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Week of August 7th, 1997
Issue 16, Volume II

NEWS ABOUT THE PROGRAM
1. Get In Front Of Over 40 Funders . . . Free!
2. Supersonic Boom Makes Noise At Netpreneur Program Events
REGIONAL NETPRENEURS
1. Proteus Signs Deal With Omnipoint
2. GEIS Unveils Enhanced Global EDI Over The Internet
3. InteliData Discounts E-Mail Smart Phones
4. Local MovieGuides At Digital City
PARTNERSHIPS
1. MCI and Progressive Launch net Broadcast Network
FUNDING & FINANCE NEWS
1. Venture Capital TO NETPRENEURS AT $600 Million THIS YEAR
2. Access Beyond And Hayes Microcomputer To Merge
3. Network Imaging Secures $11 Million in Equity Offering
QUICK HITS
1. New Magazine Focuses On The Digital South
UPCOMING EVENTS
1.Calendar


News About The Netpreneur Program

1. GET IN FRONT OF OVER 40 FUNDERS . . . FREE!
Our new "NET-INVEST Routing Service" is putting the business summaries of regional netpreneurs in front of some of the nation's top investors. The service uses the Netpreneur Program's exclusive NET-INVEST email discussion list to route these summaries to over 40 potential investors. The private NET-INVEST list is kept confidential; however, Fran Witzel, Director of Investment Services for the Netpreneur Program, explains, "NET-INVEST has recruited investors interested in net businesses from ranks that include angels, venture capitalists, investment bankers, merger and acquisition specialists, corporate business development and private incubators." He adds, "We have introduced the NET-INVEST Routing Service to help maximize the chances Washington, Maryland and Virginia netpreneurs have to find potential investors who are interested and knowledgeable about their business space."

Of the 11 summaries routed since late June, at least five netpreneurs have been contacted by potential investors from NET-INVEST. All five are pre-revenue, indicating interest by some NET-INVEST members in early stage investment opportunities. NET-INVEST Routing is in the earliest stages of development; still, the initial feedback from netpreneurs and investors has been encouraging and constructive. One netpreneurs commented, "So far, I have been very pleased with the structure, response time and the results." We are following up with participants and will enhance the service based on what we learn.

Starting today, netpreneurs in Maryland, Washington or Virginia can fill out a simple two-page form available on the Netpreneur Exchange Web site. Summaries will then be circulated to NET-INVEST and interested investors will contact netpreneurs directly.

Routing Service Profile Form: http://netpreneur.org/funding/netinvest
Netpreneur database: http://netpreneur.org/netcorner

While we're on the subject, netpreneurs, if you haven't done so already, check out the other regional funding networks such as the Private Investors Network (PIN), and the upcoming Mid-Atlantic Venture Fair described in the Netpreneur Exchange's Funding & Finance section.

http://netpreneur.org/funding

2. SUPERSONIC BOOM MAKES NOISE AT NETPRENEUR PROGRAM EVENTS
superSonic BOOM is making headway and headlines in the netpreneur community. At the April 30th "Positioning Yourself for Early-Stage Financing" Netpreneur Program event, they met David Gladstone, the dean of Washington's venture capital community and author of the books Venture Capital Handbook and Venture Capital Investing, who is now discussing an advisory relationship with them. They also met and were interviewed by the Washington Post and for a story after the event. "We have made numerous useful business contacts/potential strategic partners at the Netpreneur events. They've helped us to be in the right place at the right time," said Ted Hooban, President superSonic BOOM.

superSonic BOOM is the type of company that the Potomac KnowledgeWay Netpreneur Program was made for. A startup venture based in Arlington, VA, it was the first company to offer custom compilation CDs to music lovers via the Internet. It has also been developing superSonic Transport, its custom compilation CD technology. The company is now seeking new license agreements for repertoire from all genres of music for distribution via its Web site. They recently signed a major license agreement with TKO for great oldies tracks (they have a 30,000 track library).

The faces behind superSonic BOOM are well known at Netpreneur Program events, and their names recognized in discussion groups. They have gone the extra mile by getting out in the community, meeting people and doing their research. Hooban comments, "Even our pending seed finance deal is a direct result of the Netpreneur Exchange. I had found the investor on the Web site and sent an unsolicited message. We've been in discussions for several months now - it looks very close to going through." superSonic BOOM was also selected for a NBC News4 feature on the Netpreneur Program after one reporter met them at the "Barons of the Beltway" event, and they've been to every Coffee & DoughNets session since March.

Making connections is what the Netpreneur Program is all about, and it's gratifying to see it's having an effect. If the Program has already helped you advance your netpreneurial venture, please let us know so we can share the successes. Send your stories to Hcapps@netpreneur.org.

superSonic BOOM: http://www.supersonicboom.com

Regional Netpreneurs

1. PROTEUS SIGNS DEAL WITH OMNIPOINT
(Washington, DC) Proteus New Media, Inc. designed the Web site for Omnipoint Communications, the New Jersey-based Personal Communications Services (PCS) operator. Now the two companies have signed an agreement whereby Proteus will maintain the Omnipoint site including continuous updates, improvements and additions in order to keep it informative, interesting and useful. In addition, Proteus is responsible for creative banner advertisements that Omnipoint uses to promote its site. Other Proteus clients include Office Furniture Solutions, Washingtonpost.com and the Middle East Institute.

Proteus: http://www.proteus1.com
Omnipoint: http://www.omnipoint.com

2. GEIS UNVEILS ENHANCED GLOBAL EDI OVER THE INTERNET
(Rockville, MD) GE Information Services (GEIS) launched Generation 3 of the company's Internet-based electronic data interchange (EDI) service, GE TradeWeb. Generation 3 also adds: international EDI standards compliant electronic forms, international online terms and conditions and international currency, payment methods and price schedules. Subscribers to the GE TradeWeb service receive an EDI mailbox, access to the online EDI forms library, and access to the trading partner directory. GEIS manages the world's largest electronic trading community with more than 40,000 trading partners.

GE TradeWeb: http://www.getradeweb.com
GE Information Services: http://www.geis.com

3. INTELIDATA DISCOUNTS EMAIL SMART PHONES
(Herndon, VA) InteliData Technologies Corp. is providing consumers with unlimited access to email for under $100 through a $100 cash back rebate on its Intelifone "smart" telephone. The rebate comes when you purchase a one-year subscription to Intelifone Services Personal Power Package for $99.95. The company claims that Intelifone is the world's first "smart phone" offering plug-and-play email capability. In addition to email access, consumers who sign up for a year get national directory assistance, stock quotes, sports scores, lottery results, horoscopes and five-day weather forecasts. The Intelifone also has a 500-name and address electronic telephone directory that can be backed up on InteliData's computer. The Intelifone is available nationwide at retail stores including Comp USA, Office Depot, Office Max and many Sears stores. Most retailers are charging $199 today for the Intelifone before the rebate.

InteliData: http://www.intelidata.com

4. LOCAL MOVIEGUIDES AT DIGITAL CITY
(Vienna, VA) Digital City launched the Digital City MovieGuide, providing local residents with a database of currently-playing films, including reviews, synopses, theater locations and show times customized for each city. The Greater Washington region is one of the first implementations for MovieGuide, as are Atlanta, Boston, Dallas, Denver, Los Angeles, Philadelphia, San Diego and San Francisco. It will be rolled out to additional cities throughout the fall. America Online subscribers can access Digital City from the main channel screen or via keyword: Digital City. Internet users can access Digital City's Web-based products via the company home page.

Digital City: http://www.digitalcity.com

Partnerships

1. MCI AND PROGRESSIVE LAUNCH NET BROADCAST NETWORK
(Washington, DC) MCI and Seattle-based Progressive Networks today introduced "RealNetwork," a service that will for the first time deliver audio and video to broadcast-size audiences over the Internet. RealNetwork combines MCI's Internet backbone with Progressive's multimedia streaming technology. ABC News, Atlantic Records, ESPN, Home & Garden Television, JAMtv and the Seattle Mariners are among the first content providers to broadcast audio and video on the RealNetwork. Together, MCI and Progressive Networks are launching RealNetwork as a cost-effective, high-quality service for businesses--including broadcasters, content providers and large corporations--to broadcast "live" and "on- demand" RealAudio and RealVideo programming to large audiences. Initially, the service has the potential to reach simultaneous audiences of up to 50,000 and daily audiences of 10-15 million visitors over the Internet and private intranets. RealNetwork also can be expanded to serve larger audiences as demand increases. MCI has broadcast-enabled its Internet backbone by placing Progressive Networks' splitter and multicast technology throughout its IP network, allowing any Internet user to access RealNetwork broadcasts. This integration expands the number of people who can tune-in to Internet broadcasts while introducing higher levels of audio and video quality over the Net.

MCI: http://www.mci.com
Progressive Networks: http://www.real.com

Funding & Finance News

1. VENTURE CAPITAL TO NETPRENEURS AT $600 MILLION THIS YEAR
(New York, NY) Coopers & Lybrand's latest Money Tree Survey reports that venture capital-led equity investments exceeded $5.5 billion in the first half of 1997, on a pace to beat last year's record $10.1 billion. The report also found that surveyed venture firms have participated in 1,253 financings through the second quarter, a 17% increase over the first half of 1996. In the second quarter, $3.1 billion was invested into 667 US venture-backed companies, surpassing the previous record achieved in the second quarter of 1996. Information technology investments drove the second quarter's strong showing, accounting for nearly 45% of the total investment dollars and nearly 50% of the deals. Internet-related investments, alone, totaled $612 million in 134 financings, a substantial increase in investment compared to the previous quarter. Venture capitalists put 70% of their investment money into initial financings, defined as companies new to the portfolio of the venture capital firm. The five most active venture capital firms participating in initial financings during the second quarter were Robertson, Stephens & Co. of San Francisco, which did 14 financings; Atlas Venture, BancBoston Capital, Ventures of Boston and Institutional Venture Partners, each of which completed 10 deals. Advent International Corporation did nine initial financings. To obtain a complimentary copy of The Money Tree Report, call 1-888-609-7117.

Coopers & Lybrand: http://www.colybrand.com
Money Tree: http://www.colybrand.com/industry/vcwwwq4.html

2. ACCESS BEYOND AND HAYES MICROCOMPUTER TO MERGE
(Gaithersburg, MD) Access Beyond, Inc. (Nasdaq: ACCB), a provider of remote access connectivity products, and modem pioneer Hayes Microcomputer Products, Inc. (Hayes), announced the signing of a definitive merger agreement. Access Beyond will be renamed Hayes Communications Inc. (HCI) and its stock will continue to be traded on Nasdaq. The new company will drive market acceptance of aggressively priced technology with combined resources that are expected to result in faster time to market, accelerated growth and improved margins. Dennis Hayes, founder and Chairman of Hayes, will become Chairman of HCI; with Ron Howard, Chairman and CEO of Access Beyond, set to become Vice Chairman and Executive Vice President of Business Development. Joseph Formichelli, President and CEO of Hayes, will become President and CEO of HCI. Access Beyond will issue approximately 45 million shares of its common stock for all outstanding shares of Hayes. Upon completion of the merger, Access Beyond shareholders will own approximately 21% of the new company's outstanding shares, with Hayes shareholders owning the remaining 79%, based on current outstanding shares. The transaction is subject to completion of due diligence, regulatory and final shareholder approval from both companies, and is expected to be completed before the end of 1997. The combined entity is expected to have revenues of approximately $277 million. In addition, Hayes Microcomputer Products has signed a commitment letter with a potential investor, whereby Hayes Microcomputer Products would receive a $30 million cash infusion for approximately 11.7% of the Company. If the financing closes prior to the closing of the merger transaction, the companies have agreed that it will be mutually dilutive. Access Beyond and Hayes have been operating for several months under a multi-level strategic alliance agreement.

Access Beyond: http://www.accessbeyond.com
Hayes: http://www.hayes.com

3. NETWORK IMAGING SECURES $11 MILLION IN EQUITY OFFERING
(Herndon, VA) Network Imaging Corporation (Nasdaq: IMGX) completed an equity offering of up to $11 million, $3.3 of which has already closed with the remainder closing upon achievement of certain performance milestones. The company says this will meet its working capital requirements for the foreseeable future. Financing was facilitated by The Zanett Securities Corporation, and by the New York offices of Zanett Asset Management (ZAM). ZAM is a New York-based merchant banking group which services selected high growth, small- to mid-cap companies. Network Imaging's board of directors also voted to suspend the dividend payment for the Preferred Series A Stock for the three months ending July 31, 1997. Chairman and CEO Jim Leto said, "Our investors will be better served if this $800,000 and future quarterly dividends are reinvested back into the business and focused on our opportunities in the explosive Internet and intranet markets." Network Imaging develops multimedia content as well as software products for storage management, Internet, workflow, engineering document management and computer output to laser disk (COLD).

Network Imaging: http://www.netimage.com

Quick Hits

1. NEW MAGAZINE FOCUSES ON THE DIGITAL SOUTH
(West Palm Beach, FL) digitalsouth is a new bi-monthly business magazine focusing on the digital economy of the South, published by Warfield Media. The magazine covers technology companies, financiers and trends from beneath the Mason-Dixon line that are driving the technical revolution. The premiere issue explores the movement of venture dollars into the South in its cover story and in an interview with Stephen Fleming of Alliance Technology Ventures. The issue also profiles Baltimore-based venture capital firm, New Enterprise Associates, and features Atlanta-based MindSpring Enterprises, the region's largest ISP. Also profiled is Haht Software, an up-and-coming technology firm based in Raleigh. In addition to the in-depth stories and features, digitalsouth will have several regular departments including: communications, internet/intranet, hardware/software, media/entertainment and financial/capital. Circulation for the first issue of digitalsouth is 20,000, rising to 25,000 and 30,000 in the subsequent two issues.

digitalsouth: http://www.digitalsouth.com

Upcoming Events

For more information on these and other regional events of interest to netpreneurs and funders, visit the Netpreneur Exchange calendar at (http://netpreneur.org/calendar/calendar.htm).

Aug. 19------Systems and Network Security
Aug. 26-27--Federal Business Council Tech Expo
Sept. 2--------FBR Investor Conference
Sept. 6--------Strategies for the Internet
Sept. 7--------WebStrategies '97
Sept. 9--------Electronic Commerce Policy Conference
Sept. 11-------InforWARcon '97
Sept. 15-------Online World Conference and Expo


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