The fund will invest in startup companies marketing productsrelated to defense technology but won't ignore the hospitality orreal estate industries, company officials say. WebVestorsfounder/managing partner Ned Grace is putting in $3 million of hisown money into the fund. Grace is a former restaurateur who soldhis Nasdaq-listed Rare Hospitality firm in 1996.

Although WebVestors is the first conventional venture fund,other venture firms have funded area startups. For example, the11-month-old Advantage Venture Partners of Longwood, an Orlandosuburb, has invested $2.5 million so far this year. Clients havepledged $20 million to date to Advantage.

WebVestors' announcement comes as the city of Orlando reviews a$200,000 high-tech study it ordered from Austin, TX-based AngelosAngelou. The report notes Orlando has evolved into a new Southeasthigh-tech corridor with a growing number of firms, but few nationalcorporations or institutions are aware of the city's new image.