CIA Inc. Latest cover for the intelligence agency: business developer
Opinions expressed by Entrepreneur contributors are their own.
Entrepreneurship probably isn't the first thing that comesto mind when you say "CIA." But that's about tochange, thanks to a new business initiative launched by theintelligence agency.
In-Q-It Inc. is a private, nonprofit corporation that will workwith private-sector companies and individuals to develop technologyto solve problems in four areas: Internet security and privacy,generic Internet and intranet security, sophisticated knowledgeengines (search engines), and the cataloging of disparate bits ofinformation (such as finger prints, photos and videos) into onesystem.
"This is a hybrid model: It can act like a virtualincubator or it can act like a venture fund--it can even facilitatestrategic alliances and joint ventures. It depends on what theentrepreneur needs," explains Gilman G. Louie, president andCEO of the new company.
The corporation is located in California's Silicon Valley.Interested entrepreneurs can contact Louie at (202) 220-0200.
Spare Some Change?
Congress puts finishing touches on major overhaul of thefinancial system.
The financial services industry is about to undergo a changethat may alter the way you handle your money forever. If passed byCongress, the Financial Services Act of 1999 (H.R. 10 and S.900)will essentially break down the barriers currently existing amongbanks, insurance companies, brokerage houses, savings and loans,and other financial entities.
According to David Runkel, a spokesman for the House Banking andFinancial Services Committee, small-business owners should see anincrease in available credit and a reduction in the cost of thatcredit if the act passes due to the added competition it willfacilitate.
"Allowing banks and security and insurance firms to getinto one another's business should make more servicesavailable," says Runkel, adding that this will be particularlytrue for those doing business with community banks.
Another provision of the act is expected to give community banksaccess to more funding. It would allow community financialinstitutions to take advances from the Federal Home Loan BankSystem for small-business, agricultural and rural development, andlow-income community development lending.
At press time, the act had attained preliminary approval fromthe House of Representatives.
Fast Track
Name and age: Seth Goldman, 34
Company name and description: Honest Tea Inc., based inBethesda, Maryland, is a manufacturer of "less sweet"teas.
Starting point: 1998 with $500,000
1999 sales: $1.6 million
We'll drink to that: In the frenzy of investment indot.coms and other high-tech Wunderkinds, it's easy tobelieve there's no interest in decidedly low-techventures--especially in industries many see as saturated.
As president and TeaEO of Honest Tea, Seth Goldman knows better.When he followed through on a college case study and created a lesssweet tea to fill a niche with no players, the former Yale Schoolof Management student tapped family, friends and a professor(co-founder Barry Nalebuff, 41) for funding. Later, when he soughtan additional $1.2 million for expansion, it was customers whoopened their wallets. Goldman says at least half his investors saidthey contacted him because they liked his product.
Flying without a Net: "We're as un-high-tech asyou can get," says Goldman of his eight-employee company,which produces seven flavors of tea made from spring water and realtea leaves, at just 20 to 35 calories per bottle. "I thinkdiversification is an appeal. [There may be] some hot air inInternet companies, but our sales are real; we're making atangible product.
It's in the tea leaves: In addition to his uniqueconcept, Goldman says the potential longevity of his product mayalso be what's so attractive to investors. "People arefamiliar with the Snapple story. It was a small company thatcreated a whole category for itself. We've got a niche with theless-sweet beverage line. If we can capitalize on that and commandthe category by being the first entrant, then I think we'llreally dominate."
Contact Sources
Honest Tea Inc., (800) 865-4736, http://www.honesttea.com
House Banking and Financial Services Committee,http://www.house.gov/banking
