Area firms seek VC's attention

Driven by a vision of delivering broadband signals into vehicles, the founders of Reno's Etherworks have invested about $1.5 million into resolving technical problems and developing a prototype.

They'll be looking for another round of financing this week as one of four northern Nevada companies expected to make presentations to the Sacramento Venture Capital Conference and Entrepreneuer Showcase.

The conference is sponsored by the Golden Capital Network.

Other regional firms which have been selected to present their plans a presentation which costs them a $595 registration fee are CORE Management Systems of Reno, Luminoptics of Sparks and Health eMonitoring of Incline Village.

They'll be making their pitch to representatives of more than 50 venture capital firms and angel investing groups during the two-day conference Wednesday and Thursday.

Etherworks, for one, will seek investor backing to take its broadband system the next steps toward production.

Mike Leonard, one of the founders of the company, said Etherworks has developed a new wave form to deliver signals from existing satellites to broadband antennas on vehicles, and the company knows how to create functioning antennas as small as 12 inches the size automotive manufacturers say they'd require.

The research effort got a boost from three Defense Department contracts the military sees potential uses in broadband signals delivered to vehicles as well as $400,000 in seed money from a private investor.

Health eMonitor, meanwhile, has developed a clinical system to monitor weight loss programs among the obese.

Randall Burt, founder of the Incline Village company, said group weight-loss programs such as Weight Watchers are effective because of their routine monitoring of progress, but participants often drop out because the programs are inconvenient.

Heath eMonitor has developed a monitoring system in which patients' weight, caloric intake and exercise patterns are collected remotely.

The objective information the patients' weight then is compared against amount they report eating and exercising.

Burt said the system has drawn interest from several managed-care organizations, but the company needs venture capital to finish development of its system.

Even as Burt makes his presentation to the Sacramento conference, other venture firms will be conducting due-diligence on possible investments in Health eMonitor.

"We're getting close," he said.

Luminoptics represents an old technology that's getting new life.

Nearly three decades ago, founders Bill Alling and C.R.

Stevens developed electronic ballasts for fluorescent light fixtures.

The entrepreneurs say the product would save 70 percent of the energy then used by conventional fluorescent fixtures.

They sold the rights to the technology to MagneTek Inc., an electrical equipment company, in the 1981.

MagneTek did nothing with it.

Alling and Stevens sued, contended the company bought their technology only to keep it off the market.

After a long court battle, they got the rights back.

At this week's venture conference, Luminoptics will look for $1.5 million to bring the engineering of its product to 2004 standards and win the stamp of approval of building-code authorities.

CORE Management Systems, which made a presentation at a similar Golden Capital Network event last autumn, has developed systems that allow improved management control of multi-location businesses.

In recent months, President Timothy Tofaute said the company has narrowed it focus to the fast-food industry.

Previously, it was looking at systems for retail and educational locations as well as restaurants.

The company is about 18 months old.