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
 

MJ & Associates
writing & research
services for smart firms
mj@marciajedd.com

 

The fastest, easiest, most economical way to get publicity.
Click here for more information.

 


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.

MNVCC Speakers & Investors To Date
US Senator Norm Coleman, Conference Co-Host
Roger Fischer, CEO, Fischer Health
Deborah E. Powell, M.D., Dean of the Medical School, University of Minnesota
Ken Cutler, Partner, Dorsey & Whitney LLP
David Arnstein, Venture Associate, Venture Investors
Stuart Auerbach, General Partner, Ampersand Ventures
Donald Back, CTO, Lombard Life Sciences
Michel Bayard, Director, Equity/Capital Sourcing, BioEnterprise
Rick Brimacomb,  Partner, Sherpa Partners
Dan Broderick, Managing Director, Mason Wells Private Equity
Pete Chung, Vice President, Morgan Stanley Venture Partners
Norman Dann, Angel Investor
David F. Dalvey, Partner, Brightstone Capital
Saul Felman, Partner, Telemark Group
Bill Geary, Partner North Bridge Venture Partners
Liron Gitig, VP, Giza Venture Capital
Jon Goldberg, Managing Director, Israel American Discovery Fund, and Managing Partner of IADF Venture Capital
Esperanza Guerrero-Anderson, President, Milestone Growth Fund
Cathy Harms, Manager, St. Paul Capital Fund
Kent Hawryluk, General Partner, JEGI Capital
Tom Hiatt, Managing Director, Centerfield Capital Partners
John Hodgert, EVP, Lombard Life Sciences
John Hoesley, Investment Manager, Prism Capital
Thomas Jennings, VP, Summit Partners
Brian P. Johnson, Director of Private Equity, ArrowHead Capital Management and General Partner, Pathfinder Venture Capital Funds
Jim Johnson, General Partner, Apex Venture Partners
David Kim, Associate, MPM Capital
Matthew Kolling, Venture Associate, Morgan Stanley Venture Partners
John Koo, Venture Associate, Summit Accelerator Fund
Timothy Kraskey, Managing Director, YankeeTek Ventures
Brad Lehrman, President, Portage Capital
Michael Leidesdorff, Principal, Questmark Partners
William Lyman, General Partner, Alliance Technology Ventures
Jason Mahoney, Associate, Chrysalis Ventures
Christopher Markgraf, VP, Summit Partners
Timothy J. Mathison, Vice President, Baird Venture Partners
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
Gerald Okerman, President, Sota Tec Fund
Jim O'Reilly, VP, Space Center Ventures
Todd Ortberg, Venture Partner, Coral Ventures
Hannah Park, Associate, JMI Equity Fund
William Porteous, Principal, RRE Ventures
Bea Rothweiler, Executive Vice President, Portage Capital
Molly Simmons, VP, Gemini Investors,
Mark Solovy, Managing Director, Israel American Discovery Fund, and Managing Partner of IADF Venture Capital
Edson W. Spencer, Jr., Managing Partner, Affinity Capital Management
Kevin Spreng, Investment Professional, Crescendo Ventures
David Stastny, Managing Director, Osprey Ventures
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
Brooks West, Managing Director, Newman Capital
Joan Wurzer, Investment Manager, Minnesota Investment Network
Charles Yie, General Partner, Ampersand Ventures
Junaid Zeb, Investment Manager, Space Center Ventures
IBDC Speakers To Date
US Senator Norm Coleman, Conference Co-Host
Joon-Woon Chong, Singapore Economic Development Board
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

Tom Kelsey, Senior Commercial Officer, Sweden
James Koloditch, Senior Commercial Officer, Norway
Michael Richardson, Senior Commercial Officer, Israel
Kenneth Reidbord, Senior Commercial Officer, Finland
Tamas Deutsch, Trade Commissioner - Chicago,  Hungarian Investment and Trade Development Agency
David Shepherdson, CEO, Phenomenal Networks
Andrew Hunkins, CEO, Unimax
Elaine Bliss, Deputy Commissioner, Minnesota Trade Office
Joe Roushar, CTO, KnowledGenetica
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
Midwest Global Trade Association

U.S. Department of Commerce

Luxembourg Consulate General of San Francisco

Swedish American Chamber of Commerce

US China Venture Capital Association

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

Singapore Economic Development Board

Minnesota Technology, Inc.

 

The NetSuds™ Report ©

The May 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/may.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  Calendar of Events
        4.0  Tidbits
               4.1    NetSuds on Tour
               4.2   
Email Advertising
               4.3    VONAGE
               4.4    CommWeb's Telecom Insider
               4.5    Free World Dialup FCC Petition: Update
               4.6    Looking for a Venture Capitalist?
               4.7   
NetSuds CEO Roundtable - Next Roundtables starting in June
               4.8    My friend Jeff Pulver
               4.9   
A Venture Capital Firm Speaks
               4.10  Mozo.com
               4.11  Reverse Number Look-Up

        5.0  Minnesota Venture Capital Conference - May 19-20, 2003
        6.0  Minnesota International Business Development Conference - May 21-22, 2003
        7.0  Innovative Marketers Target Unwired Customers
        8.0  Ten Point Security Action Plan for Business - Part 1
        9.0  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 David Andersen has taken a position with Siebel Systems as a Senior Consultant in their Global Analytics Competency Practice.  He can be reached at either david.andersen@siebel.com or 952-201-0349.

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'.

Think Inside The Cube - i3, is a new Twin Cities' newest media maker.  President Chris Bintliff, whose previous experience includes design and development for American Express, Sony Pictures, and Worldwide Pictures, to name a few, announces the start-up of i3, a solution for internet, imagery, and identity.  i3 is positioned for multimedia production, web development, and graphic design for web and print.  i3 offers design and development for ad agencies, PR firms, and private companies.  Visit them at www.i3-inc.com, or contact Chris Bintliff at 763.767.1825 or chris@i3-inc.com.
 

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.

*          HighJump Software - http://www.highjump.com/careers/opportunities.asp
       
St. Croix Medical, Inc. - http://www.stcroixmedical.com/_private/cgi-bin/positions_list.htx
*          Dakota County Technical College - http://www.dctc.edu/employment_opps.asp
*          Sinex Aviation Technologies - http://www.sinex.com/about/openings.htm

**         Markneting - http://www.markneting.com/website_design_job.htm
***        VMWare - http://www.vmware.com/jobs/openings/sales.html#job2
***        Vital Images - http://www.vitalimages.com/about/jobs.php
***        Phenomenal Networks - http://www.phenomenalnetworks.com/Jobs.htm
***        Time Warner Telecom - http://www.twtelecom.com/Default.aspx?pageId=36



3.0  Schedule of Events

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

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.

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

5/19   MedicalSuds Evening Gathering - Minneapolis, MN
         http://www.medicalsuds.com/eg/

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

5/21   NetSuds Evening Gathering - Minneapolis, MN
         http://www.netsuds.com/eg/  

6/16-  NetSuds Enterprise Security Seminar - St. Louis Park, MN (TBA)
 6/17
  http://www.netsuds.com/workshop/security.htm

6/20   NetSuds BOB Breakfast - St. Louis Park, MN (TBA)
         http://www.netsuds.com/bob/2003/june/

 

MNVCC & IBDC Co-Hosted By

US Senator Norm Coleman

Gov. Tim Pawlenty

Cong. Mark Kennedy

Cong. Gil Gutknecht

Date  Subject  Location
5/7
(all day)
NetSuds "Speak Like A Pro" Workshop  Parkdale Plaza, 1660 South Highway 100, St. Louis Park, MN 55416
5/11
(holiday)
 Mother's Day
5/13
7:45-9:45a
Competitive Marketing: Winning In An Ever-Changing Environment REI, 750 W. 79th Street,Bloomington, MN 55420, (952) 884-4315
5/19
(all day)
MN Venture Capital Conference Radisson Hotel, University of MN.
5/20
(all day)
MN Venture Capital Conference Radisson Hotel, University of MN.
5/21
12-1p
MN International Business Development Conference Radisson Hotel, University of MN.
5/21
6-9p
NetSuds Evening Gathering Radisson Hotel, University of MN.
5/22
12-1p
MN International Business Development Conference Radisson Hotel, University of MN.
5/26
(holiday)
 Memorial Day
5/30
7:15-9a
Building a Loyal, Productive Workforce - It's a Matter of Values University of St. Thomas, 1000 LaSalle Ave, Mpls, MN 55403

4.0   Tidbits

4.1 NetSuds on Tour

NetSuds loves on-site tours!  Email me if you want to show off your company.  I can be reached at matt@netsuds.com. No tours this month.

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.  For current ad rates, visit www.netsuds.com/adrates.htm.

4.3  VONAGE

Want to fire Qwest?  I did.  I cancelled a Qwest analog phone line recently and replaced it with a broadband phone line.  For those of you skeptical of this, do what I did.  Test it first.  Everyone's broadband connection is different.  The biggest issue is throughput.  If you have enough bandwidth on your local loop, the quality of service is only dependent on the Internet connection to the VONAGE point of presence nearest the number dialed.  I have had absolutely great voice quality experience from my home cable modem connection and reasonably good voice quality experience from my DSL connection at my remote office. 

What are the pros and cons?  First, the pros.  One, the price is $39.99 for unlimited local and long distance calling to anywhere in the USA and Canada.  Second, you get free voicemail which can be accessed via the PSTN or your web browser.  I truly like the browser approach to voicemail since I can easily retrieve and store voicemails for future reference.  I can also email them, put them on a website, etc.  Third, I can get additional "virtual" phone numbers for $4.99.  In other words, if my main phone number is 1-612-605-5252 (which it now is), I can get a 1-202-xxx-yyyy phone number which rings at my main number for just $4.99/month.  That's great if I want to create a virtual office in Washington, DC and allow my DC customers to call me toll-free.  Fourth, I can get nearly every Centrex feature free of charge.  Fifth, I can move my phone to any broadband connection in the world easily.  Sixth, E-911 works if I program it!

The downside on VONAGE is that it truly only works on one extension in your home or small office.  Future releases of the product depend on equipment makers like Cisco.  The other downside is this.  Broadband connections are still not as reliable as good old POTS.  If your broadband connection goes down, you are SOL for phone service.  Of course, you can program the VONAGE phone to forward to your cell phone (or any phone for that matter).  So, this is a nice work-around.

Check out www.vonage.com.  It's hot!  To hear more, come to the FREE NetSuds Evening Gathering on May 21 where you can speak to a VONAGE representative in person - www.netsuds.com/eg/.

4.4  CommWeb's Telecom Insider

I get this newsletter from CommWeb and find it very useful.  Here is a recent newsletter with GREAT information.

TAKE THE AFFORDABLE PATH TO IP TELEPHONY WITH AVAYA

Here's your first step on the path to converged voice and data networking -- visit the Avaya Knowledge Center today. Access IDC Executive Briefs ($1,200 value) and discover your savings with our eCalc Tool.

http://www.avaya.com/aipt67

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

tele.ticker

** Corporate Instant Messaging Ready To Take Off http://www.commweb.com/article/COM20030408S0002

** Cellphone Smartcards Would Let Users Roam Into Wi-Fi http://www.commweb.com/article/COM20030408S0003

** SALT Forum Opens Membership Structure http://www.commweb.com/article/COM20030401S0004

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

EMPOWER YOUR CUSTOMERS WITH SMART SERVICES

MotiveSmart technology puts service at your customers' fingertips and connects them instantly to the information they need to solve problems. The world's leading companies use MotiveSmart services to provide their subscribers with the best user experience possible. Learn more about what MotiveSmart services can do for your company.

http://www.motive.com/ezine/

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

1. WEEKLY NEWS ANALYSIS

*** Analysis: Don't Believe the Hype: RBOCs

The FCC's Unbundled Network Element (UNE) ruling on February 20, 2003 was probably the most eagerly anticipated telecom regulatory decision since the Telecom Act of 1996. It was supposed to finally deliver regulatory compliance, provide the basis for workable business plans, and facilitate service rollouts. And for the most part, it did just that - in the RBOCs' favor. With the new rulings, the Baby Bells got the grand prize - complete protection of their business DSL lines.

http://www.networkmagazine.com/article/NMG20030403S0003

*** Strategies: Measuring End-to-End Internet Performance

When is "best-effort" service not good enough? If you've ever run a high-performance application over the Internet, only to achieve less-than-optimal results, your answer to this question would probably be "too often."

http://www.networkmagazine.com/article/NMG20030403S0006

*** Fighting the Spam Monster - and Winning

A technology known as Bayesian filtering hints at a future where more than 99 percent of the spam now sitting in your inbox could be detected and blocked automatically. Several commercial vendors have introduced limited Bayesian technology in their products, but widescale adoption is probably a few years out. In the meantime, the best anti-spam solutions rely on a gauntlet of well-tested detection methods, such as heuristics, white and black lists, and signature matching.

http://www.networkmagazine.com/article/NMG20030326S0001

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

SPECIAL CMP NETSEMINAR: FIREWALLS & ACTIVE DEFENSE

Firewalls primarily provide access control to network resources. While most do this effectively, they're not designed to detect and thwart application-layer attacks. Recognizing this reality, hackers have devised sophisticated attacks that circumvent the traditional access control policies enforced by perimeter firewalls.

In this special open-industry webcast, we'll specifically look at a number of these sophisticated attacks; we'll also detail how firewalls, particularly those based on Stateful Inspection, have maintained successful defense arsenals against network assaults, while carefully examining the growing trend towards firewalls that provide not only access control but also active defense at the network-layer to protect against application-layer attacks and hazards.

http://webevents.broadcast.com/cmp/wcs/index.asp?event_id=5692&loc=1

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

2. WEIRDLY WIRED

Optical Fibers Woven By Spiders?

Scientists at the University of California may have created the next revolution in photonics - silk-based optical fibers created through an amazing amalgam of spider silk and ceramics.

According to the British journal New Scientist, engineers have successfully taken spider silk, coated it with a glassy silicate solution, and baked the mixture. When exposed to high heat, the silk burns away and the coating shrinks and turns to glass, leaving a hollow fiber whose core is just 2 nanometers wide (50,000 times thinner than human hair).

These "spider fibers" may be useful to the telecommunications and computing industries as nanoscale optical circuits.

3. Forum: Web Services & Security

Balancing open Web communications with the need for security isn't as hard as it looks. A new generation of standards may keep emerging Web services applications safe. You can weigh in, along with our panel of experts:

http://www.commweb.com/techcenters/main/roundtables/3787/COM20030326S0002

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

For 16 years, SUPERCOMM has covered the accelerated growth of connectivity solutions. Be here for the premier annual communications and information technology exhibition and conference. Free registration closes May 2. Register now at

https://register.supercomm2003.com

June 1 - 5, 2003 Georgia World Congress Center, Atlanta, Georgia

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

Questions About The Telecom Insider Newsletter? Contact Keith Dawson at kdawson@cmp.com with any comments or questions.

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

CMP MEDIA LLC PRIVACY STATEMENT http://www.cmp.com/delivery/privacy.html

Copyright (c) 2003 CMP Media LLC. All Rights Reserved.

To unsubscribe to this enewsletter, please click here: http://www.commweb.com/test/unsubscribeTI.html

4.5  Free World Dialup FCC Petition: Update

From Jeff Pulver - jeff@pulver.com www.pulver.com

On April 2, 2003 it became clearer that the fight to keep Internet Telephony Regulation Free inside of the United States will continue to be an uphill battle.

For starters, both the States of Michigan and Minnesota filed against the Free World Dialup (http://www.pulver.com/fwd/index.html)  petition. Their premise seemed a little bit out of the movie "Minority Report." These states joined the list of entities against the FWD petition which today include: BellSouth, SBC, the USTA and FBI/DoJ.

Those in favor of the FWD Petition include: AT&T, Qwest, Worldcom, Global Crossing, Cisco and the EFF.

The FBI/DoJ reply comments prompted some recent news stories, including a story in SecurityFocus posted to: http://www.securityfocus.com/news/3466

All of the reply comments, including our April 2nd reply, can be read by visiting:

http://gullfoss2.fcc.gov/prod/ecfs/comsrch_v2.cgi and entering: 03-45 in the Proceeding Box.

If there are Pulver Report readers from either the states of MI or MN who feel FWD should not be regulated in their states at this time, it couldn't hurt if you made this point well known. The Michigan reply was filed by the Michigan Attorney General's office on behalf of the Michigan Public Service Commission and the Minnesota reply was filed by the Minnesota Department of Commerce.

As a side note, special thanks to everyone who reached out in February and made your points with your respective State PUC offices. I heard back last Monday night (March 31st) during Spring 2003 VON that your voice and actions were noticed by NARUC. Thank you for your support.

4.6  Looking for a Venture Capitalist?
 

Infon provides access to every venture capital firm and partner worldwide for FREE!  Click on the logo for more information.  Search by industry, stage, round or geographic preference of 3484 firms, 3440 websites, over 30,000 people with over 17,000 email addresses.  Download the entire database - rather than just search the website - for just $99.  With over 400 different search criteria, you can pinpoint firms fast, export the contact information - including email addresses - and make contact with the right people.   You can send thousands of contacts at once to a single Excel file to export to your contact manager.

4.7  NetSuds CEO Roundtable - Next Roundtables starting in June

NetSuds is opening up another group of CEO Roundtables in June 2003.  The first meetings of the 3 CEO Roundtables occurred January 21, 22 and 23.  Those three introductory sessions culminated in to one ongoing monthly session of participating CEOs.  If you are tech or medtech CEO and want to join us, (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, software, Internet) or medtech (medtech, biotech, life sciences) company.  You must pay a yearly fee of $1000 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.  Our initial roundtable is meeting the last Tuesday of every month.  Each meeting lasts between 1.25 and 1.50 hours starting at 7 am.  A facility convenient to the majority of Roundtable members is used.  A continental breakfast is served.

Our next introductory session (free) has been scheduled for June 2003.  Attendance will be limited to just CEOs.  Contact matt@netsuds.com if you want an invitation.

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.

4.8  My Friend Jeff Pulver

http://tinyurl.com/8nzn

4.9  A Venture Capital Firm Speaks

I received this email from Norwest Venture Partners.  I found it refreshingly frank and informative. - Matt
 

Dear Friends of Norwest Venture Partners (NVP):

 

The year 2002 continued to be challenging for companies in the technology sector due to the lingering economic downturn. Many reports have indicated that it will likely require several years for private equity to return to normal as it will take time for company valuations to rise and the IPO and merger and acquisition markets to recover.  Today, venture capitalists are focused on building strong, sustainable businesses so when liquidity options do emerge, the investments will be able to produce positive returns.

 

Although this economic revitalization will take time, we believe 2003 is filled with promising investment opportunities for early-stage technologies with significant long-term growth potential.  In particular, we believe value propositions remain strong for various Enterprise Software and Communications Technologies companies as economic recovery takes shape.  NVP primarily targets unique early stage businesses with superior management teams that have the potential to become industry leaders, but we will invest in all stages of technology depending upon the opportunity.

 

Year In Review

 

During the year, our franchise grew by five portfolio companies and we made follow-on investments in 19 of our current portfolio companies.  Seven of our existing portfolio companies were acquired or merged, providing access to increased working capital and expanded distribution networks.

 

In 2002, key acquisitions included Resonext Communications (acquired by RF Micro Devices for $133 million), Acta Technology (acquired by Business Objects for $65 million), Allied Riser Communications (acquired by Cogent Communications) and Annuncio Software (acquired by PeopleSoft).   Key mergers included Occam Networks (merged with Accelerated Networks), Veraz Networks (formerly NexVerse Networks, merged with NGTS - a division of ECI Telecom) and PowerMarket (merged with Tradec).

 

Enclosed you will find a review of our investment activities for the past year.  These activities contributed to total venture investments of $107 million in 2002.  This amount includes both $49 million in new investments and $58 million in follow-on investment activity.

 

Accolades

 

A number of our portfolio companies and general partners also received industry accolades this past year.  In May, four NVP portfolio companies (Acta Technology, Inkra Networks, Rackspace Managed Hosting and Virtela Communications) were named to the Red Herring 100, recognized by Red Herring editors for their innovation and successful business strategies.  In May, UPSIDE Magazine also named six NVP portfolio companies (Arbortext, Megisto Systems, Softface, Spinnaker Networks, Virtela Communications and Zettacom) to its "Hot 100" Private Companies list, UPSIDE's annual award recognizing excellence and innovation among the hottest technology industry startups.

 

Promod Haque, managing partner at NVP, was recently ranked  #2 on the annual Forbes Midas List as a top technology venture investor, along with George Still, managing partner at NVP, who was ranked  #13.  In November, Promod Haque also received the "Venture Capitalist of the Year" siliconindia Leadership Award.  

 

We would like to take this opportunity to express our thanks to the employees of our portfolio companies.  NVP is only as strong as the businesses it supports, and those businesses are powered by the dedication, hard work and creativity of these valued employees.  We also want to thank the many friends of the firm who referred new investment opportunities to us during the year.  Your continued referrals and the assistance you extend to the companies in our network are invaluable and greatly appreciated.

 

In 2003, NVP will continue to build on its 40+ years of success funding innovative, unique technologies with long-term growth potential, and offering ongoing assistance to its existing network of portfolio companies.  As always, we invite you to visit our website at www.nvp.com to learn more about our new and existing investments and explore opportunities for partnerships.  We look forward to continuing to build our relationship with you in the coming year.

 

The attached 2002 Business Review file is in Adobe Acrobat pdf format. You will need to have the Adobe Acrobat reader in order to open this file. A free download of Acrobat is available at: http://www.adobe.com/products/acrobat/readstep2.html.

 

4.10  Mozo.com

 

Minnesota serial entrepreneur Dan Grigsby is at it again.  This time his new start-up is called mozo.com; a website for sharing DVDs with friends an colleagues. As Dan states, "As with all good things, Mozo can be explained in three steps:

1) Join Mozo and catalog your DVDs.

2) Create a group, or groups, to share DVDs with and invite people to join it.

Make a group for you and your co-workers, another for your neighborhood, another for your place of worship, or any group of people in your life.

3) Share DVDs.

When the people you invite join, their DVDs are listed in the your group's catalog, where you can rent them. Because you're sharing DVDs with people around you, you simply exchange DVDs at work, church, etc.

I'm doing this full time now, so I'm counting on you to become a member and help spread the word. I know you're busy, but help me out here! If nothing else, it'll give you access to hundreds of DVDs.

I'm excited about Mozo. Most DVD owning families buy 15 DVDs a year and rent 30. The top-1000 to 2000 DVDs represent the majority of the DVDs that people are likely to want to watch, so it only takes a few dozen people in a group before you've got all the DVDs you'd ever want to watch.

I think it's going to do great in offices, on college campuses (esp. dorms), at churches, with sports leagues, and with parents who want to keep their kids in new DVDs without breaking the bank.

So anyway, sign up and spread the word!

Thanks,  Dan"

4.11  Reverse Number Look-Up

Have a phone number but no physical address?  Try this ... (1)  Go to google.com and (2) enter the phone number.  For example, try 9529749483.



5.0  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 will have 24 formal venture presentations, 60+ investors and 250+ attendees.  The event is nearly sold out so register today for a discounted admission price.

This year's Conference is co-hosted by US Senator Norm Coleman, Gov. Tim Pawlenty, Cong. Mark Kennedy, Cong. Gil Gutknecht 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. 

See the list of registered investors by clicking here.  See the list of selected companies by clicking here.

Potential sponsors should send an email to sponsor.inquiry@mnvcc.com to learn about sponsorship opportunities.
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/.
 

GOLD SPONSORS TO DATE (limit of 4)

SILVER SPONSORS TO DATE (limit of 8)

Koepke & Daniels, P. A.

BRONZE SPONSORS TO DATE (limit of 12)

 

 

EXHIBITORS TO DATE (unlimited)

 


6.0  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 Department 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, Gov. Tim Pawlenty, Cong. Mark Kennedy, Cong. Gil Gutknecht and will feature presentations from technology companies, panels and speeches by international business experts, exhibits and lots of networking opportunities.   We will have four major speakers from overseas USA embassies.  They are all the Senior Commercial Officers (highest level) from the Swedish, Finnish, Norwegian and Israeli embassies.  Many thanks to Ryan Kanne and Ron Kramer from the local USA Export Assistance Center in Minneapolis for securing these very high-level speakers.  This is an excellent opportunity to meet with US officials who can greatly assist your business dealings overseas.  Don't miss hearing from them and meeting them at the Conference.

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/
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/.
 

GOLD SPONSORS TO DATE (limit of 4)

SILVER SPONSORS TO DATE (limit of 8)

Koepke & Daniels, P. A.

BRONZE SPONSORS TO DATE (limit of 12)

 

 

EXHIBITORS TO DATE (unlimited)

 


7.0  Innovative Marketers Target Unwired Customers

by NetSudser Mike Ellsworth, www.stratvantage.com, mellsworth@stratvantage.com

“The future is already here, it’s just not evenly distributed yet.” - William Gibson, science fiction writer

Now that 75 percent of the US population has access to the Internet, there is increasing interest among marketers in a variety of new technologies that they can use to reach customers. In addition to the more established tools such as email, online newsletters, and Web sites are some newer ones, such as Short Messaging Service (instant messaging for cell phones), online affinity clubs (like various musicians’ fan clubs), and Web Instant Messaging (such as AOL Instant Messenger and marketing tools like ActiveBuddy).

These direct marketing techniques have sprung up after the technologies in question have had time to achieve large-scale acceptance and use, and for marketers to discover how to use them.

For example, Instant Messaging (IM) has been around on the Internet since the debut of ICQ in December 1996 and AOL’s subsequent release of the AOL Instant Messenger (AIM) beta shortly thereafter. Similarly, Short Messaging Service (SMS) really got its start with the introduction of Sprint’s PCS cell phone service, also in 1996. Yet it has only been in the last couple of years that marketers have started to use these media to reach prospects.

Today, there’s a new medium that is growing faster than either of these technologies did: wireless networking.  

Known either by the geeky moniker 802.11 or the more marketing-friendly Wi-Fi (for Wireless Fidelity, a call back to the old High Fidelity audio concept), Wireless Local Area Network (WLAN) technologies experienced 27 percent growth last year. This rapid growth hasn’t escaped the notice of some marketers – Starbucks and Marriott Hotels are two examples – but the real question is, will it take five to seven years before direct marketers embrace this new medium?

A Few Geeky Details

Before we go any further, I’ve got to get a little geeky on you. Bear with me, though, as there are some important distinctions between WLAN technologies. 

First off, there are lots of wireless LAN standards out there. All involve using unlicensed radio frequencies to transport data over relatively short distances – 300 yards or so. Unlike cell phones, which operate over radio frequencies licensed and paid for by cell phone network companies, WLANs must deal with lots of other devices that might interfere with their signals, including your microwave oven. They do this using a technique called spread spectrum, which allows the radio transmitter to skip around various frequencies to find clear channels. Incidentally, this technique was invented and patented by Hollywood actress Hedy Lamarr in 1942; I kid you not. 

Currently, the most popular WLAN technology is 802.11b, which lets computers network at 11Mbps (megabits per second), and which is a little bit faster than your wired network if your office has an older LAN. But there are a host of 802.11 variants in development, including 802.11a and 802.11g, which reach speeds of 54Mbps. No one knows which variant will be the eventual winner, and that complicates things for WLAN equipment and service providers.

The big problem with 802.11b is security. A patient and persistent cracker (someone who breaks into networks) can discover the secret key used to encrypt 802.11b WLAN traffic in about a day. That assumes the network owner has even turned on encryption, and a lot don’t. Last May, retailer Best Buy had to temporarily shut down its wireless network after a security analyst in a parking lot intercepted data, including credit-card numbers, from the company's wireless cash registers. Best Buy hadn’t turned on the encryption, known as Wireless Equivalent Privacy (WEP), on its mobile cash registers. I recently got on to the baggage handlers’ WLAN at O’Hare airport with no problem at all while sitting at the gate. Simply turning on encryption would have prevented that. 

The WLAN industry is promising better security, but there are many WLANs that won’t ever use it. That’s because they are provided by marketers, like Starbucks, who offer access to their customers for a price and thus want access to be as hassle-free as possible. Cell phone network provider T-Mobile has set up wireless hot spots in 2,000 Starbucks cafes and is spending $100 million to build a nationwide Wi-Fi network. They’re also doing airport lounges and have announced they’ll next put hotspots in the cafes of Borders Books and Music stores.

T-Mobile’s motive is simple: They want to charge for WLAN access, although they’ve recently had to reduce their Starbucks prices. Starbucks’ motives, on the other hand, are a little more complex, and possibly problematic. Starbucks shares in the money they charge their customers for WLAN access to an Internet connection. But they also use WLAN access as a draw, hoping customers with laptops and wireless cards will be more likely to plop down in their cafes rather than the competition’s.

This seems smart, except for one thing: It doesn’t cost that much to install WLAN access. For example, the city of Long Beach, California, recently launched free Wi-Fi access in its restaurant district. They can do this because the city's total yearly operating cost is a measly $4,000. HereUAre, which intends to locate Wi-Fi access sites in apartment buildings and charge residents $29.95 per month, says it costs them an average of $7 per customer to set up.

Indeed, local Minneapolis Starbucks competitor, Dunn Bros., has put access points in most of its cafes, and they’re free. There goes Starbucks’ marketing edge! Unless I’m addicted to Starbucks’ Colombia Nariño Supremo, where am I going to go to meet business associates? Starbucks, where wireless access costs $30 a month, or Dunn Bros., where the coffee is less expensive, just as tasty, and the access is free?

I think Starbucks just got outmarketed. 

What It Means for Marketers

So why should you care about this geeky revolution? 

Well, in the next few years, lots of your customers will be unwired. “Our estimates show that [the market] could grow to 30 million laptops equipped with Wi-Fi capability in three years,” said Intel Executive Vice President and Intel Capital president Les Vadasz. “It will fundamentally change the way people use technology and enable high-speed Internet access anytime, anywhere for business and consumer use.”

Nowadays, most new laptops are coming equipped with Wi-Fi cards. And the number of places these laptops can connect is burgeoning. Research firm In-Stat/MDR predicts the marketplace will grow from 2,000 locations in 2001 to 42,000 sites worldwide by 2006. 

There’s plenty of room for growth. So far, according to Sky Dayton, founder of Boingo, a WLAN access provider, only about 3,000 of an estimated two million potential Wi-Fi sites at commercial sites like stores, gasoline stations and restaurants have been installed. More than 2 million mobile surfers in North America already use Wi-Fi, and research Gartner Group expects the number to double by next year. Dennis Eaton, chairman of the industry body Wi-Fi Alliance, says the current $2 billion Wi-Fi industry should expand at a compounded growth rate of 30 percent to nearly a $6 billion industry, putting it on par with household name brands like Budweiser.

Think about that. There’s a brand franchise that is growing so fast it will equal that of one of the most advertised and heavily marketed brands on the planet in a few years, and you’ve probably barely heard of it. 

The real question is: Are you going to wait five to seven years to start figuring out how to use this new medium?

There are plenty of folks who aren’t waiting, like WorkingWild, who with strategic partner Toshiba Computer Systems Group will install Toshiba wireless access points in 350 Circle K stores owned by ConocoPhillips in Phoenix and Tucson by early this year. Their plan is to  outfit 2,100 Circle K stores and more than 15,000 Phillips 66, Union 76, Conoco and Mobil convenience stores nationwide. “In three years, people will expect that their convenience store will be a hot spot for wireless access,” Richard Oneslager, chairman of the National Association of Convenience Stores New Business Opportunities Committee.

But there’s an essential dichotomy brewing in the WLAN market: subscriber/subsidized access vs. free access.

It will be difficult to defend high margin price points – such as the $2.95 for 15 minutes, plus $.25 for each additional minute Marriott is planning on charging – when your competitors, or community-based amateurs, are offering it for free. It’s likely that WLAN-based Internet access will quickly cease to be a novelty, especially with the Wireless Metropolitan Area Network (WirelessMAN) movement aiming to blanket every city with free, amateur-run Wi-Fi hotspots. Contrast this freebie movement with the Cometa joint effort IBM, AT&T and Intel announced recently. Cometa foresees 20,000 hotspots in the U.S. by 2004 and aims to place a commercial Wi-Fi hotspot within five minutes’ reach of every wireless user in the nation.

The new applications for this always-present technology are still being written, and many won’t become clear until the market reaches critical mass. It’s a safe bet that WLAN technology will extend the effectiveness of email and IM marketing. And the technology is likely to further enable location-based services that involve couponing, proximity-based special offers, and sponsored navigational/search services. 

What’s this all mean for marketers? More ways to keep in touch with your customers. The beginning of the always-connected society. Big rewards for marketers who figure out how to leverage these qualities in service of their brands. And potential disappointments for some – like Starbucks? – who jump on the trend before grasping it.

But there’s one thing for sure: This trend’s not going to take five to seven years to take off.


8.0  Ten Point Security Action Plan for Business - Part 1

Excerpted from Threats & Vulnerabilities by NetSudsers James P. Cavanagh, Don Flanagan and James Mecsics

Events of the past two years have riveted attention on the importance of good security to business continuity and, in some cases, survival. To help businesses cope with security issues, here is the first half of a ten-point action plan to you improve your own business security.

Perform A Vulnerability Assessment

What are your vulnerabilities? How can they be exploited, by whom, and under what conditions?  Examine the possible benefit of your products, services, employees, supplies, raw materials and financial resources to terrorists. Can your products, or their components, be used as a conventional or biological weapon, or as a part of a bomb or otherwise by terrorists?  Can your products be used to gain access to secure areas or to allow a terrorist to hide or avoid detection?  Can terrorists get special training or easily obtain jobs in your organization? For help in assessing such issues, try the Network and Infrastructure Security Report Card, available at www.consultant-registry.com.

Establish Security Policy, Monitoring, and Response Guidelines

After vulnerabilities are clearly understood, it is time to draft, or revise, the Organizational Security Policy. This document should be developed by upper management and clearly spell out policy, expectations for employee behavior, and penalties for non-compliance. All reasonable exceptions, and an appeal process for penalties, should be noted. The policy should reflect the needs of the organization and the appropriate level of security for your line of business and your vulnerabilities.

Every organization should have procedures in place to monitor compliance with the security policy, to report violations (both by "insiders" such as employees and contractors and "outsiders" such as unauthorized visitors, trespassers and hackers) and to respond to violations. Many organizations report infrastructure and computer security violations to their in-house 911 emergency numbers.

Develop Security Guidelines with Clients, Suppliers and Contractors

Clients, suppliers and contractors are also an important part of the security puzzle. Anyone with access to your site, your personnel or computer systems should be a part of your overall security planning. Include them in your security plans. Work together to create a common system to protect the assets of all the parties. Meetings aimed at "our common security" can focus resources and build good relationships around a shared and important theme.

Protect Physical Assets

Protection of physical assets involves providing a level of protection appropriate to the asset. Consideration should be given to protection of buildings, storage facilities, production plants, vehicles, and other physical assets. Protection of power and water, including back-up power generation equipment, fuel for the generator and battery back-up should also be seriously considered.

Most companies, of course, will already have a routine for checking fire extinguishers, escape routes, first aid kit inventory, back-up communication systems and similar items, but they should be reviewed now for completeness and currency in light of changing security needs. For instance, it may be time to enhance the first aid kit with biohazard response materials and upgrade the training of your first responders.

Protect Computer and Telecom Assets

Protection of computer and telecom assets begins with physical protection, continues with special passwords, and goes on to the realm of technologies such as access control devices, firewalls, intrusion detection systems and other anti-hacker tools. Effective computer and telecom protection need not be overly expensive, but it must be installed properly and maintained regularly to provide maximum protection. Companies should consider "outsourcing" this critical function to a qualified third-party service provider if they do not have sufficient in-house experience, or at least having a periodic review by outside experts.

Most importantly, be aware of your environment and report any suspicious, abnormal or unnatural behavior or events to the appropriate law enforcement authorities. Let their experience and professional judgment determine if an event is noteworthy. It is the responsibility, and duty, of each employee, and each citizen, to remain diligent and to be a part of the overall security solution.
 


9.0  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 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://www.netsuds.net/mail.htm to subscribe or unsubscribe.

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

Matt Noah

980 Lake Susan Hills Drive
Chanhassen, MN  55317

612.279.2154
fax:  425.795.2019
matt@netsuds.com

© 2000, 2001, 2002, 2003
NetSuds.com™, Inc.  All Rights Reserved.