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Tech-Savvy Entrepreneurs Say Alaska Can Play Host to Startups

Posted on: Monday, 1 August 2005, 21:00 CDT

Aug. 2--John Wanamaker disagrees with people who say Alaska doesn't have the capital and innovation to support technology startup firms. One example that is proving naysayers wrong is Venture Ad Astra. The Anchorage-headquartered business is developing two geospatial imaging technologies and has invested in another.

One of the two technologies Venture is currently developing at its office in Portland, Ore., is the ring telescope, chief executive officer Mead Treadwell said July 19 at a presentation in Anchorage. Treadwell was joined by Wanamaker, chief operating officer of Venture.

The ring telescope is designed to be used in space to gather reconnaissance and surveillance information from around the world, at lower launch and operational costs than traditional spy satellites, Treadwell said. "The best way I think of it is that it is the Hubble telescope pointing in."

The company also is working on the PhaseNet project, designed to enhance the geographical positioning system. The project's technology could be used to synchronize clocks across the country for improved television broadcasting and to collect data in different countries at exactly the same time for more accurate intelligence-gathering operations.

Venture is working to commercialize the projects by providing capital, management oversight and support in navigating the government contracting arena.

The technologies have the potential to be very lucrative.

"These are multi-million dollar deals or billion dollar deals when they come together," Wanamaker said in an interview.

In addition to developing its own projects, Venture has taken on a venture capitalist role by investing $750,000 in Immersive Media Co., developer of a camera that streams 360 degrees of video in real-time.

Venture Ad Astra this spring helped the technology company go public on the TSX Venture Exchange, a Canadian stock exchange serving the public venture equity market, said Treadwell, who is chairman of Immersive Media's board of directors.

The public offering enabled Venture Ad Astra's approximately 12 investors to recoup more than their initial investments because they now own some of Immersive Media's publicly traded stock, Wanamaker said. "Technically we have made everyone money, which is a good position to be in."

Aside from maximizing their shareholders' returns, Wanamaker and Treadwell have a strong interest in helping develop Alaska's growing technology investment market.

The Anchorage businessmen offer their expertise as entrepreneurs and investors to other Alaskans working to start their own technology businesses, including attendees of their July 19 presentation hosted by the Technology Research and Development Center of Alaska.

Wanamaker has founded companies in a range of industries, including Summit Cellular and Paging, which was later bought by Alaska Telecom, as well as having invested in other entrepreneurs' endeavors.

Treadwell has invested in and supported the development of ventures that include Yukon Pacific Corp. and Digimarc Corp., a public company traded on the Nasdaq.

"We have an obligation to expand these opportunities to investors and expand the opportunities to entrepreneurs (in Alaska)," Wanamaker said in an interview.

Venture Ad Astra also is helping develop the state's market for startup investing by serving as an example for other Alaska businesses starting operations around an emerging technology.

"In my experience ... the one thing that Alaska needs, that I feel we are helping to bring to Alaska, is a better culture for startups," Treadwell said in an interview.

Wanamaker said that when he asked the late George Kozmetsky, who assisted in the development of more than 100 technology-based companies that include Dell Inc., what it would take to improve Alaska's technology investment market, Kozmetsky said the money would follow the growth of a successful technology venture.

"He said 'You just need to do it. You just need one. You just need a Dell,' " Wanamaker said. "I don't know if VAA is that animal, but it could be."

PRACTICAL ADVICE: Drawing on years of experience as entrepreneurs and investors in new business ventures, Mead Treadwell and John Wanamaker shared the following recommendations with other Alaskans starting businesses in the technology sector at a presentation July 19 in Anchorage.

--Seek out Alaska investors

Wanamaker disagrees with people who have said that there is no money available for technology investment in Alaska. "There's tons of money available. It doesn't matter you're in Alaska," he said.

Treadwell recommended calling Alaskans who have sold profitable businesses and now have cash available for other ventures.

Customers also can be a good source of funding. Wanamaker recommends making deals with customers, such as discounting the price of a product in exchange for receiving part of the purchase price prior to the time the customer receives the product.

--Identify strategic partners

Investors are interested in technology ventures that appeal to industry leaders. In addition to knowing which businesses may invest in and buy a project's product, it's important to have a plan to make these businesses sign on as partners in the project, Treadwell said.

"The thing that is probably most important to bring to an angel investor is who your major partners will be," he said.

Treadwell said the most common mistake entrepreneurs make is not having enough capital to support their projects.

--Having enough cash flow also is important.

"Cash flow is king," Wanamaker said. "It makes life a lot easier. Anything you can do. Sell espresso from your lobby."

--Identify investors' return

Investors want to know that they will make a return on their investment and what the entrepreneur is doing next to ensure that the project's investment will turn into profits, Treadwell said.

--Be innovative

Along with innovative technology, investors look for entrepreneurs who can quickly adapt to the marketplace, Wanamaker said. "Innovation of the entrepreneur is key."

Wanamaker said he would rather invest in a person than a piece of technology.

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To see more of the Alaska Journal of Commerce, or to subscribe to the newspaper, go to http://www.alaskajournal.com.

Copyright (c) 2005, Alaska Journal of Commerce, Anchorage

Distributed by Knight Ridder/Tribune Business News.

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DMRC, DELL,

Source: Alaska Journal of Commerce

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