Title	Concepts meet money at forum
Date:	5/26/2000
Author:	Ron Trujillo
Source:	Santa Barbara News Press

Or they could be business concepts that will fade into history.

Thirty entrepreneurs, from high-tech firms to a local retailer, detailed aggressive business plans and profit predictions Thursday at the fourth annual Central Coast Venture Forum at the Four Seasons Biltmore. About 385 people, including about 120 venture capital representatives, attended the daylong event, one of the largest in the region.

"It's amazing to see this type of forum for entrepreneurs and venture capitalists," said guest speaker Larry Barels, chairman of Driveway.com and founder of Wavefront Technologies in Santa Barbara. "We've seen so many changes in the market."

The South Coast's booming high-tech industry has lured more money in recent years from venture capitalists.

"We have all the fabric necessary for technology companies in this region to grow," said Terry Bess, executive vice president and manager of the Southern California Division of Silicon Valley Bank.

And the conference, featuring guest speakers and 15 firms with 10-minute presentations, could help attract more dollars. Last year, attending companies collected $40 million, said Steven Worzman, executive director of the Central Coast Venture Forum.

"We come in for a financial return," said Tom Gieselmann, partner with Bertelsmann Ventures in Santa Barbara. The German-based company has invested in local start-ups. "We don't come in to realize your dream, but to make a buck."

But new companies often depend on the dollars -- and the experienced investors -- for success, or in some cases, survival.

"These lessons aren't learned out of a book," warns high-tech and venture capital veteran Dennis Cagan, chairman and chief executive officer of Santa Barbara Technology Incubator, which is considering investments in numerous start-ups. The deals "take a lot of pain, agony and time."

But the pain could create a multimillion-dollar gain, as some companies enter global markets.

For some companies, the dollars needed are a few million, while others are seeking more than $20 million.

"This is not an idea, but an actual business," said John Wilczak, chairman of SinusPharmacy.com. The Santa Barbara-based company is hoping for $3 million from venture capitalists. "We're going to help millions of people dealing with the leading chronic sinus disease in the U.S."

With 37 million sinus sufferers in the United States, SinusPharmacy.com estimates revenue to increase from $4 million this year to $350 million by 2003.

High-tech company ants.com -- a business-to-business marketplace for outsourcing projects -- boasts 1 percent daily growth, or more than 30 percent per month, with projected revenue soaring from $678,000 this year to almost $63 million in 2002, said Rick Davis, president and chief executive officer. The Santa Barbara-based company is looking for $20 million in venture capital.

Despite the most recent downturn in the stock market, investors are looking for money-making opportunities in start-ups.

"Funds that are being raised now are bigger than before," Cagan said. "This crisis (with the market) will only be temporary."