It gives me great pleasure to announce these items as best of show:

VinJus - A unique non-alcoholic grape juice drink! Not yet publicly launched, it is scheduled to be distributed shortly. It’s a unique drink. They describe it as:

NAPA VinJus™ - the perfect non-alcoholic aperitif! Refreshing virgin vineyard grape juice – created for your sophisticated palette as an alternative to soda, water or energy drinks. It’s unique balance of crisp, tart and sweet lingers with a hint of green apple, honeysuckle, wildflower and lavender.

Made in the beautiful Napa Valley from early picked varietals, such as Chardonnay and more, this delicious drink is but one single ingredient - mouth watering virgin vineyard grape juice and nothing more! Compared to wine it’s almost half the calories and compared to regular grape juice it’s about half the sugar! And it’s made by a GREEN company!!!

Lucy’s - Smart Cookies. Made with Love. Norfolk, Virginia based Dr. Lucy Gibney M.D. has a son with major food allergies. Lucy describes it best on their website.

Every crispy, crunchy, delicious Dr. Lucy’s cookie is baked without wheat, gluten, dairy milk, butter, eggs, casein, peanuts or tree nuts. But you’d never know it. They taste delicious! We use only high quality ingredients in our carefully controlled bakery to be sure our products meet our tight allergen testing criteria.

Lucy was amazed at the lack of food available to serve that market. Lucy turned to the kitchen in order to change that and once a few varieties were perfected she decided to solve the problem for others without her unique combination of talents. They weren’t even supposed to be at the show, they got added to new items section at the last minute. I’m glad they did, Lucy is a wonderful person and I know her niche product will succeed. Terry Starbucker is already a huge fan.

Blackwing Meats, Inc. - A variety of elk, buffalo, ostrich and other exotic organic meats as wide as I’ve ever seen! They get bonus point for having an highly functional e-commerce site to ship Roger Gerber’s creations directly to you. Even in the down economy Roger says 1st quarter sales were up 77% over the previous year. These items have momentum and the distribution to match it.

Bionade is a unique German based, non-alcoholic refreshment drink that is scheduled to be introduced in the United States later this year. It’s unlike anything I’ve ever tasted, but it is truly outstanding. In Germany the Elderberry is most popular, however I like the Herbs flavor the best (see picture here). If they are able to get shelf space and have an affordable price point, it could easily be a hit in the USA.

Leggio’s herb infused olive oil - Chef Joseph Leggio creates an “amazing” herb infused olive oil product. While there were others at the show with offerings in this vertical, none match the taste of Leggio’s. Joseph started experimenting with the concept several years ago. Then one day asked his wife to ask her dad, a wine maker, to bring over some bottling equipment for him to test with. Though she thought he was crazy, she did it anyway and his hunch paid off, his business is growing quite briskly and he claims to have some other innovative ideas up his sleeve, I can’t wait to see what they are.

Sheila B’s Popcorn (web site under development) - awesome butter flavor, ultra high pop rate, doesn’t dry out upon popping, no aftertaste like most popcorn has and best of all, not really more expensive than other popcorn on the market! Really nice folks too that taught me about the current state of agriculture.

BigHorn Extreme Foods - Peter Andrews has unique sausage offerings as well as tasty buffalo and elk burgers for restaurants and retail outlets.

WowBacon - Amazing clean cooking micro-wave bacon preparer. 6 years to perfect as an invention. Works extremely well as I’ve tried it out. Please note it will not stand upright in smaller microwaves. See a review here with some photos.

Tre Bella Foods Organic - Gail Tiburzi’s organic Italian foods were inspired by her grandmother’s original recipes. It’s not everyday you meet a former investment banker turned food distributor, my time with Gail was all too short as she had a meeting. I told her to call me if she had time during the rest of the show to compare projects, I guess she was too busy taking orders as I never heard from her!

For those needing last minute Mother’s Day gift ideas, there you go!

Andrew was a fascinating guest! He was ultra low maintenance and had great stories to tell about living in New Zealand and then moving to the UK,  the music industry and his love for jazz (all too rare in the UK). He is the proud new owner of a Leica D-Lux 3 camera - which takes ultra sweet photos, even at high speed on Lake Shore Drive! More importantly I think I experienced several new things about Chicago that I never had before such as Chicago’s many jazz clubs and music stores. Andrew experienced Italian Beef (pictured below), Greektown and tasty BBQ ribs and cornbread! I’m glad he stopped by for a visit and I hope to see Andrew again someday soon!

I was massively disappointed by what followed…

A giant and unnecessary pdf file weighing in at a hefty half a megabyte arrived in my mailbox.

Giant pdf files are anything but eco-friendly!

Sometimes those massive pdf’s are jammed into archaic email servers with small file size limits like the joke of the size of my chicagogsb.edu email address (the quota hasn’t ben raised from 20MB in it’s history and creates networking bottlenecks). Secondarily, large files are not eco-friendly in general as they take up larger amounts of hard drive space which drives demand for more hard drive space - this is hardly eco-friendly. This isn’t even mentioning RAM implications.

I would hope that Eco-Safe would chose to immediately work to limit the file size of it’s output or better yet eliminate pdf’s altogether…

I was sitting next to Mike Sansone all day and I learned a ton about community! I got a little tip from Robyn Tippins who I’d known for years online and had never met in person! I met Lorelle VanFossen - one tough cookie who really knows her Wordpress - she got a cool mug recently - me I’m still waiting for an XL hoodie. I met other great online friends like Easton Ellsworth and Jason Alba for the first time. I built relationships with people that blossomed into subsequent relationships. Most importantly they are blogger relationships! So many other great stories from wonderful people.

For the 2008 attendees, I’d like to tag you and ask you to write what you hope to achieve from the experience this weekend. For the 2007 attendees, I’d like to tag you and ask you - what foundation did the experience create and how has it impacted you in the following year? If you were an attendee last year and will be attending this year, you will have been tagged twice but one post is OK…

For me I learned about conversational blogging and learned tons of blog tips and tricks! It was so much fun! This year I hope to continue that journey. I’d also like to learn how time strapped bloggers find or make time to blog when you are ultra busy…my frequency has been down recently for this reason…I look forward to hearing your replies to these issues!

Please take this html link lists and repost the link love to the 2007 folks as well as this year’s people too!
Click on the link, right click, then select all, then copy and paste!
2008 SOBcon Chicago blog link list
2007 SOBcon Chicago blog link list

SOBcon2008 attendees…
Cliff Atkinson
Shashi Bellamkonda
Chris Brogan
Harry Brooks
Anita Bruzzese
Dave Bullock
Mark Carter
Brian Clark
Tom Clifford
Valerie Combs
Chris Cree
Lisa Cree
Thomas Croghan
Donna Cutting
David “Chicago Mobile Marketing” Dalka
Kevin Dixie
Tim Draayer
Andrew Dubber
Monica Duncan
Easton Ellsworth
Kevin Ferrasci O’Malley
Jonathan Fields
Sarah Filipiak
Mary-Lynn Foster
Annie Galvin Teich
Brian Gardner
Chris Garrett
Jon Gatrell
Phil Gerbyshak
Jared Goralnick
Karen Hanrahan
Joseph Hauckes
Vicky Hennegan
Scot Herrick
John Hong
Stephen Hopson
Robert Hruzek
Timothy Johnson
Sara
Pete Jones
Todd Jordan
Bob “Internet Advertising” Kakoliris
Christine Kane
Adam Kayce
Kristen King
Jen Knoedl
Stephen Koernig
Bryan Kress
George Krueger
Amy L
Tammy Lenski
James G. Lindberg
Eli Litscher
Rick Mahn
Sim Margolis
Michael Martine
Becky McCray
Maria Meadows
Cory Miller
Ann Michael
Dawud Miracle
Debra Moorhead
Matthew Murphy
Paul O’Flaherty
Tim Padar
Jesse Petersen
Melissa Pierce
Wendy Piersall
Sandra Ponce de Leon
J. Erik Potter
Karen Putz
Susan R Quandt
Levy Rivers
Barbara Rozgonyi
Jeff Sable
Sheila Scarborough
Mary Schmidt
Derek Semmler
Maria Sharon
David Sherbow
Steve Sherlock
Brad Shorr
Louise Silberman
Sonia Simone-Rossney
Julien Smith
Stephen Smith
Michael Snell
Derrick Sorles
Terry Starbucker
Liz Strauss
Jon Swanson
Ruth M Sylte
Windsor Tanner
Michelle Vandepas
Lorelle VanFossen
Colleen Wainwright
Denise Wakeman
James D. Walton
Randy Windsor
Joanna Young

SOBcon2007 Chicago Attendees:
Sandra Renshaw
Brad Shorr
Timothy Johnson
Tammy Lenski
Muhammad Saleem
Lorelle VanFossen
David Dalka - Mobile Search Marketing - Chicago GSB MBA
Todd And
John Yedinak
Joe Hauckes
Tim Draayer
Jeremy Geelan
Carolyn Manning
Sheila Scarborough
Steve Farber
Dawud Miracle
Doug Mitchell
Jeff O’Hara
Dave Schoof
Jamy Shiels
Adam Steen
Hannah Steen
Chris Thilk
Barry Zweibel
Eric Bingen
Ellen Moore
Cord Silverstein
Jean-Patrick Smith
James Walton
Sharan Tash
Vernon Lun
Tony Lee
Scott Desgrosseilliers
Mark Murrell
Kammie Kobyleski
Easton Ellsworth
Mark Goodyear
Ann Michael
Kent Blumberg
Ashley Cecil
Robert Hruzek
Sabu N G
Mazur Krystyna
Lisa Gates
Franke James
Chris Brown
Troy Worman
Karen Putz
Jesse Petersen
Terry Mapes
Andy Brudtkuhl
Lucia Mancuso
Peter Flaschner
Derrick Sorles
Mike Rohde
Thomas Clifford
Rajesh Srivastava
Claire Celsi
Jason Alba
Cristiana Passinato
Sean R.
Alex Shalman
Cristiana Passinato
Brad Spirrison
Ari Garber
Dr. Rob Wolcott
Cheryll Cruz
Sharon Scherer
Jonathan Phillips
Jason Wade
Jill Pullen
Doug Bulleit
Wendy Kinney
Chelsea Vincent
Ayush Agarwal
Paul Mangalik
Premchand Kallan
Xochi Kaplan
Michael Snell
Ella Wilson
James Bergstrom
Raj Majumder
Keith Levenson

SOBcon2007 Chicago Speakers:
Andy Sernovitz
Phil Gerbyshak
Liz Strauss
Mike Sansone
Drew McLellan
Mike Wagner
Terry Starbucker
Rodney Rumford
Ben Yoskovitz
Chris Cree
Robyn Tippins
Diego Orjuela
Vernon Lun
Wendy Piersall

The 2008 Industry Achievers:
Pete Blackshaw (Executive VP, Digital Strategic Services, Nielsen Online) has been an industry leader since co-leading p&g’s interactive marketing efforts. He founded PlanetFeedback.com, coined the term “consumer-generated media,” and co-founded the Word-of-Mouth Marketing Association (WOMMA). He also has a forthcoming book, “Satisfied Customers Tell Three Friends, Angry Customers Tell 3000″.

Kate Thorp (CEO of Real Girls Media) was named one of the Top 25 Women to Watch by Advertising Age (1998) and a Media All Star by OMMA (2005). She was also inducted into the AAF Hall of Achievement for executives under 40 (2000).

Rich LeFurgy (General Partner of Archer) was recognized by USA Today as “the Johnny Appleseed of Online Advertising” (1998), was inducted into Advertising Age’s Interactive Hall of Fame (2000), and received the IAB’s Lifetime Achievement Award (2004). Rich is the Founding Chairman of the Interactive Advertising Bureau and remains active in the trade association since it’s founding in 1996.

The 2008 Limelight Award Winners:

· Best Banner Ad: WaMu Friendly Banner, Avenue A | Razorfish

· Best Interactive Broadcast Ad: Nissan Rogue Campaign, TBWA\Chiat\Day\Tequila

· Best Large Format or Overlay Ad: Assassin’s Creed Roadblock, AKQA

· Best Next Generation Ad: HEMA Rube Goldberg Viral, CCCP

· Best Use of Rich Media: HP Gwen Stefani Yahoo Paper Dolls, Goodby, Silverstein & Partners

· Best Affiliate Marketing Campaign: Moosejaw - Growth and Profit, Schaaf Consulting

· Best Branding Campaign: eBay – Renew & Rethink, Agency.com

· Best Business-to-Business Campaign: EyeWonder Client Testimonials, EyeWonder

· Best Consumer Campaign: Nokia Jealous Computers, These Days

· Best Direct Response Campaign: Soccer Club Sells Seats with DRC, eStara

· Best Email Marketing Campaign: Sun APAC Re-engagement, Acxiom Digital

· Best Integrated Campaign: Heinz Top This TV Challenge Website, Smith Brothers Agency

· Best Mobile Campaign: Motorola “Say Goodbye”, The Hyperfactory & Ogilvy

· Best Multi-Cultural Campaign: Vivemejor, Media 8 Digital Marketing

· Best Social Media Marketing Campaign: Bamboo on Facebook, Guerilla PR

· Best Word of Mouth Campaign: Elf Yourself, EVB & Toy

· Best Campaign Optimization: Lincoln Educational Services, iCrossing

The 2008 Limelight Award Winners (continued):

· Best Search Engine Optimization Strategy/Campaign: Millennium & Copthorne SEO Campaign,
eMarketingEye (Pvt) Ltd

· Best Search Marketing Strategy/Campaign: HGTV Design Star Marketing Loop, Scripps Networks

· Best Business-to-Business Marketing Web Site: Mullen.com, Mullen

· Best Business-to-Business Transaction Web Site: FurnishedQuarters.com, The Buddy Group

· Best Business-to-Consumer Marketing Web Site: HP Serena Williams Site, Goodby, Silverstein & Partners

· Best Business-to-Consumer Transaction Web Site: Virgin America, ROKKAN

· Best Micro Site: Every journey needs a Journal, T3

· Best User Defined Experience: DesignMyRoom Website, andCulture

· Best of Show: Elf Yourself, EVB & Toy

The 2008 People’s Choice Award Winners:

· Best Banner Ad: Blue Shield of California Headbanger Banner, TAXI, Inc.

· Best Interactive Broadcast Ad: Ubisoft Rayman Video Inventory Ad, AdMission Corporation

· Best Large Format or Overlay Ad: Flight of the Conchords, Deep Focus

· Best Next Generation Ad: Motorola Rockstarizer, Draftfcb

· Best Use of Rich Media: Taco Fu, Blockdot and Draftfcb

· Best Business-to-Consumer Marketing Web Site: Breville Concept to Kitchen, Avenue A | Razorfish

· Best Business-to-Consumer Transaction Web Site: Virgin America, ROKKAN

· Best Business-to-Business Marketing Web Site: Business Breakthrough, Visa

· Best Business-to-Business Transaction Web Site: ADSDAQ Selling Desk, ADSDAQ by ContextWeb

· Best Micro Site: Funship Island, Avenue A | Razorfish

· Best User Defined Experience: Elf Yourself, EVB & Toy

Jon Kaplan’s talk starts here: Youtube was founded at a dinner party in 2005. There was no easy way to share video files.

Online video viewing in the mainstream

Americans stream of 10 billion online views monthly…

Explosion of Content = connection of people + democratization of the tools of production + broadband penetration + falling cost of data storage

Sharing is the new viewing - 150M unique users globally

Demographics: 2/3 of YouTube users are over 35, 37% earn above $75,000

800 content partners attended YouTube Videocracy in February

Four ways to think about marketing in 2008
- Target your audience with video profiling
- Integrate your brand into the user experience – on YouTube and Beyond!
- Leverage your offline assets and ones YouTube is creating
- Think about measurement differently

Video Profiling – Building Tools for Effective Targeting – using traditional demographics in the search by audience features…

YouTube’s Creative Standards – 20 million home page views a day

Animated flash overlay is the current YouTube ad format – NO Pre-rolls are shown
Promote Your Video: Video Search capabilities

Integrate Your Brand into the Experience – HP example

It’s all about interesting content: Turbotax

It’s about all about educational content: Vanguardinvestments brand channels

Launched test of video ads in the 1st Quarter of 2008

E*TRADE – pre-seeded SuperBowl commercials – 2,000,000+ views on Youtube.

American Express sponsored fashion week

YouTube Global Gathering

Metrics – the social side of YouTube
- Users can rate videos
- User can comment on videos
- User can add videos to their list of favorites
- User can share videos with friends
- Users can subscribe to their favorite channel

New metrics will accompany this, Google Trends data – admitted that this drives need for Adwords campaigns. Discussed other metrics in terms about how the video was measured and then closed with questions.

Audience question: Should YouTube provide statistics for videos with completed views or the average time of engagement with viewers so that more accurate measures of engagement could be provided?

Answer: That’s a good question. Said several things about exploration of new areas. Did not say yes we’ll add it or no we’ll never do that. It will be interesting to revisit this issue at some point.

Modalities:                             Usage   Capable phones
Texting                                        50%     100%
Mobile Browser,                         25%      >60%
Downloadable Application        17%      >60%

Application download cons are pretty significant – carrier control, downloading, device management, etc

Browser cons – sign-on, complex navigation, lack of awareness

SMS text message cons - Simplistic UI, Security, Plain Text

Distributing services in the mobile ecosystem requires a highly complex series of relationships.

Wells Fargo and external research shows that there is adoption interest.

Most frequent uses presently: checking balances, fund transfers and activity monitoring

Browser usage presently 2.5 times per week, 66% active users (last three months)

Text banking – 83% of all mobile banking enrollees are including the text banking service. Sending 19 text messages a month overall, becoming more engaged with the accounts overall.

Mobile Contactless Pilot with Visa…

Mobile delivers strategically – when, where, why and how?

What is the potential value?
Customer retention, reducing servicing costs by controlling call center calls, reduced risk and fraud, customer acquisition and usage revenue (P2P, Panic Play, Mobile Contactless, etc)

Security order: SMS, Browser, Application

Mobile customers slant towards a desirable demographic overall due to the very fact they are heavy mobile users.

Future state is for SMS, application and browser to be ubiquitous and the three will be tightly integrated.

Well Fargo is trying to build usage of the channel, not charging for the service at this time. Getting techno-savvy users so servicing has been minimal.

Reaction: I’m highly impressed with the full deployment of SMS, Browser and Application download models as they will be fully able to determine which best meets customer needs based on actual usage data. I chatted up Eskander afterwards and he’s a joy to speak to.

His post gives an all too rare but welcome dose of independent thought - more people need to be educated and make independent choices about Internet advertising. The world does not necessarily revolve around Adsense.

He is after all giving a glimpse the future of Internet advertising. One where the publisher is respected, given a fairer share as a true partner and rewarded with greater relevancy of ads on their site.

If people were truly energy conscious, wouldn’t they want these lights to be off in these empty buildings every night, all night? Wouldn’t that do something actually meaningful? Have we gotten to the point where the American media is so incapable of independent thought that a completely meaningless story like this gets way too much attention? It appears so.

It’ll be a real story when all of these empty office buildings have these lights completely turned off in the middle of the night, every night.

Why isn’t this the focus? It should be. 

Others are even more critical of the event.

Typical Fund Structure
- Management Fee 2.5% of committed capital
- Carried Interest – after losses offset by profits
- 80% Net Profit – Investors
- 20% Net Profit – General Partner
- 50-70% desired return…
- Vesting occurs over 5 years

- Experienced, successful entrepreneurs abound throughout the country
- Start-up companies have access to abundant early-stage venture capital
- Skilled attorneys, accountants, consultants are readily available
- The majority of start-ups can result in successful IPO’s within 2-3 years
- Increasingly hedge funds are an alternative financing source
- Angel capital is more available in Chicago than it used to be

- The space a VC plays in is extremely important - industry sector, growth

- Tom has changed management 3 times on average in the 60 companies he’s invested in

- Buckets of entrepreneurship seed entrepreneurs, beta stage, scaling skills

- Discipline = Success

Criteria:
- Proprietary product or service
- Sustainable competitive advantage
- Viable business model
- Large markets
- Experienced management team
- Appropriate use of funds
- Target 10-15x growth 5-7 years
- Objective: Sale of IPO in 5-7 years

Management:
- The most critical resource
- More important than all other elements
- Stage appropriate, later stages may require different management
- Must have a significant stake in success
- Tom says “Management experience is management experience, big company experience is just as good as small company experience in his view.” (Note: I actually find a *mixture* of both sizes in your experience to be of high value)
“We don’t make money on IPO’s, we make money selling to the Baxter’s, Motorola’s etc.”

“Nothing succeeds like revenue, it’s the cheapest form of capital.”

In 60+ company investments, I can only say that once it was the technology that made the company fail. It’s about getting the product in the marketplace.

What makes you say yes?
Passion. A product I have to get on the marketplace that solves a real problem. Management discipline which means they can step back and say realistically this is how long it will take, this is the team you will need, etc.

Revenue is an outcome, it’s not a driver. What is going to cause the business to scale? It’s business model testing. I don’t care about year 5, I care about what will get us more proof of concept and closer to a success.

The first screening process is where did this plan come from, if another VC sent it to us, we pay attention more. I ask, “Do I want to have a beer with this guy? You shouldn’t be there if you can’t say yes. ”

60% of the time we at least get our money back.

Scientific Board of Directors (compensated with a point of equity +/- a bit)
- Should be at least equivalent in stature to the scientific founders
- Like the Board of Directors, should have complementary skills
- Used properly, play a vital strategic role
- Typically meet semi-annually

Tom never signs an NDA.

The Business Plan
- Executive Summary is most important
- Shorter is better
- Assume the full appreciation of the technology will come in the due diligence
- Avoid jargon
- Avoid the hockey stick
- Focus on the revenue model
- Have a realistic exit strategy
- IPO’s are rare – most VCs are quite happy with a nice M&A exit
- Nobody reads the full business plan - I care about the executive summary
- Cashflow is more important than revenue during this phase