Venture Profile: Southeast Interactive Technology Funds Took a 'dot com' Hit But Keeps Making Deals
Editor's note: Local Tech Wire features a profile of a venture capital or investment firm operating in the Carolinas and Georgia each day. The series was compiled by Matthew Burns and Daniel Pearson. Taking the "interactive" part of its name to heart, Southeast Interactive Technology Funds is known almost as much for its activism as its investments.
The seven-year-old firm has hosted business technology conferences in conjunction with Upside magazine and helped lead the lobbying effort to begin non-stop air service between the Triangle and Silicon Valley.
Southeast was the first venture firm in the state to focus exclusively on information technology companies, and its portfolio has included a mix of telecommunications, hardware, software and media firms, such as Nitronex, HAHT Commerce, Accipiter, Arsenal Digital Solutions, OpenSite Technologies, MediaSpan and Red Storm Entertainment. The firm also has invested in Academy Funds, which provides seed money to university spin-offs.
Given its IT and "dot com" interests, Southeast also took a heavy hit when the dot com bubble burst. Companies such as Timeline Computer Entertainment went under. Others were folded into a new one -- MediaSpan.
With $185 million under management, Southeast is working through its third fund, which ranks among the largest in the region at $135 million. The firm likes to get in early, usually the first round with a $2 million to $4 million investment, and provide additional support in subsequent rounds. It also prefers companies with strategic partnerships already in place and a product that is generating some revenue.
Here's the skinny:
Featured firm: Southeast Interactive
Mailing address:
630 Davis Dr., Suite 220 Morrisville, NC 27560
Phone number: (919)558-8324
Web site: www.se-interactive.com
Management Team:
Norvell Miller Dave Blivin Bill Glynn Chris Austen
Focus of firm: Srategy & positioning, building business and financial partnerships and the management teams for the Fund's portfolio companies.
Size of latest fund: $135 million
Companies funded over the last five years:
Academy Funds Accipiter Allconnect Arsenal Digital Solutions ChannelLogics Chatfish Dirty Water Integrated Elumens Corporation First Impressions FlightTime Corporation GadgetSpace HAHT Commerce HowStuffWorks ichat, inc. iEntertainment iRock MediaSpan Group, Inc. Mercari Technologies MicroMass Communications, Inc. Nitronex Corporation NxView Technologies OpenSite Technologies, Inc. Periscope3 Pixel Magic Imaging Red Storm Entertainment Timeline Computer Entertainment VisionAIR, Inc. Waveguide Solutions, Inc. Wave Systems Corporation XS, Inc.
How many new deals do you expect to fund in 2002: Undetermined
In what size range: $2 million to $4 million
Sweet Spot (types of deals, stage of the company): Firm is an early growth stage capital provider investing in new companies and contributing additional funding after the firm closes on subsequent financing rounds.
Most important attributes for companies seeking funding: Looks for company's seeking round A funding with a regional focus in the southeastern U.S. Should have a strong, entrepreneurial management team, a product that is generating revenue or royalty advances, strategic partnerships already in place and a compelling market opportunity with barriers to competition.
What differentiates you: The company's principals have more than 50 years of collective private equity and venture capital investment experience. The general partners have successfully managed investments in 30 companies during a six-year period.
Friday's profile: Tri-State Investment Group
For previous profiles, click Search button and look under Venture Watch.
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