Opportunities and challenges ahead for tech companies

<p>Technology will lead the U.S. back from recession, former America Online CEO Barry Schuler told guests at a startup conference in Rohnert Park on Wednesday.</p><p>“We are innovators,” he said. “We always come up with the next big thing.”</p><p>The Internet, clean technology, photonics and biotechnology are among the nation's brightest hopes, he said. But the U.S. faces challenges, including the technology revolution in China.</p><p>“They are our first real threat in innovation,” Schuler said. “That's something we need to take very seriously.”</p><p>Schuler, who worked for AOL during its boom years from 1995 to 2002, spoke at the North Bay Investor Summit, an event that tries to match investors with early-stage companies.</p><p>Ten startups — mostly in information technology, renewable energy and medical technology — made presentations to angel and venture investors.</p><p>Schuler, now a Napa-based venture capitalist and tech investor, said investment is crucial to get the economy growing again.</p><p>“The country needs us to do what we do,” he said. “We need companies that are creating value.”</p><p>Schuler is chairman and co-founder of Raydiance Inc., a Petaluma photonics startup that has developed a next-generation laser platform. The Raydiance laser vaporizes material without generating heat, promising new applications for medicine, manufacturing and communications.</p><p>Schuler sold his first Internet company, Medior Inc., to America Online in 1995. He helped the Internet service provider branch out with new media services, including web browsing and instant messaging.</p><p>AOL had 26 million subscribers when it merged with Time-Warner in 2001. Schuler then became CEO of the new company's AOL unit. He left in 2002.</p><p>The one-time Internet giant has declined since then, eclipsed by Google, Yahoo and other services. It's now trying for a comeback with video and local content.</p><p>The U.S. leads in information technology, but China is catching up, Schuler said. China “feels like Silicon Valley in the ‘80s and ‘90s,” he said.</p><p>There's still room for the U.S. to innovate with the Internet, Schuler said. Meanwhile, renewable energy, new auto technology and biotech hold great prospects for U.S. tech leadership, he said.</p><p>But the U.S. first must fix its public education system, Schuler said.</p><p>“It's our biggest failure, but we can fix it,” he said. “If we don't have good schools we can't create a good workforce.”</p><p>Wednesday's startup conference was hosted by Sonoma Mountain Business Cluster and North Bay iHub, the state-funded tech incubator at Sonoma Mountain Village.</p>