Launching a new Internet or technology company in an economic slump and a year when most existing dot-coms are struggling to survive may seem to border on suicidal. On the other hand, though, there's no better time to grab market share than a down market and no better chance to take advantage of the lessons learned by those who failed. A number of the biggest names on the Digital Coast seemed to think so, as people like Michael Robertson, Sky Dayton and Brett O'Brien founded new companies.

Most of the Digital Coast companies that launched in 2001 were small entities that, unlike the splashy debuts of a few years ago, are slowly growing with their markets, rather than going for attention now and worrying about revenue later. With smart business plans and new takes on making the Internet a profitable place for doing business, these may be the firms that are grabbing national attention in a few years. At the least, they'll be remembered for having the bravery to launch at a time when running an Internet company no longer brings prestige, huge salaries, or phone numbers at a bar.

The biggest debut of the year, and the company that has grown the fastest, was without a doubt New.net. The only firm to spring in 2001 from once prolific incubator idealab, New.net is aiming for nothing less than to revolutionize the domain name system, controlled by the famously bureaucratic and slow ICANN.

New.net offers users a series of alternate domain extensions, only accessible to those whose ISP has a deal with the company or who have downloaded a plug-in. Starting off with 20 extensions in English, including .mp3 and .xxx, New.net now offers 87 extensions in six languages and is accessible to over 96 million people. Most notably, New.net takes itself quite seriously and has not only spoken out on its market-driven approach to domain names at ICANN meetings, but has proposed integrating itself with ICANN to help test domains before they are adopted throughout the entire Internet. For now, though, New.net provides a partial solution to the problem of slow expansion of Internet extensions and a private market challenge, for better or for ill, to the slow progress of authorities who supposedly regulate Internet domains in the public interest.

One other company launched last year on the Digital Coast with the aim of taking on an Internet giant: Michael Robertson's Lindows, which he founded after MP3.com was bought by Vivendi Universal. Aiming to make a Linux-based operating system that can run Windows software, Robertson's San Diego-based company hasn't even released the beta version of its software yet, but is already on the receiving end of a lawsuit from Microsoft, which is claiming trademark infringement on the Windows name.

Just as with the multiple lawsuits against MP3.com, Robertson can't seem to stay out of the courts. If the legal troubles help bring publicity and don't take the company down, though, it might be just the publicity Lindows needs to mount an aggressive challenge against the prime dominator of the technology world.

Robertson wasn't the only big name to launch a new company on the Digital Coast. Sky Dayton, co-founder of eCompanies and Earthlink, launched a new wireless venture in December called Boingo. Using a model similar to Earthlink's, Boingo is allying numerous local and regional wireless ISPs to create a national network providing high-speed access in locations frequented by business travelers. With $15 million in first round funding and a network of 750 "hot spots" it is already setting up, Dayton may have a good chance at replicating Earthlink's success in the wireless world.

Although not a native, Ian Clarke is also a big name on the Digital Coast. The founder of Freenet, a P2P network that has so far avoided the lawsuits and corporate buyouts that have hampered so many others, brought the technology from that endeavor to a new business, called Uprizer. The firm, which started in April, uses adapted versions of Uprizer technology to allow businesses to more efficiently move content and information on the Internet. Its main product for enterprise customers, called KARMA, debuted in October and is set to launch this quarter.

One more founder of a notable Digital Coast Company, Brett O'Brien, started a new company this fall. The man who started Xdrive launched Voxicom, which provides voice mail service over the Internet. With $750,000 in seed financing, Voxicom is allowing users to access voice mail on the Web via XML and forward message through e-mail. O'Brien is currently looking to raise a $5 million first round of funding to expand his business and sign up ISPs to offer his services and businesses as clients.

Fandango, one of three major online movie ticket companies, had made a big splash since debuting in January. A joint venture of seven large theater chains, the Santa Monica-based company offers real-time tickets on over 6000 screens nationwide and has been promoted with in-theater promos and posters. Recently boasting of sales close to a million tickets per month, Fandango is locked in close competition with MovieTickets.com and AOL's Moviefone.com. And that competition is spurring rapid advancement, including tests of print-at-home tickets and express lines for Fandango users.

ResponseBase, an e-mail marketing firm founded by laid off Xdrive employees who had worked on the IntelligentX newsletter, launched in June with approximately $300,000 in seed funding.

Cameo, an Irvine-based division of Western Digital, launched in July with the hopes of putting Hollywood marketing on people's hard drives. Its CameoCAST player downloads trailers and other promotional material to users with excess bandwidth and then plays them as a screensaver or during start-up.

InsideSessions, an e-learning joint venture with Penguin Putnam and Universal Music Group, debuted this fall. It provides online interviews with major artists and writers, letting users learn and giving them the opportunity to submit manuscripts or demo tapes to Penguin editors and Universal A&R executives.

MailersClub is a new firm in City of Commerce that hopes to revolutionize the direct mail business using the Internet. Already profitable, the company allows users to submit proofs and complete orders online, lowering costs and making direct mail accessible for organizations with smaller runs. If your mailbox gets even more full of junk, you'll know whom to blame.
-Online marketing firm Whitespeed launched in January, providing technology that allows users to see streaming media without a broadband connection. Using Macromedia Flash and its own compression technology, Whitespeed has designed e-mail campaigns for clients including General Motors and NBC.

CrownPeak, a content management and publishing company formed by former employees of U.S. Web (later marchFIRST), reported profitability within three months of launching last June. The Marina Del Rey based firm provides low-cost software for all facets of managing, protecting and publishing content.
X-Change LA is an online flea market and auction site-essentially a local eBay. Already successful in Los Angeles, it has recently expanded to San Diego and Santa Barbara.

Finally, the award for most fun launch of 2001 has to go to QuikCondoms. Founded by two students at Cal Poly San Luis Obispo, QuikCondoms is targeting the college market with bulk sales of condoms online, as well as sexual health information. As any student who has shyly walked up to a register with a box of condoms can tell you, that's a natural Internet play.