NetSuds Monthly Report


	The May 15 NetSuds Evening Gathering is sponsored by AT&T. Contact John Buelow, 612.376.5767

Re-sending of this newsletter to any number of colleagues is encouraged provided you also cc: report@netsuds.com. In return, we will invite recipients to subscribe. Any other unauthorized re-distribution is a violation of copyright law.

        1.0 Heard on the Net
        2.0 Jobs in the "com and .com" Market
        3.0 NetSuds on Tour - RLA, CompleteIS
        4.0 Humanizing Technology with Dialogue
        5.0 Calendar of Events
        6.0 MedSuds - son of NetSuds - www.medsuds.com
        7.0 Stanford Engineering Entrepreneurs Day: e-Day
        8.0 Apply to Present at a NetSuds Entrepreneurs Breakfast
        9.0 Tidbits
        10.0 A NetSuds Intern Writes ... About Networking!
        11.0 For Founders: Generosity Counts
        12.0 Office Space in Chanhassen
        13.0 Guest Writers for this Report

Please email: people@netsuds.com to report a change in your
job status if you are moving from or to a company in the "com or .com" space.

        NetSuds advisor and friend Mack Traynor is the new CEO at
        DoTheGood - www.dothegood.net Mack has led many successful
        start-ups locally and advised many others.

        NetSudser Cliff Davidow has founded a new company, name not
        decided yet, to exploit the potential of broadband services
        and products over electrical lines.

        NetSudser and gofast.net founder Jeff Altom left Agiliti to
        found Data Directives in Eau Claire, Wisconsin.   Contact
        Jeff at jeff@datadirectives.com or 715.559.8374.

        NetSudser Richard Voyles, Ph.D., founder of Trident Robotics
        and Research, is leaving the Computer Science Department at
        the UofM for local start-up Avanti Optics. Avanti is
        developing micro-manufacturing technologies for the telecom
        industry. Contact Richard at voyles@cs.umn.edu

        NetSudser John Conlin has joined Nishan Systems as the Regional
        Sales Manager. Nishan makes a "storage over IP" product. You
        may contact John at jconlin@nishansystems.com

        Grahame Rance left Caspian Networks to become CEO and President
        of SBS Technologies.

        Bill Sickler has joined Caspian Networks as President and CEO.
        Bill had been President and CEO of Gadzoox Networks.

        Perry Price has joined Aravox as VP Sales.

        Jessica Griffith is leaving localbusiness.com as of May 4
        and performing freelance writing. Contact her at
        jessica7@mninter.net

        A Silicon Valley NetSudser wishing to relocate to Minnesota
        with lots of management experience (founder of 2 IT companies)
        and who wishes to remain anonymous can be contacted at
        siliconvalleyitguy@netsuds.net Include your email address
        and phone number in the body of the text when you email him.

        Portage Capital launched their web site - www.portagecapital.com -
        and their second investment fund. Contact Brad Lehrman or Beatrice
        Rothweiler at either BLehrman@PortageCapital.com or
        BRothweiler@PortageCapital.com

        The domain name "exadc.com" has been registered by me to track
        all those ADC folks who have left for other jobs. I am looking
        for someone (a local PR or web development firm makes sense) to
        develop a web site for this domain. Nothing fancy needed. It
        will be hosted by me and any ex-ADC employee can get an email
        address from me and email will be forwarded to them. Perhaps
        we can get a directory of names and email addresses going.
        This is not unprecedented. Look at www.excray.com and
        www.exmsft.com

        If you are a tech worker or executive looking for your next
        "big thing" consider interning at the NetSuds office.
        NetSuds sees lots of great opportunities every day in the
        start-up AND public company markets. To find out what it
        takes to be an intern = see http://www.netsuds.com/intern.htm

        1.2 Companies on the Move:

        Please email: start-ups@netsuds.com to report (1) the
        formation of a new start-up, (2) momentum change at an
        existing start-up, (3) addition of key hires, or (4) a funding
        event at a start-up. Please give details on the above
        including any information you do not want made public. We
        are very discrete.

        Zhone Technologies - www.zhone.com - has decided to close its
        Minnesota office by mid-May. There are going to be some good
        IP networking engineers looking for work. Ted Stockwell had
        already resigned in March. Zhone's office had been started
        with the acquisition of Roundview; a SAN start-up founded by
        Ted in 1999.

        Avanti Optics raised a round of financing in March 2001 led by
        St. Paul Venture Capital. Avanti is led by Steven Case, founder
        of CyberOptics. http://www.avantioptics.com/ They are working
        on something called "Surface Mount Optics(TM)" for automated
        assembly of fiber optic components.

        NetSuds CEO Matt Noah and John Alexander have teamed up to form
        MedSuds in order to serve the medical and biotech community the
        same way NetSuds serves the telecom, datacom, IT and Internet
        community. Contact John at john@medsuds.com Visit
        http://www.medsuds.com/

        You know it's tough when the investor community shrinks.
        Capitalyst closed its Minnesota office. Wyncrest Capital has
        scaled back. Touchstone Venture Partners never got off the
        launching pad.

        To help you get the press coverage you deserve, we'd like to tell you
        about   ShowStoppers, the newest industry partner of NetSuds.

        ShowStoppers produces media receptions at PC EXPO, COMDEX, Internet
        World, ISPCON and other high tech events. ShowStoppers media
        receptions are the fastest, easiest and most economical way to meet
        the press! In nine years, more than 500 companies and 5,000 reporters
        have attended ShowStoppers!

        As a Catchpole client, you can get a free subscription to the
        ShowStoppers PR Tips, a weekly newsletter that contains one mercifully
        short PR tactic you can use right away to build positive relations
        with the press!

        For your FREE subscription, please e-mail steve@showstoppers.com with
        your name, company, and e-mail address. For info about becoming a
        ShowStoppers sponsor so you can exhibit your products to the press,
        please visit http://www.showstoppers.com or contact Dan Janal at
        either dan@showstoppers.com or 952-380-1554.

        3.0 NetSuds on Tour - RLA, CompleteIS

        NetSuds loves on-site tours! Email me if you want to show off your
        company. I can be reached at matt@netsuds.com.

        3.1 RLA - Risdall Linnihan Advertising - www.risdall.com

        Anyone who knows John Risdall knows he likes to keep life exciting
        and fun. Besides building, over years, one of the largest and most
        successful advertising agencies in Minnesota, RLA is a fun place to
        visit. I can only imagine it is a fun place to work. I did the
        tour thing with John on April 9. After decades of being strung
        out in a multi-dwelling mini-campus, John and Neil (Linnihan) have
        consolidated in to one large new facility along 35W and E-2 in
        New Brighton. The space they are in is very functional and very nice.
        Large offices, plenty of past work (John as Hardy, Neil as Laurel)
        and all the necessary tools to do their job right.

        A few years ago, RLA ventured in to angel investing. They have
        funded quite a few companies and have infused them with some creative
        interactive web development and advertising assistance. They run a
        small server farm with multiple T-1s of connectivity to the Internet.

        As I was visiting that day, Ted Risdall was on his way to a major
        client, Optical Solutions. It seems RLA has carved a nice niche
        working with many of the telecom, datacom, IT and Internet companies
        in the NetSuds family. And it is always important to deal with
        vendors who know your business.

        Contact John Risdall at john@risdall.com for more info.

        3.2 CompleteIS - www.completeIS.com

        If you hate the Internet, stop reading right now. CompleteIS delivers
        IP Centrex for any-sized company but is focusing on an ASP model (my
        words) for small companies. The demo I received worked magnificently.
        For those of you who perform demos, you know all the pitfalls. I'm
        always impressed when the demo works to perfection.

        Start with a Cisco IP Phone and add the CompleteIS software solution
        and you have IP Centrex. That's it in a nutshell. You can locate
        the servers at your site or share them with others at a hosted site
        (there's that ASP model). Save money with the ASP solution. Have
        more control/ownership withe on-site solution. Tastes great AND less
        filling.

        The IP Phone plugs in to an ethernet connection on your LAN. Now your
        LAN could be hanging off a DSL, Cable Modem, ISDN, T1, fiber, etc. WAN.
        Move your IP phone to another location (Minneapolis to Warroad) and
        the same number rings your phone. Move to India ... same thing. Surf
        the web from your phone. You betcha. Unified messaging, voicemail,
        follow-me services. Yup.

        I'm still playing with it and plan to bring it "up North" this Summer
        where the cell coverage is a little weak. My associates will be able
        to reach me at a 612 number and not know I am nowhere near 612.

        With IP telephony long-distance prices nearly $0.0 (many free services
        a la a Napster model exist), the "broadband IP Phone" with the added
        features supplied by CompleteIS is A VIABLE AND FUN ALTERNATIVE TO A
        STANDARD POTS LINE FROM YOUR ILEC; both for home use over DSL/Cable/
        MMDS/Fiber as well as for businesses. Just think of moving offices
        at a big company and not having to effect a change/add/move for your
        phone; just plug it on the LAN and have the smart servers find you.

        Contact CEO Steve Jensen at 612.279.2105 or jensen@completeis.com
        for more info.

        4.0 Humanizing Technology with Dialogue

        By NetSudser Andrew Dean Hyder, andrew@subjex.com 612-362-9224.

        It has been said that the information age is like a tidal wave
        building and building. Over the last 20 years or more - the
        accumulation of information has been monumental; the sheer volume
        of raw data is more than quadrupling every year.

        Just as the industrial revolution found its own balance after its
        "tide-like" beginnings, so the future holds for our incredible
        information age. Never in history has so much information been
        accessible to the average individual. The average American has at
        their disposal 3 billion documents and texts within 10 minutes from
        his or her fingertips. These come from the Internet or from the
        American library system or other sources. (source: Cyveillance).
        This creates significant opportunity for those interested in
        learning and becoming self-educated in any subject.

        Today, however, this "information utopia" is a double-edge sword.
        Just knowing the information you seek is out there is simply not
        sufficient. You have to find it. Finding one document out of 3
        billion can be frustrating to say the least. The 1990's produced
        an entire industry of information, document and data mining companies
        and technologies, to help index and "inventory" our new world of
        information.

        In 2001, there is a relatively small, but growing, number of people
        that see the future of information accessibility in a new and clear
        way. Not in how to better "tag" information, but the deeper
        psychology on how people interact with it. What is the ideal
        environment for humans to interact with data, and to a greater extent,
        technology?

        There are - for the first time in history - introductions of new types
        of Artificial Intelligence that truly interact with people in a unique
        and useful way. Technology currently exists for people to communicate
        with their computers and simply ask for the information they want, as
        you would ask another human. This is different from voice recognition
        technology, where people speak into a microphone. This is the ability
        for users to "chat" with their data through dialogue engines developed
        by companies like Subjex (http://www.subjex.com) and others. This is
        a completely keyboard-based communication dialogue with Artificial
        Intelligence (AI) software. We are at the threshold of a new beginning
        of technology and information accessibility.

        Imagine people being able to access information without having to learn
        the device or software they are actually using. What all people know -
        is how to carry on a conversation. Using this as a starting point, or
        a lowest common denominator, is where these technologies begin. Taking
        the most inexperienced user and keeping them as far as possible from
        having to learn something new should be the real goal of all
        technologies. Dialogue allows the user to specialize in their area of
        expertise, not in the "technology" of learning the device (or software).

        The ability to communicate with an iterative "back and forth"
        interaction between people is basic, natural and has been refined for
        thousands of years. If we want or need something, we ask for it. If
        the giver does not completely understand what you mean, he or she asks
        you a question that helps define exactly what you want - in other
        words - dialogue.

        Movies have us all dreaming of the day when we can talk to computers
        and robots like "Hal" from 2001 A Space Odyssey, or "C3-P0" from Star
        Wars. We see these non-human devices doing work for us, making our
        lives easier and talking to us about anything imaginable.
        Unfortunately, this type of advancement has not happened at the speed
        that most people have expected. One of the most ambitious and exciting
        projects noteworthy to this discussion is what Boris Katz, a Principal
        Research Scientist at the Massachusetts Institute of Technology (MIT)
        AI Laboratory has been doing for over the last decade. Katz has been
        pioneering a type of AI called "Natural Language". This project,
        called "START", is a magnificent academic study in the area of
        question and answer systems, and really is the grandfather of
        "Natural Language".

        http://alpha-bits.ai.mit.edu/projects/infolab/

        This project has influenced many technology companies in this area.
        Most noteworthy are companies like Ask Jeeves, a "Natural Language"
        search engine. Therefore, the question begs to be asked, "Has the
        different outgrowths of this 'Natural Language' technology resolved
        the world's information overload issue?" Hardly! The START project
        attempts to answer ANY question given it. "Who was the 23rd
        president of the United States?" and it tries to tell you. Ask it,
        "How many pints are in a U.S. Gallon", and it forwards you to a
        weights and conversions web site. Impressive? Yes, but is it
        practical to answer ANY question that users give it, and is this
        realistic to think that we can give a correct answer under all
        circumstances?

        The question that is important to understand is, "Why does the AI
        community feel it is necessary to engage people in any kind of
        conversational free-for-all?" Would we as conversational humans
        tolerate a conversational free-for-all in a meeting or business
        setting? As a general benchmark, could it be that we have
        inadvertently emulated what we see in the movies, attempting to be all
        things to all people, taking on any conversation, before we have
        become an expert in one area of dialogue? Could trying to rival the
        human brain be unrealistic? Is this watering down and giving a false
        sense of the possibilities of the AI industry as a whole?

        So what is the solution?

        The solution is modular dialogue (or subject-based) design. It is
        inevitable. Not just Natural Language, but a dialogue that specializes
        in how to talk eloquently in a narrow area of knowledge, while learning
        from each user interaction. More than an "expert system" or "Natural
        Language", this specialist or "frame" as it has become known, is an
        expert at one subject ONLY. Yes, this is the new AI reality. Imagine
        walking into your kitchen and asking your refrigerator, "How many
        pints are in a U.S. Gallon?" Why would your refrigerator know this
        answer? Because it has been enhanced with an intuitive "kitchen frame"
        dialogue expert. If your refrigerator could communicate, (and soon it
        will), it would know that answer. It is just a well-suited question
        for a refrigerator to know. Ask your refrigerator, "How many castaways
        landed on Gilligan's Island?" and it surely would not know. Now walk
        into the living room. This is where the Gilligan's Island question
        might be more appropriately addressed by your television set.

        What the great minds at MIT have yet to implement is a system that is
        modular, understands its application or surroundings and purpose in the
        world, and is not trying to become all things to all people. What is
        needed is dialogue - segmented into applications - which are an expert
        in their own niche, and understands its surroundings. Nature has
        learned this. Humans have the ability to specialize. We produce
        experts in academia, by focusing our attention to a specific field.
        So now, we have before us AI dialogue technologies that are experts in
        one specific area, and know how to converse eloquently with people in
        a narrow area of dialogue.

        Imagine the advantages for people NOT having to learn another device or
        program every time Microsoft or Sony releases a new product. For all
        the volatility, hysteria and hype of the current technology boom,
        nothing can change the core human desires to avoid frustration and have
        a fun experience. An interface that is natural and remarkably human -
        or like themselves - is what is preferred. We could call this "geek
        not necessary" interfaces. What the "Dolby" brand is to audio,
        dialogue infrastructure will become to the technology sector. Dialogue
        will become the standard for all technology that must interface with
        people, on and off the web. It MUST happen. Think about it. How can
        search engines of today possibly find correct documents for their users
        when they have not even asked the user what they specifically want?
        For example, today 80% of all search engine queries are one or two word
        phrases. For example, "Digital Camera" could never be enough
        information for a system to find out that the phrase really means, "I
        am looking for a Sony Mavica Digital recording disk - and by the way -
        I want to comparison shop for generic brands". How is that possible
        without a conversation, and questions back to the user? It is not.
        Dialogue is the next evolution advancement in technology. The "tell
        me more about your Digital Camera search" kind of dialogue is the
        only way a system can learn what the user really wants.

        This paradigm shift also applies to all the people working and
        running manufacturing assembly lines. Giving workers an automated AI
        agent to use - in their own words - about the condition of the line
        and its production and efficiency is very powerful. Users of the
        next generation Yahoo search engine will simply be able to chat with
        it to find what they are looking for. Hundreds of thousands of little
        dialogue experts, each one an expert at its own area, empowering
        technology, and more importantly empowering people.

        It is clear that the world of technology is struggling to achieve a
        better user experience with less frustration. Unfortunately, most
        companies believe that people will learn their process because it is
        better than the competition.   This is a myth. Forcin g users into
        "geek" mode is irresponsible, and it is unprofitable. It is not wise
        to irritate your customer base, even if your product is less
        irritating than the competition. Technology should in fact reach out
        and speak the user's language, make the user's life easier and less
        complex. Those companies that implement Dialogue as part of their
        user interface will become the defacto leaders of their business
        niche. Certainly, the next Microsoft-type technology leader will be
        a "dialogue infrastructure technology" company. This company will be
        the developer of the "Dialogue Standard" - the users language.
        PageLab Network, Inc., the developer of the Subjex dialogue engine is
        positioned to set this standard.

        5.0 Schedule of Events

        5.1 - Minnesota

        5/9   Minnetonka - Entrepreneurs Breakfast
                http://www.netsuds.com/eb/2001/May/
        5/15 Apple Valley - Evening Gathering (sponsored by AT&T)
                http://www.netsuds.com/netsuds/
        5/31 MedSuds Evening Gathering
                http://www.medsuds.com/

        5.2 - Outside Minnesota (iSuds by Jeff Pulver & Matt Noah)

        5/17 San Jose - Evening Gathering
                http://www.isuds.com/sj/isuds/
        5/21 Boston - Evening Gathering
                TBA
        5/23 Boston - Entrepreneurs Breakfast
                http://www.netsuds.com/isuds/eb/2001/ma/may/
        5/31 Washington, DC - Evening Gathering
                TBA
        6/11 Stockholm - Entrepreneurs Training Camp (details TBA)
                Pre-Conference Workshop as part of VON Europe 2001
        6/13 Stockholm - Entrepreneurs Breakfast
                http://www.netsuds.com/isuds/eb/2001/sweden/june/
        10/14 Atlanta - Entrepreneurs Training Camp (details TBA)
                Pre-Conference Workshop as part of Fall 2001 VON
        10/17 Atlanta - Entrepreneurs Breakfast
                http://www.netsuds.com/isuds/eb/2001/ga/october/

        5.3 - pulver.com Events - http://www.pulver.com/conference/index.html

        5/1   Richardson, TX - SIP Summit
         5/2    http://www.pulver.com/sip2001/
        5/14 Amsterdan, The Netherlands - Broadband Home Europe Summit 2001
         5/15   http://www.thebroadbandhome.com/bbhe2001/index.html
        5/21 Boston, MA - Location Based Services Summit
         5/21   http://www.pulver.com/lbs/
        5/22 Boston, MA - Presence & Instant Messaging Conference
         5/24   http://www.pulver.com/pim/
        6/11 Stockholm, Sweden - VON Europe 2001
         6/14   http://www.pulver.com/europe2001/
        7/24 Boston, MA - Summer 2001 VON Developers Conference
         7/26   http://www.pulver.com/developers/

        5.4 - Non-NetSuds Events

        5/4    Business Planning Course For Owners: "Entrepreneurship and
                Creativity" , $2,495, Fridays, 10a.m.-2p.m. This 32-hour
                course is tailored for emerging to experienced owners and
                entrepreneurs. The course is a soulful plunge into ones
                venture. You examine yourself, your venture and those whom
                you employ from the inside out. We study facts and figures,
                teach technique, experiment with options, analyze approaches,
                expand our minds, strengthen your imagination and intuition,
                and explore creative and innovative approaches to decision-
                making and business growth and development. One space is left.
                Email nancy@wementor.com or call 612/804-8920 to register.

        5/8    Bi-Monthly Synergy Session "Strengthening Your Relationships
                Online", $49.95, 8:35a.m. to 12:01p.m. This event will focus
                on understanding the power a web site, permission marketing
                programs, and other online resources you offer can have in
                developing and retaining customers. You will also learn how
                to identify the tools to assist you based on your online goals
                and developing your plan to implement them. Lori Ann Clark,
                founder of j4 Corporation will present. She assists companies
                in developing and imiplementing their online toolbox to
                exponentially grow their businesses. See www.wementor.com for
                details and registration. Click-on the Calendar.

        5/16   Finance & Commerce Finance Forum breakfast from 7:00 a.m. until
                8:30 a.m. Economist Roundtable discussion about where the
                economy is going along with many other topics of interest.
                Roundtable participants will be Art Rolnick, Senior VP and
                Director of Research for the Federal Reserve Bank of
                Minneapolis; Carl Tannenbaum, Chief Economist of LaSalle Bank
                and ABN Amro NorthAmerica; and John A. Hatch, Manager at
                PriceWaterhouseCoopers. Windows on Minnesota (50th floor of
                the IDS). The cost is $30.00 and will include a Continental
                Beakfast. Luanne Sorrell, (612)-584-1544,
                luannesorrell@finance-commerce.com

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        6.0     MedSuds - son of NetSuds - www.medsuds.com

        MedSuds is exploding. Announcing the formation of MedSuds on April 10,
        John Alexander (john@medsuds.com) and I (matt@medsuds.com) have seen
        interest, enthusiasm and email list subscription take off very nicely.

        The first event is May 31 - see www.medsuds.com for all the details
        and to sign up for the email list.

        If you know NetSuds, you know MedSuds.

        Special thanks to Dave Stassen, General Partner at St. Paul Venture
        Capital and co-founder of MedSuds. St. Paul VC is also a founding
        sponsor. Dave and I have been discussing for a few months the desire
        to NetSudsify the medtech, biotech and life sciences markets in the
        Twin Cities. Thanks to John Alexander for stepping up and agreeing
        to be the CEO of MedSuds. John knows the market much better than
        me so he is your "go to" guy for MedSuds info. Always feel free to
        contact me.

        Andy LaFrence of KMPG, Ken Cutler of Dorsey & Whitney, Sandy Swanson
        of Padilla Speer Beardsley, Tom Niccum of Lancet Software Development,
        John Risdall of Risdall Linnihan Advertising
        and Becky Wilcox of Williams Executive Search are all founding sponsors
        and deserve much credit for assisting John, Dave and I as we launch
        MedSuds. If you or your firm would like to be a founding sponsor of
        MedSuds, contact John or me at john@medsuds.com or matt@medsuds.com

        Dave Stassen - dstassen@stpaulvc.com - www.stpaulvc.com
        Andy LaFrence - alafrenc@kpmg.com - www.kpmg.com
        Ken Cutler - cutler.ken@dorseylaw.com - www.dorseylaw.com
        Sandy Swanson - sswanson@psbpr.com - www.psbpr.com
        Tom Niccum - tniccum@lancet-software.com - www.lancet-software.com
        John Risdall - john@risdall.com - www.risdall.com
        Becky Wilcox - wilcox@williamsexec.com - www.williamsexec.com

        The Stanford School of Engineering is hosting its 2nd annual e-Day on
        Saturday, May 19 on the campus of Stanford University. The event is
        described in detail at: http://soe.stanford.edu/alumni/eday01 Yes,
        that is me gabbing with Stanford President and successful entrepreneur
        John Hennessy in one of the photos from e-Day 2000.

        The event is an incredible opportunity to network with some of Silicon
        Valley's most successful entrepreneurs and get an insight on research
        at the Stanford SOE.

        I will attend. I have an extra ticket if you are interested in attending
        with me. The cost is $50. I've already signed you up for the cheeseburger
        lunch. Call or email me if you are interested. matt@netsuds.com or
        952.934.5424.

        8.0 Apply to Present at a NetSuds Entrepreneurs Breakfast

        Every month since Autumn 1999 NetSuds has had an Entrepreneurs
        Breakfast (see http://www.netsuds.com/eb/ for past and current
        events). If you are a pre-IPO "com or .com" start-up, you can apply
        to present your company to the investment community at a future
        breakfast event. Apply online at http://www.netsuds.com/eb
        Our next Entrepreneurs Breakfast is May 9 in Minnetonka. See
        http://www.netsuds.com/eb/2001/May/ for details and to register.

        9.0    Tidbits

        9.1 ILEC/RBOC Competition Revisited

        Sitting in the reclining lounger on Sunday evening I witnessed a TV
        commercial sponsored by Voices for Choices. It was great! A coalition
        has banded together to fight the monopoly of the ILECs - there are only
        4 left you know; Qwest, Verizon, SBC/Ameritech and Bell South. Check
        out www.voicesforchoices.com and get on their email list ... if you
        like. I did.

        9.2 NetSuds - Beer and High-Speed Data Over Water Pipes

        At the April 11 Entrepreneurs Breakfast, I jokingly told the
        attendees that NetSuds will eventually become a broadband data and
        voice provider using the existing water lines. Yes, beer will flow
        in place of water. All the pipes will have fiber fished through
        them. No digging up streets. Water can be delivered via truck in
        bottles. Yeah, right.

        Thanks to NetSudser Eugene Kolovyansky for the following supporting
        material - eugene@inof8.com. And you thought you had seen it all.

http://www.redherring.com/index.asp?layout=story_generic&doc_id=RH1570018357
        or www.dutchwater.com

        One should be very careful about anything written or occuring on April 1.

        9.3 Venture Capital Survey

        Ron Wirtz of the Federal Reserve Bank of Minneapolis is doing an
        investigative report (for print publication) on entrepreneurship and
        venture capital in the Upper Midwest, and is looking for input from
        people like yourself. He is editor of the fedgazette, published by
        the Minneapolis Fed (see at www.minneapolisfed.org/pubs/). He would
        appreciate your insights to the three questions below. Please respond
        (by Wednesday, May 9) by emailing Ron at: ron.wirtz@mpls.frb.org

        1. How important -- relative to other needs and factors -- is seed or
           venture capital in the long-term success of a start-up company? Out
           of the top 10 or 20 "factors for success," is it among the most
           important or least important?

        2. How available is (private) venture and seed capital in Minnesota?
           If you believe there is a shortage of capital, do you believe this
           represents a market failure? Please elaborate.

        3. What role or action -- if any -- should government take in encouraging
           A) entrepreneurship?
           B) the formation and distribution of seed and venture capital?

        10.0 A NetSuds Intern Writes ... About Networking!

        By NetSuds Intern Meredith Tuntland, meredith@netsuds.com

        June 3rd, 2000 was a scorching hot day in Denver. Bearing the
        incredible sun in my black graduation robe, I heard the governor of
        Colorado speak of promises and opportunities for the class of 2000.
        A few months before graduation I decided I would leave Denver to
        begin my career in my home state of Minnesota. In late July of 2000
        I moved to St. Paul and began a one-month temporary job as an
        Administrative Assistant. Surely I would have a permanent job after
        a month of moderately intense searching, right?

        Wrong. As my temporary position came to a close I got a job waiting
        tables at the Green Mill in Uptown. I had not expected to stay more
        than a month or two, figuring I would land a permanent job in a
        matter of weeks. Little did I realize how difficult it is for an
        entry-level person to find something he or she really wants to do.
        Going through the “front door,” I found, makes everything even more
        difficult and uncertain. But I was in no hurry. Although I realize
        an entry-level employee won’t be “wined and dined,” I also fear
        settling for something I don’t truly feel passion for. So I made the
        mistake of waiting around for a few companies I believed would offer
        me something. Frustrated and annoyed, in February I quit my
        waitressing job to travel a bit. I planned on returning with a fresh
        outlook, determined to search more intensely this time.

        Back in Minnesota and more intensely than ever, I researched companies
        and responded to several Internet postings. I was very diligent in
        calling potential employers when I had indicated. I left voice-mail
        after voice-mail. One day I even opened up the Yellow Pages to
        “Advertising” and started making calls and looking at websites. After
        four hours I had only come to ‘D’ and thought there had to be a more
        efficient way. I worked with an employment agency for a couple weeks
        but chose not to continue with them. I feared I would commit to
        something I didn't’t really want, much like returning from shopping with
        clothes you thought you wanted because a great salesperson flattered
        you.

        I couldn’t figure out why going through “the front door” wasn’t
        working. Given my relative age and experience level, my resume is
        impressive. I have a great GPA, an appropriate major (Marketing), and
        went to a prestigious college. Then I met Steve Pederson, who has lead
        seminars around the world in such topics as Sales and Resume Building.
        Although I’ve heard it a thousand times, he reinforced “it’s who you
        know, not what you know.” He told me the best and most efficient way
        to start your career is to network. Of course I’d heard about
        networking before. In college I was part of a student-run marketing
        club whose main purpose for existence was to network. Nevertheless I
        ignorantly saw networking as superficial and too political for me.

        After a few meetings with various contacts I met Matt Noah from NetSuds.
        Matt offered to help me network (while building my resume) in return for
        some interning. It’s a win-win situation. Although I may only be
        interested in a small portion of firms involved with NetSuds, I am
        slowly learning that people from very different trades seem to know each
        other. There is no reason to hold back from speaking with “techies”
        just because I want to go into advertising. For the last three weeks I
        have met with someone almost every day and have continually built my
        list of contacts. At the same time I am learning about the marketplace
        and becoming more comfortable “talking business” with professionals.
        Networking is not fake; it is the most powerful way to break into “the
        real world.” This time I know I will start my career very soon.

        Matt's Note: Meredith has done a great job interning at NetSuds. A
        great attitude combined with being self-motivated and competent will
        serve her ... and you well.

        11.0 For Founders: Generosity Counts

        By NetSudser Patrick O’Rourke, In Sync Consulting 612.822.2424,
        insync@uswest.net

        You may have mixed feelings when the suitors begin to show up. All that
        chasing around has paid off. Investors have determined that your new
        venture has big, capital B, profit making potential. You should be
        overjoyed that you are viewed as valuable by others than yourself.

        After all, outside financial resources represent breathing room from
        the cash flow crunch, the ability to develop concepts, build
        infrastructure, and expand into new markets. But the investors bring
        complications. They spell the end of those simplistic days when you
        ran the show.

        Now, you can look at this a couple of different ways. They are your
        friends, your enemies, or somewhere in between. On any given day, they
        may be all three. But it is shortsighted not to have a clear
        understanding of the value they bring, as well as their unique
        motivations for helping you.

        First and foremost, they bring money. This money is going to cost you.
        You are going to have to give up part of your company. How much? That
        depends, on you, and on them. But they also bring many intangibles
        that can be just as valuable as the money in the long run.

        They bring experience and contacts. In fact, their willingness to
        leverage these capacities, to take an active role in supporting and
        complementing your abilities is a demonstration of their belief in you
        and your idea.

        Does that mean they will not expect accountability? Absolutely not.

        They expect you to deliver. And they will play an important part in
        evaluating the opportunity, as well as your vision and capabilities.
        Do you understand the challenges? Do you know what you are doing?
        Do your actions match your words? Are you on track?

        Your company will evolve. And you will evolve. You may not still be
        around if your venture is successful. In fact, the company’s success
        may spell your demise. Don’t be shortsighted about this. Companies
        are containers for the hopes and contributions of many people.

        Are you willing to play a part in a drama that is bigger than you? Or
        will you insist on maintaining control? You really have no choice. The
        company will not survive unless you are willing to let it live. It is
        time to get realistic about what you want, and what they want.

        What do you want? This is not as easy a question to answer as it first
        might seem. Only you know exactly what motivates you to undertake and
        endure the challenge of creating a new business. You may have become
        attached to your creation in a very personal way.

        This is a strength and a weakness. Investors want to know that you
        have enough objectivity to put the welfare of the company ahead of any
        personal needs you might have. Hopefully, your need for fulfillment is
        connected to the success of the venture as a whole.

        Your success will spell success for many others. Why not share the
        wealth? The generosity with which you allow others to benefit is in
        essence a demonstration of courage and faith in your own capabilities.
        Your sense of purpose helps others to realize their purpose.

        12.0 Office Space in Chanhassen

        Need a ready-go-to office in Chanhassen? No long term commitments?
        Contact me at matt@netsuds.com or 952.934.5424. $400/month.

        13.0 Guest Writers for This Report

        I have opened up the Monthly NetSuds Report to guest writers. If
        you have a passion for a topic, and you can write (at least no worse
        than me), send an email to me at matt@netsuds.com You can even send
        copies of your work. It needs to be on "com and .com" topics and can
        include entrepreneur/investor activities. Good information from our
        service providers and vendors is also welcome so long as it is not a
        "commercial" for any one company or individual.

        We will consider both sponsored and unsponsored columnists and guest
        writers.

If you are aware of others who would like to receive the NetSuds Report, ask them to visit http://mailman.netsuds.com/ to subscribe or unsubscribe.

Please send your comments and feedback regarding this issue of the NetSuds Report to matt@netsuds.com

P.O. Box 277
Chanhassen, MN 55317

952.934.5424
fax: 425.795.2019
matt@netsuds.com

(c) 2000, 2001 NetSuds.com, Inc. All Rights Reserved.

We help people build and enhance their network of contacts in the "com and .com" world.