Editor’s note: This is the 22nd in Local Tech Wire’s daily series profiling venture capital and investment firms that operate in the Southeast. The series was compiled by Matthew Burns and Daniel Pearson. To paraphrase Harold Hill: Companies start with “c,” and that rhymes with “v,” which stands for venture capital, which is what Cincinnati-based River Cities Capital Funds has brought to the Southeast through its satellite office in Raleigh.

The firm’s portfolio includes Technauts of Cary, Convey Systems of Charlotte and AfterBOT, Knowlawgent and Technology Builders, all of Atlanta.

With $300 million under management in three funds, River Cities invests primarily in early- to middle-stage businesses in information technology, life sciences, business services, telecommunications and high-tech manufacturing and logistics. The firm will invest in companies at any stage of development after a seed round, as long as they present an opportunity for rapid growth.

River Cities tries to identify promising investment themes, such as online education or web-based publishing, and find entrepreneurs with business plan to exploit those opportunities. It then pulls together intellectual, organizational and financial resources from its partners and other portfolio companies to help young firms beef up their boards, management teams, internal processes and strategic plans.

Here’s the skinny:

Today’s featured firm: River Cities Capital Funds

Mailing address:

221 East Fourth Street
Suite 1900
Cincinnati, OH 45202-4151

Phone number: (513) 621-9700

Web site: http://www.rccf.com

Management Team:

Glen Mayfield
Ted Robinson
Murray Wilson

Focus of firm:

Companies located in the Midwest and Southeast at any stage of development

Size of current fund: $150 million

Money under management: $280 million

Companies funded over the last five years:

Atomic Dog Publishing
Aquarium Holdings of Northern Kentucky, LLC
Clerity Knowledge Exchange, Inc.
CMHC Systems
Construction-Zone, Inc.
Convey Systems, Inc.
ECNext, Inc.
Electronic Data Resources
Entek IRD International Corporation
eVault, Inc.
Foresight, Inc.
Fourthchannel, inc.
Fullscope, Inc.
Health Personnel Options, Inc.
High Speed Access Corp.
Hill Top Research, Inc.
IntelliSeek, Inc.
Ironside Technologies, Inc.
The Jay Industrial Technologies Group
Katchall Industries International, Inc.
Knowlagent, Inc.
Micronics, Inc.
MindLeaders.com, Inc.
NextLEC
Openfirst, Inc.
PerfectServe, Inc.
Regent Communications, Inc.
SmartSignal, Inc.
Technauts, Inc.
Technology Builders, Inc.
TransMap Corporation
Waterlink, Inc.

How many new deals do you expect to fund in 2002: Undetermined

In what size range: Varies depending on stage of the company

Sweet Spot (types of deals, stage of the company): Will invest in companies at any stage of development, from early to mature, as long as they present an opportunity for rapid growth. However, River Cities generally will not invest in seed stage companies. Firm prefers companies in the early stage or middle stage of development.

Most important attributes for companies seeking funding: Must have outstanding management, a leading product or service with a compelling value proposition, be in a large and growing market, and have the ability to create $100 million or more in company value within five years.

What differentiates you: Primarily invests in information technology, health care, telecom and communications, high tech manufacturing and logistics, and other companies that offer compelling.

Wednesday’s firm: Research Triangle Ventures

Previous profiles by day (Profiles can be found by using search engine button and searching by day or by looking under venture watch):


Feb. 11: Academy Venture Funds
Feb. 12: Atlantic Group
Feb. 13: Aurora Fund
Feb. 14: Capital Investment Partners
Feb. 15: Carolina Financial Group

Feb. 18: Carousel Capital
Feb. 19: Catalysta Partners
Feb. 20: Charlotte Angel
Feb. 21: Draper Atlantic
Feb. 22: Eno River

Feb. 25: Halifax Group
Feb. 26: Intersouth Partners
Feb. 27: Kitty Hawk Capital
Feb. 28: NC Enterprise Corp.

March 1: NC Technological Development Authority
March 4: Oberlin Capital
March 5: A.M. Pappas
March 6: Piedmont
March 7: RBC Centura
March 8: Redleaf Group

March 11: Remington Capital