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Volume 6, Number 34 - August 23, 2001 - This Week's Contents:

--1. Selling The Vision And Closing The Deals
--2. Appear Peer-To-Peer
--1. Plethora's Unified Communications Desktop
--2. EventRebels' Meeting Management Software
--3. Vansant's Restaurant Marketing Solution
--4. Great Bridge's Applications Suite
--5. Quick Hits from Kesem, infoShark, Multicast/AudioSonix,
........INFE, and Blue Sky Factory
--1. Dough Raise Me
.....$29.6M for 2 local netpreneurs
--2. Life In The Food Chain
.....Solectron Acquires Iphotonics
--3. MoneyTree Investment Stats 1: VCs
--4. MoneyTree Investment Stats 2: Or Not VCs
..... our All AOL Issue

I> News About The Program
Back from the beach tanned, rested and ready, we figgered that
September's Coffee & DoughNets oughta get right down to the bottom
line. Or top line, rather. After all, business is all about revenue
and revenue is all about sales, so C&D will be all about, "Driving the
Top Line: Selling the Vision and Closing the Deals." Everybody's gotta
sell in a startup, whether it's selling the high level vision, the
company or the product. It's not just for bootstrappers, either. VCs
want to see a revenue stream, and, as CEO, you've gotta sell to
investors, new team members, your board, early-adopters, and just
about everyone else. Our panel of entrepreneurs -- Elliott Frutkin,
CEO & President of Doceus; Evan Burfield, CSO of NetDecide; and John
Ticer, CEO of BioNetrix -- will discuss the challenges they faced in
customer acquisition and revenue generation; and moderator Gina Dubbe
of Steve Walker & Associates will discuss the shortcomings she sees in
those areas in business plans from seed stage and series A companies.
C&D will be Thursday, September 20, 7:30 AM, at Dave & Busters in
White Flint Mall in Bethesda, MD. Register now.

Register for C&D:
Steve Walker & Associates:
From September 18-21, O'Reilly & Associates brings its respected
Peer-to-Peer & Web Services Conference to DC, and, as a media partner,
we've negotiated a special 30% discount for netpreneurs. Focused on
"inventing the post-Web world," the conference will explore the
technical, business, and societal dimensions of the P2P and Web
Services spaces, featuring leaders such as Clay Shirky of The
Accelerator Group discussing "The Great Re-wiring" about how the
Internet is transforming beyond the browser-and-server framework;
Simon Phipps of Sun on "Peering Beyond Services;" Michael Conner of
IBM on "Web Services: The Next Horizon of eBusiness;" and Lawrence
Lessig of Stanford Law School on "Preserving the Innovation Commons."
The Business Model sessions should be of particular interest to
netpreneurs. The discount is off the Standard Price of the conference
and/or tutorials (That's over $400 off the standard conference price).
To get your discount, visit "My Services" at the Netpreneur site
( ) and scroll down to the O'Reilly link
under Partner Programs. (You'll need to be a registered user at the
Netpreneur site, so just follow the directions for new users if you
haven't done so already. It's free and takes just a few minutes.)

P2P Conference:

II> Regional Netpreneurs
(Greenbelt, MD) Plethora Technology has pre-released version 1.0 of
its unified communications software for mid-market businesses to
selected trading partners, beta testers, clients and resellers. The
company, which has been using the product internally for text, data,
and voice communications, says that it has agreements for nearly a
dozen companies to begin using the product. The current version is
delivered as an ASP offering, and Plethora expects to deliver a
licensed version in October. Plethora is funded and backed by OAO
Corporation's New Business Incubator.
(Ellicott City, MD) introduced its Web-based tools for
meeting management and event registration. Designed for professional
meeting planners, the software includes tools for online and offline
registration, credit card processing, communication via email and FAX,
Web sites, project management, and reporting. The software is offered
through an ASP model.
(Annapolis, MD) Vansant Creations introduced RestaurantSprite Suite, a
marketing system for restaurant, club and resort owners. The product
offers a calendar and email generation and management system that
allows users to post events, send out automatically generated
reminders, collect email addresses and send out newsletters, specials,
coupons, menu updates and other information.
(Norfolk, VA) Great Bridge LLC, a provider of solutions based on the
PostgreSQL database, released WebSuite, an integrated open source
platform for building Web-based applications. WebSuite integrates the
enterprise-class Great Bridge PostgreSQL database with the PHP
scripting language and Apache Web server, and also includes a
graphical installer, administration tools, XML modules, bandwidth
management and security authentication modules, an HTML editor and a
Web-based project management tool.

(Silver Spring, MD) Kesem Technology debuted the Enterprise Edition of
its Serverphone product, a solution that lets network administrators
control their servers and networks via WAP-enabled devices.

(Chantilly, VA) infoShark released XMLShark Version 3.2 , a tool for
sharing information captured within corporate databases. New features
include an open database interface and extended DB2 support.

(Fairfax, VA) Multicast Technologies will combine its online
technology for delivering audio and video channels to broadcasters and
advertisers with Olney, MD-based AudioSonix' automated, large file
delivery service to offer a comprehensive digital delivery service. ;

(Tysons Corner, VA) Sign of the times? Infrastructure services
provider INFE dropped the "dot com" from its company name to become
INFE, Inc. A four to one reverse stock split comes with the name

(Baltimore, MD) Blue Sky Factory created the website for Baltimore
Raven's linebacker Ray Lewis.

III> Funding & Finance News

$5.6 million in a first round for Monkton, MD-based 4GL School
Solutions, a provider of administrative software for K-12 school
districts for the management of special education programs. The money
comes from Warburg Pincus and Novak Biddle Venture Partners.

$24 million for Reston-based Workscape, a provider of Internet-based
human resources  and employee benefits solutions. The money comes from
Warburg Pincus, ABS Capital Partners, HLM Management Partners and
Coleman, Swenson, Hoffman and Booth.

--Solectron Acquires Iphotonics
(Glen Burnie, MD) Milpitas, CA-based Solectron, a provider of
electronics manufacturing and supply-chain management services, signed
a definitive agreement to acquire Iphotonics, a provider of core
optical manufacturing services. Solectron gets Iphotonics' advanced
fiber handling, splicing, packaging, termination and connectorization
services, as well as optical engineering and design expertise.
Iphotonics has a design, prototyping and manufacturing facility in
Glen Burnie, MD, and an engineering and development center in Fremont,
CA. ;
Time for the quarterly investment stats, and while the news isn't
great, it coulda' been worse. According to PricewaterhouseCoopers
MoneyTree Survey in partnership with VentureOne, in Q2, equity
investments into venture-backed companies fell to $8.2 billion
nationally, compared to $10.4 billion in Q1. That represents a decline
of 21%, which is significantly less than the 41% decline experienced
in the prior quarter. PwC suggests this means that investment levels
may be settling around historical norms. Nationally in Q2, 669
companies received funding, down from 752 in the first quarter, a
decrease of 11%. While private placements of equity in the first half
of 2001 are at one-third of last year's levels, Q2's totals still
exceed quarterly venture investment rates just prior to the market
"bubble" that began in Q2/1999. Investment in seed and Series A rounds
declined steeply from last quarter's record low; attracting only 15%
of investment dollars. Traditionally, early rounds constituted roughly
50% of all deal flow. Series B rounds dropped as well, but later-stage
companies saw funding increase by 8%, from $2.6 to $2.8 billion. In
the Greater DC region, 36 companies received $491 million during Q2, a
drop of 8% from Q1. By jurisdiction, 20 Virginia companies received
$199 million; 11 Maryland companies got $157 million; and 5 DC firms
received $135 million. Communications & Networking was the hottest
regional sector (4 deals for $183M), followed by Software (12 for
$126M), Consumer and Business Services (7 for $109M), Information
Services (4 for $43M), and Medical Software & Information (2 for
$15M). The region accounted for 6% of all Q2 venture capital
investments in the US. Nationally, Internet-related investments
continued their downward spiral with a 28% decline from Q1 to $5.7
billion, the lowest in two years. Most notable was the Internet
Infrastructure sector that fell 45% to $1.3 billion. Internet-related
Software investments held up the best, falling only 8% to $1.7
Also according to PwC's MoneyTree Survey, outside participation from
non-traditional investors such as corporations, angels and other
private equity entities is at its lowest level in three years.
Corporations, for example, are investing less than one-tenth the
amount they contributed last year, declining from $3.8 billion in the
first half of 2000 to $353 million in first half of 2001. At the peak
of investment in Q1/2000, VC's contributed 76% of the equity invested
in venture-backed companies as investments from other funding sources
ballooned. With the slowing economy, however, alternative sources also
have slowed so that in Q2/2001 professional VC firms supplied 90% of
the equity for venture-backed companies.

V> Who'sware

(Dulles, VA) While laying off lots of people, AOL also announced new
divisions and a reorganization that the company says "further
leverages synergies gained through the AOL Time Warner merger and more
tightly integrates its multiple online brands and Web properties."
Highlights include:

- Creation of AOL Time Warner Global Marketing Solutions with Myer
Berlow as its President, a group that will drive the development and
roll-out of company-wide, cross-platform advertising and marketing
initiatives for AOL's advertising partners.

- Creation of a new Interactive Marketing Group, with Robert Friedman,
former president of AOLTV, as President. The group's function is to
generate marketing partnerships and sales revenues for all AOL brands
and properties, as well as the new AOL Time Warner Global Marketing
Solutions Group.

- Creating a new Interactive Services Group, with Jonathan Sacks as
President, which will include the flagship AOL service and local
Digital City business.

- Establishing a new Vertical Markets Group as part of AOL Interactive
Services, with Donn Davis as President, that will create new
programming and cross-brand advertising and commerce opportunities in
10 areas, including music, entertainment, personal finance, autos and

- Consolidating the Company's Web brands into a new AOL Web Properties
Group, with Jim Bankoff as President, comprising the Netscape,
CompuServe, Moviefone, MapQuest, ICQ and AOL Instant Messenger
services, as well as coordinating the integration of online properties
from across AOL Time Warner.

- Expanding the role of the AOL Broadband Group, with Audrey Weil as
President, to drive consumer adoption of AOL services on cable, DSL,
and satellite platforms.

- Creation of an Interactive Video Unit in an effort to drive consumer
adoption of its broadband and on-demand offerings. The division will
provide interactive TV and cable services, such as video-on-demand and
subscription-video-on-demand. Joseph Collins, who had served as
Chairman and CEO of Time Warner Cable, was named Chairman of the new


Thanks for your interest in and support of the Morino Institute's
Netpreneur News is copyright 2001, Morino Institute, all rights
reserved. The information contained here has been obtained from
sources believed to be reliable, but is not necessarily complete and
its accuracy cannot be guaranteed. It is provided "as is" and your
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