Make-It-Yourself 'Star Wars'

Express Ventures Launches With Qualcomm Roots

A group of wealthy tech industry notables including several former and current Qualcomm executives have launched an early stage venture capital firm in San Diego, to seed local start-ups and grow up one day into a large institutional fund.

Express Ventures was founded in January, and counts some 50 members, according to Managing Director Joe Markee. Each member was asked to contribute roughly $200,000, Markee said, and "they came in either to the left and the right of that," for a total raised of roughly $7.5 million. Markee added that the firm will likely raise more funding in 2007.

Markee was chief executive of Figure 8 Wireless Inc., which was bought by Chipcon AS last year, and was previously an engineer with Qualcomm predecessor company Linkabit.

The firm's other managing directors are Franz Birkner, former chief executive of satellite communications company ComStream Corp. and also a veteran of Linkabit, and Marco Thompson, a former Wind River Systems Inc. Chief Technology Officer and president of the San Diego Telecom Council. "We know just about everyone in the tech business in San Diego," Markee said.

Jim Kaskade, chief executive of Express portfolio company Eyespot Corp., said the firm counts current Qualcomm Chief Executive Paul Jacobs as a member.

Markee declined to comment on whether Jacobs is one of the firm's roughly 40 members, though he said the membership is made up of both former and current Qualcomm executives. "I can't verify" if Jacobs is a member, Markee said, adding that Jacobs did however work for Markee at Linkabit when he was a college student. Jacobs did not immediately respond to a request for comment.

Markee did acknowledge that former Qualcomm Ventures Senior Director Prashant Kantak is an Express Ventures member.

Markee said the firm intends to invest roughly $500,000 in 10 to 15 start-ups over the next couple of years, in just about every type of IT market. In each case the firm will invest using convertible notes, which transfer into equity once a company obtains institutional funding from a larger venture firm.

Express has already made two investments in addition to Eyespot, including data management company MaintenanceNet Inc.

Markee said that Express is trying to prove itself, in order to attract the attention of institutional investors and one day raise a large fund. "It seems like a logical progression," Markee said, "but we've got to get a few of these companies down the road a ways."

Ameranth Wireless Case Presentation- Surviving and Thriving the World of Web 2.0
January 18, 5-8pm, 2006

Keith will describe how Ameranth Wireless has established its market position and will seek from an experienced panel of experts advice on how the company can address changes in its business model including:

Issues:

• What are the key things to extract from the buzz around Web 2.0 and the significance for business applications and ASP solutions?
• Is a revenue model based on delivery of services and transactions still desirable or should services be supported with a web advertising revenue model?
• What’s the best way to take advantage of Ameranth’s established software solutions, as well as the vertical domain knowledge and “blue chip” customers that they have developed in the hospitality industry?
• Given its potential opportunities, Ameranth expects to have an opportunity for an exit via acquisition, or IPO in the medium term. Which should they be working towards and what are the positives and negatives they should consider in their decision?

Moderator:

• Chris Woolley, President - square 1 west, Square 1 Bank

• Dan Basset, Managing Director, Innocal Venture Partners
• Joe Markee , Managing Director, Express Ventures and former CEO Copper Mountain
• Jacqueline Townsend Konstanturos , President &CEO, Townsend Inc.
• Dennis Mudd, Co-founder and former CEO of MusicMatch 

How Can Savvy Marketing Promote Smart Growth
Chassis Plans Case Presentation

November 15 , 2006, 5:00-8:00pm, The Salk Institute for Biological Studies

Founded in 1997, Chassis Plans develops industrial computing systems for customers who require customized solutions. Specifically, the company provides computer enclosures, rackmount keyboards and LCD display monitors, single board computers, active / passive backplanes, analog and digital I/O cards and integrated systems for leading Original Equipment Manufacturers (OEM’s) and Value Added Resellers.

Chassis Plans has built up a solid client base by capitalizing on the founders’ longstanding industry connections and the company’s reputation for building top quality systems with short lead times. Customers represent firms in homeland security, defense and aerospace, command and control, simulation, factory automation, imaging, instrumentation, test & measurement and other environments which require performance, ruggedness and reliability. The company has experienced rapid growth over the past several years, and currently has almost 30 employees.

While Chassis Plans’ numbers have been impressive, the company’s sales have begun to level off. CEO, Mark Lovett, is currently evaluating the firm’s marketing strategy, currently almost 100% focused on driving sales through the company’s website. He is sure there is a better way to sell, and to reach more customers. To ensure Chassis Plans’ ongoing growth and success, Lovett and his team must open up new distribution channels for selling its products, while maintaining the company’s stellar reputation for on-time, quality production.

Mark Lovett will describe how Chassis Plans earned their ranking of #13 among the fastest growing companies in San Diego (SDBJ) and will seek from moderator, Marco Thompson, and an experienced panel of experts advice on how the company can survive and thrive beyond the web, including:

• How can his company re-structure its sales force to become less reactive and more dynamic?
• How can he diversify his company base, namely government contacts and commercial clients?
• How does he open up new distribution channels to reach more customers?
• Assuming the company can successfully strengthen its sales and marketing efforts, how can it stay competitive after the larger players in the industry notice that Chassis Plans is taking away market share?
  

Presenter:
MARK LOVETT - President and CEO, Chassis Plans
Moderator:
MARCO THOMPSON - Managing Director, Express Ventures

When:
Wednesday, November 15, 2006, 5:00-8:00pm

Where:
The Salk Institute - 10010 North Torrey Pines Road, La Jolla, CA 92037
Frederic de Hoffman Auditorium

March 24, 2006

Early-Stage Venture Capital and Series A Investments: How VCs Play Poker - Workshop

Conference description:

Venture capitalists hold all the cards and manage huge piles of chips, but are they still willing to gamble on Series A investments?

Many venture funds have shifted their emphasis to later stage investments, believing them to be the current “sweet spot” for venture investing. But who’s “anteing up” for Series A investments? Series B, C and later rounds aren’t possible without investors who make bold investments in Series A deals. Can early stage venture money be found in San Diego, or do entrepreneurs need to look elsewhere - to LA, Silicon Valley or the East Coast?

Our panel of VCs and experienced CEOs will speak frankly and answer these questions and more. Subjects to be touched on include the economics of early-stage vs. later stage venture investing as well as the always popular discussion of Series A deal pricing. Find out where the money’s coming from, where it’s going and why. After attending this program you’ll be better prepared to understand what motivates venture capitalists to go “all in” on a Series A investment!


Confirmed Panelists:

Mark Jensen (moderator) - National Director, Venture Services, Deloitte & Touche
Marco Thompson – Managing Director, Express Ventures and CTO, Wind River
Dmitry Shapiro – CEO, Veoh Networks