Friday's fantasy healthcare media roll-up

Playing connect-the-dots has been a lifelong passion. Today, I'm thinking ConnectivHealth and DigiScript should sit down and talk. This was prompted partly by ConnectivHealth's release of a survey of what media physicians favor. True, the touted answers somewhat predictably point to ConnectivHealth's product portfolio, but that doesn't mean the results are invalid. So, as I got to imagining why docs wouldn't like getting info via a PDA -- maybe they've got too many gadgets and pagers on their belts, a'ready -- I thought of another local company, DigiScript, which happens to have filed for debtor-in-possession bankruptcy. ConnectivHealth uses its infomagic slicer and dicer to create trusted content streams. DigiScript offers training, event and rich-media services. Can either of these businesses scale profitably, without many more M&As and tranches than they've done?

VCs, entrepreneurs land in same foxhole

Tuesday's VC panel discussion at the VU Law School -- sponsored by Nashville Capital Network and the Owen Entrepreneurship Association -- was a richer-than-usual discussion. Please read our summary, here. We couldn't include all the pithy comments, of course. For instance, with reference to how American business is embracing the Feds' bank bailout, Bass Berry & Sims attorney Page Davidson said, "There are no laissez faire capitalists in this foxhole."

NV Tech Confidence Survey 2008: Time to Sound-off

We hope you won't wait til the 2008 Nashville Technology Confidence Survey closes, Nov. 4. Please respond now and we'll share the results, next week. Here's the link to just 5 questions. (That's a MITRE Corp. photo, btw.)

ProfitPoint serious about inviting M&A dancers

If you think ProfitPoint's Vaden Landers (left) is pussy-footin' around about running an ad "ISO" would-be sellers to fuel his roll-up strategy, take a look at the ad here (pdf) and read this morning's story on VNC.

BioMimetic says liquidity crunch eased

In an after-5 p.m. announcement yesterday, BioMimetic Therapeutics sought to ensure analysts and investors that its product-development and trials will continue, despite its inability, thus far, to sell auctionable securities based on securitized student loans. BMTI said Deutsche Bank agreed to provide up to $39 million against those securities, a portfolio which BioMimetic carried at about $60MM. The company says the new loan facility, plus $20 million in milestone payments due from its pharma ally, Luitpold, should ensure the company's capacity for continued operations during the next two years. Earlier VNC coverage on BioMimetic, here. A BioMimetic spokesperson recalled yesterday during an interview with VNC that management had raised the liquidity issue during a quarterly analysts call, last summer. In a down market, the company closed down 6.6 percent, yesterday.

Start-ups: 'Resetting expectations'

The New York Times reports today that many startups, often under pressure from their VCs, are doing as we reported Nashville-based Cybera doing -- eliminating discretionary staff and overhead where possible, even when there's plenty of cash onhand, to ensure they have a longer run. Others, said the Times, are turning to wind-down specialists, 'because not every startup that can stay in business, should'. Here's a related Jeff Cornwall post on coping with tough times. The shirt's from StartUpWear, which shares its VC pitch here.

P2010 Entrepreneur Project Update

More this morning in The Tennessean on the Chamber-Partnership 2010 Entrepreneur Project that we reported, earlier. Co-chairs Bobby Frist (HealthStream) and Mike Shmerling (XMi, Choice Food Group) review plans for a virtual, and eventually a physical Entrepreneur Resource Center. In addition to making clear they're moving ahead on some EP recommendations, Frist notes that the initiative still needs "a leader to emerge to head up the fund-raising." Tennessean Q&A by Bus. Editor Randy McClain is here.

Leadership: the Texan, the Farm and R&D

In a move possibly signalling increased emphasis on biotech through state institutions, Texan and Aggie Jimmy Cheek, 62, has been named chancellor of the University of Tennessee-Knoxville. He'll begin work in February. Particularly given Cheek's extensive ag background, one of his goals is likely to be the leveraging of the UT system's Cherokee Farm. In 2007, UT President John Petersen led a move to transfer Cherokee (and the UT-Battelle relationship) from UT-Knoxville to his control, then successfully pressed his board to approve spending $32 million relocate the Cherokee dairy operation to Blount County, freeing the 200-acre farm for redevelopment as a high-tech and life sciences-oriented research and development center, with emphasis on technology transfer. The original Farm had been cultivated since 1869, and was organized into the Tennessee Agricultural Experiment Station in 1882, 126 years ago. The reconstituted Cherokee Farm is now touted as "a hub of scientific research and innovation." Cheek will doubtless need to deal with some UT-K faculty wounds regarding access to Cherokee resources and related matters. Rancor over Cherokee was one reason former UT-K Chancellor Loren Crabtree was forced out, setting into motion Petersen's executive search. Cheek has worked 33 years at the University of Florida, now serving as SVP-Agriculture and Natural Resources, Institute of Food and Agricultural Sciences (IFAS). As IFAS' chief, Cheek oversees Florida's College of Agricultural and Life Sciences, the School of Natural Resources and the Environment, the School of Forest Resources and Conservation, elements of the College of Veterinary Medicine, the Florida Agricultural Experiment Station, and the Florida Cooperative Extension Service, which has offices in each of the state’s 67 counties. Noteworthy, too, if the fact that two years ago the UT system hired one of Cheek's former UF colleagues, Joseph DiPietro, as vice president for agriculture. Til Cheek reports, Interim Chancellor Jan Simek, a Distinguished Professor in anthropology, continues to serve.

'Weather outside frightful, life still delightful'

Please don't hold me to my euphoria...but, over and over, again, we hear variations on this theme: 'The economy is scary - but my pipeline's full." Maybe we're whistlin' while walking by the graveyard, but there's a lot of interesting stuff going on, reminiscent of the way Londoners carried-on, despite the blitz (petrol shortage, and all). Middle-agers who can afford to stay on the sidelines are starting new ventures, like Joe Maxwell. And, M&A deals, albeit more often under duress, are still getting done, just ask Bass Berry. And, today, we take our first go at much-touted SHOUTAmerica, an inter-generational story. There's plenty of other evidence of life going on. Yes, odds are, it will indeed get darker before the dawn. Still, somehow, it's a great time we live in. Cheers!

Memphis 'Barbarians'? VC weighs-in amid lay-offs in venture sector

Memphis-based Southeastern Asset Management (SAM) has upped its stake in Sun Microsystems to more than 21 percent (SEC filing), and seems poised to press management for cost reductions at Sun, according to reports in Bay Area papers. SAM Founder Mason Hawkins' recent presentation (filed with SEC) provides a fascinating glimpse into his thinking about the current market, the 7th Bear market in SAM's 33 years of operation. The WSJ blogged about it this morning. The news follows a stream of reports that venture-backed companies are opting to cut costs quickly, before things get worse, reflecting a mindset similar to that which we reported at Nashville-based Cybera, which says it's tightening resource allocation to strategic priorities. With big brands like Yahoo! and eBay having announced about 4,000 job cuts this year between them, and others following, the climate has become conducive to cost-cutting. Says one Valley columnist, "Venture capitalists, including Silicon Valley stalwarts Sequoia Capital and Benchmark Capital, have issued ominous warnings to their portfolio companies about the tough times ahead, coupled with advice to reduce spending." In September, the nation reportedly experienced its worst rash of mass layoffs since September 2001, with 2,269 such events last month. Each one involves at least 50 workers laid-off for at least 30 days. Here in Tennessee, the Memphis Business Journal reports there were a total 29 mass layoffs announced in Tennessee during August and September.

Neither Bredesen nor VW blinked in Germany, today

The Governor's telecon 'cross the ocean with journalists this morning left the clear impression the Volkswagen management team is as eager to get that new plant built in Chattanooga as we are. Moreover, it seems both parties pledged to make good on their promises, despite the global economic morass. One lingering question: whether or not the Administration will soon brief State Sen. Thelma Harper, as she requested when she appeared out of the ether on the conference call set up for media. For European readers, that's Gov. Bredesen at left. The story is here.

Purcell's Harvard group finds political youth-engagement high

Former Metro/Nashville Mayor Bill Purcell (at left) is director of Harvard University's Institute of Politics, which today released its 15th survey of youth opinion on public service, and in addition to presidential preferences, it shows some heartening trends, concluding that the efficacy of political engagement is at a highwater mark. Among numerous interesting findings: 86 percent of youth respondents age 18-24 have a Facebook page and more than a third have used it for activism. The summary is here.

Bredesen in Germany, World Trade Center in Nashville

Gov. Phil Bredesen is visiting Volkswagen's global headquarters in Wolfsburg today, and will phone home this morning at to brief media on his trip. Meanwhile, international entrepreneur Robert Thompson (at left) of Franklin has taken further steps to create World Trade Center Nashville, as chronicled in today's story on the VentureNashville site. Note my earlier post about my work for a trade center, decades ago.

At VU's Owen GSM, challenges and prospects

VU Owen Graduate School of Management Dean Jim Bradford, who's been on campus eight years, but previously served as CEO of AIG Industries and United Glass Corp., has issued his annual report for 2007-08. He cites achievements, key new faculty and confidence in VU-Owen momentum. He also mentions concerns about corporations cutting-back in supporting MBA programs, presumably something for the Owen Executive MBA folks to worry about. He also stresses Owen's need to be more connected with other nations and cultures, and mentions future new institutional partnerships. The Annual Report is here.

Ultra-quiet Griffin Technology now Tweeting

Tomorrow makes a month since Griffin Technology, arguably Nashville's quietest big technology company -- driven by inventing new gadgets for iPod users -- began tweeting as griffintech. Blame it all on Nashvillian Dave Delaney (at left), the promoter-evangelist Griffin hired Sept. 8 as its social-media coordinator. Delaney tells us through his blog that he's also still speaking at public events, consulting on marketing and threatening to create more events akin to those he's co-invented locally, including BarCamp and PodCamp. Some other Nashville companies are gettin' it, apparently. E.g., PassAlong Networks CEO Dave Jaworksi is into tweeting, while others, like Gibson Guitar, are doing things like launching a Second Life 3-D community.

TyraTech relocation in limbo

TyraTech, the Florida company that creates biotech products that enhance cowpies and eradicate crawling insects, the company that also plans to create human foods, is still undeclared about leaving Melbourne for Nashville or anywhere else. You might think its strong ties to Vanderbilt would make the decision a slamdunk. But, the company had been, at least figuratively, shopping itself in hope of attracting economic-development agencies' incentives to stay put or relocate. Now, the realities of new high-tech ventures, particularly in the current economic climate, seems to have made TyraTech more cautious. Here's this morning's story.

2008 Nashville Healthcare venture chart now published

The 2008 edition of the Nashville's healthcare family tree of ventures was released today by the Nashville Health Care Council. The Chamber-affiliated NHCC said in a release that it counts 650 companies with connections to the city’s $18 billion healthcare cluster, which was spawned by formation of HCA and Hospital Affiliates. NHCC says NV is now home to more than 300 healthcare companies -- included 15 publicly traded -- with combined annual revenue of $46 billion and representing more than 300,000 jobs, globally. NHCC says Nashville-based hospital management companies own or operate half of the investor-owned hospitals in the nation. The release, including a link to an image of the extensive chart is posted here.

Chattanooga EPB won't seek statewide video franchise

Chattanooga EPB, the electric utility with a 600-mile service area, announced Friday that it's board has directed management to seek video-services franchises city-by-city, rather than apply for a statewide franchise agreement, which is now authorized by law, following two years of bruising battles between AT&T (advancing its U-verse product) and its foes, the allied municipal and cable-tv players. EPB's own plans to use its financial leverage landed it in court to defend against a complaint from Tennessee cable-system operators, who argue the utility is misuing funds and has an unfair advantage.

ATT: Machine to Machine and Knoxville's Tingz

Knoxville-based Patrick Hunt (left), founder-CEO of Tingz (formerly Modern Sprocket), presented his plan to create widgets for home appliances and other electronic devices that would knit them altogether to create personalized interactive consumer ecosystems. He's made the round to the Angel Capital Group based in Sumner County, and presented at TechCrunch. Thursday's AT&T announcement about its formation of an emerging-devices devices seems congruent with Hunt's vision.

FCC: Tate's swan song Nov. 4

It may've been nonrefundable airline tickets as much as tenacity that caused Low-Power TV advocates to descend, as VentureNashville reported Friday, on a Vanderbilt health forum to intercept Tennessee native and FCC Commissioner Deborah Tate. They want regulatory permission to move-up to full power. The FCC may address the issue during its meeting, Nov. 4 (Election Day, unless it's rescheduled). Or, the commissioners could dispatch the LPTV issue by voting in the interim, among themselves. The Nov. 4 meeting could be freighted with heavy issues, including Net Neutrality, the universal service fee and other issues -- crammed-in, because all players anticipate tumult after the election. An FCC staff member reminded us Friday that while Tate was named by the White House to a full 5-year term, she has not received Senate confirmation. Her term expires when Congress adjourns.