Press Releases and Program Notes

July 18, 2008
Where Are They Now?

May 20, 2008
How do you say Shalom with a Richmond accent?

Jan 19, 2008 - 12:08 AM

Fostering entrepreneurship

Alexander Haig and other panelists give Venture Forum some advice on business


By LINDA DUNHAM
TIMES-DISPATCH STAFF WRITER

"The business of business is knowing people and recognizing flaws and walking away quickly," Alexander P. Haig told a sold-out Venture Forum luncheon at the Virginia Historical Society yesterday.

Haig, son of the former U.S. secretary of state, said that rule also applies to evaluating companies.

As executive director of Vienna-based software firm XVionics Inc., Haig has worked with a variety of startups, including America Online. He offered advice for companies that want to partner with a larger, more established firm.

Do your homework, he advised. Understand the organization being considered for partnership, including how it is structured. And remember that pitching to someone who is not the decision maker can waste a lot of time.

The event, "Running with the Big Dogs: How Large Companies Foster Entrepreneurship," drew more than 100 people. Other panelists were:

• Alex J. McKinnon, chief technologist with Northrop Grumman Mission Systems. His advice: Stay with it and keep your nose to the grindstone.
• Thomas M. Hogg, director of business development with Hourigan Construction Corp., said businesses must understand their limitations: "We decline equally as much business as we compete for. Our resources can only reach so far."
• Kevin McQueen, a principal with IT consulting firm CapTech Ventures, added: "You can spend a lot of time pursuing partnerships that don't work out."

Doug Bosse, an assistant professor of management at the University of Richmond's Robins School of Business, moderated the discussion. "You have to say no sometimes," he said. "It's hard when they have lots of money."

The Venture Forum is a Richmond networking group for investment professionals and entrepreneurs.

U.S. venture capitalists invested $29.4 billion in startups last year, the most since 2001, the last time the U.S. fell into a recession. The figures come from data scheduled for release today by Thomson Financial, PricewaterhouseCoopers and the National Venture Capital Association.

The industry's optimism stems from a belief that many of today's hottest concepts are recession-resistant or are developing money-saving products that may have even more appeal during an economic downturn. The investment areas spurring the optimistic outlook include health care and biotech, the Internet and technology.

Yesterday's discussion was preceded by a five-minute pitch for prospective investors by John Pizzola, owner and partner of a Urban Flats Flatbread Co. franchise. The pitches are a hallmark of The Forum's luncheons. Contact staff writer Linda Dunham at ldunham@timesdispatch.com or at (804) 775-8126.

The Associated Press contributed to this report.