Southern Appalachian Fund

The Southern Appalachian Fund is a venture capital firm based in Oak Ridge, Tennessee, with an additional office in London, Kentucky. The firm specializes in providing growth capital and early-stage financing to small businesses in southern Appalachia, focusing on Tennessee, Kentucky, and selected Appalachian counties in Georgia, Alabama, and Mississippi. With a total fund size of $12.5 million, it typically invests between $200,000 and $600,000 in companies with strong management teams and high growth potential, often in two or more investment rounds. The firm seeks equity investments, primarily acquiring preferred stock, and generally aims for exits within four to seven years through methods such as external sales, mergers, or management buyouts. The Southern Appalachian Fund is also involved in operational assistance and active board participation to enhance the value of its portfolio companies. As one of six New Markets Venture Capital Companies in the U.S., it aims to promote economic development and job creation in low-income areas, leveraging partnerships with institutional investors and access to U.S. Small Business Administration-backed debt. Currently, the fund is fully invested and is not seeking new investment opportunities.

L. Raymond Moncrief

President and Chief Executive Officer

Egnew, J. C.

Director

8 past transactions

Tricycle

Series B in 2009
Tricycle, Inc. provides software tools for carpet sampling and design applications. It offers Tryk, a sampling software tool for carpet specification process; and a suite of design software for carpets and fabrics. The company serves commercial interiors manufacturers, interior designers, architects, and the carpet industry. Tricycle, Inc. was founded in 2002 and is based in Chattanooga, Tennessee. As of October 12, 2017, Tricycle, Inc. operates as a subsidiary of Shaw Industries Group, Inc.

Protein Discovery

Series C in 2008
Protein Discovery, Inc., a life sciences company, develops and commercializes sample preparation technologies that enable protein and peptide analysis using mass spectrometry. It provides Gelfree 8100, a fractionation system that partitions complex protein mixtures into liquid-phase molecular weight fractions; Passport 1200, a sample preparation system that enriches low molecular weight proteins and peptides, and removes matrix interferences for high-throughput quantification applications; and PPS Silent Surfactant, a protein preparation reagent that solubilizes membrane proteins and cleaves to eliminate detergent interference. The company also provides UPX universal protein extraction kit for detergent extraction of proteins from cells and tissues. It serves life science researchers and drug development scientists. The company markets its products through Agilent Technologies, as well as online in the United States and internationally. Protein Discovery, Inc. was founded as Qgenics Biosciences, Inc. in 2001 and changed its name to Protein Discovery, Inc. in April 2004. The company is based in Knoxville, Tennessee.

SemiSouth Laboratories

Series A in 2006
SemiSouth Laboratories create products for a variety of power electronics applications such as solar and wind inverters, telecom rectifiers, high-efficiency power supplies, and hybrid-electric drives.

Tier 1 Performance

Series A in 2005
Tier 1 Performance Solutions, LLC provides online learning and knowledge management solutions to commercial, non-profit, and government organizations. It offers Performance1, a performance content management system that accelerates content authoring and delivery; Library1 system, a collection of media assets, such as illustrations, animations, images, interactions, and activities; Method1, a process for developing learning modules; and online help and other electronic performance support systems for software deployment. The company was founded in 1993 and is based in Covington, Kentucky.

SemiSouth Laboratories

Series A in 2005
SemiSouth Laboratories create products for a variety of power electronics applications such as solar and wind inverters, telecom rectifiers, high-efficiency power supplies, and hybrid-electric drives.

Eonstreams

Venture Round in 2005
Eonstreams has been a streaming services provider for over 3 years and has a staff of experts with over 6 years experience in the industry. They possess the infrastructure, expertise, and experience to provide complete turn-key solutions. Their multi-faceted approach focuses on leveraging audio/video content and maximizing revenue generation through the medium of the Internet. Eonstreams is based in Knoxville, Tennessee and has clients around the nation and across the globe!

NuMarkets

Venture Round in 2004
NuMarkets was an eBay consignment company that received items on consignment and sold them using eBay. On February 10, 2007, NuMarkets, LLC sold its assets to a private Internet retailer in Chattanooga. NuMarkets of Chattanooga utilizes NuMarkets SimpleTM enterprise software. These management tools include quality control and payment processing, as well as detailed real-time sales reports that are accessible from any computer interface. NuMarkets of Chattanooga has headquarters in a 50,000 square-foot operations and fulfillment center in Chattanooga, Tennessee, and works with manufacturers, retailers, and other businesses, enabling them to process, sell, and ship new, excess, and consigned inventory globally. NuMarkets' SimpleTM enterprise software enables NuMarkets of Chattanooga to manage its backend commerce services and dramatically increase the volume of product it sells.

Tricycle

Series A in 2004
Tricycle, Inc. provides software tools for carpet sampling and design applications. It offers Tryk, a sampling software tool for carpet specification process; and a suite of design software for carpets and fabrics. The company serves commercial interiors manufacturers, interior designers, architects, and the carpet industry. Tricycle, Inc. was founded in 2002 and is based in Chattanooga, Tennessee. As of October 12, 2017, Tricycle, Inc. operates as a subsidiary of Shaw Industries Group, Inc.