I attended the Colorado Software and Internet Association’s
(http://www.coloradosoftware.org) 2001 APEX Awards at the
Paramount Theater on May 17. Coors provided the beer, and there was food
upstairs and down. I saw people from all the nominated companies, including Zoa
Techmedia (http://www.zoetechmedia.com),
Spire (http://www.spiremedia.com), and Via West
(http://www.viawest.net). The ceremony featured some very cool 3-D multimedia
effects developed by Digital Metropolis (http://www.digitalmetropolis.com)
using software from Anark (http://www.anark.com). Brian Smith, president of
Sonant Communications (http://sonant.net), joined me during the presentations.
Check out the list of winners: http://www.coloradosoftware.org/calendar/apexfinalists.htm.
After the APEX Awards were over, Dick Pankoski, president/CEO of
Strategic Development, and Adam Martone from GreenRamp Software (http://www.greenramp.com), persuaded me to take the 16th Street
Mall shuttle down to LoDo to catch SchmoozeIt, the semi-annual event put on by
interactive marketing agency LH3 (http://www.lh3.com). Just one problem: it was
raining, and none of us had raincoats or umbrellas. When we got off the bus, we
all huddled under Dick’s coat and slogged our way several blocks to Sevilla's
at The Icehouse. It was definitely a lively place--more than 500 people packed
into the grotto-like club. Some of them were among the recently unemployed, but
their partying abilities were not compromised in the least. I left early to get
back to Boulder for the 10th Anniversary gathering of the Boulder Media Women.
Julie Jacobs of PHD Management Group (http://www.juliejacobs.com) was kind
enough to give me a ride back up to my car, so I didn't have to deal with the
bus or a taxi. I was told SchmoozeIt continued on until nearly 11 p.m. There
was dinner, a fashion show, dessert, music and dancing.
On May 23, I went to the Omni Interlocken for the Internet
Chamber of Commerce meeting (http://www.icc.org). Six hundred people
attended, give or take a 100. (You can see a list of everyone who signed up by
going to http://data.icc.org/cgi/rsvp/showfields.pl?A052301). Mostly we
mingled and checked out the exhibitors.
I saw the Spire guys, CEO Mike Gellman, Director of Marketing and
Business Development Brandon Shevin and Jaxon Repp (don't know what he
does, but they let him come). Erich Stein, head of Erich Stein
Communications (http://www.erichstein.com) was there, so we discussed PR stuff
with Richard Sharp, a partner with TrueTrek Communications
(http://www.truetrek.com). I met Hillary Lane, a writer for Harmonic Telecom
(http://www.harmonicinc.com), whom I knew through email, but had never met. I said hi to Dan
Murray, who recently became marketing director of Persona (http://www.persona.com). I also chatted
with Natalie Pyle, a technical recruiter with Hall Kinion
(http://www.hallkinion.com/).
The next morning, May 24, I had to be up bright and early to
attend the Boulder Technology Incubator (http://www.btionline.org) annual
awards breakfast. It was held in Longmont at the Raintree Inn. I was a
few minutes late, and everyone was already seated. So, there was no time for
mingling. Catharine Merigold, a principal with Vista Ventures (http://www.vistavc.com), was at
my table.
The big news of the morning was that the Boulder Technology
Incubator is becoming the Colorado Technology Incubator. President Lu Cordoba made the announcement. She talked about various programs (the Colorado
Technology Alliance, the Colorado Technology Angels, the Colorado
Technology Foundation) and how they would be expanding statewide. There
would also be a
CTI-Longmont and a CTI-Boulder.
There was a panel discussion about mergers and acquisitions.
Among the comments:
Matt McConnell, director of engineering, aggregation business
unit, Cisco Systems (http://www.cisco.com), said that Cisco has made 63
acquisitions in 10 years. Ninety-seven percent of acquired employees had
remained with Cisco at the two-year point. He recommends that when companies seek to
be acquired, management should keep their employees informed
because the employees are likely to talk. And they probably have erroneous ideas of the
acquisition process.
Brad Feld, principal managing director of Softbank Venture
Capital (http://www.sbvc.com), said that the days of VCs selling
companies because they didn't know what else to do with them has ended.
Valuations are no longer high. He also mentioned that selling to someone who
has never bought a company before is a nightmare right now. And selling to
a someone who has done two deals which have gotten screwed up is a bigger
nightmare.
He talked about having his first company acquired and about how
he went from being king of a 20-person company to one of 35 general managers. Even
if you don't fit into to the new culture, fighting it destroys the value you brought to the merger. When asked how a company can become an
attractive acquisition candidate, he suggested you dress up fancy, take a
shower and cut your hair. He cautioned against telling everyone in your
company every detail as the deal progresses. It can be unsettling, and if the
company is public the situation is even more sensitive. But waiting to the
very end can also be problematic.
Mike Franson, a partner with The Wallach Company
(http://www.wallachco.com), said that revenue without profitability is meaningless. Before
being bought out, negotiate a very good employment contract. Value is in the
eye of the people with the checkbooks; they decide what they are buying and
why. Make sure you consider all potential buyers. Even then, you are
probably overlooking some. Publicizing that you are available for sale
may bring in buyers you hadn't considered. But then again, if you do that and
no one buys your company, people may begin to wonder what is wrong with it.
John Stewart, CFO for MyPoints.com (http://www.mypoints.com),
said that a year after an M&A, 75% of the companies involved said they
had regrets. Never do a deal with someone you don't trust or like. Before entering
into negotiations, make sure everyone is willing to sell. He recommends that you
keep your negotiations private during the letter of intent period. If you tell too many people, you risk
derailing the deal. Bring in a PR firm the day before the deal is going to
be announced in order to
go over it with employees and to prepare them for upcoming
changes.
When the event was over, I said hello to Erika Brown, founder of
NetGoddess (http://www.netgoddess.com).
She was talking to Jana Matthews, founder of Boulder Quantum Ventures
(http://www.boulderquantumventures.com). On my way out, I stopped at the EnergyWindow (http://www.energywindow.com)
table and met Jack Mason and Mike Usrey. Check eMileHigh
(http://www.emilehigh.com) next week for my article about the company.
That afternoon I went to a presentation and cocktail hour at the
Denver Athletic Club. The even was promoting the upcoming ITEC Expo
(http://www.goitec.com) June 27 and 28 and the Colorado Internet and Software
Association's role in the event. I hadn't been to the Denver Athletic Club in years, so it was fun
to check it out – even though I didn't have time to see much. A big plus with that location is
the convenient (and cheap) parking. The presentation was all about getting the most out of trade
shows. Lots of useful tips.
