The additional $3 million required to capitalize Insight
Information Inc., a young high technology company based i n Oklahoma
City, has proven problematic for forces rallying to encourage
economic developmen in Oklahoma.
In spite of the fact that the company has already raised $1.2
million, and projects employment of 120 persons by mid-1987, there is
no adequate source of venture capital to bolster the fledgling
enterprise, said to Mike Woelffer, director of economic development
for the Oklahoma City Chamber Commerce.
Insight Information, which moved to Oklahoma City in January 1986,
is preparing to market an integrated microcomputer-based software and
database product called INSIGHT for use by national professional
money managers, investment bankers, investment research analysts,
commercial lending officers and corporate treasury or planning
While Oklahoma's financial hands are tied, Insight Information
continues to negotiate its $3 million in financing through
corporations and major venture capital firms, according to Gregory E.
Smith, chairman and chief executive officer of the company.
Woelffer said the situation points out a problem in Oklahoma.
"We have to get going in funding our own ideas and inventions and
keeping them here in Oklahoma," Woelffer said. "They (Insight
Information) have no income, and they haven't proven they can
generate income and make a profit, but this is a promising
technological product that is almost ready to market.
"It needs capital to continue, but there is no state program to
help. When a company starts experiencing that, someone (willing to
finance them) will pick them off. Those companies can take an offer
from someone else, and move away.
"Somehow," he added, "we've got to come up with the financial
programs to keep those ideas and innovations here in Oklahoma."
Smith started the project in 1984, putting up $150,000 himself for
market research. A former associate and shareholder, Fran Finnegan,
In March 1985, three of the company's directors and "a handful of
others," injected $327,000 for design of the product and research to
determine logistics and procedures for collecting data.
Another injection in January 1986 was $325,000, including $100,000
"from some local players" - the only Oklahoma investors in the
project besides Smith.
Since January, the company has raised about $400,000 from existing
investors for design, prototyping and implementation.
The directors - all of New York - are helping raise additional
funds, according to Smith. They have been the primary financers so
far, according to Smith. Those investors are:
Francesco Galesi, 55, chairman of the Galesi Group Inc. He has
interests in real estate, manufacturing and telecommunications.
Galesi is also a director of Argo Communications, a satellite-based
long distance telephone company. Galesi is "worth $275 million in
his stocking feet" according to the May 1986 issue of Manhattan Inc.
Sidney Kahn, 49, is a senior vice president of E. …