Kissing the Frog

A new venture capital fund is targeting technology companies in Florida at a time when funds appear to have pulled in the sidewalk. Inflexion Fund, which started in December, describes itself as “the first and only Florida fund leveraging a network venture capital model involving some of the largest institutional investors in the country.” Charles Resnick, the firm’s managing partner in Tampa, says, “We’re starting at a very unique time.”

The fund, which also has offices in Orlando and Gainesville, has received more than 170 business plans since January. “They say you have to kiss a lot of frogs to find the prince,” Resnick says. It’s possible a few jewels may have surfaced. Resnick says the company is close to announcing its first two companies – among them a bio-device company that he declined to name. “We have been pleasantly surprised at some of the final deals we have been looking at,” he says. “There are some national-quality deals here in Florida.”

Venture funding is important in Florida because it helps those companies survive that, despite a good product, might be forced to close after initial “angel” funding expires. “It’s a double loss to Florida,” Resnick says. Inflexion (www.inflexionvc.com) has strong backing. Its lending partners include Progress Energy, Darden Restaurants Inc. and Florida Hospital Corp., a division of Adventist Health System in Orlando. It may surprise some people that a university is also a funding partner. Inflexion includes backing from the University of Central Florida Research Foundation. Resnick says schools need to show that they can commercialize a lot of their research. “The best way to do that is through venture funding.”

Inflexion is offering between $500,000 and $1 million in first-round funding and first- and second-round totals of up to $3 million. In return, the companies will likely have to give up large equity stakes, perhaps more so than they might have before the VC bubble burst in Florida.

Harris Wins Large Imagery Contract
Harris Corp. says it has received a contract from the National Imagery and Mapping Agency (NIMA) to supply products for the Global Geospatial Intelligence program. The multiyear contract could yield as much as $750 million for the Melbourne company.

NIMA has a team of commercial companies, including Harris, that provide vital geospatial information services to military and civilian government customers. NIMA’s goal is to rapidly obtain products ranging from basic mapping to detailed geospatial imagery and to establish an extensive commercial base of geospatial information services and generate two-way technology transfer.

NIMA (www.nima.mil) customers include policy makers, war fighters, peacekeepers, the intelligence community and federal agencies. Harris (www.harris.com) has been assigned to build components that “play a key role in support of national security,” says Harris President Bob Henry.

Warning Signs for Tampa Bay
Lake Mary-based TEI Engineers & Planners (www.tei-us. com) is designing new signs to be used to help inform Bay area motorists of impending traffic jams or other trouble ahead. The signs are part of an overall Florida project called SunGuide, a high-tech “intelligent transportation system” aimed at bringing immediate information to motorists on Interstate 275 in Pinellas and Hillsborough counties, as well as Interstate 4 in Hillsborough. Spokeswoman Maria Nelles could not estimate exactly when the first signs would be hung. But she says once they are in place, motorists will be warned of accidents, traffic jams or other events that might cause problems. “That way they can get off the highway and take another route,” she says. Similar signs already are in place in Orlando along I-4.

Technology’s Impact High tech’s impact on the Florida economy compares very favorably with tourism, the state’s Mack truck of economic engines. Combined annual revenues of the technology firms along the Florida High Tech Corridor total $18.8-billion, according to the recently released edition of florida.high.tech 2003. That means tech revenues in these 21 counties amounts to nearly 40 percent of the entire state’s taxable sales from tourism and recreation – approximately $50-billion in 2002,
according to the state. Other facts revealed in florida.high.tech 2003 include:

• More than 4,200 companies employing 87,000 persons were identified.

• The six largest tech sectors along the Corridor, shown as
a percentage of employment base, are: IT, 28 percent; micro-electronics, 22 percent; medical technologies, 15 percent; aviation and aerospace, 14 percent; optics and photonics, 11 percent; modeling, simulation and training, seven percent.

• The largest clusters of tech firms are: Metro Orlando, 18 percent; Pinellas, 16 percent; Hillsborough, 15 percent; Brevard, 11.2 percent; Seminole, 9.5 percent.

The florida.high.tech directory, which lists the 4,200-plus companies, is published annually by the MADDUX REPORT for the Florida High Tech Corridor Council. To purchase a copy, call ext. 301 at 727.823.4394 or 800.226.4394 or email at marcia@maddux.com. Cost: $25 plus tax and postage.

Hurricane Preparedness
Most Florida residents pay little attention to hurricanes until there is a threat of one looming. Sounds natural enough. But companies, county governments and other organizations need to stay prepared.

In that regard, The Media Factory (www.themediafactory. com), a Tampa graphics design, video and software company, says it has developed a new kind of computer program that allows organizations such as county governments to prepare large numbers of people for disaster. The program can be tailored to suit particular organizations. It teaches and also tests workers on their knowledge.

Tech FYI • A new kind of gaming console is being developed in one of the most unlikely places – Longboat Key, FL, generally regarded as a resort area. Infinium Labs Corp of Longboat Key (www.infiniumlabs.com) says the new console will be “always on,” kind of like “always on” Internet mail connections.

• Local venture capitalist Steven F. Lux has been named chairman of the Florida Venture Forum in Miami. “Steve has strong venture capital ties and a longstanding presence along the Interstate 4 community,” says Tom Aucamp, the Forum’s outgoing chairman. Lux is director of Tampa-based Stonehenge Capital Corp. (www.stonehengecapital.com).