Old Money Hunts for New Money

Note: Bob Potter, who moderated the Venture Funding Panels at PikeNet 2000, wrote this Dispatch. Bob's e-mail address is bpotter1@pacbell.net.

Money Talks -- Part Two... At PikeNet 2000, real estate service providers like Marcus & Millichap and Staubach previewed their new corporate venture capital arms. And PikeNet attendees were introduced to the private equity arms of the investment banking community represented by Banc of America Securities, Morgan Stanley Dean Witter and J.P. Morgan. Real estate is also attracting Internet venture capital from outside the industry as indicated by the participation of companies like Autodesk Ventures and e-Harmon's Zero Gravity.

Most of these investors, particularly corporate venture capital firms, are looking for operational synergies in addition to high returns. New product ideas that support an investor's internal business practices, leverage other services, or reduce transaction and client acquisition costs provide double benefit to the investor. Simultaneously, the startup gains a customer, a reference, a distribution channel, a partner and an investor. (Continued in the next Dispatch.)

--Bob Potter

PikeNet 2000 Picks: CapitalThinking.com, CityFeet.com, Commercial Professional, EquityCity.com, Equity Office Access, Inscribe IT, NAIdirect.com, Redbricks.com, SiteStuff.com, SiteToDoBusiness, Storetrax.com, YieldStar.com. Peter's Note: Pike's Picks are representative of many new services and products that will change our industry. There are many other sites that deserve your attention. (Hey, that's why you read the Dispatch.)