Rittenhouse Ventures Company Profile

Background

Rittenhouse Ventures, formerly known as Emerald Stage2 Ventures, is a Philadelphia-based venture capital firm established in 2006. The firm specializes in investing in emerging growth companies that develop innovative software solutions for sectors such as healthcare, life sciences, financial services, human resources, and general business services. With a focus on the Mid-Atlantic region, Rittenhouse Ventures aims to build long-term partnerships with entrepreneurs, leveraging its extensive local network to provide strategic, operational, and financial support.

Key Strategic Focus

Rittenhouse Ventures targets capital-efficient, business-to-business (B2B) software companies that demonstrate recurring revenue models. The firm primarily invests in companies based in the Greater Philadelphia area, extending its reach across the Mid-Atlantic region from Washington D.C. to New York City. Ideal investment candidates are in the emerging growth stage, with market-tested software solutions generating over $1 million in annual recurring revenue and seeking capital raises between $1 million and $3 million. Sectors of interest include healthcare and pharmaceutical IT, financial services, human resources, and general business services.

Financials and Funding

In September 2016, Rittenhouse Ventures announced the final closing of Rittenhouse Fund II, securing $18 million in committed capital. This fund builds upon the firm's strong performance in its first fund, which included investments in companies like Tabula Rasa Healthcare, Core Solutions, Halfpenny Technologies, and Take the Interview. Investors in Rittenhouse Fund II include Ben Franklin Technology Partners and Innovate in PA, along with distinguished individuals such as CEOs, investors, and industry experts.

Portfolio and Exits

Rittenhouse Ventures has a proven track record of successful partnerships from investment to exit. Across the team's total investment experience, exit values have exceeded $1 billion through acquisitions or initial public offerings.

Active Portfolio

Core Solutions: An integrated behavioral health platform providing comprehensive Electronic Health Record (EHR) capabilities for various behavioral health settings.

Energage: Software solutions that measure and improve employee engagement through ongoing workplace feedback tools and annual surveys.

VIDA Diagnostics: A precision imaging platform for pulmonary applications in clinical trials and treatments, offering image analysis for repeatable lung measurements and sophisticated software for lung bronchoscopy and volume reduction planning.

GSI Health: A patient care coordination platform empowering providers and care teams to manage, analyze, and engage patients as they move through the care delivery system.

Entelo: An on-demand and live interview management platform, coupled with candidate engagement features, designed to hire better candidates faster.

Inpensa: A "Business Value Management" platform for companies to plan, evaluate, and track major project investments, leveraging objective, real-time data for benefits realization.

Piano: A software platform for the business management of digital media publishing, providing tools to magazines, newspapers, and new media companies to manage prospective and existing subscriber experiences.

Exits

Prosperoware: Acquired by Litera.

GSI Health: Acquired by Medecision.

Miria Systems: Acquired by OSG Billing Services.

Tabula Rasa Healthcare: Initial Public Offering (NASDAQ: TRHC).

Click Equations: Acquired by Channel Intelligence.

Halfpenny Technologies: Acquired by Accumen.

Maverick: Acquired by Fiserv (NASDAQ: FISV).

Haystack Informatics: Acquired by Iatric Systems.

Kynectiv: Acquired by US HealthConnect Inc.

Leadership Team

Saul Richter: Co-Founder & Managing Partner.

Bruce Luehrs: Co-Founder & General Partner (Funds I & II).

David Nevas: General Partner.

Sushma Rajagopalan: Partner.

Justin Hanley: Analyst.

Strategic Collaborations and Partnerships

Rittenhouse Ventures collaborates with various investors and organizations to strengthen its market position and innovation capacity. Notably, the firm has partnered with Ben Franklin Technology Partners and Innovate in PA, run by the Commonwealth of Pennsylvania, to support its investment strategies.

Operational Insights

Rittenhouse Ventures differentiates itself by focusing on capital-efficient growth strategies and right-sized investments that align with entrepreneurs' needs. The firm's deep domain expertise in core sectors, combined with its extensive regional network, provides a competitive advantage in identifying and supporting promising companies.

Strategic Opportunities and Future Directions

Rittenhouse Ventures continues to seek investment opportunities in emerging growth companies within its targeted sectors and geographic focus. The firm aims to leverage its existing portfolio successes and regional relationships to identify and support new ventures that align with its investment criteria.