-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K2VvqHEXQXEVKHF2GzWJwF9B0FkvWE2PAA5ZqaOIVUzHuKJvTenJPM3R62LXDSOo ++09Q8Y+eAZYBhjaHe4rUQ== 0001029869-98-000282.txt : 19980218 0001029869-98-000282.hdr.sgml : 19980218 ACCESSION NUMBER: 0001029869-98-000282 CONFORMED SUBMISSION TYPE: SC 13G PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980217 SROS: NASD GROUP MEMBERS: ARCH DEVELOPMENT CORPORATION GROUP MEMBERS: ARCH MANAGEMENT PARTNERS II, L.P. GROUP MEMBERS: ARCH VENTURE CORPORATION GROUP MEMBERS: ARCH VENTURE FUND II LP GROUP MEMBERS: ARCH VENTURE FUND, L.P. GROUP MEMBERS: ARCH VENTURE PARTNERS, L.P. GROUP MEMBERS: KEITH CRANDELL GROUP MEMBERS: ROBERT NELSEN GROUP MEMBERS: STEVEN LAZARUS SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: NANOPHASE TECHNOLOGIES CORPORATION CENTRAL INDEX KEY: 0000883107 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS PRIMARY METAL PRODUCTS [3390] IRS NUMBER: 363687863 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G SEC ACT: SEC FILE NUMBER: 005-52413 FILM NUMBER: 98542536 BUSINESS ADDRESS: STREET 1: 453 COMMERCE ST CITY: BURR RIDGE STATE: IL ZIP: 60521 BUSINESS PHONE: 6303231200 MAIL ADDRESS: STREET 1: 453 COMMERCE STREET CITY: BURR RIDGE STATE: IL ZIP: 60521 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ARCH VENTURE FUND II LP CENTRAL INDEX KEY: 0000930401 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 362902756 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G BUSINESS ADDRESS: STREET 1: 8735 W HIGGINS ST STE 235 CITY: CHICAGO STATE: IL ZIP: 60631 BUSINESS PHONE: 3035464000 MAIL ADDRESS: STREET 1: 8735 W HIGGINS ST STE 235 CITY: CHICAGO STATE: IL ZIP: 60631 SC 13G 1 SCHEDULE 13G -------------------------------- | OMB APPROVAL | | -------------------------- | | OMB Number: 3235-0145 | | Expires: December 31, 1997 | | Estimated average burden | | hours per response...14.90 | -------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. ______________)* Nanophase Technologies Corporation ---------------------------------- (Name of Issuer) Common Stock ------------------------------ (Title of Class of Securities) 6300791 -------------- (CUSIP Number) *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 2 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | ARCH Venture Fund II, L.P. | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | Delaware | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 705,835 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 705,835 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 705,835 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 5.7% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | CO | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 3 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | ARCH Management Partners II, L.P. | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | Delaware | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 719,869 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 719,869 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 719,869 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 5.9% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | PN | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 4 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | ARCH Venture Partners, L.P. | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | Delaware | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 719,869 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 719,869 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 719,869 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 5.9% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | PN | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 5 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | ARCH Venture Corporation | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | Delaware | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 719,869 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 719,869 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 719,869 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 5.9% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | CO | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 6 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | ARCH Venture Fund, L.P. | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | Delaware | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 768,088 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 768,088 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 768,088 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 6.1% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | PN | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 7 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | ARCH Development Corporation | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | Illinois | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 768,088 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 768,088 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 768,088 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 6.1% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | CO | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 8 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | Steven Lazarus | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | USA | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 1,487,957 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 1,487,957 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 1,487,957 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 11.7% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | IN | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 9 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | Keith Crandell | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | USA | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 719,869 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 719,869 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 719,869 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 5.9% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | IN | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 10 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- |--------|---------------------------------------------------------------------| | 1 | NAME OF REPORTING PERSON | | | S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON | | | | | | Robert Nelsen | |--------|---------------------------------------------------------------------| | 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] | | | (b) [ ] | | | | |--------|---------------------------------------------------------------------| | 3 | SEC USE ONLY | | | | |--------|---------------------------------------------------------------------| | 4 | CITIZENSHIP OR PLACE OF ORGANIZATION | | | | | | USA | |-----------------|--------|---------------------------------------------------| | | 5 | SOLE VOTING POWER | | | | 0 | | NUMBER OF |--------|---------------------------------------------------| | SHARES | 6 | SHARED VOTING POWER | | BENEFICIALLY | | 719,869 | | OWNED BY |--------|---------------------------------------------------| | EACH | 7 | SOLE DISPOSITIVE POWER | | REPORTING | | 0 | | PERSON |--------|---------------------------------------------------| | WITH | 8 | SHARED DISPOSITIVE POWER | | | | 719,869 | |------------------------------------------------------------------------------| | 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | | | | | | 719,869 | |--------|---------------------------------------------------------------------| | 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] | | | SHARES* | | | | |--------|---------------------------------------------------------------------| | 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) | | | 5.9% | |--------|---------------------------------------------------------------------| | 12 | TYPE OF REPORTING PERSON* | | | IN | - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 11 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- Item 1(a). Name of Issuer: Nanophase Technologies Corp. (the "Issuer"). Item 1(b). Address of Issuer's Principal Executive Offices: 453 Commerce Street, Burr Ridge, Illinois 60521. Item 2(a). Names of Persons Filing: ARCH Venture Fund, L.P. ("ARCH Venture Fund"); ARCH Development Corporation ("ARCH Development Corporation"); ARCH Venture Fund II, L.P. ("ARCH Venture Fund II"); ARCH Management Partners II, L.P. ("ARCH Management Partners II"); ARCH Venture Partners, L.P. ("ARCH Venture Partners"); ARCH Venture Corporation ("ARCH Venture Corporation"); Steven Lazarus, Keith Crandell and Robert Nelsen (collectively, the "Managing Directors"). ARCH Venture Fund, ARCH Development Corporation, ARCH Venture Fund II, ARCH Management Partners II, ARCH Venture Partners, ARCH Venture Corporation and the Managing Directors collectively are referred to as the "Reporting Persons." Item 2(b). Address of Principal Business Office: The principal business address of the Reporting Persons is 8735 W. Higgins Road, Suite 235, Chicago, IL 60631. Item 2(c). Citizenship: ARCH Venture Fund, L.P., ARCH Venture Fund II, ARCH Management Partners II and ARCH Venture Partners are limited partnerships organized under the laws of the State of Delaware. ARCH Venture Corporation is a corporation organized under the laws of the State of Delaware. ARCH Development Corporation is a corporation organized under the laws of the State of Illinois. Each Managing Director is a US citizen. Item 2(d). Title of Class of Securities: Common Stock, $.01 (the "Common Stock"). Item 2(e). CUSIP Number: 630079101. Item 3. If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b), ------------------------------------------------------------------- check whether the person filing is a: ------------------------------------ (a) [ ] Broker or Dealer registered under Section 15 of the Securities Exchange Act of 1934 (the "Act"). (b) [ ] Bank as defined in Section 3(a)(6) of the Act. (c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act. (d) [ ] Investment Company registered under Section 8 of the Investment Company Act of 1940. (e) [ ] Investment Adviser registered under Section 203 of the Investment Advisers Act of 1940. (f) [ ] Employee Benefit Plan, Pension Fund which is subject to the provisions of the Employee Retirement Income Security Act of 1974 or Endowment Fund; see Rule 13d-1(b)(1)(ii)(F) of the Act. - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 12 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- (g) [ ] Parent Holding Company, in accordance with Rule 13d-1(b)(ii)(G) of the Act. (h) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(H) of the Act. Not Applicable. Item 4. Ownership: --------- (a) Amount Beneficially Owned: As of December 31, 1997: ARCH Venture Fund II is the record owner of 705,835 shares of Common Stock; ARCH II Parallel Fund is the record owner of 14,034 shares of Common Stock; and ARCH Venture Fund is the record owner of 366,550 shares of Common Stock and a presently exercisable warrant (the "Warrant") to purchase up to an aggregate of 401,538 shares of Common Stock. ARCH Management Partners II is the sole general partner of ARCH Venture Fund II and ARCH II Parallel Fund. ARCH Venture Partners is the sole general partner of ARCH Management Partners II. ARCH Venture Corporation is the sole general partner of ARCH Venture Partners. Each of ARCH Management Partners II, ARCH Venture Partners and ARCH Venture Corporation may be deemed to beneficially own an aggregate of 719,869 shares of Common Stock held by ARCH Venture Fund II and ARCH II Parallel Fund. The Managing Directors are the managing directors of ARCH Venture Corporation and may be deemed to beneficially own the shares of Common Stock held by ARCH Venture Fund II and ARCH II Parallel Fund. The Managing Directors disclaim beneficial ownership with respect to these shares. ARCH Development Corporation is the general partner of ARCH Venture Fund and may be deemed to beneficially own 768,088 shares of Common Stock. Mr. Lazarus has been granted power of attorney to act in the name of and for ARCH Development Corporation with respect to the role of ARCH Development Corporation as general partner of ARCH Venture Fund and therefore may be deemed to beneficially own the securities held by ARCH Venture Fund. Mr. Lazarus disclaims beneficial ownership of these shares. (b) Percent of Class: ARCH Venture Fund, 6.1%; ARCH Development Corporation, 6.1%; ARCH Venture Fund II, 5.7%; ARCH Management Partners II, 5.9%; ARCH Venture Partners, 5.9%; ARCH Venture Corporation, 5.9%; Steven Lazarus, 11.7%; Keith Crandell, 5.9%; and Robert Nelsen, 5.9%. The foregoing percentages are calculated based on the 12,277,454 shares of Common Stock reported in the Issuer's Prospectus dated November 26, 1997 to be outstanding after the Issuer's Initial Public Offering. - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 13 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- (c) Number of Shares as to Which Such Person Has: -------------------------------------------- (i) Sole power to vote or to direct the vote: ARCH Venture Fund, 0; ARCH Development Corporation, 0; ARCH Venture Fund II, 0; ARCH Management Partners II, 0; ARCH Venture Partners, 0; ARCH Venture Corporation, 0; Steven Lazarus, 0; Keith Crandell, 0; and Robert Nelsen, 0. (ii) Shared power to vote or to direct the vote: ARCH Venture Fund, 768,088; ARCH Development Corporation, 768,088; ARCH Venture Fund II, 705,835; ARCH Management Partners II, 719,869; ARCH Venture Partners, 719,869; ARCH Venture Corporation, 719,869; Steven Lazarus, 1,487,957; Keith Crandell, 719,869; and Robert Nelsen, 719,869. (iii) Sole power to dispose or to direct the disposition of: ARCH Venture Fund, 0; ARCH Development Corporation, 0; ARCH Venture Fund II, 0; ARCH Management Partners II, 0; ARCH Venture Partners, 0; ARCH Venture Corporation, 0; Steven Lazarus, 0; Keith Crandell, 0; and Robert Nelsen, 0. (iv) Shared power to dispose or to direct the disposition of: ARCH Venture Fund, 768,088; ARCH Development Corporation, 768,088; ARCH Venture Fund II, 705,835; ARCH Management Partners II, 719,869; ARCH Venture Partners, 719,869; ARCH Venture Corporation, 719,869; Steven Lazarus, 1,487,957; Keith Crandell, 719,869; and Robert Nelsen, 719,869. Item 5. Ownership of Five Percent or Less of a Class: -------------------------------------------- Not Applicable. Item 6. Ownership of More than Five Percent on Behalf of Another Person: --------------------------------------------------------------- Not Applicable. Item 7. Identification and Classification of the Subsidiary Which --------------------------------------------------------- Acquired the Security Being Reported on By the Parent Holding ------------------------------------------------------------- Company: ------- Not Applicable. Item 8. Identification and Classification of Members of the Group: --------------------------------------------------------- ARCH Venture Fund II, ARCH II Parallel Fund, ARCH Management Partners II, ARCH Venture Partners, ARCH Venture Corporation, the Managing Directors, ARCH Venture Fund, and ARCH Development Corporation expressly disclaim membership in a "group" as defined in Rule 13d-5(b)(1). - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 14 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- Item 9. Notice of Dissolution of Group: ------------------------------ Not Applicable. Item 10. Certification: ------------- Not Applicable. This statement on Schedule 13G is not filed pursuant to Rule 13d-1(b). - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 15 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- SIGNATURE --------- After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: February 12, 1998 ARCH VENTURE FUND II, L.P. By: ARCH Management Partners II, L.P. its General Partner By: ARCH Venture Partners, L.P. its General Partner By: ARCH Venture Corporation its General Partner By: /s/ Steven Lazarus ------------------ Managing Director ARCH MANAGEMENT PARTNERS II, L.P. By: ARCH Venture Partners, L.P. its General Partner By: ARCH Venture Corporation its General Partner By: /s/ Steven Lazarus ------------------ Managing Director ARCH VENTURE PARTNERS, L.P. By: ARCH Venture Corporation its General Partner By: /s/ Steven Lazarus ------------------ Managing Director ARCH VENTURE CORPORATION By: /s/ Steven Lazarus ------------------ Managing Director - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 16 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- ARCH VENTURE FUND, L.P. By: ARCH Development Corporation its General Partner By: /s/ Steven Lazarus ------------------ Steven Lazarus Its: Agent and Attorney In Fact ARCH DEVELOPMENT CORPORATION By: /s/ Steven Lazarus ------------------ Steven Lazarus Its: Agent and Attorney In Fact /s/ Steven Lazarus ------------------ Steven Lazarus /s/ Keith Crandell ------------------ Keith Crandell /s/ Robert Nelsen ------------------ Robert Nelsen - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 17 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- Exhibit 1 --------- AGREEMENT --------- Pursuant to Rule 13d-1-(f)(1) under the Securities Exchange Act of 1934, the undersigned hereby agree that only one statement containing the information required by Schedule 13G need be filed with respect to the ownership by each of the undersigned of shares of stock of Nanophase Technologies Corporation. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. Dated: February 12, 1998 ARCH VENTURE FUND II, L.P. By: ARCH Management Partners II, L.P. its General Partner By: ARCH Venture Partners, L.P. its General Partner By: ARCH Venture Corporation its General Partner By: /s/ Steven Lazarus ------------------ Managing Director ARCH MANAGEMENT PARTNERS II, L.P. By: ARCH Venture Partners, L.P. its General Partner By: ARCH Venture Corporation its General Partner By: /s/ Steven Lazarus ------------------ Managing Director ARCH VENTURE PARTNERS, L.P. By: ARCH Venture Corporation its General Partner By: /s/ Steven Lazarus ------------------ Managing Director ARCH VENTURE CORPORATION By: /s/ Steven Lazarus ------------------ Managing Director - ------------------------- --------------------------- |CUSIP NO. 6300791 | 13G | Page 18 of 18 Pages | | ----------- | | --- --- | - ------------------------- --------------------------- ARCH VENTURE FUND, L.P. By: ARCH Development Corporation its General Partner By: /s/ Steven Lazarus ------------------ Steven Lazarus Its: Agent and Attorney In Fact ARCH DEVELOPMENT CORPORATION By: /s/ Steven Lazarus ------------------ Steven Lazarus Its: Agent and Attorney In Fact /s/ Steven Lazarus ------------------ Steven Lazarus /s/ Keith Crandell ------------------ Keith Crandell /s/ Robert Nelsen ------------------ Robert Nelsen -----END PRIVACY-ENHANCED MESSAGE-----