Geography:

River Cities invests primarily in the Midwest and Southeast. Our territory stretches north-south from Minnesota to Florida and east-west from Carolinas to Missouri; we will consider investment outside this area only on an exceptional basis.

The Midwest and Southeast account for approximately 40% of GDP (Gross Domestic Product), yet receive less than 10% of venture and growth equity capital on an annual basis. The relative lack of private equity activity compared to coastal markets provides an opportunity for the Firm to take advantage of generally lower pre-money valuations, and potentially enjoy incremental returns upon exit to larger buyers paying national market multiples.

The environment for companies that fit River Cities' investment criteria is particularly favorable in the Midwest and Southeast. Attractive companies serving information technology markets are found throughout the area, including cities like Chicago, Atlanta and Cincinnati, led by accomplished management teams that in many cases have matriculated from established public companies in order to pursue entrepreneurial ambitions. Healthcare companies are well-represented in the territory as leading healthcare services and medical device companies in particular tend to be concentrated in Nashville, Louisville, Minneapolis, Indianapolis and North Carolina's Research Triangle Park.

The overall territory that River Cities covers includes over 43% of Fortune 1000 companies that are leaders in their respective fields. Close proximity to these companies results in a base of strong management talent, partnership opportunities, established and sophisticated customers, and potential exit opportunities. The Midwest and Southeast are home to 18 of the nation's top 50 universities, 15 of the nation's top 30 MBA programs, 12 of the nation's top 30 engineering schools, and 15 of the top 30 medical schools. The region is also home to some of the nation's strongest research institutions, including Oak Ridge National Labs, the Scripps Research Institute, the Environmental Protection Agency, Research Triangle Institute and many others. These and other sources of new technologies and innovative thinking help provide a steady source of new company generation that, after moving into the appropriate stage, become prime targets for River Cities' investment.

River Cities' two offices are well situated to ensure that any location covered is accessible via direct flight or within a 2 hour drive ensuring the ability to work closely with all portfolio companies. History demonstrates that the Firm's professionals can cover and identify the most promising deals across its territory, including:

• Health Personnel Options: Second largest venture backed M&A transaction in Ohio in last five years
• High Speed Access: Most successful venture backed IPO in Kentucky in last ten years
• Suros Surgical Systems: Largest venture backed M&A transaction in Indiana in last five years
• CrossMedia: Top ten largest venture backed M&A transactions in Illinois in last five years