PRESS: Please direct all inquiries to: Jim Cunningham,
513-791-2884 X202,
or email
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News

C-Cap - The Circuit's Capital Resource Hub - Sees
First Deal Close

  • C-Cap's members invest in Charles H. Mack, a local CRM software and services company.
  • This expansion capital will let C.H. Mack accelerate its efforts in its three markets - travel, cable broadband and health care.
  • C-Cap's group of early stage investors has grown from 7 to 18 members since May.

CCINCINNATI, OHIO, October 25, 2001 - C-Cap, the Circuit's Capital Resource Hub, today announced the first investment made by its group of early-stage investors. The group invested in Charles H. Mack & Associates, a Cincinnati software and information technology consulting business. Mack will use the funds to expand sales and marketing of its software products.

Mack sells customer relationship management (CRM) products and services to the travel, cable broadband and health care markets.

Tony Shipley, one of the investors, will become Chairman of the company. "Before investing we talked to all of C.H. Mack's large customers, and they gave glowing reviews of C.H. Mack's products and its people," said Shipley. "These satisfied customers are the launching pad for Mack's growth plan, and the reason we invested in the business."

The investors are also using their network to help the company strengthen its executive team with experienced software managers who will work with senior managers Gregory Silence and Thomas Mack. According to Greg Silence, "C. H. Mack is emerging from 3 years of R&D that will allow the company to bring innovative new CRM technology to its target vertical markets. The Queen City Angels organization is a great strategic fit for our company and we embrace the very impressive array of sales and marketing experience and resources that they bring to the table. As a result of this new relationship we are in a strong position to leverage the new products in our rapidly growing markets. As we look to the next 12 months we expect to see a significant uptick in sales."

Shipley and his group of investors were introduced to the deal by C-Cap, the hub formed by the Circuit to help growth companies in the Cincinnati region obtain early-stage financing. "This investment is exactly the kind of deal C-Cap was created to facilitate," stated Jim Cunningham, the Director of C-Cap. "C-Cap's goal is to increase the number of local companies that receive angel funding, and this investment is a good start. It shows what is possible when a strong network is in place."

C-Cap is creating a network of local individual investors interested in early stage growth companies. Since its start in May 2001, C-Cap's membership has grown from seven to eighteen investors, and it is open to new members. Entrepreneurs seeking funding from the investors submit an executive summary of their business plan to C-Cap, and C-Cap distributes the document to its member investors. These individuals include former growth company CEOs, technology experts and seasoned business managers who provide valuable mentoring along with financing.

Most of the investors also belong to an investment group called Queen City Angels that meets every few weeks and discusses new deals introduced by C-Cap. Over the past year, the Queen City Angels members made four other investments before affiliating with C-Cap. The investments ranged from biotechnology and software to medical waste management. "The Queen City Angels are interested in all high-growth investments, whether or not software-related," stated Tony Shipley. "Manufacturing and services firms are also of interest to us."

C-Cap is supported by the Circuit and by several sponsor organizations that contribute generously to help its mission. The Platinum (highest) level sponsors are KPMG and Ernst & Young CPA firms, and the Taft, Stettinius & Hollister law firm. C-Cap's Supporting sponsors are Blue Chip Venture Company; River Cities Capital Funds; Acordia Insurance; Cors & Bassett; Deloitte & Touche; Fifth Third Bank; Graydon, Head & Ritchey; PricewaterhouseCoopers; and Wood, Herron & Evans.

The Circuit is a nonprofit association dedicated to helping companies within Cincinnati's high-tech community become more successful through educational events, networking opportunities and government advocacy. As a member of Ohio's IT Alliance, The Circuit partners with other technology organizations to leverage information and resources throughout the state of Ohio. The Circuit is also a member of the Council of Regional IT Associations (CRITA), which nationally represents more than 26,000 IT organizations.

For more information, contact Jim Cunningham at 513-791-2884 ext. 202.

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