River Cities SaaS Report – 2011
Founded in 1994, River Cities Capital Funds (“RCCF”) is a venture capital fund that invests $3 MM – $10 MM in minority preferred equity positions in expansion-stage IT and Healthcare companies. We seek to partner with exceptional management teams to build great companies that offer significant potential for growth and superior returns for investors and entrepreneurs. The firm has raised $400 MM and made 85 investments since forming its first fund in 1994.
River Cities first encountered the SaaS model with its EVault investment in 2001. Since then, we’ve invested $45 MM in nine portfolio companies and have had four successful exits in our SaaS portfolio. The focus of our investment consideration in this segment is finding single instance, multi-tenant SaaS companies with a critical mass of customers in a large market. Investment candidates will demonstrate attractive gross margins, strong customer renewals, efficient customer acquisition models and an experienced management team.