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High-tech businessman Smelek offers advice about Boise area growth

The key to technology business growth in the Treasure Valley is
developing and supporting that industry´s infrastructure, local
high-tech guru Ray Smelek told members of the Idaho Business
League on Wednesday.

IdahoStatesman.com

Access to money and strong higher education programs are two of
the most important aspects of the area´s future, he said. An
engineering program at Boise State University and partnerships
formed by the college´s business school have added momentum to
the growth, said Smelek, chairman of Extended Systems and a former
vice president and general manager at Hewlett-Packard Co.

“Money is a key issue,” he said. “It´s not easy to get money from a
bank. They like to loan to those making a profit, not those just hoping
to make one.”

Without the recent advent of angel funds and venture capital firms,
local entrepreneurs have had to be creative in coming up with start-up capital, using
everything from credit cards to family savings.

“Until recently, we´ve had no venture capital firms in town; now there are three,” said Smelek,
who also is president and CEO of The Network Group. http://www.tng-boi.com “They´ve raised some $40 million to
$50 million and are reviewing business plans. That´s something that will develop fairly rapidly
now.”

The next step, he said, is getting investment bankers in the Treasure Valley to help
companies launch an initial public offering of stock.

“Infrastructure doesn´t start up over night,” he said. “It evolves for good business reasons.”

In the end, Smelek said, companies sometimes decide to move to an area for reasons that
aren´t business- related. He recalled deciding among Boise, Corvallis and Spokane a site for
a new HP facility in the early ´70s.

“I had four kids — ages 8 to 15 at the time — and had to convince my family that this would
be a good move,” Smelek said. While Boise made good business sense with its location near
HP´s corporate headquarters in California, other factors became important, as well.

“I told my kids they could ski and go camping here, and that they could drive at age 14,”
Smelek said, drawing laughs. “And I liked the golf course here.”

To offer story ideas or comments, contact Julie Howard
[email protected] or 373-6618

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