San Diego nonprofit aims to drive business to the city

SAN DIEGO–A self-admitted “somewhat arrogant” vision to make San Diego the center of the telecom universe took shape in 1998 with the formation of the San Diego Telecom Council. Today, called CommNexus, the 100 or so member companies of the group are now aiming to take advantage of the convergence of the telecom and life sciences market to drive business to the region.
Drawing on a rich history of military communications at the U.S. Navy at the turn of the century (the last century) San Diego has communications in its genetics with the Department of Defense, said Rory Moore, director and CEO of CommNexus.
The nonprofit focuses on three core areas: access to capital, access to talent and access to business development opportunities.
Programs
The group offers a service called MarketLink, which Moore likens to high-tech speed dating, except for businesses, not people. CommNexus connects large companies looking for technology and business opportunities, and lets those companies connect with startups in the area to vet technology ideas. Of the companies that make it through the vetting process, about 50% who get to pitch their product to the large companies take the next step in the process.
The group also offers a “tough-love” service, Moore said, encouraging companies to present their business plans to group members who critique the technology, business plan and ask questions that venture capitalist firms would ask. This approach helps companies refine their plans before actually presenting to the VC community. “Most of the times, companies don’t even know why they didn’t get funding. This helps them find the flaws in their plans.”
Probably most interesting in light of today’s economy is how CommNexus acts as an incubator for firms just getting off the ground, Moore said. For example, Leap Wireless International Inc. is donating 17,000 square feet of office space for startups that are chosen to participate in the incubator program. Other companies donate administrative help or software and other technology. Called EvoNexus, companies lucky enough to be accepted into the program (three so far) get free access to the donations for a year. “We have three companies in the incubator now and room for maybe another eight or nine.”