ALPHARETTA, Ga. – Cordova Ventures, which changed its name from Cordova Capital a few months ago, focuses on information technology, telecommunications, health care and life sciences and financial services investments. The firm, which mainly concentrates on the Southeastern United States, also runs two real estate specialty funds and occasionally makes investments in more mature industries.
Limited partners primarily are high-net-worth individuals but also include institutional investors such as GE Capital, NationsBank and ALFA Insurance Co.
Cordova’s fifth fund, Cordova Realty Partners II, targeted at $35 million to $40 million, was launched a few months ago and is still being valued. It is a specialty vehicle focused on real estate and, at press time, expected a first close by the end of 1998. The launch of a sixth fund is planned for 1999, according to partner Ralph Wright.
Cordova’s fourth vehicle, Cordova Technology Partners, closed at the end of 1997 at $36 million and is partly invested.
Cordova, founded in 1989, often functions as the sole or lead investor, but also will function as a co-investor. The firm primarily makes early-stage investments after the start-up phase, but also provides occasional seed and start-up financing for developing technologies such as information or bio-technology. An average investment in a company is $2 million, but it can range from $100,000 for seed technology investments to $4 million for later-stage companies. Cordova usually takes a board seat.
The firm recently decided to make all nine members of its management staff partners in the company. Jerry Schmidt, Ralph Wright, Dr. Theodore Dagi, Chris Valianos, Paul DiBella, Don Stout, Frank Dalton and John Runningen work out of the firm’s new headquarters in the Atlanta suburb of Alpharetta, where the firm relocated in late November. Partner Charles Adair heads the Montgomery, Ala., office. Robert Leslie is currently vice president of finance and administration, but will probably be named a partner in 1999.
Following is a list of select Cordova portfolio companies:
Accipter Inc. (Raleigh, N.C.) develops Internet technologies. The company was sold to CMG Information Services Inc.
Co-investors included Aurora Ventures and Intersouth Partners.
Avigenics (Athens, Ga.) is a developer of protein-based therapeutics.
Co-investors include Javelin Fund and Kitty Hawk Capital.
Horizon Medical Products (Atlanta) manufactures and distributes specialty medical products.
Inhibitex (Atlanta) is a developer of immunotherapeutics that address antibiotic patterns.
Co-investors include Alliance Technology Ventures and the AM Fund.
Kyrus Corp. (Greenville, S.C.) develops and distributes point-of-sale systems for grocery and convenience stores.
Lynk Systems Inc. (Atlanta) provides debit/credit/payment network services.
Co-investors include Sutter Hill Ventures and Technology Crossover Ventures.
Managed Healthcare Associates (Florham Park, N.J.) is a pharmaceutical group purchasing and marketing company.
Co-investor is Advent International.
National Action Financial Services (Atlanta) provides telephonic financial services. The company was sold to SITEL Corp.
Pointe Communications Corp. (Atlanta) is a provider of national and international telecommunications services.
Ralin Medical Inc. (Chicago) provides out-patient disease management services.
Co-investors include Palmetto Seed Capital, Prince Ventures and VenHill.
Rehab Associates LLC (Montgomery, Ala.) is a provider of physical therapy services and clinics.
Signal Point Systems (Atlanta) provides wireless telecommunications support services.
Technauts Inc. (Raleigh, N.C.) is a developer of Internet electronic commerce solutions.
Co-investors include Grey Ventures, Aurora Ventures and Timark.
Technology Builders Inc. (Atlanta) provides software for IT developers.
River Cities Capital is a co-investor.
Cordova Ventures recently moved its headquarters to 2500 NorthWinds Parkway, Suite 475, Alpharetta, GA 30004, tel. (678) 942-0300, fax (678) 942-0301. The firm’s second office is located at 4121 Carmichael Road, Suite 301, Montgomery, AL 36106, tel. (334) 271-6011, fax (334) 260-0120. For more information on the firm, see its Web site at www.cordovaventures.com.