Fortune Small Business picks 65 fast-track startups.

Whatever the indicators suggest about the economy, FSB has detected no slowdown in aspiration and imagination...

...Many have also formed strategic alliances with established companies. To select the 65, we contacted more than 1,200 sources for nominations, including the National Venture Capital Association, the National Business Incubation Association, colleges with entrepreneurial programs, and PriceWaterhouseCoopers, which surveys VC-backed companies....

Diagnosing Snorers at Risk
SLEEP SOLUTIONS: Hard to believe, perhaps, but although myriad sleepers snore harmlessly if annoyingly, a whopping 20 million Americans suffer from a condition called obstructive sleep apnea. OSA lowers the blood oxygen level during sleep and may lead to life-threatening hypertension. How do physicians evaluate snorers at risk? The traditional method is to send them for a night to a sleep clinic for examination. The experience is not painful, but it costs about $2,500, and the foreign setting sometimes upsets normal sleep patterns and distorts the reading.

So Sleep Solutions Inc., of Palo Alto, has created the Bedbugg, which snorers pay $500 to use for a three-night sleep study. The Bedbugg contains two microphones embedded in headgear that slip in place in front of the nose and mouth. Other parts of the device monitor heart rate, oxygen saturation, and respiration. The snorer sends the kit back to Sleep Solutions for evaluation and follow-up by a physician.

Bedbugg has competition, but Tom Fogarty, who designed the hardware, has an impressive record. He is the founder or co-founder of 25 medical-surgical companies, including one that invented the catheter that led to the world's first balloon angioplasty. Financial backers include Johnson & Johnson, which has helped raise $35 million for the enterprise. Sleep Solutions is supplying its technology primarily through ear, nose, and throat physicians, and expects to reap revenues this year.