Dateline: February 18, 2001

Josh is a co-founder and Managing Partner of Lux Capital. Before forming Lux Capital, he has worked in Salomon Smith Barney's Investment Banking group, in capital markets while at Merrill Lynch on its Financial Futures & Options/Government Strategy desk and at Prudential Securities in its Municipal Finance department. Prior to venturing into the financial world, Josh conducted and published cutting edge AIDS/immunopathology research in Cell Vision, a medical/immunology journal. Josh graduated with distinction from Cornell University, is a Senior Associate of the Foresight Institute for Nanotechnology and a member of the Cognitive Science Society.

Question #1: What kind of companies do you invest in?

We invest in companies with emerging and disruptive technologies, primarily within software and communications. The majority of our deal flow comes from high-tech research labs within the U.S.' top Computer Science and Engineering departments. Universities are usually ahead of the curve, so we can get a sneak-peek as to what's coming next. We've seen tons of "cool" technologies, BUT--if: the timing isn't right (too early), the market the technology is addressing isn't large enough (too small), and the team isn't strong--we won't make an investment.

Question #2: In addition to timing, what other barriers to entry to you see for emerging and disruptive technologies?

In no particular order: Patent protection (defensible or proprietary technology); outstanding management with a track record of execution and ability to do it again; early acquisition of mind/market share (brand or demonstrably superior technology), exclusive contracts with critical vendors/suppliers; deep understanding of industry--(sales cycles, political and financial dynamics, technical specs, emerging trends), strong partner channels and supporting infrastructure. Just a few off the top of my head.

Question #3: Which nanotech stocks to you consider the most promising?