Editor’s note: Local Tech Wire profiles a venture capital or investment firm operating in the Carolinas and Georgia each Monday through Friday. Matthew Burns, Worth Civils and Daniel Pearson compiled the series. Using the experience he gained from building two start-ups and a fraction of the money he made from the $5.6 billion sale of Tradex Technologies, a developer of online marketplace software applications, to Ariba Software two years ago, Daniel Aegerter formed Armada Venture Group to fund and advise other software entrepreneurs.

Aegerter seeded the Atlanta-based fund with $120 million and has established a network of financial and professional services partners in the United States and Europe to help the fund grow in the future.

Armada looks to invest $5 million to $10 million in software companies either in the first round or the last round before the becomes public or self-sufficient. The “barbell” approach allows the firm to leverage its knowledge and assistance early and its deep pockets later, when it tries to maintain its holdings even after a public stock offering to continue working with the management team.

The firm’s portfolio already includes 180Commerce of Atlanta, Massachusetts-based edocs and Higher Markets and Zambeel, both of California.

Here’s the skinny:

Featured Firm: Armada Venture Group

Mailing address:

Armada Venture Group LLC
3475 Piedmont Road NE, Suite 450
Atlanta, GA 30305

Phone number: (404)442-1500

Web site: www.avcg.com

Management Team:

Daniel Aegerter
Timothy Mann
Harry Marshall
Benedict J.P. Gotte
Doug Massingill
Jared Rodriguez

Focus of firm: Software development companies

Money under management: $120 million

Companies funded over the last five years:

Zambeel
Edocs
Higher Markets
180Commerce, Inc.

How many new deals do you expect to fund in 2002: 5 to 10

In what size range: $5 million to $10 million

Sweet Spot (types of deals, stage of the company): Early stage companies and last-rounds of funding before a company goes public.

Most important attributes for companies seeking funding: Company will have a better chance of receiving funding if we receive a business plan from one of our partners, advisors or fiends. Must have a proven management team.

What differentiates you: We see many opportunities for companies to satisfy unmet needs by creating new “killer apps” that will eliminate pain and waste in other processes by providing improved functionality at a lower cost.

Wednesday’s profile: Cordova Ventures

Previous profiles can be found by searching Venture Watch category. The series thus far:


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
March 12: River Cities
March 13: Research Triangle Ventures
March 14: Southeast Interactive
March 15: Tri-State Investment Group
March 18: Trelys
March 19: truePilot
March 20: Wakefield Group
March 21: Frontier Capital
March 22: Southern Capitol Ventures
March 25: Alliance