[Infowarrior] - Four Months Later, In-Q-Tel Again Needs New CEO

[Richard Forno]

Four Months Later, In-Q-Tel Again Needs New CEO

By Terence O'Hara
Monday, April 24, 2006; D01
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/23/AR2006042300
701_pf.html

Amit Yoran resigned over the weekend as chief executive of In-Q-Tel , the
venture capital arm of the U.S. spy community, after less than four months
on the job.

Yoran, a seasoned technology entrepreneur and investor as well as a former
head of cybersecurity for the Department of Homeland Security, had led
In-Q-Tel since January. He said yesterday that his reasons for leaving were
entirely personal, including a desire to spend less time on the road and
more with his family. He and his wife have three young children. In-Q-Tel
has investments all over the country, and Yoran has traveled extensively.
Considered a success inside the Central Intelligence Agency, which created
it, In-Q-Tel's mandate has been expanding to find more technology for more
spy agencies.

"It's a very amicable parting," said Yoran, 35. "I will say I'm sorry and
disappointed as well. But these are personal issues. . . . My continued
performance as CEO was not going to be possible."

Yoran said he will continue to work with In-Q-Tel as a part-time consultant.
Before taking the chief executive job four months ago, Yoran had invested
money in several private technology companies. He continues to serve on
several company boards.

Lee A. Ault III , chairman of In-Q-Tel's board of trustees, said he accepted
Yoran's resignation "with regret."

"In-Q-Tel has benefited from Amit's vision and leadership during his tenure
as CEO," Ault said in a statement. "We appreciate his service to In-Q-Tel,
and we look forward to continuing In-Q-Tel's unique and important mission of
delivering important and cutting edge technologies to the CIA and the
intelligence community."

In-Q-Tel calls itself a venture capital firm, but venture investing is a
small part of what it does. The CIA created the organization as a nonprofit,
and its job was to identify technologies being funded and developed by the
private sector that could have value in intelligence-gathering or national
security applications. In-Q-Tel makes small investments in start-up
companies, almost always as a junior partner to traditional venture capital
funds. Most of In-Q-Tel's money goes toward evaluating and funding the
technology to make sure the CIA or other intelligence agencies can use it.

Yoran had begun to ramp up In-Q-Tel's investment activity to meet its
growing budget and responsibilities. He said the organization has an annual
budget of more than $50 million -- up from $30 million to $35 million
several years ago -- and includes as "investors" several other intelligence
and homeland security agencies in addition to the CIA. In its early years,
In-Q-Tel was funded almost entirely by the CIA. All of In-Q-Tel's contacts
with the intelligence community, no matter the agency, still run through a
special office inside the CIA.

Last month, Yoran hired his old friend, Mark Frantz , a well-known local
venture capitalist who spent the past five years with the Carlyle Venture
Partners , as In-Q-Tel's managing general partner. Frantz in an interview
last week said the organization would be hiring more people for its
investing team.

"We're not exactly taking out help-wanted ads, but we want to add to our
venture team," Frantz said. "We've got some very talented folks here, but
we're here to turn it up a notch. "

Yoran took over from founding chief executive Gilman Louie , who ran
In-Q-Tel since its 1999 inception. The board is expected to appoint an
interim chief executive this week and begin a national search for Yoran's
replacement.

Yoran said 120 technologies partly funded by In-Q-Tel have been deployed by
the CIA or other agencies. "Unfortunately, we can't talk about the specific
uses," he said.