Minnesota Venture Capital Conference

May 19-20, 2003
Radisson Metrodome University of Minnesota
www.mnvcc.com
 


International Business Development Conference

May 21-22, 2003
Radisson Metrodome University of Minnesota
www.ibdconference.com
 


277 Irvine Avenue
 St Paul, MN 55102
 
www.buzz-innovates.com
Gene Kalligher
651.291.0192
gkalligher@buzz-innovates.com

 

 


Lake Cabin For Rent
1 Acre, very private, premier west Central MN lake (Pelican Lake in Otter Tail County).  Close to many golf courses, fine and casual dining.  Cabin is fully-furnished, cable, phone, central air, dock, excellent swimming. $1500 per week, available June and late August.

Contact Matt Noah, matt@netsuds.com

 


Reach the largest Tech Audience in the State
 
Want to advertise?

matt@netsuds.com
 


Email Ad Rates
 

Small ads are $75/ad. Large ads are $125/ad. That's the range. Buying 5 ads at a time cost $50/ad (small) or $90/ad (large). Buying 15 ads at a time cost $35/ad (small) or $60/ad (large).

The email lists reach 5000+ people; mostly in the Twin Cities metro area, mostly in the tech business. The MedicalSuds email list reaches 2000+ in the Twin Cities. We also have events in DC, Silicon Valley and NC; all lists there reach about 1000 people.

MNVCC Speakers & Investors To Date
US Senator Norm Coleman, Conference Co-Host
Deborah E. Powell, M.D., Dean of the Medical School, University of Minnesota
Donald Back, CTO, Lombard Life Sciences
Pete Chung, Vice President, Morgan Stanley Venture Partners
Cathy Harms, Manager, St. Paul Capital Fund
Kent Hawryluk, General Partner, JEGI Capital
John Hodgert, EVP, Lombard Life Sciences
Thomas Jennings, VP, Summit Partners
Brian P. Johnson, Director of Private Equity, ArrowHead Capital Management and General Partner, Pathfinder Venture Capital Funds
Timothy Kraskey, Managing Director, YankeeTek Ventures
Brad Lehrman, President, Portage Capital
Michael Leidesdorff, Principal, Questmark Partners
William Lyman, General Partner, Alliance Technology Ventures
Kevin McGarry, CEO, Lombard Life Sciences
Carter McNabb, Principal, River Cities Capital Funds
Trevor J. Moody, Partner, Frazier Healthcare Ventures
Jim O‘Donnell, Chairman & CEO, Capital For Business
Jim O'Reilly, VP, Space Center Ventures
Todd Ortberg, Venture Partner, Coral Ventures
Hannah Park, Associate, JMI Equity Fund
Bea Rothweiler, Executive Vice President, Portage Capital
David Stastny, Managing Director, Osprey Ventures
Barry W. Stewart, Managing Director, Dolphin Equity Partners
Carl-Johan Torarp, Managing Director, International Technology Group, Allison Williams Company
Christopher Volker, Principal, The Mercanti Group
Tom Von Kuster, Angel Investor, AMEX, Inc.
Shelly L. Wall, Associate, Morgan Stanley Venture Partners
Joan Wurzer, Investment Manager, Minnesota Investment Network
IBDC Speakers To Date
US Senator Norm Coleman, Conference Co-Host
Harlan Jacobs, Genesis Business Centers
Matt Kramer, MN DTED Commissioner
Max Audley, Faegre Benson Hobson Audley
Tom von Kuster, Amex

Dick Sommerstad, UofM PTM

George Martin, Faegre & Benson

May 22 Tour Companies To Date

University of Minnesota
Academic Health Center
Dr. Frank Cerra, SVP, AHC
Optical Solutions
Darryl Ponder, CEO

Contact TBA

University of Minnesota
Digital Technology Center
Dr. Andrew Odlyzko, Director, DTC
Participating Affiliates
British American Business Council

American-Israel Chamber of Commerce of Minnesota

Czech & Slovak Cultural Center

Russian Life in Minnesota

German American Chamber of Commerce of the Midwest

Canadian Consulate General

Medical Devices in Scotland

Minnesota Trade Office

University of Minnesota

The NetSuds™ Report ©

The February 1, 2003 Issue:

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.

Subscribe to this report by subscribing to the NetSuds Report at http://www.netsuds.net/mail.htm. You can get the web version of this report at http://www.netsuds.com/report/2003/february.htm


Definition:  "com and .com" = Telecom, Datacom, IT or Internet


In this Issue:

        1.0  Heard on the Net
        2.0  Jobs in the "com and .com" Market
        3.0  NetSuds and MedicalSuds Calendars - FREE POSTINGS
        4.0  Tidbits
               4.1    NetSuds on Tour - Agiliti
               4.2   
Email Advertising
               4.3    Ex-Governor Secures Venture Funding
               4.4    BizPathways Matches Entrepreneurs to Resources 
               4.5    Minnesota Venture Capital Conference - May 19-20, 2003
               4.6    UofM Carlson School Business Plan Competition
               4.7   
NetSuds Awards Carlson School Slot at MNVCC
               4.8    URLs For Sale
               4.9    Name That Dog
              
4.10  Networking Works
               4.11  Q4 Commercial Real Estate Report
               4.12  Minnesota International Business Development Conference - May 21-22, 2003
        5.0  Calendar of Events
        6.0  2003 Outlook for Venture Capital Is Brighter
        7.0  NetSuds CEO Roundtable - Next Roundtables starting in April
        8.0  Build Predictable Revenue In Your Organization
        9.0  Customer-Owned Networks: ZapMail and the Telecommunications Industry
       10.0 Knowledge-based industrial clusters blossom in state (Wisconsin) as activity blooms
       11.0
Through the Gate (a new monthly column)
       12.0
Guest Writers for this Report


1.0 Heard on the Net

1.1 People on the Move:

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.  Include your new work contact information, not just your personal contact information.  We do not accept press release changes from third parties.  We must hear directly from the person who is 'on the move'.

NetSudser Ken Holec is returning to the Twin Cities from North Carolina where he has been CEO of PeopleClick.  Ken is the former CEO of St. Paul-based Lawson Software and the CEO of Rochester-based Showcase.  Ken will turn over the CEO reigns in March 2003 to the new PeopleClick CEO.  Contact Ken at either ken_holec@att.net or 703.754.8302.  Ken was one of the early Presidents of the Minnesota Software Association.

NetSudser Jack Hauser, formerly with Andcor, has accepted the position of VP of Finance and Administration at VisionShare in St. Paul.  You may reach Jack at either 651.645.3300 or jack.hauser@visionshareinc.com.  

Michael Anders is the new President and COO of Systems Consulting Group in St. Paul.  He succeeds Douglas Hanson, who remains as CEO.  Michael was previously with KPMG Consulting in Sydney, Australia.  Contact Mike at either manders@scg-corp.com or 651.636.4470.

Sanjay Jhawar is the new Entrepreneur-In-Residence at St. Paul Venture Capital, based in the firm's Boston office.  He will focus primarily on the wireless communications market.  Contact Sanjay at sanjay@spvc.com.

NetSudser Phil Platt is the new Marketing & Membership Director at the UofM Campus Club - www.umn.edu/cclub/.   You may contact Phil at either 612-625-1442 or platt@umn.edu.

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.  We do not accept press release changes from third parties.  We must hear directly from an executive at the company which is 'on the move'.

MedicalSudser Mike Geatz reports that IntelliPatch closed on financing last week from a funding source in the region.  For more information, contact CEO Geatz at either 612.310.5246 or mgeatz@intellipatch.com.


12150 Nicollett Avenue, Burnsville

Approximately 37,000 sq. ft. medical manufacturing facility with 10,000 square feet of class 10,000 cleanroom

Gary Lally, Hoyt Properties, 952.938.3418


2.0 Jobs in the "com and .com" Market

Please email:  jobs@netsuds.com to report job openings in the "com and .com" Market.  In the body of the message, give the name of the company and a URL link to the job postings.

*          Phenomenal Networks - http://www.phenomenalnetworks.com/Jobs.htm
*          Time Warner Telecom - http://www.twtelecom.com/Default.aspx?pageId=36
*          Global Software - http://www.glbsoft.com/corporate1/Corporate/Careers/careers.html
*          St. Croix Medical - http://www.stcroixmedical.com/cgi-bin/positions_list.htx
**         palia.com - http://www.palaia.com/about/jobs.htm
**         Markneting - http://www.markneting.com/website_design_job.htm
***       VMWare - http://www.vmware.com/jobs/openings/sales.html#job2

Job Opening

Email tsrep@mattnoah.com with a cover letter and resume attached immediately if interested in the following position.  Your email will be forwarded to the hiring manager at the company.  Do not email NetSuds with any inquiries.  The hiring company will follow-up if there is an interest.

Position Available:  Territory Sales Representative – Twin Cities 

Employer:  A Twin Cities based private company. 

Compensation:  $2,000 salary plus benefits and lucrative commission plan paid on recurring revenue.  A professional voice or data sales representative with excellent time management skills should make $75,000 in the first year and $225,000 in the second year; with monthly income of $12,000 per month by the end of the first year and $25,000 per month by the end of the second year.  Reps will be supported with tradeshows, association memberships, print advertising, and other advertising programs and all proven performers will have the opportunity for rapid advancement within the company.  A company laptop will be supplied for demonstration and training purposes. 

Background:  The hiring company is a profitable wholesale provider of global dialup Internet access founded February 2000.  It is undertaking a new initiative to provide global dialup Internet access services for small and medium sized businesses nationwide.  The services will be sold through a wholly owned subsidiary.  The first sales office will be in the Twin Cities.   The subsidiary is the leading provider in the world today for prepaid global dialup Internet access.  Frost & Sullivan recently awarded them the 2002 Market Engineering Award for Product Service Innovation.  Victor A. De La Cruz, Program Leader for Prepaid and Operator Services at Frost & Sullivan, had this to say about the service. "The [company name] service is perfect for small businesses that have mobile workers traveling around the US and the world. The big telecoms do not properly serve small businesses and [company name] fills the gap. In fact, not only do they provide great services, but the pricing is better than many larger companies and Fortune 1000's can get from AT&T and Sprint."  This first small business sales position is high profile and will serve as the basis for additional local and national hires.  THe company is a leader in the market for wholesale toll free “800” Internet access for the US48, Canada, Alaska, Hawaii, and Puerto Rico.   The company is also adding 0800 International toll free Internet access from the UK, Netherlands, Luxembourg, France, Switzerland, Germany, Belgium, and other countries.   

More information about the company and its subsidiary will be made available upon receipt of a cover letter and resume.

Starting Timeframe:  Immediate

Job Opening

Email lecexec@mattnoah.com with  a cover letter and resume attached immediately if interested in the following position.  Your email will be forwarded to the hiring manager at the company.  Do not email NetSuds with any inquiries.  The hiring company will follow-up if there is an interest.

Position Available:  Account Executive/Senior Account Executive with a telecom/datacom service provider

Location:  Minneapolis

Summary:  This position is responsible for sales and account management to end-user customers, including large business customers and government accounts.  Responsible for all sales/account management activities for assigned customers.  This includes pre and post-sales activities and day-to-day sales account management.  You will need to perform account planning, sales activities, account management, contract negotiations, market via local trade and commercial organizations, and other duties.



3.0 
NetSuds and MedicalSuds Calendars - FREE POSTINGS

The web calendars for NetSuds and MedicalSuds continue to grow in popularity as more and more people use them for the definitive place to find high-tech events in the Twin Cities.  The calendars are free to use for both tracking events and for posting your own events.  To post events, login as "guest" with a password of "guest".  The Calendars are accessed at

NetSuds - http://www.netsuds.net/cgi-bin/calweb/calweb.pl?cal=default
MedicalSuds - http://www.netsuds.net/cgi-bin/calweb/calweb.pl?cal=MedicalSuds

Non-Minnesota companies conducting events in Minnesota will not be allowed to post events for free.  Events posted to either of these calendars are not immediately available for viewing.  All events will be marked "pending" and will be reviewed for content prior to public viewing.

The January 2003 calendars are shown in section 5 of this Report.


4.0   Tidbits

4.1 NetSuds on Tour - Agiliti

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

 

4.1.1  Agiliti Tour

 

Agiliti CEO Tom Kieffer and I met at Agiliti to tour their facility on Energy Park Drive.  Agiliti has consolidated their data center and offices from locations in St. Paul, Plymouth and Bloomington.  Served by dual OC-12s from separate physical paths, bandwidth and reliability are hallmarks of the Agiliti data center.  The other critical physical elements; power and security, are well provisioned at Agiliti.  The building is a fenced facility with an electrical infrastructure designed in part with MAPP (Mid-continent Area Power Pool).  Access to the building is monitored both visually and by keycard.  Layers of physical security are also present inside the building via security zoning and keycards.

 

All employees are located in a separate section of the building in rather unique and inviting surroundings.  Large, open space is the theme which lends itself to collaboration among employees.  The data center is also zoned for managed services and co-location facilities.  The Network Operations Center is manned 24x7x365.

 

Stung by a Microsoft Exchange issue years ago, Agiliti has adopted the "ITIL" (IT Infrastructure Library) standard for IT Service Delivery & Support.  Leveraging it’s Tier 1 data center, Agiliti offers more than the standard managed services, hosting and co-location.  A litany of their service offerings is best left to a visit to their website - www.agiliti.com.  Agiliti is also offering consulting and system integration services along with the usual array of services one would expect.

 

Agiliti is a corporate ISP in one sense but with the wide service offerings, they are truly capable of completely managing the total IT infrastructure of small, medium and large enterprises.  This one-stop shopping model is the future of corporate IT outsourcing.  Agiliti is uniquely positioned in this market, and rolling out new services based on the emerging “Utility Computing” model that IBM, HP and others are promoting.   For more information, contact Tom at tom.kieffer@agiliti.com.

4.2  Email Advertising

The Business Journal reported that their daily email news reaches 5000 Twin Cities executives.  The MHTA claims a little over 2000 people on their email list.  Not bad but still a great deal less than the NetSuds and MedicalSuds email lists which reach 7200+ (yes, the lists are growing).  The NetSuds email lists are double-opt-in and concentrated on professionals in the communications, IT and Internet markets.  The MedicalSuds email lists are double-opt-in and concentrated on professionals in the medtech, biotech and life sciences markets.  So, rather than spend your advertising dollars on any other email lists in the Twin Cities, consider the NetSuds and MedicalSuds lists.  Contact matt@netsuds.com or 612.279.2154.

4.3  Ex-Governor Secures Venture Funding

What's an ex-Governor to do if he doesn't run for US Senate or President?  If you are North Dakota's ex-Governor Ed Schafer, you get some venture funding - $7M - and start a venture which plans to improve the high-speed and wireless reach of rural communities.  For more information, see www.extendamerica.com/news.htm

4.4  BizPathways Matches Entrepreneurs to Resources 

BizPathways (www.bizpathways.org) is an online tool that points entrepreneurs to local resources they may find useful in starting and managing their enterprises. So, if you are in Dakota County, for example, and want to learn how to write a contract, the Contract Law section of BizPathways provides some brief definitions and will point you to organizations, tools, and events in Dakota County that can help you learn about contracts - from a contract law class at the Dakota County Technical College to lawyers in your area that focus on business issues. 

We match users with resources by profiling registered users and customizing their access to include specific resources. We also have interactive business plan templates and a business-building checklist that users can access to create, store and retrieve documents in a secure environment.

Registration for BizPathways is currently free for users as well as resource providers. BizPathways is an initiative of Minnesota Rural Partners (www.minnesotaruralpartners.org) with a grant from the US Department of Commerce (www.ntia.doc.gov/top/).

Visit BizPathways (www.bizpathways.org) to become a registered user or to get listed as a resource (https://www.bizpathways.org/BizPathways/WelcomeSP.aspx).  

4.5  Minnesota Venture Capital Conference - May 19-20, 2003

The 2nd Annual Minnesota Venture Capital Conference - www.mnvcc.com - will take place May 19-20, 2003 at the Radisson UofM.  Last year's conference had 250 attendees which included 22 formal venture presentations, 50+ investors representing over $20 billion dollars in managed capital and many opportunities for businesses of all sorts to reach customers and partners.

This year's Conference is co-hosted by US Senator Norm Coleman and will feature presentations from emerging technology companies, panels and speeches by investors and industry visionaries, exhibits and lots of networking opportunities.  The Conference will also include many educational aspects so that you can learn the business of tech/medtech start-ups, financing, etc.

Potential sponsors should send an email to sponsor.inquiry@mnvcc.com to learn about sponsorship opportunities.
See the list of committed investors registered for the event at www.mnvcc.com/agenda/speakers.htm.
Entrepreneurs can apply to present at the Conference by visiting www.mnvcc.com/entrepreneurs/.
Members of the media can apply for a complimentary media pass at www.mnvcc.com/media/.
Investors can apply for a complimentary registration by visiting www.mnvcc.com/investors/.
Register today at the early-bird registration price - www.mnvcc.com/register/.
 

Sponsored by

GOLD

 

BRONZE

4.6  UofM Carlson School Business Plan Competition

From NetSudser Anders Davisson, adavidson@csom.umn.edu

Carlson School business plan competition for entrepreneurs

Entrepreneurs and visionaries can turn great ideas into real businesses, thanks to the Gopher the Gold University of Minnesota Business Plan Competition.

The three winners of the 2003 Gopher the Gold competition will receive a total of $50,000 in equity and services with which to start their businesses. The annual business plan competition is designed to encourage the growth of innovative business ideas and entrepreneurial ventures at the University and in the local business community.

Competing business plans must be submitted by March 24th, 2003, and the winners will be announced on April 14 at the judging presentation. Each participating team must have a University of Minnesota student, staff or faculty member as a partner.

http://www.gopherthegold.org/

4.7  NetSuds Awards Carlson School Slot at MNVCC

For the second year, NetSuds will award one of the presentation slots at the Minnesota Venture Capital Conference to the winner of the UofM Carlson School Business Plan Competition.

4.8  URLs For Sale

Contact matt@netsuds.com if you are interested in purchasing any of the following URLs:  broadbandcopper.com | broadbandrouter.com | exadc.com | internetanimal.net | internetanimal.org | mn-ra.org | selfprovision.com | startpark.com | harveyboys.com

Contact Gary Elfert, gary@mninternet.com if you are interested in purchasing any of the following URLS:  directprofit.com | gotvolunteers.com | mncable.com | mndsl.net | mninternet.com | namebasics.com | nameparking.com | searchtwincities.com

4.9    Name That Dog

With four young boys who love dogs, I knew it was just a matter of time.  The stars came into alignment on this deal, too.  First, we found the right breed.  Next, we found a breeder close to my brother-in-law, the veterinarian.  Third, the breeder's husband is Internet savvy; which means there is a 24x7 webcam of the growing puppies!  So, check out www.kizmar.com and click on the PuppyCam.  Email me at matt@netsuds.com with suggestions on the names for the little female Vizsla with the white collar.  I'll add them to the kids' names and we'll pick one out and announce it in a future NetSuds Report.

4.10  Networking Works

In the past few months, many "People On The Move" items have appeared.  One was an announcement that Nancy Harrower had left Retek and started New Venture Communications.  That short announcement resulted in a phone call from a prospective client who turned in to an actual client.  For more information, contact Nancy Harrower at nancyharrower@attbi.com.

4.11  Q4 Commercial Real Estate Report

From NetSudser Brian T. Fogelberg, 952.924.4609, bfogelberg@cbre.com

http://www.netsuds.com/docs/q402realestate.pdf

4.12  Minnesota International Business Development Conference - May 21-22, 2003

The Minnesota International Business Development Conference - www.ibdconference.com - will take place May 21-22, 2003 at the Radisson UofM.  Various international chambers of commerce, the UofM, the Minnesota Depart of Trade & Economic Development and other partners are cooperating to create a business event exploring international business. 

The Conference is co-hosted by US Senator Norm Coleman and will feature presentations from technology companies, panels and speeches by international business experts, exhibits and lots of networking opportunities.

Potential sponsors should send an email to sponsor.inquiry@mnvcc.com to learn about sponsorship opportunities.
The Agenda is available at www.ibdconference.com/agenda/
Companies can apply to present at the Conference by visiting www.ibdconference.com/presentations/.
Members of the media can apply for a complimentary media pass at www.mnvcc.com/media/.
Register today at the early-bird registration price - www.mnvcc.com/register/.
May 22 - On-site Tours of Local Companies - www.ibdconference.com/agenda/.
 

Sponsored by

GOLD

 

BRONZE


5.0  Schedule of Events

You can also try our new online calendar by clicking here for NetSuds and here for MedicalSuds.

5.1  Minnesota  

2/20   NetSuds BOB Breakfast - Minnetonka, MN
         http://www.netsuds.com/bob/2003/february/

2/21   NetSuds Presentation Skills Workshop - St. Louis Park, MN
         http://www.netsuds.com/workshop/

3/13   NetSuds Entrepreneurs Breakfast - Bloomington, MN
         http://www.netsuds.com/eb/2003/march/

3/13   MedicalSuds Entrepreneurs Lunch - Bloomington, MN
         http://www.medicalsuds.com/eb/2003/march/

3/13   NetSuds & MedicalSuds Evening Gatherings - Bloomington, MN
          TBA - Hold the Date

5/19-  Minnesota Venture Capital Conference - Minneapolis, MN
   
20   http://www.mnvcc.com/

5/21-  International Business Development Conference - Minneapolis, MN
   
22   http://www.ibdconference.com/

March 13 Events Will Be Held at the

at

 

MNVCC & IBDC Co-Hosted By

US Senator Norm Coleman, Conference Co-Host

February Tech and MedTech Events Calendar

 Date  Subject  Location
2/6
9a-12p
Meritide & Peregrine Informational Meeting    Meritide, Inc. 708 Cleveland Av. S.W. Roseville, MN 55112 - 651.255.7300
2/10
9:30a-3p
Community Venture Network Session   Hilton Minneapolis North
2/11
7:30-9:30a
Nanotechnology   Note  
2/14
11:30a-1p
Women in Leadership Roundtables    University of St. Thomas, 1000 LaSalle Ave, Mpls, MN 55403
2/17
(holiday)
 President
2/18
7:30-9:30a
QUALITY DATA + E-MAIL MARKETING = AMAZING ROI   Note University of St. Thomas, 1000 LaSalle Ave, Mpls, MN 55403
2/18
9a-2p
Web Seminar     
2/20
6:30-8:30a
NetSuds BOB Breakfast   Minnetonka, MN - See website.
2/20-2/21
8a-12p
AMA Marketing Boot Camp  Note University of St. Thomas, 1000 LaSalle Ave, Mpls, MN 55403
2/21
7:45a-12p
NetSuds Persuasive Presentation Skills Workshop  Note Parkdale Plaza, 1660 South Highway 100, St. Louis Park, MN 55416
2/27
9a-2p
Web Seminar     


6.0  2003 Outlook for Venture Capital Is Brighter

By Dee Power and Brian Hill, copyright 2003 all rights reserved worldwide

Entrepreneurs polish up your PowerPoint presentations and practice your pitches, because the venture capital purse strings may be starting to loosen up.

The venture capital environment in the United States looks brighter for 2003, according to a survey of 74 venture capital companies located in 23 states.  The study was conducted by Dee Power and Brian Hill, authors of "Inside Secrets To Venture Capital," and "Attracting Capital From Angels," John Wiley & Sons, publisher.

2002 About The Same As 2001
********************************
The venture capitalists were asked if the environment for entrepreneurs looking for early stage capital today is better or worse than 12 months ago.  The VCs were asked to rate the environment from 1 to 5, 1 -- being much worse, 5 -- being much better.

The average rating was 2.8, about the same.

Rating Percent VCs responding
1 4 %
2 37 %
3 33 %
4 25 %
5 1 %


The number of entrepreneurs looking for venture capital has fallen again for the second year.  However the quality of the entrepreneurs' business plans the venture capitalists did receive, has substantially improved for the second year as well, according to the VCs.

A Brighter Outlook for 2003

When asked if the next twelve months would be better or worse than the current environment, 60% of the VCs said it would be better.
Again the VCs were asked to rate the environment from 1 to 5, 1 - being much worse, 5 -- being much better. The average rating was 3.6.

Rating Percent VCs responding
1 0 %
2 6 %
3 34 %
4 54 %
5 6 %


The three reasons most often given for the optimism were in order:

1. Overwhelmingly in first place -- Improvement in the economy and equity markets
2. There is money available to invest
3. IPO markets and options for potential liquidity are improving.

Followed closely by:

4. Valuations are more realistic
4. Portfolio triage is over
4. Capital Spending is up

Selected comments by the venture capitalists:

"I believe that the outlook will be improved 12 months from now in that the economy will be looking brighter and the VCs will be more anxious to deploy some of the capital that is burning a hole in their collective pockets."                             

"I believe the economy is turning around and there is a lot of capital on the sidelines waiting to be placed into good opportunities."

"NASDAQ will improve"

Other reasons given were:
    Can't get any worse
    Fly-by-night companies are gone

The negative venture capitalists blamed their pessimism on the economy not improving fast enough and the need to focus on their portfolio companies.  Only two VCs mentioned terrorism or war as a factor.

There were some geographic variances in the responses.  VCs in the Pacific Northwest were the most optimistic with a rating of 4.2, while New York VCs were the least optimistic with a rating of 3.3, but every region believed that the climate for entrepreneurs looking for capital would improve.

Region Rating
Pacific Northwest 4.2
Southwest 3.7
Midwest 3.7
California 3.5
South 3.5
East 3.5
New York 3.3

Overall the trend for the last few years has been upward.  VCs rated the environment in 2001 as worse than 2000 with an average
rating of 1.9.   2002 saw an improvement to 2.8.  And the outlook for 2003 is 3.6, a substantial improvement.

2001 2002 2003
1.9 2.8 3.6

Now Is The Time

For entrepreneurs that have been waiting on the sidelines to start their search for venture capital, 2003 may be the best opportunity of the last few years.  There is less competition and the attitude of venture capitalists towards funding early stage companies is more favorable.

Additional Analysis

Additional Analysis will be available throughout January and will cover:

What do venture capitalists think are the most critical mistakes entrepreneurs make in their business plan?

What is the one characteristic VCs think an entrepreneur must have to be successful?

What advice do venture capitalists give to entrepreneurs looking for early stage capital?

A referral by a trusted associate is accepted as the best way for an entrepreneur to be introduced to a venture capital firm.  What other ways do VCs recommend for an entrepreneur?

The above results will be available on a regional basis as well.  The regions include:

Pacific Northwest, Southwest, Midwest, California, South, East, New York

************************************************************

Dee Power and Brian Hill are the authors of "Attracting Capital From Angels: How Their Money and Their Experience Can Help You
Build a Successful Company," 2002, John Wiley & Sons, and "Inside Secrets To Venture Capital," 2001, John Wiley & Sons,
available in bookstores nationwide and online booksellers such as amazon.com and www.capital-connection.com.

They are also the founders of Profit Dynamics Inc. located in Fountain Hills Arizona and of http://www.capital-connection.com
The Entrepreneurs Resource For Finance.  They can be reached at business@capital-connection.com


7.0  NetSuds CEO Roundtable - Next Roundtables starting in April

NetSuds is opening up another group of CEO Roundtables in April.  The first meetings of the 3 CEO Roundtables occurred January 21, 22 and 23.  We will be initiating another Roundtable in April 2003.  If you are tech or medtech CEO and want to join us in April (the first session is free), contact matt.noah@netsuds.comA synopsis of the CEO Roundtable can be found at www.netsuds.com/ceo/  It is repeated here as well.

NetSuds CEO Roundtable

Membership  Only CEOs of tech and medtech companies are allowed to join the NetSuds CEO Roundtable.  If you are a VP, CxO or President, you are not welcome unless you also hold the CEO title.  Perhaps we will start a CFO, CTO or COO Roundtable but until then, we are only interested in the top dog, the CEO.  If you are interested in becoming a member, contact matt.noah@netsuds.com.  Membership is not automatic.  There must be an available spot open in the roundtable.  You must have employees.  Your company must be incorporated.  Your company must be a tech (communications, IT, Internet) or medtech (medtech, biotech, life sciences) company.  You must pay a yearly fee in advance.  You may not send substitutes to the Roundtable.

Roles  Unlike the days of knights, kings and Camelot, there is no king of the NetSuds CEO Roundtable; only a facilitator; Matt Noah, CEO of NetSuds.com, Inc.  Knights are replaced by CEOs and the table won't be quite round.

Schedule  The Roundtable will meet 10 times per calendar year.  Exact dates are not decided upon at this time.  Each meeting will last between 1 and 2 hours starting at 7 am.  A facility convenient to the majority of Roundtable members will be chosen.  Breakfast will be served.

Our next introductory session (free) has been scheduled for April 2003.  Attendance will be limited to just CEOs.  Our first session will feature a 20 minute presentation on a topic of particular interest to CEOs followed by a roundtable discussion on this topic and other topics of interest to the group.  Matt Noah will moderate. 

Purpose  CEOs need resources to assist them in executing their duties and leading their companies.  Boards of Directors and upper management are not always the best or most independent resources upon which to draw.  The CEO Roundtable exists to provide CEOs with an independent resource of wisdom and shared experience.  Your key 'take-aways' from the Roundtable will be accelerated learning - so as to avoid common and uncommon pitfalls -, an expanded network of advisors and colleagues and tools to enhance the productivity and value of your enterprise.

Content  First, networking among the CEO members of a Roundtable is the best and richest content.  Second, the Roundtable facilitator will schedule subject matter experts of interest to the CEOs.  Examples include intellectual property, branding, sales, engineering, marketing, finance, compensation, human resources, M&A, etc.

Format  Meetings will consist primarily of 2 elements.  First, "content" will be presented and discussed.  Second, "discussion" of common problems and solutions will take place.  The facilitator will lead both elements or assign elements to certain CEOs.

Confidentiality  Roundtable meetings are completely confidential.  Nothing said in a roundtable discussion, short of illegal activity, leaves the meeting.  This allows each CEO to feel comfortable discussing issues and subjects he may not feel comfortable speaking about with others.


8.0  Build Predictable Revenue In Your Organization

What a sales-management system can do for you, by
NetSudser Ken Thoreson, ken@acumenmgmt.com

In recent years, organizations have gotten better at analyzing financial statements, refining manufacturing procedures, reengineering business systems and improving marketing effectiveness. CEOs have strengthened their balance sheets with better asset management, reduced their inventory and cost levels with just-in-time methodologies, and increased direct mail and advertising effectiveness through thorough testing and reporting methods. But one area where additional improvements still can be made is the sales organization.

Smart companies are scrutinizing their strategic sales management plans, taking a closer look at everything from their pipelines to their forecasts. They are also taking a closer look at lifetime values, cost of sales, market share, sales processes and salesperson effectiveness. The reason is simple: All organizations, regardless of whether their sales are shrinking or growing, are under pressure to create a sales distribution organization that generates predictable, consistent, profitable results.

Interestingly, I see many VAR organizations that are struggling. They often lack both a strategic and tactical sales plan. Before you get too deep into your 2003 strategic plan, ask yourself what kind of sales-management plan you have in place. Such a plan must include an amalgamation of the organization's goals, individual salespeople's desires and objectives, and a common set of measurement factors that ensures all parties are focused on the right activities for generating success.

So, where should you start? Focus on creating business plans for individual salespeople that define and bring together their goals with those of the corporation, and that coordinate activities with planned marketing programs (see "Planning Pointers," above).

Sales-management planning systems dramatically refocus a sales manager to future business instead of past results. While most SFA/CRM or manual sales-management systems can enhance the effectiveness of a sales organization, they generally measure past activities and current sales funnel values. While this information is a must for all sales teams, the systems fall short by providing a rear-view mirror methodology to management.

A properly designed sales-management planning system changes all of that. With a sales-planning tool, a sales manager can monitor expected performance; coach, mentor and provide a viewpoint of past performance; and measure results against the salesperson's desired objectives. In addition, such a tool helps a salesperson and sales manager, who are looking at planned activities far enough ahead, to ensure that consistent activities are in place to build pipeline values that will provide enough prospect opportunity to exceed individual quotas or personal goals.

Like any new organizational change, the rollout of such a system must be carefully planned and explained to all salespeople. Ideally, salespeople should attend a group meeting with all members of their team, along with key members of the management team, including a CFO and any vice presidents of marketing and production. Last, it's wise for each salesperson to present a business plan and account plans to his/her peer group and management team.

We recommend that these meetings be serious events that incorporate some aspect of fun. The power of these personalized plans is actually realized when the plan is measured against actual performance. This is when salespeople get it. They recognize what it takes to achieve their personal and professional goals, and they see how creating better planning impacts performance.



9.0  
Customer-Owned Networks: ZapMail and the Telecommunications Industry

Forwarded by NetSudser Justin Chapweske, Onion Networks, justin@chapweske.com

NEC @ Shirky.com, a mailing list about Networks, Economics, and Culture, Published periodically / # 2.1 / January 7, 2003
Licensed under the Creative Commons Attribution License, Subscribe at
http://shirky.com/nec.html
(http://www.shirky.com/writings/zapmail.html)

To understand what's going to happen to the telephone companies this year thanks to WiFi (otherwise known as 802.11b) and Voice over IP (VoIP) you only need to know one story: ZapMail.

The story goes like this. In 1984, flush from the success of their overnight delivery business, Federal Express announced a new service called ZapMail, which guaranteed document delivery in 2 hours. They built this service not by replacing their planes with rockets, but with fax machines.

This was CEO Fred Smith's next big idea after the original delivery business. Putting a fax machine in every FedEx office would radically reconfigure the center of their network, thus slashing costs: toner would replace jet fuel, bike messenger's hourly rates would re