March 12 , 2002 ~ v.4, n.10

Sand Dollar Report 2002 Executive Summary

In 2001, venture investments nationwide declined significantly, in keeping with the weakness in market demand, worsening business conditions, decline in technology stock values, and the failure of Internet-oriented business models. Consistent with the national picture, the Greater Los Angeles Metropolitan region (or "Southern California," as we call it in this report) also witnessed a rapid decline of venture investments, as we predicted in last year's Sand Dollar Report. From 2000 to 2001, there was a 54% drop in the number of investments and a 73% drop in the dollars invested. Despite this, however, the venture industry of Southern California has emerged with newfound strengths that may serve the region's technology industry well.
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~Available Today from Larta:

The Sand Dollar Report 2002: An Analysis of Venture Investing in Southern California
(featuring Data from the MoneyTree survey)

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Larta is the think tank for technology businesses. We apply knowledge in practical ways on behalf of cutting edge companies, investors, governments, and professionals. Larta drives the technology markets through four core activities: business training, market research, consulting, and capital/knowledge conferences.

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Eight years after the initial Larta report on the venture capital industry of Southern California (1994), the region has undergone a considerable transformation, reflective of the sea change in the regional economy itself. Southern California is one of the most diverse economies in the country, and, not surprisingly, has the most diverse venture capital investments of any comparable region in the country. And while venture investors in the region have been on a recent roller coaster of rapid growth and even more rapid decline, many of them remain optimistic, yet realistic, about the opportunities ahead. This report on the venture capital industry of Southern California features comprehensive new information and data (including regions of San Diego and Santa Barbara), with interviews from leading investors in the region.

Interviewees Include:

Brad Jones, Founding Partner, Redpoint Ventures
Joel Balbien, Managing Member, Smart Technology Ventures
Ted Alexander, General Partner, Mission Ventures
Bridget Karlin, Senior Director, Redleaf Group
Sydney Edwards, Principal, TL Ventures

read the executive summary >
email Thor Kendall to purchase a full copy of the report

~Other Articles

Topic: Digital media
From Showest 2002: D-cinema conflict (Hollywood Reporter)
Last year, at ShoWest 2001, Technicolor Digital Cinema announced its partnership with Qualcomm, declared itself the solution to the d-cinema conundrum and promised to seed the market with 1,000 digital systems in the following 12 months at no initial cost to exhibition. Those 12 moons have come and gone, and to date, Technicolor has installed a mere 10 systems across the country.
full article >

~Larta Events

March 20 & 21: Larta University, Attracting Capital
This workshop covers various aspects and opportunities available to companies interested in attracting capital. The class will cover the different types of financing options, and the pros and cons of each of those, from government funding, to loans, to all stages of VC financing, and how to decide what type of capital a business is best suited for. This session will also address how to pitch a company, and how to negotiate business deals. The workshop is led by a panel of investors, with practice pitch sessions performed.
more information >

April 18th: Southern California Technology Venture Forum
Knowledge and Investment Conference
Come to SCTVF 2002 to learn about emerging markets--including nanotechnology, security technologies, and bioscience. Renowned keynote speakers will present industry analyses on these emerging markets, followed by a select group of companies representing the best technologies in Southern California. SCTVF is the meeting point for anyone who needs to know about the state of cutting-edge technology--venture capitalists, corporate investors, private investors, analysts, corporate executives, and entrepreneurs. 7:30 am-2:30 pm, Regent Beverly Wilshire, Beverly Hills, California.
more information >

~Announcements

Call Center for sale
Larta is selling a Harris 20-20 Call Center, including switch, control station, and 40 government spec phones. This top-of-the-line call center includes a dual tower, redundant switch, which can handle 1000 simultaneous incoming and outgoing phone calls. Bought in 1998 for over $400,000 and used for only a few months (estimated having ever handled only 1000 calls TOTAL), the Center includes videos, manuals, etc. Dozens of photos of the unit can be seen at here. Contact Steven Klein at sklein@old.larta.org to make an offer or get further details. Selling for $75,000 or best offer.

Nominations Now Being Accepted for the 2002 Ernst & Young Entrepreneur Of The Year Awards
In 22 countries around the world, Ernst & Young presents its Entrepreneur Of The Year award to the most successful and innovative entrepreneurial business leaders around the globe. The winners are selected by an independent judging panel in each country. Winning this award can enhance your reputation, bolster employee morale, and even improve your lender relations! All Entrepreneur Of The Year winners become a lifetime member of The Entrepreneur Of The Year Hall of Fame, part of the Entrepreneur Of The Year Institute and are invited to the World Entrepreneur of the Year awards, which will be held next in June 2002. Call 213.977.3103.
more information >

This events calendar is provided as a service by Larta about events vetted and endorsed by Larta.

March 11-14: SBIR Conference
Learn How to Tap into a Billion-Dollar Business Resource at the National Small Business Innovation Research Conference. Small businesses can learn how to apply for, and what it takes to win, some of the $1+billion in U.S. Government R&D investments at the March 11–14, 2002, National SBIR Conference in Anaheim. This conference offers some new features and sessions to address the questions and concerns of small businesses that want to learn more about SBIRs and of those who are already successful in Phase I and are looking to move forward into financing, partnering and commercialization. We've built more time into the agenda for substantial agency presentations and networking opportunities. Because the SBIR program is meant to help small businesses from start (concept and R&D) to finish (commercialization), we've included programming to help you identify what you need to do from the start to help you position yourself and your company to advance successfully to Phase III. Hyatt Regency Orange County Hotel Anaheim, CA.
more information >

March 23: Caltech MIT Enterprise Forum, Venturing in Proteomics and Bioinformatics
In this program, The Caltech/MIT Enterprise Forum looks at the venturing potential in proteomics and bioinformatics and examines what it will take for a new venture to thrive in this complex and emerging industry. A distinguished panel of scientists, investors and biotech entrepreneurs considers the viability of starting new ventures while reviewing the plans, progress and business potential of two emerging proteomics companies.
more information >

March 26: 4th Tuesday Technology Exchange, Emerging Security Threats for Global Enterprises
This discussion will focus on where the new security threats exist today and where they will evolve in the future. Attendees of this discussion will obtain knowledge of past, current and future network security vulnerabilities. The discussion will detail the impact to organizations in the areas of risk, liability, costs and employee productivity. The featured speaker is Kevin Moylan, CIO of Vidius.
more information >

March 26: CalTIP 2002 Workshop in San Diego
CalTIP is a grant program that can provide up to $250,000 in state funds for California companies who have won federal technology awards to commercialize their technology. The 2002 solicitation opens in March, and these hand-on workshops, held at two San Diego locations, will help guide you through the application process to increase your chance for success; will include essential tips not in the solicitation, everything about the application process, advice from a former winner, and advice from a past reviewer. The March 23 workshop takes place in downtown San Diego, and there is also an April 3 workshop that takes place in the North County of San Diego.
more information >

April 4: Lava Investment Capital Conference
This event provides an opportunity to meet the resources you need to finance a high growth company. Presenting 65 speakers and 70sponsors that provide debt & equity, public & private financings from $500k to $500 million, including Steve Forbes, President and CEO, Forbes, Leo Spiegel, General Partner of Mission Ventures, and Donald Straszheim, Former Chief Economist, Merrill Lynch & Co.
more information >

April 18: Strategies For Biomedical Companies In the European Market
ACET Incubator, the Bay Area World Trade Center and the California Technology, Trade & Commerce Agency present a discussion of business development, legal and regulatory strategies for small to medium-size California biomedical companies venturing into the European market. Oakland Asian Cultural Center-Conference Facility, 388 9th Street, Suite 290, Oakland, Ca. Attendance Fee (includes lunch): $125 per person. Contact Jennifer Juo, trade manager, ACET incubator, 510-749-6873 or juo@greenstart.org.

April 29-May 1: National Nanotechnology Initiative: From Vision Towards Commercialization, in Washington D.C.
 The National Nanotechnology Initiative, the Federal government's investment in the future of nanotechnology, serves as a major force in shaping the direction of the Nation's nanotechnology research and development activities. Dr. Michael Roco and key representatives from the departments and agencies participating in the NNI, the six nanoscale science and engineering centers, and several important government laboratories will provide a comprehensive, in-depth status report and outlook for NNI research, including budgets, priorities, research projects, outcomes and prospects for commercialization at the upcoming conference. Speakers include Lynn Foster, Larta's Director of Technology Consulting.
more information >

May 6-7: Wireless Internet 2002 at UCLA
This second annual Wireless Internet 2002 conference will cover vital topics and technologies essential for the development of business models and platforms in the wireless sector. Join key wireless industry leaders, researchers and executive-level attendees to discuss how innovations in mobile technology will impact enterprises and businesses.
more information >

Larta's full event calendar >

 

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