New Mexico Can Help to Transform the Region With Its Bold $200 Million Investment Fund; Veteran Investor to Tell Secrets of Success at Innovation Conference.

Business Editors

SANTA ANA PUEBLO, N.M.--(BUSINESS WIRE)--Jan. 17, 2003

The governor has proposed that the state use up to $200 million -- 2 percent -- of State permanent funds to invest in New Mexico businesses. A strong support system is needed to guide the new companies to success, according to a veteran venture investor.

"The venture capital industry has developed a proven model, which if followed can transform a regional economy and deliver solid returns for investors," said Luis Villalobos, the founder of Tech Coast Angels, the largest and most active group of "angel" investors in the country. Startups typically begin on their founder's credit cards and small investments from "friends and family;" angels are usually the first professional money to invest, but as important as their capital is the expertise, guidance and contacts they bring to the young firm.

"The days of drive-by investing are over", said Mike Pogue, CEO of San Francisco based Innovation Investment Partners. "Today's investors are well advised to be quick but don't hurry when making tech investments, and that holds for the State of New Mexico as well."

Mr. Villalobos will be a keynote speaker on Jan. 30 at a ground-breaking conference at Santa Ana Pueblo, where scientists, engineers, entrepreneurs and investors will put their heads together to begin building some of the new companies that will bring future growth to New Mexico.

The conference, Fueling Technology Growth in New Mexico, will be held at the Hyatt Regency Tamaya in Santa Ana Pueblo. It was organized by Innovation Investment Partners (www.innovationinvestmentpartners.com) and the Santa Fe Business Incubator (www.sfbi.net). Corporate sponsors are Merrill Lynch, Los Alamos National Bank, BGV Strategies and Wellborn Strategies.

The conference is open to the public. Register in advance online at www.nmtechgrowth.com. Participants also may register at the hotel on the day of the event. For more information, call 415-867-4234.

"As many learned to their dismay in the late 1990s, when investors depart from the proven VC process, and just throw money at ventures, the results are dismal," said Mr. Villalobos, who has invested in 42 early-stage companies. "Success comes from hard work in screening ventures, helping them develop value propositions to customers, and monitoring and mentoring them after funding. A clever idea, does not a good investment make."

Most young companies are strapped for talent and resources and usually short on experience," said Mr. Villalobos, "so investors who have extensive operating experience and contacts, can mentor the venture's team and provide them access to talent, technology, strategic relationships and subsequent funding." In his presentation to the Fueling Technology Growth Conference, Mr. Villalobos plans to discuss in detail the value that an angel investor group plays in a technology startup ecology.

Note to Editors:

The press is welcome to cover all sessions of the conference on Jan. 30 at the Hyatt Regency Tamaya, Santa Ana Pueblo. Coffee and registration begin at 7 a.m. with the keynote speech at 8 a.m. To arrange for credentials, contact Mike Pogue.