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Jan. 13, 2003 — A small Madison, Wis., company is gearing up to become a big supplier of microscopic components for nanotech research and design.
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Formerly known as Piezomax, nPoint Inc. produces nanopositioning components and systems used in atomic force microscopes (AFMs) and scanning electron microscopes (SEMs) for nanotech research and manufacturing.
The company was founded in 1997 by nanoscale instrumentation specialist Max Lagally of the University of Wisconsin, and for the past year has been shipping products that help researchers manipulate particles at submolecular levels of up to one-tenth of a nanometer.
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That is a greater level of precision than most manufacturers and research institutions are working with today, according to nPoint’s chief executive, John Biondi. He estimates the market for nanopositioning in microscopy and CD metrology at $74 million per year, with an additional $35-million-per-year market in semiconductor chip lithography. Demand in all three markets is growing at nearly 50 percent per year, he added, with newer markets in nanotechnology for life sciences and defense holding additional promise.
“Companies are building proteins by depositing one tiny layer of biomaterial on any of a number of spots on a biochip,” Biondi said. “The devices available right now to do that are at a much coarser level than what is needed.” Defense applications include nanopositioning guidance systems for unmanned drone aircraft used in war zones such as Afghanistan.
The company’s primary competitors include Physik Instrumente of Germany and Queensgate Instruments of Great Britain.
Being in the United States offers nPoint some key advantages, Biondi said. “Fifty percent of the semiconductor OEM market is here, so being close to that market helps. Being in the U.S. is good for our defense applications as well,” he said. A recent item in the Forbes/Wolfe Nanotech Report called nPoint a “company to watch.” Peter Hebert, managing partner at Lux Capital, agreed with that assessment. “They are approaching with the razor blade rather than the razor model,” Hebert said. “nPoint sees that that one component is increasing in value — its value may jump from 8 percent to 12 percent of the cost of the microscope.”
Original nPoint funding came via nine Small Business Innovation Research grants totaling $3 million. This past summer the company secured an additional $1.15 million from four Wisconsin angel investor groups, and is raising more capital to boost production.
“The company already had key customers, including top-notch research institutions and major manufacturing companies,” said Adam Bock, research director at the angel investor resource Early Stage Research LLC. “The competitive environment was attractive due to a limited number of competitors. Most major competitors are outside the U.S., but 50 percent of the target market is in the U.S. We expect the target market to grow 45 to 50 percent per year, with additional opportunities in new and developing markets as nanopositioning becomes more critical in more technology areas.”
Revenues in the company’s first full year in production — 2001 — were $250,000. Biondi said 2002 sales should top $2.5 million.
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Company file: Iolon Inc.
(last updated Jan. 13, 2003)
Company
nPoint Inc.
Headquarters
1617 Sherman Ave.
Madison, Wis., 53704
History
Max LaGally of the University of Wisconsin founded nPoint (as Piezomax) as an outgrowth of his work in thin film materials science and microscopy. The company, incorporated in 1997, has been named a “company to watch” in the Forbes/Wolfe Nanotech Report. Piezomax officially became nPoint in June 2002.
Industry
Nanopositioning instrumentation
Employees
14
Small tech-related products and services
nPoint develops nanopositioning and controlling components. These components, often used in nanotech tools such as atomic force and scanning electron microscopes (AFMs and SEMs), help researchers and manufacturers manipulate particles as small as 1/10 of a nanometer. Currently, nPoint is focusing on OEM sales while it develops a method for retrofitting older AFMs and SEMs.
Management
Investment history
Initially, nPoint was funded by a set of nine Small Business Innovation Research grants (totaling $3 million). This was followed by a Wisconsin Technology Development Loan of $125,000. Nearly $1.2 million more came in during summer 2002, contributed by Wisconsin-based angel investors. The company hopes to raise another $3 million in venture financing.
Revenues
Selected customers
Barriers to market
German competitor Physik Instrumente holds 75 percent of the nanopositioning device market. However, nPoint believes that its U.S. location, as well as its products’ enhanced resolution and response, will be beneficial in the large domestic market.
Competitors
Goals
“Being the best custom OEM design house in the world for nanopositioners and ultraprecision motion control devices; passing sustainability in the second year of product shipments (2003),” says CEO John Biondi.
Why they’re in small tech
“We are a technology that enables the building, manipulation and measurement of small (nano) structures,” Biondi says. “We bridge the macro with the nanoworld.”
What keeps them up at night
“Worrying about things getting bigger.”
Recent articles
nPoint founder receives Tibbetts Award
nPoint expands line of nano tools
nPoint nets angel funding
Relevant patents
Method for sharpening nanotube bundles
Method and apparatus for improved control of piezoelectric positioners
Contact
–Research by Gretchen McNeely