Les Trachtman '77, an electrical engineer, is adding new spark to the Eliphalet Nott Society (ENS). Named after the Union president who was a noted businessman and inventor and whose 62-year tenure (1804-66) remains unsurpassed, ENS was launched more than a decade ago to foster entrepreneurship through the Union community.
As the new ENS chairman, Trachtman is spreading the word and injecting new energy.
“Energy is what we need and what we're getting,” enthuses Trachtman, an entrepreneur experienced in equity compensation, mergers and acquisitions. “We're growing. It's a terrific program that fosters entrepreneurship, and it's a great way to connect back with alumni.”
The 2% solution
ENS members, more than a dozen strong, subscribe to a simple, yet tremendously exciting, concept: they agree in advance to give the College at least 2 percent of their equity in enterprises they've built, directed or invested in, upon liquidation of their investment.
Trachtman, who has grown several high-tech firms, has already made such a contribution. In February 2004, his Connecticut software company, Transcentive, was acquired by an Australian firm.
“I gifted a contingent of stock and stock options,” he explains. “There's no way I would have been able to pledge as much as I did to the College except through my venture. ENS is an attractive option for alumni and entrepreneurs.”
Many happy returns
Besides offering direct financial support to Union, ENS members invest in and manage the Vash Venture Fund. Created through already-realized ENS commitments, the fund is named for the late Arthur M. Vash '51, an ENS founder and Trustee Emeritus of the College. He was a leader at several engineering and manufacturing companies and an independent consultant whose company, Gryphon Ventures, funded several national high-technology firms.
“Plenty of schools make investments, but I don't know any with a separate fund to which alumni and friends can contribute,” says Trachtman, who is president and CEO of a new software company, e-100 Group.
“The ENS Vash Fund has made four investments and has an accumulated worth of half a million dollars,” he notes. “Our investment committee regularly reviews opportunities for other entrepreneurial ventures. ENS is a new way to attract gifts to the College, and it invests those gifts to get a good return for the College's endowment.”
The leading edge
The advantages of participating in ENS are not exclusively monetary. Trachtman and his fellow ENS members share professional expertise, providing key contact points for students, faculty and graduates seeking support in their entrepreneurial endeavors.
In continuing to explore ways to give College students, alumni, friends and business leaders an entrepreneurial edge, ENS hosts forums, panel discussions and other programs that provide strong networking opportunities. Recent events in Boston and New York City focused on such topics as “When to Hold 'Em, When to Fold 'Em (growing a business to the next level) and “How to Position Your Company for Investment.”
“Colleges in general are at risk today for their value proposition. Entrepreneurial thinking is something that can add value and differentiate Union in the next century,” Trachtman says.
He cites a new campus academic initiative, the Center for the Analysis of Productivity and Entrepreneurship (CAPE), as part of the synergy with ENS. Through CAPE, faculty members are exploring all facets of entrepreneurship. Chair and Professor of Classics Hans-Friedrich Mueller, for example, taught the first class in the program, “Entrepreneurship in Ancient Times,” established through a gift for course development in entrepreneurship by Trachtman and Transcentive co-founder Michael Brody.
“ENS helps focus the College on entrepreneurial thinking,” Trachtman says, “and on opportunities and needs that are converging.”