Salvadore out at, $; events.

January 14, 2000

The May Report

by Ron May

312-670-6336, Phone

ron@ or

The May Report: 1/13/2000: Salvadore out at, $; events.

This report contains a few more scoops I got since yesterday’s newsletter and
some more calendar events. I am going to have to do some day-to-day work
mailings. People want jobs, companies want funding, and there are events to
attend. I think of the song from Fiddler on the Roof, “If I were a rich
man..”. I wouldn’t have to do events, and jobs, all day long I’d look for
scoops and scandals.

Advertisers need to get their ads run too. So, here we go. I am sending one
report every 2.5 hours until I have flushed out what needs to be sent. The
answers to my teasers will be in there, but interspersed (I will show the
original question) with other items.
“No. 2 guy” under Lederer at leaves.

I called Rick Salvadore at 6:00 a.m. Thursday morning because I heard last
night that he left last Friday, “cleaned out his desk,” as one source
put it. Rick was asleep. Imagine that! I told him that I thought military
guys get up at 5 a.m. Anyway, we did talk at about 8:15 a.m. Rick did not get
a renewed contract, according to one source. The employment contracts of the
officers at are renewable each year and Rick’s start date was January
1, 1999. If they had come to terms on the contract, he might still be there,
another person said. According to another, he was not happy with how Getty
handled things after the sale.

According to Rick, “no comment.” Rick explained to me that the situation is
sensitive and I understand that. He spoke highly of Mark Getty. I think that
there is probably some unfinished business between Rick and Getty, like how
the options situation will be handled.

He was not negative about in our conversation, but I did press him on
how he sees the future of the firm and whether his departure had more to do
with his own career path there or the future of the company, firm strategy,
etc. He declined to say. That leads me to believe that it may have been a
combination of things. Rick was not made COO (a position I am told that he
wanted), and an interim COO has been brought in by Getty. After Bill left, I
heard that he was taking his departure a bit hard.

For his next position, Rick would like the title CEO, President, or COO of an
internet or E-commerce start-up, ideally in the B2B space and ideally
pre-first round of funding. He would consider a lot of things, but I don’t
think he is looking to join a firm that is already moving full steam ahead.
He likes the start-up. Rick comes from a varied background. He started his
own placement software firm for the internet, and he worked as a recruiter. I
forget what he did in business before that, but he began at Annapolis and
then was in the Marines.

Feel free to call him and leave a message if he is not there: 847-251-3619 or

Rick met Mohan Sawhney from Kellogg about three years ago, struck up a
friendship and is a partner in the firm Michigan-Oak Partners along with
Mohan and Professor Steve Kaplan from the University of Chicago Graduate
School of Business. Another partner in the firm, Russ Rosensweig, who runs
the Roundtable Group, Inc., which puts on seminars about E-commerce, left
recently to focus on the Roundtable exclusively.

Michigan-Oak has advised three firms in exchange for equity:,, and (now Here is a list of the firms
they have been associated with from their site (
Cognia Bioinformatics
Round Table Group

Guys, you might consider some site updates. is now and has been for five months. became and is now

Anyway, Rick said that the space is in has become somewhat crowded.
He values the experience he got there greatly, but I sense that he is more
enthusiastic abou the future of B2B this next year than B2C. He did point out
that in November and December, won the “best affiliate marketing
program” award by whomever it is that gives that award, and that in January,
they are number two, behind Barnes & Noble.

My sense is that Rick is a loyalist. He made an interesting comment to me:
“Hope ain’t a method.” He said that a lot of people say, “I hope this
happens” or “I hope this comes through,” etc.

He said that it saves you a lot of grief and anxiety if all you believe is
what you have in writing. “That’s the deal,” he says, not more, not less.
That was an obvious reference (as I interpret it) to his former colleague
Chris Sorensen. I believe that Rick may have been viewed as “Bill’s boy”
fairly or unfairly. He was not necessarily in agreement with all that went
on, but he was a loyal scout. Remember his military training.

Rick was involved in negotiating the sale to Getty, which is very valuable
experience, and my sources tell me he was Bill Lederer’s right hand, with a
firm grip on the day-to-day operations while Bill was often busy with other

Through Mickigan-Oak he got the B2B exposure and Rick recommends that I talk
to Greg Bucholz at Patrick Blake is speaking on the 24th of January
and that event is listed below. Rick also explained that
deals with aggregating excess production capacity and putting it out for
bids. Say, for example, that a company that contracts with Ford is using only
70% of its capacity. The remaining 30% can be farmed out on a competitive
basis through a site like

Here is another scoop I just got today. It is a teaser like the ones from
last night. What business is in? What long time angel investor
from Northbrook just participated in an interim $1.25MM financing for them
which closed last week? Which auction company is enthusiastically using their
technology and is about to make a major announcement concerning them?
Scott Woodard sent this: he is looking for a president for

Subj: is looking for a Sales & Marketing oriented President
Date: 1/13/2000 2:38:50 PM Central Standard Time

Hi Ron–Thanks for fixing my email address at the investor site. I’ll keep
you posted on our next Investor Forum meeting.

Would you please let your readers know about our search for a President?
Here is some current information on our company and what we are looking for.
If you are downtown sometime, let me know and we can give you a further demo
of what we are doing.

Our entrepreneurial team is currently beta testing the first
Internet based scheduling and event coordination system developed
specifically for the real estate industry. It offers significantly improved
efficiency and effectiveness to everyone involved in real estate
transactions. Enthusiastic reception from real estate buyers and sellers,
agents, major regional and national brokerages and national aggregators has
validated our vision and our product offering. Our Board of Directors seeks
a President to lead in fully capitalizing on the
international potential of this “first mover” market position.

The ideal candidate will have demonstrated an ability to help build an
effective market presence for a start up, as well as having significant
executive experience and accomplishments in a firm with sales of at least
$100 million. We are looking for someone with strong sales and marketing
skills and a daily customer focus. The individual will lead the development
of relationships with major alliance partners, as well as create a strong
brand awareness and broad product adoption throughout the real estate
industry. Experience in obtaining venture capital financing and/or taking a
firm public is a plus. An understanding of technology is desirable. They
will have full responsibility and authority for our organizational strategy
and its implementation. We offer a fast paced, creative and action oriented
environment, working with people who share common values and goals. There is
a significant opportunity to build wealth through substantial equity

Thanks. — Scott
I wrote about creativewrites when they launched. Sounds like it could be a
good buy for someone.
Subj: for sale
Date: 1/13/2000 3:20:02 PM Central Standard Time
From: (Curtis E. Sahakian)
To:, ron@ (Ron May)

This was posted on mergernet


Database: Small US Sellers
Listing Number: BSUS-970338727
Listing Date: Wednesday, January 12, 2000 11:45 AM

Primary Industry: Services – Internet Services and Web Sites
State: Illinois
Metro Area: Chicago, IL

Sales: Not disclosed
Profit: Not disclosed
Asking Price: $500,000
Down Payment: Not disclosed

This listing was posted by a non-intermediary.

Description: Innovative web based
service connects freelance journalists and publications.
Journalists submit story ideas and completed stories to a
searchable database. Publications receive notice of submissions
based on criteria they select. Publications can also submit
work requests to searchable database. Writers then receive
notice of available work based on their profile and the
publication’s needs. Web site integrates entire process from
submission, to contract negotiation, to billing. Publications
pay small surcharge when they buy manuscript; writers pay small
commission when they sell manuscript. Advertising and
promotional alliances are another source of revenue. When web
site is mature, annual fees would be optimum source of income.
Size of primary freelance market estimated $100,000,000.
Corporate communications, and specialty newsletters would
increase market potential.
Reason for sale:
Owner/founder ready to develop next internet venture and
wants to free up time and capital. Web company requires
infusion of cash for marketing. Willing to work with/for new
owners for limited time.
I had a long talk with Samantha Borland today about the interesting strategic
changes at and I also talked to Bernie Leyton of Morgan
International and and They are
closing on $5MM
with Bill Lederer. More later.
MORE EVENTS: (Note three simultaneous on the 20th!!)

DATE: January 19, 2000
EVENT: Chicago Chapter of the Society for Information Meeting(SIM) “How
Technology Helps Chicago Kids Learn”
LOCATION: Spiaggia’s Private Dining Room
980 North Michigan Ave. 3rd floor
Parking: 900 N Michigan Ave., in back of
Bloomingdales (enter either from Rush St or Walton St.)
TIME: 11:45am registration and informal networking, 12:00 noon lunch;
12:45pm Speaker, Q&A (adjourn by 2pm)
PRICE OF ADMISSION: $50-60/Members (depends on registration date-contact
Cindy) and $60-70 non-members (depends on registration date-contact Cindy)
SPEAKERS:. Richard Koeller, CIO, Chicago Public Schools with Dr. Phyllis
Tate, Executive Technology Officer to the Chief Education Office, Chicago
Public Schools
ADDITIONAL INFORMATION: Members are encouraged to invite colleagues and
co-workers to attend as their guests. Pre-registration is recommended
since space is limited. Contact Cindy Wiertl

*here is the schedule of speakers for the next 3 SIM meetings:

Tuesday, February 8 (O’Hare) – Jim Kinney, CIO, Kraft Foods
Wednesday, March 15 (Downtown) – Andrew “Flip” Filipowski, CEO, Divine
Tuesday, April 11 (O’Hare) – Greg Jones, President & CEO, Ubid Inc.
For further information about SIM membership and this event, contact Cindy
Wiertel (312.372.6540), by fax (312.419.8249) or by e-mail
DATE: January 20, 2000
EVENT: CSA ASP Conference, Software Breaks Out of the Box: Transforming an
SPONSORING ORGANIZATION: Chicago Software Association (CSA)
TIME: go to
PRICE OF ADMISSION: Regsistration fee $85/per person for
members/non-members $170
ADDITIONAL INFORMATION: On-line registration expires Jan 14, 2000 at
5pm. Registration after Friday will only be available at the conference at
the walk-in registration rate of $125 per person for members/$250 per
person for non-members. Don’t forget to indicate the track you will
be attending.
DATE: January 20, 2000
EVENT: TiE Midwest Chapter Meeting
SPONSORING ORGANIZATION: The IndUS Entrepreneurs (TIE*) Midwest Chapter, a
leading Chicago not-for-profit organization dedicated to promoting and
fostering entrepreneurial efforts.

LOCATION: Holiday Inn Mart Plaza
350 N. Orleans
Chicago, Il. 60654
(312) 836-5000
TIME: 6:00 PM, January 20, 2000
PRICE OF ADMISSION: pre-registered members and guests are free?email:
SPEAKERS: Who: The IndUS Entrepreneurs (TiE*)-Midwest Chapter, a
leading Chicago not-for-profit organization dedicated to promoting and
fostering entrepreneurial efforts.

What: In addition to announcing its year 2000 programming,
the annual kick off will include more exciting agenda items such as:
* Introduction of TiE-Midwest’s 2000 president
* “The Nature of Promising Startups,” a keynote address by Amar Bhid,
leading author and Harvard Business School Professor.
* The “Angel Forum,” composed of TiE-Midwest Charter Members, local
area angel investors and venture capitalists, is an organized forum that
provides budding TiE-Midwest entrepreneurs with strategic counsel and
financial resources needed to develop their businesses.

DATE: 1/20/2000
EVENT: Webgrrls monthly meeting
LOCATION: Tribune Building, 435 N. Michigan Ave.
TIME: 6:30 p.m.
SPEAKERS: Patricia Martin, Founder and President of Speech
entitled: “Building a Successful B2B site:’s most excellent
ADDITIONAL INFORMATION: R.S.V.P.: email your name to,
we need to give the Tribune a list for their security desk.
DATE: 1/24/2000
EVENT: Empowering B2B with E-commerce.
LOCATION: Harry Carey’s Restaurant, 33 W. Kinzie Street.
TIME: 11:30 a.m.
PRICE: $30 for members; $40 for non-members, $5 extra at the door.
SPEAKERS: Patrick Blake, CEO of
ADDITIONAL INFORMATION: Deb Leider, 312-240-2691.
DATE: Feb 24-25, San Francisco
March 20-21, Chicago
July 24-25, London
December (date TBA), Hong Kong
EVENT: E-Commerce Bootcamp Executive Series 2000/Focus Bootcamps 2000
SPONSORING ORGANIZATION: Round Table Group, Inc. The international
consortium of consulting professors.
LOCATION: go to??..
Vince LaConte ( at 312.214.4990
Focus Bootcamps:
Leadership in the Digital Age: April 26, Chicago
E-Strategy: April 27, Chicago
E-Marketing: June 26, Chicago
E-tail: June 27, Chicago
E-Law: June 28, Chicago
E-Procurement: October 10, Chicago
E-Law: October 11, Chicago
Jan. 19th, SIM meeting.
Date: 1/11/2000 12:18:39 PM Central Standard Time
From: (Barry, M. S.)
To: ron@ (‘ron@’),
CC: (‘’), (‘’)

The next meeting of the Chicago Chapter of the Society for Information

Management begins is Wednesday, January 19th at the Spiaggia Private Dining
room on the magnificent mile in Chicago.

This month’s program features Richard Koeller, CIO, Chicago Public Schools,
with Dr. Phyllis Tate, Executive Technology Officer to the Chief Education
Officer, Chicago Public Schools.

Their presentation is titled: How Technology Helps Chicago Kids Learn. Rich
and Phyllis are enhancing the educational delivery process through
technology. They will discuss concepts that can help you to invigorate your
own organization’s approach to training and learning. Not only is education
vital to the future of Chicago, the ability for an organization to learn has
been called the only sustainable competitive advantage.

Members are encouraged to invite colleagues and co-workers to attend as
their guests. Pre-registration is recommended since space is limited.

11:15 AM – Registration and Informal Networking
12:00 Noon – Lunch
12:45 PM – Speaker, Q&A (adjourn by 2:00 PM)

Registered by 10/5 – Members: $50, Guests: $60
Registered after 10/5 – Members: $60, Guests: $70

Location: Spiaggia Private Dining, 980 N. Michigan (3rd floor)
Parking: 900 N. Michigan, in back of Bloomingdales (enter from either Rush
St. or Walton St.)

Here are the speakers lined up for the next three SIM meetings:

Tuesday, February 8 (O’Hare) – Jim Kinney, CIO, Kraft Foods
Wednesday, March 15 (Downtown) – Andrew “Flip” Filipowski, CEO, Divine
Tuesday, April 11 (O’Hare) – Greg Jones, President & CEO, Ubid Inc.

For further information about SIM membership and this event, contact Cindy
Wiertel (312.372.6540), by fax (312.419.8249) or by e-mail
Jan. 20, 2000: CSA event, ASP Conference.
Subj: Don’t be left out in the Chicago cold on January 20!
Date: 1/13/2000 9:31:51 AM Central Standard Time

CSA is heating up the audience at our January 20, 2000, ASP
Conference, â?Software Breaks Out of the Box: Transforming an
Industryâ?, with exciting keynote speakers, two sessions
featuring â?Businessâ? and â?Technologyâ? tracks, and networking

Space is limited! The Early Bird registration fee of $85 per person
(member) $170 per person (non-member) and online registration will
close this Friday, January 14, at 5 p.m. Registration after Friday
will only be available at the conference at the walk-in registration
rate of $125 per person (member) and $250 per person (non-member).
Don’t forget to indicate the track you will attend!

To register, or for more conference details, including the dayâ?s
Schedule of Events, see our web site at; or go directly
to the conference at
Jan. 20, 2000: TiE event.
From: Valli Sevugan To: ron@

Hi Ron-

I didn’t see this upcoming Webgrrls meeting on your January Calendar of
Events. Might be of interest to some of the May Report readers, so I’ve
forwarded the announcement on to you.


Elizabeth Howard
Director of Marketing
630.833.5304 phone
630.833.5272 fax


Building a Successful Business-to-Business Site’s Most Excellent Adventure

Patricia Martin, Founder and President of

Thursday, January 20, 2000

Time: 6:30pm

Tribune Building
435 North Michigan Av.
Room: TBA
R.S.V.P.: email your name to, we need to give the
Tribune a list for their security desk

Are you curious to know the adventures and pitfalls of starting an online
business-to-business Internet site? Do you know the most effective path to a
successful web site launch? What should every businesswoman know to succeed
in the business and Internet marketplace?

Webgrrls kicks off the new century with a presentation by Patricia Martin of She will discuss her experiences in building a
business-to-business web site.

Speaker’s Bio:
Patricia Martin is the President and Founder of, an online
information service where marketers can search out events, causes,
affiliation and alternative media for partnerships and promotional ties.
With more than 9 years experience in sponsorship and corporate
communications, Ms. Martin has developed marketing platforms with companies
such as Microsoft, MCI, Schering-Plough, Sears, Hiram-Walker, and Dannon.
A seasoned cause-maker, Ms. Martin worked with Microsoft to create Libraries
Online, a $200 million collaboration between the nation’s public libraries
and the software giant. She is a frequent speaker and published author, and
also lectures on sponsorship at the University of Chicago.

In the spring of 1999, Patricia Martin was selected represent the United
States in the first ever U.S./Canada Business’s Trade Summit, and she was
recently named an “Influential Woman in Business” by the National
Association of Women Business Owners Chicago chapter.

MARK YOUR CALENDARS and join us January 20 for what will be an exciting and
informative meeting!
Our monthly meetings are sponsored by Tribune Interactive. Take a look at
their job opportunities,

R.S.V.P.: email your name to

Chicago Webgrrls Listserv
Jan. 24, 2000: BMA talk.

Subj: BMA release
Date: 1/11/2000 3:15:26 PM Central Standard Time
From: (Deborah Azua)

For More Information, Call:
Deb Leider
Deborah Azua

Empowering B2B with E-commerce

CHICAGO-January 11, 2000-Business-to-business transactions account for
over 95 percent of all Internet business, according to the Industry
Standard, leaving many business marketers with the need to better
understand Web-enabled industry models. To this end, Patrick Blake,
CEO of, will share his e-commerce expertise with Business
Marketing Association’s (BMA) Chicago Chapter at the January 24th
lunch seminar to be held at 11:30 a.m. at Harry Caray’s Restaurant on
33 W. Kinzie Street in Chicago. is a business-to-business
e-commerce company focused on Web enabling and streamlining the
process of manufacturing input material procurement.
Blake will discuss the differences of select business-to-business
e-commerce models as well as highlight a new paradigm for Web-enabled
Cost for the lunch seminar will be $30 for BMA members and $40 for
non-members who reserve in advance, and $5 additional on the day of
the event. Call the Chicago Chapter BMA office at 847-256-3883 for
reservations; or fax 847-256-7451. Space is limited; reservations are
on a first-come, first-serve basis.

About BMA
The Business Marketing Association is a 77-year-old, not-for-profit
organization serving the professional and career development needs of
business-to-business marketers worldwide. BMA supports 29 professional
chapters and eight student chapters with over 3,500 members. Chicago
BMA Chapter members include marketing communications professionals at
major corporations, advertising and public relations agencies, trade
publications, educational institutions, and advertising support
For more information or to join BMA, contact the Chicago Chapter of
the Business Marketing Association at 847-256-3883.

Headquartered in Chicago, forms, capitalizes and manages
vertical purchasing hub companies that enable the business-to-business
e-procurement of manufacturing materials. Powered by’s
Centralized Aggregate Purchasing System (CAPSÖ) application, its
vertical purchasing hubs allow global 2000, mid-sized and even small
companies to easily streamline and reduce the cost of procuring
manufacturing materials.
March 20-21 and other dates: E-commerce bootcamps.

From: “Christine Lee”

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