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May 02, 2000

DePaul University Launches Technology Business Development Center For Software And Internet Start-Ups

     Aligning itself with the city's efforts to position Chicago as a high technology hub for the 21st century, DePaul University has opened a technology business development center that is helping entrepreneurs from seven software and Internet start-ups establish their businesses.

      The new venture, called De-Tech, was launched on DePaul's South Loop campus earlier this year. Most of the start-ups have moved into the De-Tech facility, with the exception of one company that is already headquartered on the Northwest Side of the city.

     De-Tech Director Tom Muscarello, a member of Chicago Mayor Richard M. Daley's Council of Technology Advisors and a CTI professor, said the center differs from other local technology incubators because it primarily targets very young start-ups and offers more than just high-tech office space.

     "De-Tech provides start-ups with a package of valuable services that take advantage of the university's expertise and connections in business, technology and law," he said. "Software entrepreneurs receive technology assistance from the computer school, help with developing business plans and raising capital from the business school's entrepreneur program, and advice on intellectual property protection from the law school." The start-ups also have access to DePaul's industry contacts.

     CTI is already a force on the local technology scene, producing 42 percent of the information technology master's degrees in Illinois and offering the largest computer science graduate program of its kind in the nation. With the opening of De-Tech, the school takes a direct role in nurturing Chicago's new software companies. The venture offers valuable internships to DePaul students and opportunities for professors to lend their expertise to cutting-edge companies. "De-Tech fits well with DePaul's service-oriented, urban, Vincentian mission and its reputation for providing practical education," Muscarello said.

     Three of the companies receiving De-Tech help have already made progress in raising money, hiring staff and developing their products.

     They are:

     · A-ha! interactive, Inc., founded by Rob Schnieders, 32, and Todd Carter, 28. A-ha! develops Internet-based collaborative learning environments for students in grades seven to 12. The company is currently completing tests of one of its Internet learning units with 350 students from schools in five states and Wales, Great Britain. A-ha! plans to launch its first product in June.

     · goReader, an electronic book company that will provide college students with electronic versions of textbooks on portable, light-weight "UReader" devices. The devices, which hold up to 15 textbooks, will allow students to takes notes, highlight important passages, and copy and paste textbook material into personalized study guides, among other functions. Founded by Richard H. Katzmann, Jr., 32, the company is currently negotiating alliances and partnerships with leading publishers and other content providers.

     · nCognito, founded by Scott Olechowski, 26. Located on Chicago's Northwest Side, nCognito provides tools and services to help Web sites understand the behavior and demographics of their audiences while respecting user privacy.The company, which recently expanded to a staff of nine, has begun signing up customers, forging partnerships, and is seeking $5 million in a new round of venture capital.

Two newer companies also have joined De-Tech. They are:

     · Epazz, Inc., founded by Shaun Passley, 21, is a higher education Internet/intranet service start-up.

     · Raydium, Inc., founded by Ben Huh, 22, is an e-commerce consumer advocacy software start-up.

The sixth and seventh companies to join the center will be announced soon.

     Schnieders, co-founder of A-ha! interactive, said De-Tech was a perfect fit for the new company's needs. "The physical space provides high bandwidth connectivity and flexibility," he said. "More importantly, the association with DePaul provides access to faculty who can provide valuable advice and contacts."

     His partner, Carter, said another plus is the leadership provided by Muscarello, who has experience as a computer science professor, business consultant and founder of a medical information technology venture that was housed for three years at the University of Illinois Chicago's biotech incubator. "He's an academic but also an experienced entrepreneur, so he understands our needs and that's important," noted Carter.

     The start-ups were chosen for De-Tech membership based on the merit of the business ideas involved, the potential marketability of the businesses, and the founders' business experience and commitment to the new ventures. The company founders applied for membership and then made business presentations to Muscarello, computer school Dean Helmut Epp, and DePaul's Coleman Chair of Entrepreneurship and Director of Entrepreneur Services for De-Tech Harold Welsch.

     Muscarello said the start-ups will receive assistance for up to a year and then are expected to have developed funding to allow them time to move to a larger incubator or their own space. "Our goal is to help technology entrepreneurs who are just starting out make their companies viable so they can move on."

     Businesses interested in information about De-Tech should call Muscarello at 312/362-8737 or e-mail him at muscarello@cs.depaul.edu.