Title	High-tech incubator has new 'nest'
Date:	3/31/2001
Author:	Mark Van De Kamp
Source:	Santa Barbara News Press

Desks are being arranged and phone and Internet wires strung for the imminent opening of the Santa Barbara Technology Incubator's new quarters.

The company has moved from its old digs on Nopal Street into a renovated 26,000-square-foot warehouse at 402 E. Gutierrez St., the former home of a cellular phone repair operation. Crews are busy putting in the finishing touches.

Inside the spacious building with high, arched ceiling and open trusses is plenty of room for short-term rental by new companies ready to hatch, and for young firms to grow.

SBTI is headed by Dennis Cagan, chairman and chief executive officer. His company's goal is to coach a bunch of startups that have earnings potential, gaining little pieces of equity in many, hoping that one or more hits the big time. That would pay off big for SBTI stockholders.

Companies who set up shop can be either incubation candidates or simple tenants. Investment, recruiting, management consulting, Web marketing, technology consulting, fund-raising and other services are part of what a company gets if SBTI invests in them and incubates them. In return, SBTI takes part ownership. If a company is a tenant, it gets office space including basic phone service, utilities and high-speed Internet access.

The Gutierrez center has two large rooms honeycombed into offices and workstations. Reception is up front. There are plenty of conference rooms and a kitchen and dining area, bathrooms, even a game room.

SBTI's original plan called for eight investments in the first year. It has made seven and is considering making two or three more by the end of April. The company is now incubating five companies, Cagan said.

None are expected to be profitable yet, he said. One has raised additional capital and three more will be looking for more financing in the next three months.

"As far as SBTI is concerned, we only need one modest success in terms of liquidity -- either acquisition or IPO -- because of the modest amount of capital that SBTG has raised," Cagan said. "Even a small success would pay back our investors their principal and a profit."

Among the companies using the new location are:

• SBTI and Santa Barbara Technology Group, a holding company that includes SBTI.
• Epidemic Networks, offering peer-to-peer computing technology.
• Virtual Bandwidth, in communications software technology.
• New Entrepreneur Venture Fund, a new concept in venture capital.
• Ants.com, an Internet application service provider for sales and contact management.
• Vistera, an Internet application service provider for hotel management.
• Worth Ethic, an international consulting firm on corporate culture and organizational management.
• Atlas Consulting, in software technology and engineering.

  There's enough room for a couple of dozen more companies, depending on how many employees they have. Any of them can set up shop for three, six or 12 months maximum. Terms are negotiable, said Jim Acos, president of Santa Barbara Technology Properties LLC. He said the flat fee is $775 to $950 per month, which includes a bundle of services plus parking spaces.