CASE STUDY: SciQuest

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Invested: July 2004

Location: Cary, NC

Exited: IPO, (Nasdaq: SQI)

Business Description: SciQuest provides a SaaS procurement platform to academic, healthcare and research-focused customers seeking to streamline purchasing and supplier management processes. SciQuest’s platform allows customers to better manage spending, optimize vendor negotiation and track costs across their enterprise.

River Cities Role: SciQuest was founded in the mid 1990’s as an eCommerce business-to-business exchange for scientific products sold to laboratory researchers. The company went public in 1999. In 2001, a new management team led by Steve Wiehe was brought in, and the company exited the exchange market in favor of repurposing development toward an on-demand procurement platform targeting pharmaceutical companies and research-oriented institutions of higher learning. Benefitting from a relationship River Cities’ Ed McCarthy had developed with Mr. Wiehe, we secured the opportunity to participate in a take-private recapitalization of the Company in 2004. The execution of the team at SciQuest in expanding the breadth of the product offering and developing additional vertical markets for the company has been exceptional.

Value and Exit: SciQuest went public, for the second time, in September 2010. The company surged 29% after raising $57 million in an initial offering. A managed secondary offering was completed in March 2011 and the stock has consistently traded above that range since that time. In addition to providing attractive returns to investors, SciQuest out-performed the original plan presented by River Cities.

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“The River Cities team brings an excellent external perspective and network to our company. They are a perfect example of the value-added investor, an organization who provides experience, thoughts and assistance when asked but never forced. They offer a dialog based upon candor and integrity, delivered without the extra work, distraction or dissonance that can accompany an external investor.”

                                                                      – Stephen Wiehe, CEO SciQuest

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