Why Genesis?

Harlan Jacobs is the founder and president of Genesis Business Centers, Ltd., a diversified high tech, for-profit incubator program. Mr. Jacobs is a seasoned CFO with over 20 years experience as a corporate controller and treasurer prior to becoming involved in the fields of incubation and early stage venture (seed) capital. He was the CFO for FilmTec Corporation, a successful Minnesota high tech start-up company with a unique reverse osmosis membrane technology. Formed in 1977 with only $100,000 of founders capital, the company went public in 1979.

In 1985, with sales of $10 million and net income of $1.5 million, FilmTec was sold to Dow Chemical for $75 million in cash! Mr. Jacobs was actively involved in the acquisition negotiations.

Over the years he became interested in other early-stage, high tech companies like FilmTec. Most of the companies in which he invested were having great difficulty raising the first $250,000 of capital. Paying the rent and having adequate business advisory services available early-on were common laments among the management teams he interviewed for his prospective investments.

A business opportunity seemed obvious. In 1993 he founded one of the most progressive high-tech business incubator programs in Minnesota, if not in the U.S., by offering to barter rent and "Acting CFO" services for a negotiated equity position in its incubatee companies. This bartering program has become a cornerstone of the Genesis Incubator program.

In recognition of his efforts and success in helping small businesses raise capital and get off the ground, Mr. Jacobs was appointed by Senator Rod Grams to serve as his delegate to the White House Conference on Small Business in 1995, and again as his delegate to the Congressional Small Business Conference, held in Washington, D.C., in June 2000.

Successful graduates of the Genesis Incubator program include SurVivaLink, a manufacturer of portable battery operated defibrillators that was acquired by Cardiac Sciences (stock symbol: DFIB), NT International, a specialty sensor manufacturer that was acquired by Entegris (stock symbol: ENTG), and Excorp Medical, a bioartificial liver company whose system recently received FDA "orphan drug" designation, a significant approval step.

Other promising graduates and client firms of the Genesis program (and their technologies) include CYMBET, (infinitely rechargeable lithium ion polymer battery depositions on silicon substrates), Visual Circuits (video compression software and systems), First Circle Medical (full body hyperthermia therapies for Hepatitis C), Dymedix (dispoable sensors for sleep clinic applications), Venturi Medical Systems (multi-use, high efficiency electrodes for EKG signal acquisition), GEL-DEL Technologies (tissue engineering), Tracking Technologies (miniature tagant particles for anti-counterfeiting applications), Peat Technologies (organic and inorganic wastewater treatment technology), California Molecular Electronics (molecular optical switches), Provis (computer chip design tools), Bixby Energy Systems (biomass fuel furnace systems), and Electronic Materials, LLC.

Electronic Materials may very well have a "basic patent" and therefore be in a position to engage in significant licensing transactions whenever an electronics company or others utilize a computer controlled ink jet nozzle for the deposition of electronic circuitry on flexible substrates. Genesis is assisting the company to secure licensing agreements on a global basis.

Jacobs' personal track record of investment in private placement offerings such as in Recovery Engineering, Inc. ($1.00 per share in 1986--acquired by Proctor and Gamble in 1999 for $35 per share) has helped to engender the confidence of those third parties who utilize the Genesis Incubator program as a high quality screen for selecting investment candidates.

Genesis works regularly with community development organizations that wish to bring high tech jobs to their communities. Genesis helps to establish business angel networks and community-based seed capital funds that receive funding from utility companies and commercial banks (in fulfillment of the letter and spirit of the law in respect of the Community Reinvestment Act) as well as from high net worth individuals who wish to help their communities to grow and prosper.