Week in Review: Southeast’s Entrepreneurs Are Alive and Well

What a difference a week makes. Weren’t we just marveling at the number of stories heralding the tech industry’s return to seriousness, and the possible connection to the recent downturn in venture deals and entrepreneurial interest? But last week the tech community began to move in a different direction, as the number of start-up and entrepreneur stories dramatically increased.

Maybe the industry was gearing up for this past weekend’s Lulu Tech Circus event organized by Bob Young, serial entrepreneur and founder of Red Hat, which focused on the possibilities of technology in the future, but last week’s tech announcements were all about following new paths.

Veteran entrepreneur Salim Bhatia, formerly of Broadband Technologies and MindLever, took over the reins at Trinity Convergence, a startup focused on the emerging voice over Internet Protocol field that recently closed on $4.5 million in venture financing. Why jump into another startup after running three companies? “I like to get involved in major discontinuities,” he said, referring to finding a product that discontinues the need for another company’s product or service.

That same drive for achievement and accomplishment inspired 16 female
technology executives to make funding pitches to about 100 possible
investors at a Springboard Enterprises forum held last week at the
University of North Carolina’s Kenan-Flagler School of Business. The
speakers had completed a two-month “boot camp” training program run by
Springboard in preparation for their appearances. But Amy Millman, president of Springboard, said the program isn’t just for women: “This is the model for how all entrepreneurship and fund-raising training should be. Women just happen to be our first vertical [market].”

The pitches for venture capital seem to be continuing unabated, despite September’s slowed-to-a-trickle funding atmosphere. The Metrolina Entrepreneurial Council’s Business Plan Competition in Charlotte drew so many high-calibre entries that the planned five to seven winners was expanded to eight, all of whom will make their cases for investments at MEC’s sixth annual Capital Access Conference on October 25.

Many announcements last week underscored the possibilities of new business opportunities, including the Golden Leaf Foundation’s plans to invest $100 million in the North Carolina biotech industry over the next six years, PeopleClick’s plans for a future IPO, and LVL7’s $12.5 million oversubscribed second round of funding.

There are always risks for startups – just last week LipoScience once again held back on its IPO, and AppGate was paralyzed overnight when its VC backed out of a funding round – but the high tech industry appeared to be willing to take those risks with the moves it made last week.

QUOTES OF THE WEEK:

“People had gotten kind of complacent. No matter what you bought it went up. It was greediness. – Jenny Kobin, investor relations director for SciQuest, on investors

“At the end of the day all anyone cares about is your numbers. If you have a great story but don’t show them numbers you lose their attention. – Gabriel Szulik, IR manager for Red Hat on quantitative analysts

– “You don’t see that pie-in-the-sky research going on anymore. The labs have to justify their costs, and they don’t fund any projects that don’t work into the business plan.” – Jerry Woodall, professor of electrical engineering at Yale University and former IBM executive in semiconductor research

“It was almost like whiplash. One Friday night, the managers went out and celebrated. … By the (following Wednesday), we had fired everyone.”– Mihail Lari, former CEO for now-defunct Electrifier

“Venture capitalists are smart and are great thinkers who are experienced in mergers and acquisitions and funding, but usually have little knowledge of the day-to-day nuances of running a business. They have never directly experienced what goes on behind the scenes.” – Nick Kottyan, recently stepped down as CEO of Peak 10

“A lot of people have been holding back but now are looking at
replenishing their infrastructure, which will spur the recovery.” – LVL7 Systems President Ernie Baker

TELECOM & NETWORKING:

September 25: Sony Ericsson Unveils New Phone, Wireless Headset www.localtechwire.com/article.cfm?u=2039&k=28&l=16

LIFE SCIENCE & BIOTECH:
September 27: Golden Leaf Expects To Pump $100M into Biotech Over Next Six Years www.localtechwire.com/article.cfm?u=2076&k=27&l=18

September 26: UNC Wilmington Signs Tech Transfer Agreement With aaiPharma www.localtechwire.com/article.cfm?u=2067

September 26: LeukoMed Moving Ahead With Development of Two Drugs www.localtechwire.com/article.cfm?u=2055&k=29&l=17

September 25: Another Deal for Serenex: Chiron Signs on To Use Drug Discovery Technology www.localtechwire.com/article.cfm?u=2040&k=28&l=16
September 25: Triangle Pharmaceuticals Wants To Raise $80M in Stock Sale www.localtechwire.com/article.cfm?u=2042&k=25&l=16

September 24: LipoScience IPO
Held – Again www.localtechwire.com/article.cfm?u=2032

September 24: Duke Researchers Team Up To Develop
Technology That ‘Turns Off’ Drugs www.localtechwire.com/article.cfm?u=2029&k=27&l=15

September 23: Summit To Focus on State of Georgia’s Life Science
Industry www.localtechwire.com/article.cfm?u=2020

ON THE VENTURE FRONT:

September 26: Rolling Sevens: LVL7 Wins $12.5M in Oversubscribed Second Round www.localtechwire.com/article.cfm?u=2058&k=29&l=17

September 26: Female Execs, Their Firms Target Investors at Springboard Event www.localtechwire.com/article.cfm?u=2059&k=26&l=17

September 25: Capital Access Conference To Present Venture Funding
101 www.localtechwire.com/article.cfm?u=2043&k=28&l=16

September 25: No Deal: Durham Firm Collapses After VC Backs Out of
Funding Round www.localtechwire.com/article.cfm?u=2044&k=28&l=16

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