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Bits&Bytes: Tech head's departure still a bit cloudy but business goes on
Saturday, April 07, 2007

Chief Executive Officer Steven G. Zylstra's abrupt resignation Tuesday night from the Pittsburgh Technology Council may have been abrupt, but it wasn't an entire surprise. Insiders say they had heard rumors that he had been looking around since last summer for a new job.

Still, most were shocked when they heard the news, though council spokesman Kevin Lane vowed that the staff of 80 "remains committed to the organization and its goals. We're not a rudderless ship."

It's business as usual, he said, with interim chief Krista Paternostro running the operation and council's work continuing. That included Thursday's release of the tech advocacy group's 2006 annual report, and preparations for next Thursday's regularly scheduled board meeting, where it's expected board executive committee member and venture capitalist Sean Sebastian will take charge of the council's search for a new chief.

It'll likely take awhile for a true-to-life post-mortem of Mr. Zylstra's seven-year tenure and fast exodus to emerge, but that didn't stop supporters and detractors from having their say. If a local blog railed against his management style and public persona, likening him to a "Soviet-style" leader, others rushed to his defense.

Board member and former council chairman Dave Nelsen, now CEO of Pine-based podcasting firm TalkShoe, said Mr. Zylstra "drove a lot of positive change. The tech council has more credibility and respect than it did before he joined.'' It's no surprise that next to no one was willing to talk on the record.


More than 150 people intimately involved in the work of the Pittsburgh Life Sciences Greenhouse gathered in the ballroom of the International Brotherhood of Electrical Workers Building on the South Side Wednesday evening to mark the impact of the public and privately funded economic development engine since its launch five years ago.

State Secretary of Community and Economic Development Dennis Yablonsky, appearing on crutches because of an exercise injury, was among the evening's speakers. He noted how Pittsburgh's biotech and medical sciences sector has grown since he was the organization's first CEO in 2002.

In those days, he said, an industry event would gather handfuls of people, not the full house of business advisers, investors, company chiefs, researchers, support staff and others on hand that evening.

Greenhouse chief of less-than-a-year John Manzetti said the momentum would continue as the group moves to commercialize more technologies, reel in more investment dollars and increase the survival rate for startups.

Those who attended the event said a glance around the room made the blossoming of Pittsburgh's life sciences sector apparent. When asked to stand, those who once acted as advisors to young companies through the agency's popular "executives-in-residence" (EIR) program before going on to become CEOs of other local startups peppered the audience. They included former EIRs-turned-CEOs include Dennis Meteny, of Cygnus; David Palmer, of ClearCount; and Mike Bozik, who returned to Pittsburgh to lead Knopp Neurosciences.


Pennsylvania state officials and the Pittsburgh Regional Alliance are in talks to lure a Washington, D.C.-based technology firm to make Downtown its home base.

Nick Vossburg, the 29-year-old CEO of TechAssist LLC, said that within a month, he'll decide whether Pittsburgh, Research Triangle Park or Cleveland is the ideal "cost-effective location" with the talented labor pool" he's looking for.

Despite having 175 customers in the Washington area, Mr. Vossburg's looking to relocate 10 support and operations staffers and within a year, hire up to 15 staffers in the new headquarters' locale.

In Washington, an ultra-competitive technology services scene has spawned a super-tight labor market that allows entry-level tech professional to command salaries that are 30 percent higher; pushed prices for and availability of office space to a premium; and created scores of competitors that also act as outsourced IT departments for small and medium-size businesses. "D.C. has the highest job advertisement per capita for IT professionals in the country. It's a highly competitive market," he said.

TechAssist's 2005 revenue was $1.5 million; Mr. Vossburg wouldn't provide a later figure but said his firm is growing rapidly and currently employs 35.

While TechAssist has yet to land such economic incentives as job tax credits and low-interest loans for space and equipment, it will be Downtown this week interviewing job candidates, mainly network operation engineers, at Downtown's Omni William Penn Hotel, Mr. Vossburg said.

Officials at Pennsylvania's Governor's Action Team declined to comment.

If you're interested, search for TechAssist LLC on the Post-Gazette's job Web site, (classified.post-gazette.com/jobs/ ) or e-mail hrinfo@techassistllc.com.


Buzz about another investment made by Sewickley-based Meakem Becker Venture Capital has trickled out, despite seemingly futile attempts by the young firm's principals to stay out of the spotlight. HotPads.com, a Washington, D.C., startup, aims to unseat Craigslist as the hottest online spot for apartment seekers and a cash infusion of $2 million by Meakem Becker could help.

The young firm led by a trio of Notre Dame grads, is the second investment made by former FreeMarkets chairman Glen Meakem and his investment team. The first, as reported by Bits & Bytes last week, was Chicago-based LiquidTalk, which received $2.3 million.

First published on April 7, 2007 at 12:00 am
Got tech buzz? Corilyn Shropshire can be reached at cshropshire@post-gazette.com or 412-263-1413.