[Table of Contents] [page 2]
Volume3, Issue 1


CIC Capital Fund recently closed on a $750,000 equity investment in the Varis Corporation. This Mason, Ohio company designs, manufactures, and markets edge, proprietary software and related hardware for the digital printing market. The NCIC investment was part of a $10 million round of financing. The two leading institutional venture capital investors in this round were CID Equity Partners (Indianapolis) and River Cities Capital (Cincinnati). Both of these funds participated in earlier funding rounds. Additionally, Castellini Management Company (Cincinnati) and an international fund also participated. Xeikon, A Belgian manufacturer of high-speed digital color printing systems, developed a relationship with Varis several years ago and in November, 1998 the two companies jointly announced a product development agreement that has enhanced Xeikon's ability to offer massively variable production printing solutions, targeting direct marketing applications.

According to the Print on Demand Initiative (PODi), a non-profit strategic marketing and educational initiative that promotes the opportunities in digital printing technology and services, variable digital printing started its rapid development two years ago and continues its escalating growth. PODI considers Xeikon a leader in the industry, along with Apple, Adobe, and Scitex Corporation.

Varis has spent over five years in the development of its VariScriptTM software and its hardware platform. The software is capable of creating variable print images for all types of high-speed digital printers. VariScriptTM meets the demands of high speed cost effective printing for one-toone marketing and promotional printing. It also allows a commercial printer to accept and immediately print demographically-driven images and data in a wide variety of industry standard formats, greatly reducing processing time, translation errors, and cost.

Forrest Gauthier, founded Varis in 1993, when he purchased the core technology, which was the result of a joint venture with a division of General Electric PLC. The proof of technology was successfully demonstrated in 1994 and the first round of venture capital funding was realized in 1995 when CID and River Cities invested $4.3 million. Prior to Varis, Gauthier successfully founded Anser Technology in the 1980's, growing it, then taking it public in 1986.

CID Equity Partners manages six funds totaling over $350 million in capital and has invested in more than fifty companies. CID features a staff of six general partners and five associates operating out of four offices (Chicago, Cincinnati, Columbus, and Indianapolis).

River Cities Capital is a $135 million family of venture capital funds that provides growth equity and business building experience to private companies primarily in the Midwest and Southeast.

[Table of Contents] [page 2]