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Constituent Review
J. Andrew Braswell, Equity Analyst Newbridge Institutional Research Data as of 3-30-07	Quote/News
	VC/ Incubators

Review
1/11/07- TINY portfolio company Molecular Imprints [MII], based in Austin, TX, announced that it has shipped an Imprio™ 250 to a leading semiconductor memory manufacturer. The company’s Step and Flash Imprint Lithography (S-FIL™) technology combines the high resolution of e-beam lithography with the low cost-of-ownership associated with optical lithography. According to the customer, the system will be used in process development and device prototyping at 32nm and below. “MII has made tremendous progress over the last 12 months to provide an NGL [next-generation lithography] solution to the semiconductor industry. This tool sale is a clear validation of our progress,” said Mark Melliar-Smith, CEO of Molecular Imprints, in the release. “We believe MII’s S-FIL technology is an ideal complement to 193i optical lithography for critical layer applications at the 32nm generation and a complete solution at 22nm.”

1/11/07- Nanosys said that it has entered into an exclusive collaboration agreement with DoCoMo Capital and NTT DoCoMo to develop Nanosys’ nanotechnology platform for potential product opportunities in wireless communications in Japan. DoCoMo Capital will make an equity investment in Nanosys, and will fund the development efforts along with NTT DoCoMo. "This collaboration, as well our investment in Nanosys, allows us to expand future opportunities for developing new mobile telephone applications," said Nobuyuki Akimoto, President and CEO of DoCoMo Capital, in a prepared statement. "Through advances using nanotechnology we expect to increase NTT DoCoMo's position as the mobile communications technology leader in the world." Financial terms of the agreements were not disclosed.

1/12/07- TINY announced that it had invested $4M as a lead investor in a Series D Preferred round of financing for Xradia, Inc., of Concord, CA. Also, TINY’s Alexei A. Andreev will join the company’s Board of Directors. Xradia produces a range of ultra high resolution 3D x-ray microscopes and fluorescent imaging systems capable of nondestructive nanoscale imaging of internal structures of semiconductor IC’s and packages as well as biological specimens.

1/18/07- Portfolio company Nanomix was awarded a $1M contract by the Department of Homeland Security. Nanomix develops nanoelectronic sensors for the detection of chemical and biomolecules. While the exact nature of the project was undisclosed for security reasons, it has a term of three years and will be developed in cooperation with the Naval Research Laboratories.

3/7/07- Announced that it had made a $500K follow-on investment in Solazyme, Inc., as part of a Series B round comprising both equity and debt. Founded in 2003, Solazyme is seeking to harness the photosynthesis mechanisms of various species of algae to develop innovative products in the pharmaceuticals, chemicals and energy sectors.

3/13/07- Said that Richard P. Shanley was elected to the company’s Board of Directors, effective 3/12/07, increasing the number of directors from 11 to 12. He was concurrently named to the Audit Committee, Valuation Committee and Independent Directors’ Committee. Mr. Shanley has more than 30 years of public accounting experience, recently serving as a partner of Deloitte & Touche from February 2001 through December 2006.

3/15/07- Reported its balance sheet as of 12/31/06. The company’s net assets were $113.9M, or $5.42 per share, down from $115.0, or $5.54 per share, at 9/30/06. At year-end 2006, TINY reported net assets of $118.0, or $5.68 per share. A total of $24.4M was invested in 2006, up 50% from 2005 and the most the company has invested in any single year.

3/19/07- Nanosys signed a collaborative R&D and distribution agreement with Bruker Daltronics, Inc. Originally announced by Nanosys a week prior, the deal involves the optimization of its nanotech-enabled matrix-free target plates for use with Brukers’ FLEX™-series of laser desorption ionization (LDI) time-of-flight (TOF) mass spectrometers. While financial terms of the agreement were not disclosed, Nanosys will exclusively manufacture and supply the chips to Bruker, who will market and distribute the products globally.

Commentary
Shares of TINY bottomed out near $11 in January, gaining strength through the end of the quarter to finish with a gain of 7%. The company invested a total of $24.4M in 2006, up 50% Y/Y and the most in any single year in its history. In his year-end letter to shareholders, which we consider required reading for nanotech investors, Charles Harris cites front-page articles in The New York Times and The Wall Street Journal portending a return of speculative IPOs. He points out that 17 of their 27 portfolio companies generated more revenue than Nanophase, the company’s first nanotech investment, reported in 1996, the last full year before it went public. Altogether, TINY’s portfolio companies generated revenue of $158M in 2006 (over half of which came from a single company), and three of them were profitable. Mr. Harris’ truly salient point here is that the question of when we may see a potential wave of nanotech IPOs has become less about the companies themselves than about the general market for new issues.