River Cities Capital Funds, which has offices in Cincinnati and Raleigh, has raised $75 million in a first close of its $150-200 million fourth fund, according to recent fundraising disclosures.
Rik Vandevenne, a principal in River Cities’ Raleigh office, said the firm is actively looking to invest in IT and healthcare expansion-stage companies in the Midwest and Southeast.
River Cities has more than $350 million currently under management and investments in more than 70 companies over 13 years. Recent exits from River Cities’ portfolio include Evault and Suros Surgical Systems. Another company in River Cities’ portfolio is Cary-based SciQuest.
River Cities’ fundraising activity comes at a time when other venture firms in the Research Triangle are raising additional funds to invest in high-growth companies. Durham-based Hatteras Venture Partners and Raleigh-based Southern Capitol Ventures are two recent examples.
According to the National Venture Capital Assocation's recent report (PDF), venture capital saw the highest fundraising year in five years, with 200 VC funds raising $28.5 billion from institutional investors in 2006.