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Enron Mail |
Steve,
Thanks for the update. I was stunned by your email and didn't know about your father. I am very sorry for your loss. My thoughts and prayers are with you and your family. Mike Stephen R Horn 06/06/2000 07:05 PM To: Mike McConnell/HOU/ECT@ECT, Jay Fitzgerald/Corp/Enron@ENRON, Allan Sommer/Corp/Enron@Enron cc: Ellen Fowler/HOU/ECT@ECT, Drew Ries/HOU/ECT@ECT Subject: InfrastructureWorld.com--Memo from Larry Izzo Please read the attached memo from Larry Izzo. He is obviously wanting to resurface Infrastructure World. As you will note in the last paragraph, he is basically staking out a position that EECC is going to have to spend $2 million on project management software development and that he can capture free optionality of doing a deal with infrastructure world. On the surface of it, this does not make sense on several dimensions: 1. It is not clear to me why EECC has to spend $2 million on project management software development. By definition, such software would want to be collaborative and I don't understand the logic of why we would do it ourselves. 2. If there is a seperate carve-out of project management software that is required for what we do that is separate from what existing functionality of Cepren, Buzzsaw and Bidcom is doing; we may have an opportunity to do joint development with any of these players. The question is picking who we think would be a winner and figuring out if there is a deal to be done. Allan and Drew, together with the EECC, have orchestrated meetings next week with these three companies to figure out ways that EECC may be able to work together with one of them. I would note that Bechtel is an investor in Cephren so it is not clear that they expected these to entities to be directly competitive. It is not clear that Infrastructure World is preferable to one of these other alternatives. 3. It is obviously not my call as to whether EECC needs or will spend $2 million for Project Management software development (although I am skeptical). From an investment perspective, there has not been that much that has progressed on Infrastructure World in the last six to eight weeks. The principal change has been a significant revaluation and critical assessment of B2B business plans and particularly revenue models. I would thus say that two months ago my assessment given the Bechtel/Hull involvement that there was a 75% ability to do legitimate VC at $5 to $10 million pre-money (as opposed to the $15 million that it was done at). I would say that the probability would be 25% of $5 to $10 million with significant risk of doing subsequent rounds. I would thus have a view that we should pass from an investment perspective. I have left Larry a voice mail that I am available to meet when I am back Thursday and Friday when I am back from my father's funeral. I will have a discussion along these points. I am on vacation next week , but told Larry in the voice mail that the alternative is to meet with Allan (who is out this week) and one of the people from my team. ---------------------- Forwarded by Stephen R Horn/HOU/ECT on 06/06/2000 06:33 PM --------------------------- Larry L Izzo@ENRON_DEVELOPMENT 05/31/2000 06:20 PM To: Stephen R Horn@ECT cc: Subject: InfrastructureWorld.com
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