First Tuesday widens scope to keep up with changing times

Almost every day more casualties emerge from the technology industry. Informal network organisation First Tuesday may be considered lucky not to count itself among them

It has, however, had to make sharp shifts in business practice to re-invent itself and survive in an ever-changing environment.

From the outset, First Tuesday's objectives were clearly outlined - to promote, accelerate and assist e-entrepreneurs. It aimed to provide a forum for knowledge-based networking, to enable people with ideas to meet potential investors.

Originally First Tuesday events - so called because they took place on the first Tuesday of every month - involved a host of entrepreneurs making elevator pitches to industry professionals, venture capitalists or private "Angel" investors. In these five or 10-minute speeches, technical talents are given the opportunity to sell their product or service to the listening audience.

First Tuesday has widened its focus now and invites a much broader range of people to speak at events and make elevator pitches. Mr Greg Purcell, chief executive of First Tuesday, maintains that, despite economic doom and gloom, there is still entrepreneurial spirit in the State, which needs to be nurtured.

He believes interests have changed rather than ended. "The timeframe for investment is longer now than when First Tuesday first came to Ireland," he said. Venture capitalists and investors are also more interested in "unique ideas, a clear route to profit or a good business plan" than ever before.

In July, the first new-look First Tuesday meeting was held. Speakers at the event included Communicorp Group chairman Mr Denis O'Brien and Iona chief executive Mr Barry Morris. In contrast to the series of elevator pitches that once dominated, the meeting was concentrated more on panel discussion. The panellists engaged in discussion on a variety of issues relating to the changing global and Irish economy, and the impact of recent world developments on the opportunities for growth for Irish companies.

Iona is one of the ongoing sponsors of First Tuesday events. Iona director of global alliances Mr Fergal McDonnell maintains that Iona is still "keen to support entrepreneurial avenues". He agrees that the focus of First Tuesday has shifted to "case studies of proven companies" rather than the traditional elevator pitches.

In regular attendance at First Tuesday meetings, he has seen the company evolve in line with the economy and recognises that investors are more interested in "quality" ideas rather than the "quantity" of ideas, which marked the heady dotcom days.

The concept of First Tuesday has gained much momentum since its humble beginnings in a bar in Soho, London. Three students originally aimed to recreate a networking opportunity that mirrored the success of similar projects in Silicon Valley.

Although it operates independently, the Dublin group is part of a network that is active in 43 cities across 25 countries worldwide. Now in its fourth year of operation, it claims to have more than 50,000 active members. In Ireland, there are approximately 7,500 registered members.

During the dotcom boom, events were so popular that tickets had to be provided through a lottery and the locations of events were kept almost secret.

Visitors are still given a different colour sticker to identify themselves as either an entrepreneur, a service provider or potential investor. This enables people to make the right contacts with less effort.

Now the Irish organisation has broadened its horizons by moving into Belfast. It held its first meeting there in December 2000. "There was great support from Irish companies also," Mr Purcell says.

Mr Shay Garvey from Irish venture capital firm Delta Partners once frequented meetings but believes now that networking requires a "different sort of climate" than exists at present. "Initially it was a useful forum for getting to know people," he says.

With the new format of targeting a broader range of individuals and companies, he maintains "the value per customer falls".

A success story of First Tuesday is Network 365, a leading provider of mobile applications, which is headquartered in Wicklow and has offices in Britain, Europe, the US and Asia. Mr Raomal Perera, founder and managing director, approached his eventual investor at one event.

Armed with only an idea, he needed to raise more than €800,000. After months of planning and building a relationship with Trinity Venture Capital, it finally invested around €3.5 million. Although Mr Perera says there were far too many people at the events in the midst of the tech boom, he found that it was "most definitely a successful way of meeting people and very professional".

There are a number of other organisations that emulate First Tuesday, to some extent. These include Wireless Wednesday, First Biotech and zeriously.com.

Mr Liam Casey from zeriously.com admits that it was built on similar principles to First Tuesday but concentrates on smaller group settings. He thought that First Tuesday events prevented people talking to investors and business gurus because there were too many in attendance and so he set up zeriously.

"Networking is gone out the window," he says. "Now it is more about established business people at First Tuesday."

According to Mr Purcell from First Tuesday, "The initial craze has cooled down, but the market is here to stay and get stronger. We are moving with the times" he adds, and combining corporate guests and elevator pitches.

First Tuesday has had to move away from attracting exclusively technological entrepreneurs for showcasing. Now he says, "we want to attract anyone or any company that uses technology, which is everyone".

A survival tactic no doubt, but one that Mr Purcell claims can re-energise the organisation.

"With over 70 applications for elevator pitching in August, and only 20 places available, it is evident that demand is still strong," he said.