Date: July 14, 2000

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First Tuesday/Chicago's monthly networking event was held July 11, 2000 (the 2nd
Tuesday of the month, due to July 4th), at the Downtown Chicago Sheraton
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Dear Clients, Partners, Friends, and Fellow Midwestern Schmoozehounds:

Hustling down Michigan Avenue, fresh off the train from Midway Aiport (having just buzzed in for a half-day stop)--I was pumped about finally getting a chance to experience one of these legendary schmoozefests I'd heard so much about. (Unfortunately, no way could it ever live up, I was to find.)

This worldwide new-economy phenom called First Tuesday was, of course, the brainchild of our friends Across the Pond--who lately have launched a franchised expansion of their concept to the U.S., figuring they can teach us Yanks a thing or two about networking.

I wasn't alone rushing the place--some 1500 others were also converging on the downtown Sheraton, which is right on the Chicago River just off the famed "Miracle Mile"--all ready to schmooze their brains out, see if they could collar some fat-cat investor, play my-business-idea's-better-than-yours, or maybe just get some insight into this crazy, ever-changing Internet business. These were dedicated networking fans, too, mind you--just to come inside on this absolutely gorgeous Chicago summer evening, with sun-drenched Lake Michigan beckoning nearby. (Some attendees were in town for Summer Internet World--otherwise, it was predominately a local crowd.)

They crammed shoulder-to-shoulder into the huge ballroom, beginning about 6:30 or so--with libations and munchies courtesy of the sponsors. (No wonder these events are so popular, I thought--with no admission cost, it's a free meal and buzz for all lucky enough to get in! What a business concept.)

But the event was well run--lots of volunteer staff manning the registration tables, color-coded lanyards for each category of attendee, helpful/smiling faces all over with answers to your every question. And, for this fourth monthly event since launching in Chicago, they'd switched to this bigger venue from the Drink nightclub, which (though a huge place) I learned they'd already outgrown. Here, they could have one cavernous room for the cocktail reception, and another next door for all to sit and listen to the speakers...

...the first of which was Katherine Gehl, staff director of the Chicago Mayor's Council of Technology Advisors, who led off with some rousing words to the hoots of locals. "Some are skeptical of the dot-com revolution," she said, "but the best is yet to come!" Noting that Illinois was the birthplace of the first browser, before young Mark Andreesen headed West, Gehl vowed, "History will not repeat itself! The state got $600 million in VC funding in the recent quarter alone."

Forbes ranked Chicago as the 4th largest tech center, she said, with $12 billion in managed venture capital. "More data moves through Chicago than any other city," Katherine crowed. "It's where the Old Economy meets the New Economy."

Featured speaker Chris Lochhead, chief marketing officer of web consulting firm Scient, took center stage for about 30 minutes with a talk he called "eBusiness: How to Win Today." But Lochhead was far more entertainer than lecturer, as he got the audience roaring with laughter on subjects from Austin Powers to jokes about Canada, his home country. (The guy may have an HBO comedy special in his future.) A few of the more serious clips from his talk:

"Risk is back! In April, the world changed. It was easy before."

"So what's changed? One, valuations are down. Two, profits are cool. Bad businesses suck."

"The dot-coms won Round One. But the empires are striking back! Enterprises like our client J&J, who can outspend."

"But, are startups dead? No! In Q1, $17 billion in VC funds was invested in new Internet companies in the U.S. alone. We have today the largest VC funds in history--and most are less than 45% invested! They *are* going to invest in good management with good ideas."

And my personal favorite Lochhead quip:

"First mover advantage is *so* last millennium. You're lucky today if it lasts a month!"

Lochhead, of course, also spent time hyping his favorite subject, Scient (they are, after all, a national sponsor of First Tuesday) -- calling it "the fastest growing professional services company ever." Now with $155 million in revenues, he said the company has built 20 e-businesses for global leaders. Scient's Chicago office, opened six months ago, already had 100 employees and five clients.

My overall assessment of First Tuesday? (Granted, after only one event.) Too big, too short. I wasn't there long before I turned to the guy next to me and gave this assessment: "ClaustrophobiaAndCan'tHearYourselfThink.com"....it's just hard to get any quality networking done in that short a period of time, squeezed together that tight, in such a noisy environment. The organizers do a good job, considering the circumstances. But I question the 7 to 9 p.m. timing -- 5 to 9 would have made more sense, or 6 to 10. (Maybe people hung around for more schmoozing after the official closing--I couldn't.) Also, if First Tuesday can attract high-profile speakers with something newsworthy to say, that could help keep their phenom going -- beyond the current fad stage.

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your faithful conference reporter,
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Graeme Thickins, Founder & Principal Consultant
GT&A Strategic Marketing Inc.
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