CNET has an good roundup of growing interest of VCs into nanotech.

"Kleiner Perkins Caufield & Byers, the influential Silicon Valley investment firm that has generally steered clear of nanotechnology, is also reticent. According to some reports, Kleiner has joined a round of financing that ZettaCore, a four-year-old start-up based in Denver, is expected to announce in January. ZettaCore is developing a nanoscale computer memory, which is based on switching the electrical charge on a molecule the company has designed.

Kleiner and ZettaCore declined to comment on the reports. Vinod Khosla, a general partner at Kleiner, said that the sector was "overheated" and attracting too much venture capital. But, he added, Kleiner expects to play a part in it. "