposed by passing it through a tube outfitted with a solid-acid catalyst. The resulting hydrogen peroxide and acetone vapors then pass over an array of redox-sensitive dyes that produce a distinct color signature in the presence of those compounds. The device is capable of detecting TATP at levels as low as 2 ppb, Suslick says, and there is no interference from food or personal care products. “This is a remarkable piece of work in several respects,” comments chemistry professor Nathaniel Finney of the University of Zurich. “In practical terms, it provides a rapid visual assay for a frightening explosive, with a very low limit of detection. It also illustrates the power of using arrays of molecules—rather than individual molecules or reagents—coupled with computational pattern recognition for highly selective analyses. Most broadly, it represents a beautiful example of addressing complexity at the interface of classical chemistry and functional application.”—BETHANY HALFORD
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