Ideas chase scarce money at venture conference

By David Markiewicz

The Atlanta Journal-Constitution

There was no shortage of  innovative business ideas at Venture Atlanta 2009 Wednesday, from a medical device to treat stroke victims, to remote-controlled streaming video shot from a tethered helium blimp, to a shopping coupon service for mobile devices.

Whether funding will follow for the 22 companies who made presentations to venture capital investors won't be known for some time,  after the completion of many phone calls, meetings and much financial due diligence.

But the mood was optimistic at the W Midtown -- even if venture funding all but disappeared during the recession.

"This is a once a year opportunity,"  said Greg McGraw, president and CEO of CRE Commerce, a financial security technology company. He called the event "a lot like dating."

"Our whole plan," he added, "is to introduce ourselves to potential investors. What you're really hoping for is to take a meeting."

Expecting to walk away with a check was unrealistic, all agreed. The companies had to say how much money they are seeking, with requests ranging from from $500,000 to $10 million, with most falling between $2 million and $5 million.

Each of the 22 companies selected made a brief power point presentations to a ballroom full of potential investors from all over the country. Presentations focused on the company's history, management team, business niche, competition and prospects. Most offered upbeat financial projections, with rising revenues and profitability forecast.

Ken Holloway, president and CEO of ArteRain Medical, which is developing a catheter-based system to treat strokes, took a different approach.

Holloway spoke about his father-in-law, confined to a nursing home after a stroke. The experience, he said,  motivated him to create the company.

Holloway said the audience was more interested in technology than medical devices, and software firms dominated the list of presenters. But the event allowed him the chance to make contacts, he said, and educate people about the perils of stroke.

Investment dollars were on most everyone's mind, however.  McGraw offered that venture funds are more "judicious" in deciding where to put money these days, a view shared by others.

For more than a year, the venture market has been "at a complete standstill," said Tom Hawkins, director of Arcapita Ventures, an Atlanta venture capital firm. Lately, he said, "We're starting to loosen up the purse strings. The good companies do get funded."