On May 5, 1999, Claremont McKenna College in Claremont, California was host to the 10^th Semi-Annual Investment Conference presented by the California Venture Forum. A non-profit California corporation, the California Venture Forum has successfully hosted entrepreneurs, venture capitalists, investors and patrons of economic growth to meet and discuss business since 1989. In the last 5 years, participating companies have successfully raised more than $20 million, with a significant 50% having received at least partial funding.

This latest Venture Forum featured Messrs. Charles Berman and David Perry of the internationally recognized law firm of Oppenheimer Wolff & Donnelly as keynote speakers. Both gentlemen spoke well regarding intellectual property and corporate law, alternating in their discussion on the valuation of proprietary intellectual property, attracting investment capital through the development of technologies, and an analysis of exit strategies. Mr. David Perry hit a chord when he told the presenters to ask for too much money when seeking venture capital, because money flushes out the interest of the potential investor. An entrepreneur might not be as successful in subsequent rounds of financing when a financial analyst may be looking at the deal more critically. Additionally, he mentioned the importance of having a cultural fit. Other questions to ask yourself: How are you getting out of the deal? If the goal of the larger company is to own your company, how will you get paid in the future? By sales? By profit? By rate of growth? Which factors value the company? Finally, he wisely mentioned that you need an exit strategy. If the relationship is not going well, how do you release your investor and regain control of your company?

Moderator Timothy D. Williamson from Ernst & Young, LLP, introduced the presenters. Ernst & Young, also an event sponsor along with other notable organizations such as Edison International, NASA Commercialization center, South Coast Air Quality Management District, and City National Bank among several others, helped to bring this event to fruition.

The Presenters Were Advanced Communications Engineering by G. Gordon Apple, Ph.D. American Medical Wireless, Inc. by Jack Appleman California Car Wash Company by Larry Hudson Cert-A-Roof by Jim Cherry Fuel Efficiency Systems by David T. Snyder HyperDrive.com by Dean Wallraff Language Systems, Inc. by Christine A. Montgomery, Ph.D. Logic Team, Inc. by Richard Oberreiter NuCom Integrated Technologies by Bruce P. Nuanes SpeechLaw, Inc. by James N. Cover, J.D. TechnoConcepts, Inc. by Ronald M. Hickling, M.S. 2ShopIt.com by Daniel A. Frahm

All of the entrants had entrepreneurial ideas, but two Internet companies -- 2ShopIt.com and HyperDrive.com, and one software company, Logic Team, Inc., particularly caught our attention as interesting up-and-coming companies.

Based in Aliso Viejo, California, 2ShopIt.com delivers groceries, dry cleaning, film processing, and video rentals direct to homes. Their target audience is busy, suburban families, and in a phrase, "2ShopIt.com intends to turn strip malls into ghost towns!" Their goal is to turn the grocery industry into what Amazon has already done to the brick and mortar booksellers.

HyperDrive.com sells educational and entertainment multimedia software on the Internet. Based in Pasadena, California, HyperDrive.com has developed proprietary e-commerce software that allows it to retail approximately 3500 CD-ROMs and DVD-ROMs on the web> In addition to just selling, Hyperdrive.com has over 300 full reviews of CD-ROMs, written by a staff of independent reviewers.

Logic Team produces financial analysis tools designed for small and medium size businesses. The company has designed a proprietary expert system that integrates with Peachtree accounting software, the second largest producer of PC based accounting software, and is working on developing a similar relation with the industry leader, QuickBooks. The Newport Beach, California company made a tremendous presentation, with Chief Operating Officer Richard Oberreiter, making an effective case for not only Logic Team's future growth, but also a significant possibility of several exit strategies that could be potentially lucrative to investors.

Following the conference, attendees were invited to a combination buffet dinner and networking session. There the presenters demonstrated their products and discussed details on their business with attendees. This session provided an excellent opportunity for everyone to meet business and financial professionals on a casual, one-on-one basis.

According to Mr. Robert Velker, Event Director for the Southern California Venture Forum, the selection of presenters is a rigorous process. A committee of professionals, consisting of the California Venture Forum board, advisors, educators, investors, and venture capitalists reviews dozens of business plans leading to the event. Their reviews include an evaluation of market potential, economic issues (such as return on investment potential, etc.), competitive advantages, ability to erect barriers to competitors, strength of the management team, and the viability of the investor's exit strategy. In this latest Forum event, over 80 volunteers reviewed the business plans, with each plan receiving 3 reviews. Typically twelve business plans are selected to become presenters. Executives from the selected companies attend a one-day presentation workshop. The workshop is designed to prepare the executives for a formal presentation the night of the Forum Event. Selected companies make a seven minute presentation of their business plans before an audience comprised of investors, angels, bankers, venture capitalists, and other financiers representing over $320 million in investment funds. The result is an increased likelihood of financial and professional assistance for participants.

The California Venture Forum screens a substantial number of business plans and mentors dozens of companies in preparation for their semi-annual Presentation Forums. Participants fortunate enough to take advantage of the screening and mentoring process they provide have often times found new kinds of investment opportunities. On the other side of the aisle, investors are welcome to receive a preview package containing a company fact sheet and executive summary for each of the presenting companies.