Welcome to the December 2008 edition of TechAlert, the bi-monthly newsletter of the Illinois Technology Development Alliance. At the ITDA, we are all about the entrepreneur. Our goal is to create and deliver programs, provide education, and build connections that help our region’s entrepreneurs be better, faster, and stronger as they commercialize innovative solutions and technologies.

 ARTICLES

• ITDA President’s Corner
• ITDA Launches Membership Initiative at Connections - A Tech Community Reception
• The ITDA Names Director of Membership
• Upcoming ITDA Events in January 2009
• Entrepreneur Briefcase: The Hero's Quest or the Nightmare - Which Story Is Yours?
• Changes With ITDA in 2009
• ITDA Annual Report 2008

ITDA President’s Corner

As 2008 comes to a close, we have to say this has been an exciting and at times stressful year. We are experiencing one of the most severe economic downturns that our country and the world have seen in many decades. We face challenges of unemployment, concerns about the housing market, while investors everywhere are wondering if the Dow has bottomed out or not.

Although none of us have a crystal ball, it is likely that 2009 will be a year like no other. In the midst of the present turmoil, it is important to remember that there are still entrepreneurs in the Midwest submitting patent applications. Patented technologies are being developed into prototypes. Dozens of scientists, engineers, and inventors from Madison to Champagne are working to commercialize alternate sources of energy from wind to biomass.

And most importantly there are hundreds of bright undergraduate and graduate students at the University of Illinois, Illinois Institute or Technology, Northwestern, University of Chicago, and other fine colleges who have the talent and drive to become this region’s next generation of entrepreneurs. It is up to us to help them become ready.

We at the ITDA believe that new businesses based on innovative technologies are the solution to the economic challenges that we face. We intend to stay the course, providing a focal point of support, community, and capital advocacy for our region’s entrepreneurs.

We thank you for your participation and support and wish you and your loved ones a rewarding and prosperous 2009.

John Noel

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ITDA Launches Membership Initiative at Connections – A Tech Community Reception

More than 150 entrepreneurs, investors, and business leaders attended Connections – A Tech Community Reception hosted by the Illinois Technology Development Alliance at the Montgomery Ward Lecture Hall of The Field Museum in Chicago. The Boston Consulting Group was a platinum sponsor of the event. Porte Brown, certified public accountants, was a gold sponsor.

Following a networking reception, ITDA President John Noel introduced the ITDA's Membership Program, initiatives, and vision for the Midwest’s entrepreneurial landscape.

“Since our inception, the ITDA has been a focal point for the region’s entrepreneurial community,” Noel said, “With our new membership offerings and expanded services we are stepping up our commitment and support of the region’s entrepreneurs. Through membership and sponsorship initiatives, we are also encouraging established companies, investors, and service providers to actively participate in building the entrepreneurial ecosystem of the Midwest.”

Serial entrepreneur and ITDA board member Tim Krauskopf, currently CEO of Freight Zone, a Chicago-based web services company that improves supply chain efficiencies by connecting companies with their truck transportation providers, shared his perspective on what it takes to be an entrepreneur and how the ITDA can help. 

Melvyn E. Bergstein, co-founder and chairman of the Board of Diamond Management & Technology Consultants, Inc., a premier management and advisory firm serving global 2000 clients, was the keynote speaker. With offices in Chicago, Harford, New York, Washington, DC, London, and Mumbai, Diamond has more than 600 employees worldwide and in 2007 reported net annual revenues of more than $160 million.

Bergstein spoke of his experiences as co-founder of Diamond and of taking Diamond from a start-up to a publicly held consultancy (NASDAQ: DTPI). He then opened the floor to questions. Attendees responded very favorably to Bergstein’s relaxed and open style and his willingness to discuss his company’s successes as well as decisions and results that were less than favorable.

The Benefits of ITDA Membership

More than 95 percent of attendees rated the event excellent or very good. Participants viewed the evening as an opportunity to connect with others in the entrepreneurial community, and there were many requests for more events of this type. About half the participants were members of the ITDA and the other half indicated they were likely to join.

ITDA entrepreneur members receive ITDA’s full portfolio of resources and services which include access to a new suite of online services; up-to-the minute communications on topics of interest through ITDA Publications and alerts; invitations to members-only events; reduced registration rates for Monday Morning Meetingand fee-based seminars, and free consulting sessions to mitigate risk and package high quality deals for consideration by investors.

The new ITDA website begining January 2009 will deliver a funding data base, job and resume boards, member and service provider directories, and topic-focused forums and discussion boards through an advanced web portal that will provide individualized data mining and qualified introductions.

A new entrepreneur educational offering is FastTrac® TechVenture™ series, a comprehensive tech entrepreneurship education program that prepares entrepreneurs to develop and enhance the skills they need to create a new business. Course participants work their own business ideas to develop their own Elevator Pitch, Business Plan, and Investor Presentation.

For more information about ITDA membership please contact Director of Membership Rachel Rusch at rusch@itda.biz

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The Illinois Technology Development Alliance Names Director of Membership

Rachel Rusch has been named the Illinois Technology Development Alliance’s director of membership, a new position created to lead the ITDA’s strategic membership initiatives.

“Rachel brings a diverse business background that includes experience in creating and administering membership programs,” says ITDA President John Noel. “As the ITDA develops, enhances, and expands its membership offerings for entrepreneurs, corporations, investors, service providers, and students, Rachel will ensure that everything we provide matches the needs of our five constituencies.”

Prior to joining ITDA, Rusch was the assistant director of membership at the American Academy of Actuaries in Washington, DC where she led programs that positioned the association to realize the largest member base in its history, growing membership by 10 percent in two years. Before that Rusch was the membership manager of the Museum of Glass in Tacoma, WA, where she designed and administered all aspects of membership from recruiting and retention to hosting donor events and artist openings.

“I look forward to meeting and getting to know ITDA members as well as other participants in the Midwest’s entrepreneurial sector,” says Rusch, who was introduced to the region’s Midwest entrepreneurial community at the ITDA’s Tech Community Reception in November.

“There was wonderful energy at the ITDA Tech Community event,” she says. “It was a very effective way to launch the ITDA’s new program of membership benefits. I invite anyone interested in joining our organization to email me.

With extensive experience in applying technology and database management to member support, education, and communications, Rusch will play a key role in producing a new suite of online services and information for ITDA members which will include a funding data base, job and resume boards, member and service provider directories, and topic-focused forums and discussion boards. She will be meeting with ITDA members to understand what they want and need from the organization.

“We especially want to engage the local business schools at the University of Chicago and Northwestern to encourage more students to take advantage of the ITDA student memberships,” Rusch says. “There’s no better way for these students to be exposed to this region’s entrepreneurial community and gain important networking opportunities.” directly or to visit our web site and preview the benefits of ITDA membership.”

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Upcoming ITDA Events in January 2009

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Entrepreneur Briefcase: The Hero’s Quest or the Nightmare—Which Story Is Yours?

Tim Krauskopf
CEO, Freight Zone
ITDA Board Member

Have you ever heard the story of the stubborn entrepreneur? There are two versions with very different outcomes. Story one is like eBay where the entrepreneur hears objections but sticks to his or her guns, holds to the vision, doesn’t alter the quest, and reaps millions from it. Story two is where the entrepreneur refuses to recognize an important flaw, never raises enough capital, and after years of struggle, quietly lets the business die, and gets a job somewhere else.

How do you know which story you are in? The hero’s quest or the nightmare?

Learn the difference between advice and nay-saying.

It takes a certain stubborn passion to build a successful company. What advisors and investors sometimes forget to tell entrepreneurs is that they also need a passion for constant improvement and a burning desire to incorporate feedback that will make their product better and their marketing smarter.

Consider the source of your feedback.

If you are importing a food product and a 30-year veteran of the industry tells you that the name of your product will be a problem, pay attention. If you are developing a web site and someone who personally coded half of Amazon’s web infrastructure tells you your design won’t scale, pay attention. If more than one experienced venture capitalist who evaluates management capabilities and company health every day criticizes your management depth, pay attention.

Test your theory against theirs whenever possible.

Find a way to get the data that can help you evaluate the situation and get away from the “they said/I said” argument.

Review and re-review your idea constantly, including the product, marketing, and sales strategies.

No matter what market you are it, it will continue to shift. Your strategies must evolve accordingly. Nothing is ever static.

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CHANGES WITH ITDA IN 2009

A new year. A new look. A new ITDA.

Beginning in January 2009, you will notice a few changes with our website, emails, and publications. The ITDA website will still be www.itda.biz, but the look and experience of it will be different

As a member, you will experience a whole new set of benefits including a member profile, one-on-one consulting, access to business templates, a discussion forum, funding opportunities, and reading recommendations.

In addition, enjoy a 12-month subscription of electronic members-only editions of Entrepreneur Briefcase and FundingAlert (TechAlert is still available to all readers). Only by being an ITDA member will you receive our two popular e-publications!

As a member, receive discounted registrations for ITDA Events and Programs including Monday Morning Meeting, ExpertPerpectives360, the annual Federal Funding Seminar, Community Connections, and complimentary only to members, 45 Minutes With... .

Become part of the growing tech community of entrepreneurs, educators, and other involved professionals who share hard-eaned knowledge gained from commercializing technologies and start-up companies!

BECOME AN ITDA MEMBER

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