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News Center Top Story Archives
Week of July 10th, 1997
Issue 14, Volume II
NEWS ABOUT THE PROGRAM
1. Seed And Early Stage Companies Can Exhibit At MAVA
2. How Partnering Reduces Risk, And Other News At The Exchange
3. Grow Your Business On The Internet Seminar
REGIONAL NETPRENEURS
1. Internet Interstate Offers Total Building Solutions
2. Beta Launch of Proxicom Community
3. Electric Press Offers Credit Card Payment Technology
PARTNERSHIPS
1. V-ONE and LCI Announce Family-Friendly Internet Access
2. Charlottesville Netpreneurs Converge On Opportunity
3. Progressive Networks Endorses Netword Technology
4. CyberCash And CyberGold Offer Incentive Program
FUNDING & FINANCE NEWS
1. Telogy Attracts High-Level Funding
2. n-Vision Presents At Discovery Expo '97
3. Xybernaut Completes $3 Million Institutional Placement
NETPRENEURS RECOGNIZED
1. MicroStrategy's Saylor Wins Entrepreneur Of The Year Award
2. ClarkNet President Wins Awards
QUICK HITS
1. Liquid Mercury Is Looking For Partners
2. Where Do Financial Professionals Get Their Information?
3. Most Small Firms Are Computerized, But Not On The Web
4. Newsletter Publishers Go Online
UPCOMING EVENTS
1.Calendar


News About The Netpreneur Program

1. SEED AND EARLY STAGE COMPANIES CAN EXHIBIT AT MAVA
For the first time this fall, the Mid-Atlantic Venture Association (MAVA), in conjunction with the Netpreneur Program and the Greater Philadelphia Venture Group, will bring the Mid-Atlantic Venture Fair to Greater Washington. Sixty of the best and brightest companies from several stages of development will be selected to present at MAVA. Scheduled for November 11-12 at the Sheraton Premiere in Vienna, VA, the Venture Fair is expected to attract nearly 600 venture capitalists and private investors. New to the conference this year is a special opportunity for seed and early-stage companies that are still developing their team and finalizing their business needs. These companies are invited to apply for exhibit space during an extended networking luncheon on November 11. Interested companies must complete the same application for presenters and indicate they are interested in exhibiting only. Also new to the conference is a special session for investors, organized by the Netpreneur Program. This luncheon session (the afternoon of November 12) will focus on helping investors better understand the digital age entrepreneur and the growing base of investment opportunities in the region. A panel comprised of key executives from regional netpreneurial companies will discuss the trends, innovations and investment considerations for interactive media, communications, and software opportunities related to the Internet.

To apply as a presenter or exhibitor: http://netpreneur.org/events/mava For questions, contact MAVA Executive Director Mary Ann Gray: mavabwc@aol.com

2. HOW PARTNERING REDUCES RISK, AND OTHER NEWS AT THE EXCHANGE
Despite heat, humidity and summer vacations, there's always something new at the Netpreneur Exchange Web site. Look today for a new article from our content partner, Capital Growth Interactive, entitled "Technology Partnering Reduces Investor Risk" by Dr. Anthony C. Warren, President, COO and co-founder of TMF in Philadelphia, PA. Rather than ask the usual question, "Can the company provide a satisfactory ROI (Return on Investment) considering the high level of risk", Warren says we should ask, "How can I increase the ROI by leveraging the technical assets of the firm through technology partnering with other companies?" Also new at the Exchange, is the transcript of the July 18th Derek McGinty radio talk show on WAMU-FM which featured netpreneurs James Kimsey of AOL, William Melton of CyberCash, Russ Ramsey of Friedman, Billings Ramsey & Co., and the Netpreneur Program's own Mario Morino.

Capital Growth feature story: http://netpreneur.org/news/cg/default.html
McGinty transcript:

3. GROW YOUR BUSINESS ON THE INTERNET SEMINAR
Hear three local executives, Raj Khera of GovCon, Inc., Eddie Lloyd of Horizon Tours and Bob Spicer of Chevy Chase Bank, discuss their experiences and successes of doing business on the Internet. Join these executives and others at the Potomac KnowledgeWay Project and the Washington Business Journal's seminar, "Growing Your Business on the Internet: A Practical Forum for Executives" on Tuesday, July 22 at the Bethesda Hyatt. Registration and breakfast is from 7:30 to 8 am; the seminar runs from 8 to 10 am. The cost is $50.

Register online at: http://knowledgeway.org/webseries

Regional Netpreneurs

1. INTERNET INTERSTATE OFFERS TOTAL BUILDING SOLUTIONS
(Bethesda, MD)Internet Interstate, the ISP which recently won an exclusive deal to provide Internet services to all exhibitors at Washington DC Convention Center events for the next three years, has announced its new Total Building Internet (TBI) service. TBI offers fast and inexpensive access for an entire building by providing a high speed Internet circuit and high end router in an "anchor tenant's" office or building manager's office. From there, Ethernet wiring is brought to each additional tenant suite who signs on to the service. Internet Interstate buys all the hardware and handles all of the wiring and security concerns. The cost is comparable to traditional dial-up service, but the Internet speed is 50 times greater and considerably less-expensive than T-1 or ISDN hardware and engineering. The first TBI enabled building has already come online in Bethesda.

Internet Interstate: http://www.intr.net

2. BETA LAUNCH OF PROXICOM COMMUNITY
(McLean, VA) Proxicom announced the beta launch of its Proxicom Community suite, including three interactive communication products that help organizations build their own Internet community. The products are Proxicom J/Forum, a Java-based discussion group application available with a relational database; Proxicom Chat, a real-time interaction product for simultaneous communication; and Proxicom Publisher, a content authoring and administration tool for posting and controlling content. The integrated products offer flexible customization, administration and extensive scalability. A pre-release version will be available in the beginning of Q3 1997. Demonstrations of this version can be seen at the July 22 Internet World Summer Expo in Chicago. Proxicom J/Forum is a reengineered version of the company's Proxicom Forum discussion group software that is currently being used on over 300 Web sites.

Proxicom: http://www.proxicom.com

3. ELECTRIC PRESS OFFERS CREDIT CARD TECHNOLOGY
(Reston, VA) Electric Press has begun offering merchants and customers secure credit card payment solutions using a system developed and implemented for First Union Bank. It allows direct, real-time online credit card approval and clearing using Open Market's OM Transact software which facilitates the transmission of encrypted credit card information using RSA encryption and X.509 certificates. Electric Press worked with First Union and Open Market achieve greater usability. Unlike other systems, the solution does not require customers to download software or acquire a membership, and can typically be up and running in 30 days. Electric Press is a turnkey Web site developer, also offering strategy, design and hosting services.

Electric Press: http://www.elpress.com

Partnerships

1. V-ONE AND LCI ANNOUNCE FAMILY-FRIENDLY INTERNET ACCESS
(Rockville, MD) V-ONE Corporation (Nasdaq: VONE) and Landmark Community Interests, LLC (LCI) have created GuardiaNet, a complete Internet access package that provides families with network-based protection from unwanted sites. With GuardiaNet, parents control a comprehensive system that determines which sites can be accessed by each member of the family, enabling them to filter content from the Internet that is contrary to individual, personal or family values. The foundation of GuardiaNet is SmartGate, V-ONE's client/server security system. SmartGate is used to authenticate each user, control that person's access and encrypt the session traffic. It is being deployed in connection with OnePlace, a family-friendly Internet community providing content and access. Among GuardiaNet's features are ties to parent-specified browsers and access levels, as well as automatic updating for dynamic sites and robust user authentication. The SmartGate technology can also be used by businesses to restrict employee access to particular Web sites.

V-ONE: http://www.v-one.com
Landmark Community Interests: http://www.oneplace.com

2. CHARLOTTESVILLE NETPRENEURS CONVERGE ON OPPORTUNITY
(Charlottesville, VA) DAX Media, LLC and Chaos NewMedia, Ltd. are teaming to create the largest new media production studio in Central Virginia devoted to providing both content and tools for publishing digital media. Each of the founding companies will maintain their respective and unique marketing, product development and sales activities and will combine their production capabilities in order to create greater efficiencies, technological expertise and the capacity of a much larger company. Jack Smith of DAX will serve as Chairman of the new DAX New Media Productions and Brian Knatz of Chaos will be President of the production studio. Adding more power to the combination, Cornerstone Networks, the largest ISP in Central Virginia, will collaborate on various projects.

DAX Media: http://www.daxmedia.com
Chaos NewMedia, Ltd.: http://www.chaoslimited.com
Cornerstone Networks: http://www.Cstone.net/

3. PROGRESSIVE NETWORKS ENDORSES NETWORD TECHNOLOGY
(Arlington, VA) Netword LLC, announced a marketing and technology alliance with Seattle-based streaming media firm Progressive Networks that will make it simpler for surfers to find and play RealAudio and RealVideo programs. Networds creates shorthand addresses that replace complicated urls. For example, Internet users can enter the Netword "KING FM" into their browsers and immediately hear RealAudio content live from a classical radio station, or enter the Netword "Con Air Clip" to see a RealVideo preview of that movie.

Free Netword Agent software: http://www.netword.com
Progressive Networks: http://www.real.com

4. CYBERCASH AND CYBERGOLD OFFER INCENTIVE PROGRAM
(Reston, VA) CyberCash, Inc., (Nasdaq: CYCH) and Berkley, CA-based CyberGold introduced a program that lets consumers earn and spend money on the Internet. CyberGold, a Web-based direct marketing service, pays consumers cash incentives for responding to advertising and marketing offers. The new incentive program gives consumers the opportunity to deposit their CyberGold earnings into a CyberCash Wallet to purchase goods and services from over 50 CyberCoin-enabled merchants. Available products range in price from 25 cents to ten dollars, including ESPNET SportsZone Day Passes from the Digital NewsStand, prepaid cellular service from InTouch USA, and gourmet recipes from the Cook Book.

CyberCash: http://www.cybercash.com
CyberGold: http://www.cybergold.com

Funding & Finance News

1. TELOGY ATTRACTS HIGH-LEVEL FUNDING
(Germantown, MD) Telogy Networks Inc., a telecommunications development firm, recently won $9.5 million in funding from a group of leading venture capitalists, led by San Francisco's Weiss, Peck & Greer Venture Partners and ABS Ventures. ABS is a unit of the well-known high-tech investment bank Alex. Brown & Sons, based in Baltimore. Weiss, Peck, which garnered attention last year with its early investment in the wildly successful Ciena Corp., told Washington Business Journal (6-12-97) that it has since been very interested in the region's high-tech development, specifically Maryland. "I have been impressed with the quality and quantity of investment opportunities in the Maryland technology corridor," said Philip D. Black, a general partner at the firm. Such support from the investment community may propel Telogy to success on Wall Street similar to that experienced by Ciena last year. "This investment represents a strong endorsement of our ... products," notes Thomas H. Scholl, who founded the company in 1989. Telogy was originally a contract engineering firm, but has since shifted its focus to software that enables telcom firms to send voice transmissions over data networks. Other VC investors in Telogy include Novak Biddle Venture Partners, Reston; Unterberg Harris, New York; and Wessels, and Arnold & Henderson, Minneapolis. (Copyright Information, Inc. Courtesy MCI.)

Telogy: http://www.telogy.com
Washington Business Journal: http://www.amcity.com/washington

2. n-VISION PRESENTS AT DISCOVERY EXPO '97
(McLean, VA) n-Vision, Inc., (Nasdaq: NVSN, NVSNW), manufacturer of 3D immersive display systems for advanced visualization and virtual reality applications, was among 80 growth companies presenting at Discovery Expo '97 to 1,000 Wall Street investment professionals in New York. This third in the series of Discovery Expos was organized by The Investment Reporter, a Newport Beach, CA-based financial newspaper, to bring together undiscovered companies with high-profile investment professionals in a one-day event. The players had a chance to become acquainted with the products, top executives and future outlook of participating Nasdaq and OTC Bulletin Board listed firms whose stock represents opportunities for appreciation. "When you're a mid-cap or small-cap company you tend to fall off the financial radar screen no matter how well you're doing financially," said John G. Robbins, publisher of The Investment Reporter, host of the Discovery Expos. "The financial world needs to find growing companies whose shares have further upside potential and these companies want to be discovered.

n-Vision: http://www.nvis.com

3. XYBERNAUT COMPLETES $3 MILLION INSTITUTIONAL PLACEMENT
(Fairfax, VA) Xybernaut Corporation (Nasdaq: XYBR), the developer of wearable computer solutions, reported that it has completed a $3 million private placement with institutional investors managed by Liberty View Capital Management, Inc. Edward G. Newman, President and CEO of Xybernaut stated, "In this financing, strong institutional investors agreed with our opinion that the current stock price does not adequately reflect Xybernaut's potential and I am pleased with this vote of confidence in our strategies and management team." Xybernaut's patented wearable computer systems feature speech-activation and head-mounted displays that allow users hands-free access to information in the computer's internal storage, in local area networks and on the Internet on an as-needed, where-needed basis.

Xybernaut: http://www.xybernaut.com.

Netpreneurs Recognized

1. MICROSTRATEGY'S SAYLOR WINS ENTREPRENEUR AWARD
(Vienna, VA) Michael J. Saylor was chosen as the 1997 Greater Washington Software Entrepreneur Of The Year. The award, sponsored by Ernst & Young, recognizes the computer industry's most successful entrepreneurs and the business accomplishments of those individuals. "Under Michael Saylor's leadership, MicroStrategy has grown into one of the most successful firms in the high-tech industry," said Dick Dudgeon, Mid-Atlantic Area Managing Partner at Ernst & Young. "As one of the brightest and most successful CEOs in the industry, we are honoring Michael for his innovation, accomplishments, and his ability to transform his technological vision into a commercially successful product." MicroStrategy is the largest relational on-line analytical processing (ROLAP) vendor. Since its establishment, MicroStrategy has sustained a growth rate of 100% per year. The company is entirely employee-owned.

MicroStrategy: http://www.strategy.com
Ernst & Young Entrepreneur of the Year Award: http://www.ey.com/entrepreneur

2. CLARKNET PRESIDENT WINS AWARDS
(Columbia, MD) Jamie Clark, founder and president of Clark Internet Services Inc., recently picked up two honors, including selection by the Small Business Administration as Small Business Person of the Year in Maryland and by the Howard County Equal Business Opportunity Committee for Outstanding Disabled-Owned Business. Among the criteria for the SBA award: the business owner must show creativity and innovation with product and service offerings and give freely of time and other resources to assist with community-oriented projects. Clark, 33, operates the ISP from a farm in rural Howard County. ClarkNet has 30 employees and 5,000 Washington-area customers, with projected revenue of $2.6 million in 1996.

Quick Hits

1. LIQUID MERCURY IS LOOKING FOR PARTNERS
(San Francisco, CA) Liquid Mercury, Inc. (LMI) announced the launch of a targeted professional online service which will serve as a resource center for finding information on the new technology industry. Dubbed Liquid Navigator, it is an extension of the company's interactive media print publishing business. LMI will use a team of researchers and consultants to update original content areas on the site, including two key info-centers: Liquid Navigator Database of technology entrepreneurs; and Tech World Weekly, a weekly roundup of industry news. LMI is currently looking for site co-branding opportunities for its Liquid Navigator service and Tech World Weekly services. Inaugural site sponsors include Sony Electronics, Apple Computer, SciTex Digital Video, Inc., Cinram, Silicon Graphics and Oracle. For more information, contact Clancy Fort: fort@liquidnav.com

Liquid Navigator: http://www.liquidnav.com
Tech World Weekly: http://www.liquidnav.com/TechWorldWeekly.html

2. WHERE DO FINANCIAL PROFESSIONALS GET THEIR INFORMATION?
(Stamford, CT) A new study by Cowles/Simba Information, Market Map: Web/Online Use Of Financial Information Services, surveyed more than 500 financial services/banking professionals and found that just 10% of respondents who use proprietary online information services reported switching to similar Web-based information services. Said Karen Burka, editorial director for Cowles/Simba Information's Electronic Marketing & Online Group. "Proprietary online information services...continue to hold their value in the face of increasing Web-based competition." Dow Jones, Reuters and Business Wire were cited as the top three desktop delivery/newswire services. Dow Jones and Reed Elsevier's LEXIS-NEXIS were the two leading research services, while Bloomberg was the leading quotation service among survey respondents. However, Burka noted, the growth of Web-based services will likely eat into the proprietary online services' businesses in the near future, particularly as the Internet becomes faster and more accessible. Fifty-eight percent of respondents said they use the Web on a regular basis for work purposes; more than two-thirds reported an increase in Web usage over the past three months. The report reveals other Web/online usage habits and demographics of financial services workers.

Cowles/Simba Information: http://www.simbanet.com
Market Maps: http://www.simbanet.com/simba/sources/art1.html#MMAP

3. MOST SMALL FIRMS COMPUTERIZED, BUT NOT ON THE WEB
(Washington, DC) The vast majority of small businesses are computerized, but most are not cruising the information superhighway, according to a new study by the National Federation of Independent Business (NFIB) Education Foundation. While more than three of every four (77%) small businesses report having computers, only about 40% of all small firms are on-line. The new findings, based on a Gallup poll of 1,000 members of the NFIB, indicate computer usage among small firms continues to grow, though at a slower pace. The number of small businesses with at least one computer increased by about two percentage points per year from 1994-1997, about half the rate of increase logged from 1990 to 1994. The likelihood of firms being on-line and having email addresses increases with the number of employees. Some 31% of firms with 1 to 4 employees use an on-line service, while 71% of those with 20 or more employees are on-line. Only 19% of the smallest firms has an email address.

NFIB: http://www.nfibonline.com

4. NEWSLETTER PUBLISHERS GO ONLINE
The publication of newsletters is a $5-billion-a-year, 10,000-title business, thriving in large part because of the high value assigned to industry-specific information in today's marketplace. "Newsletters are the ultimate value people place on content in the information age," Richard A. Segal, managing director of Hensley Segal Rentschler, a Cincinnati marketing communications firm, told the New York Times (7-7-97). "People are willing to pay up to $1,500 a year for eight pages of typset text." Now newsletters are striving to expand their profitable business on the Web, which has the potential to become the most efficient direct-marketing tool ever available. The key obstacle? The same problem facing Web magazines and other content sites--how to get consumers to pay for online material. According to the Newsletter Publishers Association, some 40 percent of all newsletter companies have established Web sites and are trying to develop strategies that work online. The popular business newsletter Kiplinger Washington Letter, for example, has created a Web version that seems to be on the right track. Although founded in 1923, the newsletter is no coward of change. "We have redefined ourselves not as a print publisher, but an information and advice business, providing content to readers the way they want to get it," explains Knight Kiplinger, president of Kiplinger Washington Editors, Inc. The company launched an online version of its newsletter two months ago, offering subscribers delivery via the Net for the same annual price of $73. "About 3,000 have switched," Kiplinger says, "and even though that represents just over 1% of our readership, we are gratified by the response." (Copyright Information, Inc. Courtesy MCI.)

New York Times: http://www.nando.net

Upcoming Events

For more information on these and other regional events of interest to netpreneurs and funders, visit the Netpreneur Exchange calendar at (http://netpreneur.org/calendar/calendar.htm).

July 15-----How to Take a Company Public
July 16-----Richmond Venture Capital Club Lunch
July 16-----Electronic Entertainment Expo: Financing New Media (in Atlanta)
July 16-----Venture Capital Alternatives
July 22-----Growing Your Business with the Internet
July 22-----Early-Stage Venture Capital 1997
July 23-----Netpreneur Program Coffee & DoughNets
July 24-----NVTC Titans of Technology
July 27-----Beyond Virtual: Real Opportunities Real Solutions
July 31-----Making Money With Your Technology
Aug. 4------Electronic Commerce Security Conference


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