FWIW:
INTERNET INCUBATORS MORPHING INTO ECONETS, CONGLOMERATES OF THE 21ST
CENTURY, REPORTS RED HERRING MAGAZINE
SAN FRANCISCO, Jan 27, 2000 /PRNewswire via COMTEX/ -- A new corporate
animal with enormous implications is evolving at the start of the 21st
century, according to the cover story of the February 2000 issue of Red
Herring magazine. In the feature "And Now, EcoNets," the magazine about
the business of technology introduces a new category called economic
networks -- EcoNets -- that suggests how businesses will be organized,
structured and operated.
Red Herring explains that companies like CMGI, ICG and Divine
InterVentures, which were created to incubate Internet companies,
accelerate them to market and prepare them for lightning-speed IPOs,
are becoming different beasts.
The theory behind the traditional incubator was that with private
equity flowing like wine, time -- not money -- was the critical
resource. Startups within an incubator obtaining financing, management
advice and other business needs relied on each other for synergy.
Now, reports Red Herring Senior Writer Peter D. Henig, the most
aggressive incubators are retaining control of startups after their
IPOs, spinning companies into their networks and gluing together
tightly knit, yet loosely controlled, conglomerates creating EcoNets.
Currently more than 30 EcoNets, at various stages of formation, are
cropping up around the country.
As an example, Red Herring cites CMGI which hatched Engage
Technologies, an Internet advertising company, spun it out in an IPO
and then kept control. Not only does it boost CMGI's market value, but
it's an immediate means of creating synergy by giving Engage
Technologies instant access to a whole portfolio of captive customers
all within its parents network.
An accompanying sidebar highlights Andrew "Flip" Filipowski, founder of
Divine InterVentures, who spouts off on the unpromising future of the
Fortune 500, incubator models and companies like GE and Berkshire
Hathaway. Another supplemental piece explains how Red Herring, with
Lexicon Branding, of Sausalito, Calif., created the EcoNet term.
About Red Herring Magazine Since 1993, Red Herring magazine has been
essential reading for business leaders using technology to build or
expand their businesses. Its coverage provides a forward-thinking,
analytical look at technology companies and industries. The unique
perspective of its veteran editors and reporters is based on years of
experience reporting on and watching the business of technology. Red
Herring's coverage of technology-driven business is timely, analytical
and, most of all, opinionated and experienced.
About Red Herring Communications Red Herring Communications, a
privately held San Francisco-based company, is a fully integrated
network of media properties connecting and enabling the technology
empowered business builders and leaders, ideas and technologies that
are shaping and reshaping business today. Red Herring magazine,
Redherring.com, Red Herring TV and Red Herring Events are each a
crucial conduit of information, analysis and opinion, between the
vision of Silicon Valley and the power of corporate America, alongside
the global business environment.
SOURCE Red Herring Communications
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Barry J. Zusman of Plesser Associates, 212-319-8383, or
bzusman@plesser.com, for Red Herring Communications
WEB PAGE: redherring.com
GEOGRAPHY: California
INDUSTRY CODE: PUB
MLM
SUBJECT CODE: ECO |
