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Volume 6, Number 42 - October 18, 2001 - This Week's Contents:

--1. Thinking Strategically
--2. Free Tickets To eCommerce Policy Forum
--1. MainControl Takes On Disasters
--2. Vansant's Community-Building Product
--3. ZonaFinanciera Shuts Down
--4. Round-up: Construction Crews
.....Brave New Markets, IsoDynamic, NuVizion, Forum One, eDesign
--5. Round-up: Four File For Chapter 11
.....Pensat, Ardent, Etensity, and Digital Now
--6. Quick Hits from FirstGov, ITServ, Multicity, GlobalWisdom,
........netDecide, Real-Time Kiosks, and
--1. Dough Raise Me
.....more than $94M for 5 local netpreneurs
--2. Life In The Food Chain
.....eStara Acquires ITXC Voice Product
.....TSI Technology Acquires SSE Telecom
--3. US VC Returns Remain Negative...
--4. ...But Local Companies Still Pitching Grubstake, Mid-Atlantic Venture Fair,
.........and Red Herring's Fairfax Portfolio
--1. Technology Insider Radio Show
--2. P2P And The Web Content Delivery Market
--3. Baltimore Webmasters Call For Speakers
--1. Region Is A Leader In Granting Tech Degrees
--2. New Bioinformatics Incubator For Virginia

I> News About The Program
There's still time to register for next week's Coffee & DoughNets
featuring product strategy experts Phil Carrai of Morino Group and
Paul Mauritz of AppSolve, discussing "If You Build It, Will They Come?
Product Strategy and Management Insights." From the new product
process to determining resource commitments, from understanding your
customer to understanding yourself, you'll get the practical tools for
bringing your product to market and the strategic view on strategic
thinking. C&D will be Wednesday, October 24, 7:00 a.m., at the Improv
on Connecticut Avenue in DC. Sign up now.

Sign up for C&D:
On Wednesday, November 14, The Bureau of National Affairs, in
affiliation with the Computer Law Association, will host its third
annual Public Policy Forum focusing on "International eCommerce &
Internet Regulation." The regular admission price for the all day
event is $895, but we've got a deal for five lucky Netpreneur News
readers to get free tickets. The program features 17 leading
practitioners and government officials talking about the risks and
liability of operating an eBusiness abroad, including keynotes John
Mogg, Director General of the Internal Market Directorate General,
European Commission, and George Radwanski, Privacy Commissioner of
Canada. The event will be at the Omni Shoreham Hotel in Washington,
DC, and the first five netpreneurs to get emails to
will get the free passes. Just tell 'em "Netpreneur sent me." For more
on the conference visit:

II> The Region's Netpreneurs
(McLean, VA) MainControl has adapted its technology asset management
solution to help organizations more quickly overcome the effects of
natural disasters and other unforeseen events. Called Business
Continuity Management, the new offering within MainControl's
MC/EMpower product allows companies to understand the location and
configuration of their distributed assets, such as servers, PCs,
routers and wireless devices.
(Annapolis, MD Vansant Creations launched CommunitySprite, a product
for associations, organizations and other groups to create online
communities. It offers a number of customizable features, including a
calendar, email marketing system, event registration module, and
editable, individual Web pages for members. Vansant's first online
community is, a site for artists, writers and
musicians in Maryland.
(Fairfax, VA) The Washington Post reports that, a
personal investing site focused on Latin American markets, is wrapping
up operations and just about ready to shut down completely. The
company had raised over $40 million in venture capital since its
founding in 1997, with investors that included Walker Ventures, The
Washington Post Co., Acon Investments, Columbia Capital, Capital
Investors, Citicorp Strategic Technology Corp. and T. Rowe Price
Group. ;

(Owings Mills, MD) Brave New Markets launched America on Display, a
new eCommerce site connecting consumers, manufacturers and resellers
of patriotic merchandise and offering both retail and wholesale
pricing of products including flags, pins and apparel. ;

(Silver Spring, MD) IsoDynamic created two websites, one highlighting
the redevelopment of downtown Wheaton, Maryland, and the other for
bigchalk, an educational network offering eLearning courses for kids
about Colonial Williamsburg, Smithsonian Folkways and the Bronx Zoo. ; ;

(Chantilly, VA) NuVizion completed the site for The American Bible
Society, the world's largest distributor of scripture and bibles. ;

(Alexandria, VA) Forum One Communications created an online gallery of
children's art as part of Alexandria's Art on the Avenue festival.

(Herndon, VA) eDesign launched sites for two Reston-based companies;
Evergreen Systems, a provider of services that help companies improve
the management of their IT infrastructures, and Bodacious!Ventures, "a
voice for Now Economy women." ; ;

(Washington, DC) Pensat Communications, a facilities based carrier and
subsidiary of DataStream Global Communications, filed a voluntary
petition for relief under chapter 11 as an initial step in executing a
financial restructuring of the company. The company said that "current
conditions facing the national economy and in particular the telecom
and financial markets," have caused it to terminate US operations. Its
international subsidiaries in Spain, Brazil and Syria will continue to
operate. ;

(Arlington, VA) Ardent Communications, formerly CAIS Internet, a
provider of high-speed Internet access and Web services, filed for
Chapter 11 bankruptcy protection. The company recently laid off over
150 employees while it seeks to restructure. It had as many as 800
employees last year. Despite the filing, service to its more than
20,000 clients has not been interrupted.

(Vienna, VA) Digital Now, a developer of digital imaging technology,
Internet photo sites and eCommerce solutions for the photo processing
industry, and eBusiness consulting and professional services firm
Etensity, both based in Vienna, filed under Chapter 11. Etensity said
that it will submit a restructuring plan to achieve profitability and
that here will be no layoffs.;

FirstGov, the official US government Internet portal for government
information, services and online
transactions, has added an area called "America Responds to
Terrorism," offering a comprehensive collection of federal and state
information and resources on topics from how to protect your family to
how children can make donations for the Afghan children to the latest
news from the White House.

(Gaithersburg, MD) ITServ released Version 4.0 of its RideWay Station
product, a Linux-based, all-in-one, Internet sharing, firewall, and
VPN device designed for small-to-medium-sized offices and SOHOs. The
new version delivers a "LAN-to-LAN" capability that allows companies
with more than one location to set up secured channel interface among

(Tysons Corner, VA) released Version 2.0 of its Minicity
Suite, a product that enables businesses and organizations to create
online communities. It supports aggregation of multiple sites into a
single virtual community and offers services including chat rooms,
message boards, and more.

(Washington, DC) GlobalWisdom and empolis GmbH, a subsidiary of
Bertelsmann Mohn Media Group, announced the integration of
GlobalWisdom's Bravo engine and empolis' K42 Topic Map engine. The
joint offering provides a comprehensive Web and enterprise package for
collaborative search, classification, topic authoring and navigation.
The two will combine sales efforts for the integrated package while
sharing implementation and support operations. ;

(Tysons Corner, VA) netDecide will integrate its Web-based wealth
management system for the financial services industry with those of
WealthTec and zCalc to provide financial planners and advisors with
tools for addressing the wealth spectrum, from emerging affluent
through ultra high net-worth.

(Norfolk, VA) Real-Time Kiosks and Taylor, MI-based Digital Dialogue
have a new deal to produce kiosks with fully-integrated lending center
capabilities for credit unions that will become available in early

(Rockville, MD) has a new deal to distribute its
inventory of reports and other market intelligence products and
services through ;

III> Funding & Finance News

$1 million in a Series B round for DC-based Vodium, a provider of
online publishing technology for corporate communications, including
solutions for publishing interactive audiovisual events on the Web.
Broadsword Partners led the round, with participation from unnamed new
and existing investors.

$2 million in federal government funds for DC-based StreamSage, a
developer of software for automatically indexing, searching, and
personalizing audio/video content. The money was awarded from the US
Department of Commerce's Advanced Technology Program (ATP), which is
used to "accelerate the development of innovative technologies that
promise widespread benefits for the nation." StreamSage says that its
technology analyzes in detail the language and information contained
within video content, automatically identifying the precise intervals
that are relevant to a user's interests. ;

$10 million in a second round for Fairfax-based Managed Services
Provider (MSP), mindSHIFT Technologies. The round was led by Columbia
Capital and J.P. Morgan Capital, with participation from Bessemer
Venture Partners. All three are previous investors. mindSHIFT also
entered into an agreement with Leasing Group, Inc. for $30 million in
equipment financing.

$26 million for Chantilly-based eLUMINANT, a developer of fiber-based
broadband access products and solutions. ITOCHU Corp., the lead
investor in the Series A funding, will invest $18 million, and other
NEC Group companies will provide an additional $8 million in funding.
eLUMINANT is a subsidiary of NEC USA and an affiliate of high tech
giant NEC Corporation.

$55 million raised by Reston-based wireless paging company Motient for
its Mobile Satellite Ventures (MSV) subsidiary. The money will be used
to complete Motient's previously announced plan to integrate its
satellite operations with those of TMI Communications & Company, which
will be spun out as MSV. The deal involves MSV's issuance of
subordinated convertible notes to an investor group including Telcom
Ventures, Columbia Capital, Spectrum Equity Investors, a subsidiary of
Rare Medium Group, and Motient.

--eStara Acquires ITXC Voice Product
(Reston, VA) eStara announced the acquisition of Princeton, NJ-based
ITXC's Push to Talk eCommerce service. The two companies' Web voice
services will be consolidated into eStara's corporate facility in
Reston, and ITXC will close its facility in Beaverton, OR. eStaraVoice
services connect website visitors through PC-to-phone connections and
call back (phone-to-phone) connections, allowing companies to speak
and collaborate with online customers over the Web in real-time.
Through the deal, eStara also adds ITXC customers, including France
Telecom, Hilton Hotels, Sprint and more. Terms of the agreement were
not revealed but include ownership of a minority position in privately
held eStara by ITXC. Both companies will earn licensing and
call-completion revenue from eStara. ;

--TSI Technology Acquires SSE Telecom
(Gaithersburg, MD) Fremont, CA-based TSI Technology has acquired the
"product lines and associated design and intellectual properties and
all other assets" of SSE Telecom which filed for bankruptcy earlier
this year. TSI Tek said that it has successfully resumed production
and sales of the products, including SSE's transceivers for earth
stations, satellite modems, and DDT flyaway terminals.
For the second quarter in a row, annual returns for the US venture
capital and private equity industry were in negative territory,
according to Venture Economics (VE) and the National Venture Capital
Association (NVCA). Venture Economics' Private Equity Performance
Index shows the preliminary one-year return for venture capital
of -18.2% at the end of Q2 2001. At the same time, private equity
showed a -11.3% one-year return, declining further from last quarter's
one-year return of -8.2%. "We expect that these results will continue
to show negative returns through the end of 2001," commented Jesse
Reyes, VP of VE. "Liquidity is paramount to the industry and until the
IPO market window opens up again, it will be difficult to see positive
short returns based on valuation trends." Declining valuations,
limited liquidity options, and the decline of the Internet sector are
the primary reasons for the negative trend according to the groups. ;

Five area technology companies have been selected to present their
business plans to investors at the Century Club of George Mason
University's Grubstake Breakfast at the Ritz Carlton Hotel in Tysons
Corner on October 23, including Plethora Technology of Greenbelt,
NeoKinetic Systems of Herndon, Hemodyne of Merrifield, Mobile Helix of
Chantilly, and Paestum Networks of Alexandria.

Eight companies from the region have been presenting at the
Mid-Atlantic Venture Fair in Philadelphia this week, including
AssureNet of Bethesda, Ikimbo of Herndon, PrimeWire of Rockville,
Realum of Alexandria, ReturnBuy of Ashburn, ShareMedia of Rockville,
UnwiredExpress of Columbia, and Wisor of Gaithersburg.

We don't know the companies presenting yet, but AOL Vice Chairman Ted
Leonsis will be the keynote speaker when Red Herring's Fairfax County
Porfolio venture capital and business investment conference comes to
Tysons Corner on November 5. Red Herring designed the conference to
focus on the technology sectors burgeoning in Fairfax County and the
surrounding area, with 15 tech startups to be selected by the
magazine's editors to present business plans in the fields of
infrastructure and wireless technology, security, and life sciences.

IV> Resources & Opportunities
(Alexandria, VA) Technology Insider is a new radio news talk show
featuring discussions of current and emerging technologies with
experts on issues and emerging technologies. Produced by Paladin
International, Technology Insider airs live over the Internet and on
TalkOne Network and is accessible from the show's website. The October
21 show will cover "Government Without Boundaries" with Fairfax County
's CIO, David Molchany; New Jersey CIO Wendy Rainer; and a federal
representative from GSA. Archives of the first two shows are available
covering the new domain names, stem cell technology, the economic
impact of the September attacks on the region's economy, and a venture
capital update.
(Reston, VA) Peer-to-peer content delivery firms have a shot at
capturing a significant portion of the streaming media, Webcasting and
content delivery network market in coming years, according to a report
from (P2PC). The Web content delivery services
market should climb from about $404 million in revenue for 2001 to
$3.1 billion in 2005, according to research by P2PC, and the company
says that peer to peer content delivery firms, if they play their
cards right, can bite off a growing chunk of those revenues, from 2%
in 2002 to 17% by 2005.
(Baltimore, MD) The Baltimore Chapter of the World Organization of
Webmasters (WOW) is looking for seven Maryland companies or
organizations to participate in a panel discussion on December 5. The
firms should have "successful and transformational products or
services using the Internet to create a competitive advantage for
themselves or the businesses of their customers." WOW wants these
organizations to participate in a panel discussion at the Maryland
Technology Showcase at the Baltimore Convention Center. To nominate
your business or an associate's, send the company's name with contact
information and a brief summary of the product or service to: Marquis
Smith at, or call 410-230-8610 for more
information. The deadline for nominations is Friday, November 3.

V> Regional News
(Washington, DC) According to a new study by the Greater Washington
Initiative (GWI), the Washington, DC metropolitan area's higher
education institutions awarded degrees in computer science and
engineering at a rate that exceeded the nation as a whole during
fiscal year 2000. The study features an analysis of the types of
degrees offered and the number of higher education degrees (Associate
level and higher) conferred by 41 degree-granting institutions in
Greater Washington during a typical year. It also includes data about
the top 10 occupations expected to increase and those expected to
decline from 1998 to 2008. The 41 institutions analyzed in the study
graduated 48,861 students, of which approximately 4,700 or 9.7%
received degrees in computer-related fields. The region produced
nearly 200% more Masters degrees in the computer sciences as a percent
of total degrees granted than the nation as a whole. In engineering it
was 11% more Bachelor's and 24% more Masters degrees. The region's
undergraduate degree production in business-related programs was lower
than the nation, but 13% higher in business-related Masters degrees.
Get the full report at the GWI site.
(Springfield, VA) The Fairfax County Economic Development Authority
has selected ANGLE Technology to design and run an incubator in
northern Virginia that targets the bioinformatics sector.
Bioinformatics is the use of computer hardware and software to further
the study of biotech issues such as the human genome, the development
of new drugs, etc. ANGLE is a UK venture management company with US
headquarters in Herndon and with experience in developing and managing
research parks and technology incubators. The 8,500-square foot
incubator plans to open in early 2002 near the Franconia-Springfield
Metro Station and Northern Virginia Community College's medical
education campus. ANGLE will design and operate the incubator, select
companies for the center, and design a work program for them. The
incubator will cost about $1.5 million to run over three years. ;


Thanks for your interest in and support of the Morino Institute's
Netpreneur News is copyright 2001, Morino Institute, all rights
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