• Fox, Bartholomew, Futch advance $50MM GrowthTech Fund I
• VC Rockmont now has $45MM assets under management
• First VC bet helps lab operators document audit compliance
• Portfolio CEO sees growth stemming from overlooked workflow
• Lab Logs maps Series B, talks eventual exit options
• Rockmont LPs typically HNW and family offices
  
• New VC building ties in private equity ecosystem

CEO Daniel Summers Electronic Lab Logs Inc.

THE NASHVILLE founders of healthtech- and fintech-oriented Rockmont Partners LLC recently announced that the first investment from their GrowthTech Fund I LP was a $2MM commitment to lead a $3MM Series A raise for Electronic Lab Logs Inc.

LabLogs, which is led by Founding Partner and CEO Daniel Summers, 43, and COO Jeremy Sikorski MBA, offers digital solutions for biopharma lab auditing and is based in Wilmington, N.C.

VNC research indicates the Lab Logs Series A covers, in addition to the $3MM in fresh capital, about $700K in notes, and the round remains open. LabLogs SEC filings here.

The Series A proceeds are meant to support sales, software and possible enlistment of a fractional CFO.

Lab Logs is a provider of digital solutions for clinical lab maintenance and compliance tracking and documentation, with headquarters close-by North Carolina's highly developed clinical-research and lifesciences ecosystem.

The company says it now has north of 150 U.S. and international customers -- up from a dozen customers three years ago -- plus year-over-year gains in annual recurring revenue. Related press release here.

Summers told VNC that he has come to believe that Lab Logs' opportunity is "in some ways" a result of growing recognition that lab compliance and reporting workflows have been somewhat ignored by some labs, providers and solution developers, who may have been more focused on, e.g., electronic medical records automation and interoperability.

The CEO said adoption of Lab Logs by most labs produces immediate operational savings in staffing, and reduces the likelihood of inadequate documentation and reporting that can lead to be audits and possible penalties under federal programs.

Onboarding of the LabLogs solution to replace manual processes often takes up to 60 days, but has sometimes been completed in a week. Onboarding includes technology, training and credentialing.

Customers thus far include, for example, Memphis-based St. Jude Children's Research Hospital and MLM Medical Labs, with the latter also having presence in Minnesota and Germany.

Summers confirmed that Lab Logs is likely to consider a Series B raise or a strategic partnership within roughly 18 to 24 months.

A transaction with a strategic suitor with substantial footprint in device manufacturing, industry consulting, reference lab networks, etc., is the leading exit option, said Summers. Raleigh-based Hutchison PLLC is Lab Logs' chief legal advisor.

Lab Logs in 2020 earned non-dilutive grants via NC Idea and NC Bioneer facilities, followed by a $670K seed round in 2022, plus $1MM in founder's capital -- all leading to the pivotal Series A. Between inception and the Series A, it had recruited about $2MM total.

Rockmont was accompanied in the Lab Logs A-round by undisclosed individual Angels, and by Greenville, S.C.-based VentureSouth and Atlanta-based Gray Ventures.

Six months ago, VNC reported Fund I's initial filings showed a $50MM target, with at least $21.8MM in at that point, with more than 50 investors aboard. Fund I's first close was in March. VNC research indicates total Fund I LP commitments have passed the $30MM mark.

The new VC was registered in Tennessee less than a year ago by three closeknit native Nashvillians with still-lengthening entrepreneurial and investment track records.

Brian Fox MBA

Bo Bartholomew

Curt Futch

During the roughly 14 years prior to forming Rockmont Partners, Managing Partners Bo Bartholomew, 50, and Brian Fox, 51, had made individual investments side-by-side, in collaboration with a third Nashville native, now Rockmont Managing Partner Curt Futch, 50.

Rockmont says it is ready to bring its operator expertise to bear in advancing SaaS businesses with a minimum $1MM annual recurring revenue, market fit and a visible path toward $5MM and $10MM ARR milestones and profitability, Fox said.

The VC focuses on SaaS companies preparing to raise their first priced round of capital, typically Series A. About 30% of GrowthTech Fund I will be in reserve for future Series B raises among its portfolio companies. Only about 5 percent of Fund I is likely to go toward Seed-stage bets.

Rockmont's LPs are typically high net-worth individuals and family offices with deep understanding of the role of operational expertise in fintech and healthtech, Fox told VNC.

Fox explained that Rockmont has relationships with other institutional investors and is forming a network of sector advisors and fractional executives for potential portfolio duty.

Fox is perhaps best known in Nashville business circles for his $430MM-plus exit via sale of his Confirmation.com to Thomson Reuters. Previous Fox coverage here.

Bartholomew now also leads growth-stage healthtech EvidenceCare as CEO, and serves alongside Fox as a venture partner of Caduceus Capital Partners.

Earlier, Bartholomew exited PharmMD Solutions, which he co-founded, as well as Shearwater Health. He is an 11-year Fellow of Nashville Health Care Council, among other industry and civic roles.

Futch, a Vanderbilt University alumnus, is a veteran of roles with firms including the legendary Texas-based Crestline, as well as Crestline-linked Jupiter Peak Capital, Thomas Weisel CP, NBP Paribas Merchant Banking, Q Investments, and others.

Rockmont Partners' Lab Logs investment and earlier special-purpose vehicle (SPV) investments made by the founders have thus far translated into about $45MM in Rockmont assets under management.

The AUM total includes portfolio interests associated with five deals made earlier via Rockmont Investment SPVs, as well as GrowthTech Fund I's LabLogs investment.

Asked by VNC for comment on the emergence of Rockmont, Vanderbilt University Prof. Eric Johnson PhD, a former dean of VU's Owen Graduate School of Management, observed, "This sure seems a great example of the notion that 'virtuous cycles' of financial gains by entrepreneurs and other investors often lead to further investments, a process that can become self-reinforcing, for them and others. Particularly in the Fintech and HealthTech sectors, it's great to see Bo and Brian jumping in and pushing innovation forward. It's certainly good for Nashville."

Eric Bergesen MBA

Rockmont's senior team also includes Venture Partner Eric Bergesen.

Earlier this year, Rockmont recruited Baxter Jackson as director of investor relations; Jack Anderson as an analyst; and, Celia-Belle Mohr joined as an analyst intern.

Rockmont Partners's name -- registered in Tennessee less than a year ago -- emerged from Fox and Bartholomew's memories of summers spent at Camp Rockmont for Boys, near Black Mountain, N.C.

However, several years ago, sentiment proved secondary to business fundamentals, when Fox and Bartholomew personally examined and then backed-away from an opportunity to acquire Camp Rockmont.

Ultimately, some other Camp alumni participated in acquisition of Camp assets by Lake Eden Preserve LLC, which operates the nearly 70-year-old Camp for Boys program, and other seasonal offerings.

Near year-end 2024, Rockmont Partners plans to relocate from Brentwood to the Burton Hills development in Nashville's Green Hills.

The website for Rockmont Partners has not yet been populated. VNC

.last edited 7 September 2024 0624