Enterprise or Infrastructure Software:

With advancing technologies and opportunities to automate an increasing variety of critical business functions, the use of software applications throughout every aspect of business is rapidly expanding. The Global 2000 have purchased and use enterprise software for nearly all business processes, and growing complexity in fast-changing industries is driving increased spending throughout the U.S. economy. Substantial and exciting investment opportunities exist for new companies addressing niche sectors as markets and technologies change. River Cities seeks to invest in such dynamic software companies, typically those that have proprietary algorithms or other high value content that create significant advantages that cannot be easily replicated.

SmartSignal is a software company in Fund III that has leveraged condition monitoring technology developed at the Argonne National Laboratories to improve uptime and reliability of high value assets in aviation, process manufacturing and industrial equipment applications. The software can determine when potential catastrophic failures are developing by continuously analyzing thousands of parameters in real time and utilizing proprietary algorithms to pinpoint problems and identify early maintenance directives. Every Delta Airlines jet engine is currently monitored by the software along with power plant generators, oil and gas refineries and large mining equipment. SmartSignal has grown revenue at over a 65% compound annual growth rate since River Cities' investment in 2001. Key sales to multi-million dollar customers such as Caterpillar, Delta Airlines and Entergy show that SmartSignal has a high value product that is meeting a need in the marketplace.

The healthcare industry has traditionally not produced software sales on par with the aggregate size of the industry. However, the need to reduce healthcare costs and errors while meeting regulatory compliance directives is driving increased spending on both software and technology outsourcing. River Cities looks for software companies whose products have a high return on investment while meeting significant regulatory hurdles for healthcare companies. Foresight, a Fund II portfolio company, is the leader in transaction automation and a pioneer of the first real time business intelligence techniques for health care. Today more than half of all Blue Cross/Blue Shield organizations trust Foresight Corporation's transaction automation systems to provide insight into business operations while securing HIPAA compliance, shortening revenue cycles, reducing administrative costs and improving provider relations.