Title	Deja View: Envenergy
Date:	10/3/2001
Author:	Shelly Escalante-Cone
Source:	Silicon 2.0

In the midst of energy deregulation, several elements came together to put Envenergy at the forefront of a drastically changing market.

Incorporated in June of 2000, the industry saw increasing energy prices and overwhelming energy use combine with energy deregulation, creating a need for companies to manage their energy use—and ultimately—their bottom lines.

Envenergy describes its product as a proactive way to reduce energy spending, react quickly to market challenges, and identify problems at an early stage. President and co-founder Edmund Richards said the company is involved in innovative technology.

"We're in a space that doesn't exist today. It's just emerging," he said. And opportunity abounds.

Richards said deregulation occurring globally has created a demand for new and improved technology. Companies can track, manage and control-in real time their energy usage via Envenergy's open-platform MPX Gateway.

The trademarked MPX-Multi-Protocol Exchange platform sits on a Web-based Linux operating system. MPX also allows utilities to more precisely predict consumer energy usage.

MPX uses Internet protocol as the true standard for communication across diverse networks, an approach designed to deliver a seamless enterprise-wide solution quickly and cost-effectively. Mike Cruse, co-founder and chief technology officer, said the market has shown a need for this type of technology.

"There is tremendous pressure in the market for an enterprise-wide technology that has the right combination of broad network capability and strong security," he said. "The MPX is a crucial infrastructure technology for solving problems of both energy users and energy suppliers," Cruse said.

Envenergy, a profile company with the Santa Barbara Technology Incubator Group, has more than doubled its workforce since incorporating last year, and grown as a team, Richards said.

"One year ago, we had just formed, and we faced the toughest financial climate people have ever seen," Richards said. Making it through that period, Envenergy has already received its "series B" funding. The company has spent most of its seed capital in software and hardware development and is seeking investors. "The funding will go to finishing product development on our 1.0 product to be released Oct. 1.”

Negotiations with several national and local investors for $12 million in additional funding were halted at press time. Final negotiations were to take place the week of the terrorist attacks on the Pentagon and World Trade Center but were stalled in light of those events and the uncertainty of the market.

Company: Envenergy When: Incorporated June 2000 Who: Edmund B. Richards, president and co-founder Why: To provide a solution for companies to track, manage and control their energy usage Where: Santa Barbara Number of employees one year ago and today: 18/26 Most important thing I learned in the last 12 months: "To remain focused on what our real vision is during the environment of tough times around us."

Biggest success during the last year: "The demand for what we're doing. We've seen tremendous demand from the market globally…coupled with the ability to capture venture capital."

Biggest lesson learned during the last 12 months: "We argued and negotiated and beat up (each other) internally to determine where our niche is. We probably could've done that quicker, but given the tough times with the economy, I don't think we could've helped that."

Words of wisdom to other startup ventures: "If you really believe in what you're doing, keep your head down and keep doing what you're doing. If you're out to make a quick buck, forget it; you're not going to do it.

In another year, this company will be: "We will have 45-50 employees. We will be a year into profitability and hopefully have a very global presence.”

Check us out on the Web at: www.envenergy.com