Incubator

Aligning itself with the city's efforts to position Chicago as a high technology hub for the 21st century, CTI has opened a technology business development center for software start-ups on its South Loop campus.

DeTech, short for DePaul Technology Center, can accommodate at least six start-ups in its facility and assist up to five other new companies that are headquartered elsewhere, says Thomas Muscarello, the center's director. Five nascent software firms have been chosen to join DeTech so far.

Muscarello, a CTI professor and a member of Mayor Richard M. Daley's Council of Technology Advisors, says DePaul's technology facility differs from other local incubators because it primarily targets 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 says. "Software entrepreneurs receive technology assistance from the computer school, help with developing business plans and raising capital from the business school's entrepreneurship program, and advice on intellectual property protection from the law school." With direction from the entrepreneurship program, they will develop skills and networks that they need to attract investors. Also, start-ups have access to DePaul's computer labs, T1 Internet link, server space, meeting facilities and industry contacts.

The start-ups chosen for DeTech membership were among dozens that have applied so far. The companies made presentations to Muscarello, Management Professor Harold Welsch and CTI Dean Helmut Epp. The start-ups were chosen based on the merit of the business idea, the potential marketability of their business, and the founder's level of business experience and commitment to the new venture.

Five of the start-ups have moved into the facility. A-ha! interactive, Inc., founded by Rob Schnieders and Todd Carter, develops Internet-based collaborative learning environments for students in grades seven to 12. Epazz, Inc., founded by Shaun Passley, is a higher education Internet/intranet service start-up. Passley, who currently is pursuing a master's degree in e-commerce technology at CTI, received his bachelor's degree from the College of Commerce in February.

The three most recent arrivals at DeTech are Raydium, Inc., a firm specializing in Web site design usability issues; goReader, a company that uses a new device to target the electronic book market; and Diversity Quest, an online business exchange and supplier for corporations, government agencies, and minority and women businesses. As a service to corporations, Diversity Quest, which was founded by DePaul MBA student Mike Anguiano, also manages, tracks and audits purchases made through its site.

Another company, nCognito, founded by Scott Olechowski (MBA '95), is already headquartered on the city's Northwest Side but has been accepted for DeTech associate membership. The company provides tools and services to help Web sites understand the behavior and demographics of their audiences while respecting user privacy. Olechowski already has participated in one of the benefits of DeTech membership: DePaul's annual Private Enterprise Network (PEN) symposium organized by Welsch. At PEN, entrepreneurs present their business plans to area venture capitalists and business leaders, such as Tim Krauskopf, co-founder of Spyglass, Inc.

Schnieders, co-founder of A-ha! interactive, says DeTech was a perfect fit for the new company's needs. "The physical space provides high bandwidth connectivity and flexibility," he says. "More importantly, the association with DePaul provides access to faculty who can provide valuable advice and contacts. We also may employ student interns to conduct market research."

His partner Carter says 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," notes Carter.

DeTech has used all of its allocated space, as the participating companies have expanded. Availability of space is not foreseen until next fall at the earliest. A large waiting list is already forming. For more information about DeTech, call Muscarello at (312) 362-8737 or e-mail him at muscarello@cs.depaul.edu.