DePaul University Launches Technology Business Development Center for Software and Internet Start-ups

Business Wire, May 2, 2000

Business/Legal Editors

CHICAGO--(BUSINESS WIRE)--May 2, 2000

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.

DePaul's School of Computer Science, Telecommunications and Information Systems (CTI), launched the new venture, called DeTech, short for DePaul Technology Center, on DePaul's South Loop campus earlier this year. Most of the start-ups have moved into the DeTech facility, with the exception of one company that is already headquartered on the Northwest Side of the city.

DeTech 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.

"DeTech 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 computer labs, Internet link, server space, high-tech meeting facilities and 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 DeTech, 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. "DeTech fits well with DePaul's service-oriented, urban, Vincentian mission and its reputation for providing practical education," Muscarello said.

Three of the companies receiving DeTech 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 DeTech. 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.

The start-ups were chosen for DeTech 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, CTI Dean Helmut Epp, and DePaul's Coleman Chair of Entrepreneurship and Director of Entrepreneur Services for DeTech Harold Welsch.

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