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Delta Capital to Open Chattanooga Office Chattanooga, TN (November 18, 2003)-- Tennessee's biggest annual meeting of investors and startup businesses wrapped up Tuesday in Chattanooga. But one of the biggest venture capital funds at this week's Tennessee Venture Forum has decided to stay in Chattanooga. Delta Capital Management LLC, an 11-year-old investment fund based in Memphis, announced Tuesday it will open its second office in Chattanooga during early 2004. "We wanted to have a presence in East Tennessee, and frankly we've been very impressed by the business climate we've seen in Chattanooga," said Donald L. Mundie, managing partner for Delta Capital Management. "We really believe the culture for risk-taking and successful startup businesses is here, and we want to put our stake in the ground." Mr. Mundie said he was especially impressed by the promotion of entrepreneurs and business investment from City Hall. "You have a tremendous cheerleader with Bob Corker," Mr. Mundie said. Mayor Corker, who said he has pursued venture capital funds as aggressively as a new automobile plant, said he has tried to lure Delta Capital to Chattanooga for the past two years. The city will provide the venture capital fund office space in its Enterprise Center downtown. But unlike the first venture capital fund Mr. Corker helped lure to town two years ago - Southeast Community Capital - the new venture is entirely privately financed. Southeast Capital, organized by Tech 2020, received $1.5 million of city funds for its Chattanooga Opportunity Fund. "Delta Capital gives us another layer of venture capital to help in our business growth," Mr. Corker said. "Having folks like this in our city helps promote more discussion and more deals to help entrepreneurs capitalize on good ideas." Mr. Mundie organized Delta Capital in Memphis in 1992 to invest in high-growth companies in Tennessee, Arkansas, Mississippi and Alabama. About half of the investments by Delta Capital have been made in Memphis. "Venture capitalists tend to invest close to where they are, which is why we are so excited about having this kind of fund with an office in Chattanooga," Mr. Corker said. Delta Capital has over $90 million of capital under management. The fund has invested in or organized funding deals for about 30 startup companies, primarily in the growing health care, information technology and supply chain logistics industries. So far, the fund has earned better than a 20 percent annual return, Mr. Mundie said. Delta Capital is in the final stages of raising capital for another $20 million fund, Mr. Mundie said. If approved by the U.S. Small Business Administration, the new fund will be a licensed Participating Securities Small Business Investment Corp., eligible for federal matching funds that would swell the new fund's assets to $60 million. "We see a lot of opportunity in this region," Mr. Mundie said. The Delta Capital organization was one of more than 300 venture capitalists, wealthy investors and institutional lenders who participated in this week's Tennessee Venture Forum at the Chattanooga Convention Center. Contact: Don Mundie Delta Capital Management LLC 901-755-0949 Pat Yearwood Delta Capital Management LLC 901-755-0949 yearwood@deltacapital.com |
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