BizTech has 'magic' touch with startups

Sunday, June 03, 2007

By MARIAN ACCARDI

Times Business Writer accardi@htimes.com

Incubator marks 10th year, plans endowment effort

Halo Research, a new company that has developed a device that uses wireless technology to monitor the health of the elderly, moved into BizTech in April.

The incubator for technology-focused businesses has already helped Halo Research refine its business plan, devise its market-entry strategy and make contacts with local investors, said Chris Otto, the company's president and a recent master's graduate of the University of Alabama in Huntsville's Department of Electrical and Computer Engineering. The proof of concept for the product was developed in collaboration with UAH as part of Otto's master's thesis.

Halo, incorporated last October, is among 18 current clients of BizTech, which celebrates its 10th anniversary this month. BizTech provides mentoring, access to investors, training, a network of contacts and business support services to help startup and developmental-stage companies. It's on Sparkman Drive in the northeast corner of Cummings Research Park.

Since BizTech was launched in June 1997, it has incubated 54 companies and admitted 38 as clients. Seventeen companies have graduated from the program.

Of the companies brought into the BizTech program over the years, "more than 60 percent are still alive," said Dick Reeves, president and CEO.

Over the last 10 years, BizTech's client firms have also:

Generated $93 million in revenue.

Paid $43 million in payroll.

Raised $20 million in capital.

"It's an exciting time at BizTech," Reeves said. "The floodgates have opened for prospects for us. We have admitted six companies in the last three months. Usually that's a whole year's quota for us."

Typically, clients stay with BizTech for three years.

Madison-based dealnews, which joined BizTech in March 2000 with a staff of three, stayed only for a little over a year because it outgrew its space at BizTech's former location at Calhoun Community College, which was at capacity.

The company was started by Daniel de Grandpre and Richard Moss, friends since middle school in Huntsville. They both returned to Huntsville and were in business here a couple of years before moving into BizTech. BizTech's "magic," said de Grandpre, is its ability "to bring in people who can understand your business and help it strategically."

"BizTech is all about building relationships and contacts."

Dealnews, which now has 18 employees, has 1.5 million unique visitors to its Web site each month. It was ranked 24th in PC World's 100 Best Products of 2006 list.

Things are moving ahead for Halo - founded by Otto; Chirag Patel, vice president of Web development; and Dr. Brent Wren, vice president of marketing, who's an associate professor of marketing at UAH. In the next five to six months, an advisory panel of seniors will wear the devices for 60 days during a pilot program for the product.

The Halo team won second place in the inaugural Alabama Launchpad Initiative, a statewide business plan competition. Otto recently received a $50,000 check from Alabama Launchpad representatives.

The entrepreneurs also met with members of the Huntsville Angel Network - an association of about 40 people formed to make equity capital investments in early-stage and developmental companies in the Huntsville area - and are now in the due-diligence process.

Reeves expects more help for entrepreneurs as the Huntsville Angel Network continues to expand. "That group will grow, hopefully to 75 to 100 investors, in the next few years," said Reeves, the network's chairman and executive director.

In 2006, the network announced angel investments to two local companies, Applied Genomics Inc. and Monte Sano Pharmaceuticals Inc. Reeves expects possibly three or four investment announcements this year.

To help finance BizTech's future independence, a $5 million endowment campaign will be launched in July.

"We can only collect about a third of our operating budget by charging fees to our clients," Reeves said. BizTech clients pay a monthly fee for services beginning at $250 a month, 50 percent of which is deferred during the first 12 months.

"We're starting this endowment campaign to secure BizTech's financial future."



BizTech has 'magic' touch with startups Sunday, June 03, 2007 By MARIAN ACCARDI Times Business Writer accardi@htimes.com Incubator marks 10th year, plans endowment effort Halo Research, a new company that has developed a device that uses wireless technology to monitor the health of the elderly, moved into BizTech in April. The incubator for technology-focused businesses has already helped Halo Research refine its business plan, devise its market-entry strategy and make contacts with local investors, said Chris Otto, the company's president and a recent master's graduate of the University of Alabama in Huntsville's Department of Electrical and Computer Engineering. The proof of concept for the product was developed in collaboration with UAH as part of Otto's master's thesis. Halo, incorporated last October, is among 18 current clients of BizTech, which celebrates its 10th anniversary this month. BizTech provides mentoring, access to investors, training, a network of contacts and business support services to help startup and developmental-stage companies. It's on Sparkman Drive in the northeast corner of Cummings Research Park. Since BizTech was launched in June 1997, it has incubated 54 companies and admitted 38 as clients. Seventeen companies have graduated from the program. Of the companies brought into the BizTech program over the years, "more than 60 percent are still alive," said Dick Reeves, president and CEO. Over the last 10 years, BizTech's client firms have also: Generated $93 million in revenue. Paid $43 million in payroll. Raised $20 million in capital. "It's an exciting time at BizTech," Reeves said. "The floodgates have opened for prospects for us. We have admitted six companies in the last three months. Usually that's a whole year's quota for us." Typically, clients stay with BizTech for three years. Madison-based dealnews, which joined BizTech in March 2000 with a staff of three, stayed only for a little over a year because it outgrew its space at BizTech's former location at Calhoun Community College, which was at capacity. The company was started by Daniel de Grandpre and Richard Moss, friends since middle school in Huntsville. They both returned to Huntsville and were in business here a couple of years before moving into BizTech. BizTech's "magic," said de Grandpre, is its ability "to bring in people who can understand your business and help it strategically." "BizTech is all about building relationships and contacts." Dealnews, which now has 18 employees, has 1.5 million unique visitors to its Web site each month. It was ranked 24th in PC World's 100 Best Products of 2006 list. Things are moving ahead for Halo - founded by Otto; Chirag Patel, vice president of Web development; and Dr. Brent Wren, vice president of marketing, who's an associate professor of marketing at UAH. In the next five to six months, an advisory panel of seniors will wear the devices for 60 days during a pilot program for the product. The Halo team won second place in the inaugural Alabama Launchpad Initiative, a statewide business plan competition. Otto recently received a $50,000 check from Alabama Launchpad representatives. The entrepreneurs also met with members of the Huntsville Angel Network - an association of about 40 people formed to make equity capital investments in early-stage and developmental companies in the Huntsville area - and are now in the due-diligence process. Reeves expects more help for entrepreneurs as the Huntsville Angel Network continues to expand. "That group will grow, hopefully to 75 to 100 investors, in the next few years," said Reeves, the network's chairman and executive director. In 2006, the network announced angel investments to two local companies, Applied Genomics Inc. and Monte Sano Pharmaceuticals Inc. Reeves expects possibly three or four investment announcements this year. To help finance BizTech's future independence, a $5 million endowment campaign will be launched in July. "We can only collect about a third of our operating budget by charging fees to our clients," Reeves said. BizTech clients pay a monthly fee for services beginning at $250 a month, 50 percent of which is deferred during the first 12 months. "We're starting this endowment campaign to secure BizTech's financial future." © 2007 The Huntsville Times © 2007 al.com All Rights Reserved.