Stephen Culp surrounded by his Smart Furniture modular display in a Charleston, SC bookstore

Feb-March 2004

Smart Furniture's exhibit booth at the Tennessee Venture Forum was the only one constructed from the company's own product, Stephen Culp points out with a chuckle.

Culp's modular furniture company was one of four local companies - and one of just 15 companies from across the state - chosen to make a pitch to prospective investors from around the country during the two-day forum at the Convention Center.

"Our presentation lasted 15 minutes," Culp says. "Our booth was flooded afterwards. Now we're talking to a number of firms and some individuals, and I think in a matter of weeks or maybe months we'll get some results."

The November event, marking the first time in its seven-year history that the Forum has been conducted in Chattanooga, underscored Mayor Bob Corker's efforts to attract venture capital to the city.

During Corker's administration, the city has recruited Southeast Community Capital to Chattanooga and created the Chattanooga Opportunity Fund.

With a loan portfolio of more than $50 million, Southeast Community Capital is actively capitalizing local businesses. And the Opportunity Fund, a loan fund initially capitalized by the city with $1.5 million, has grown to $2.5 million. The fund makes capital available specifically for locally owned start-up companies, minority-owned companies, and existing small businesses.

"Entrepreneurs now have access to the funds they need to grow their businesses," Corker says. "Small business owners attracted to Chattanooga for its outstanding quality of life have the tools they need to live in our community and be successful."

Culp, who spent his childhood in Chattanooga, began developing his Web-based furniture business during his third year of law school at Stanford. But instead of joining other fledgling dot.com founders in Silicon Valley, Culp returned to his hometown to launch his business.

Since 2001, Smart FurnitureÕs revenues have increased sevenfold, he says. "We've become profitable about a year ahead of schedule."

Smart Furniture employs about 10 people, and Culp expects that number to grow. "We warehouse the furniture and pack it and ship it out, and we're sourcing all the millwork locally. We want the Chattanooga area to benefit by sourcing vendors from this area," he says.

Local Firms in Spotlight at Venture Forum

• Tricycle, Inc., which develops and markets simulation technology for the carpet industry, is seeking $1.1 million in equity capital to help the company grow into a
  $25-million-a-year business by 2008.
• Smart Furniture, a Web-based supplier of customized shelving, is seeking another $2 million to $3 million of equity to grow its annual sales to over $21 million within five years.
• Tennessee Valley Infrastructure Group
  is seeking funding for limited partnerships with at least $6 million to help add more electric and other utility services around the world. The global utility development company projects sales of $142 million by 2007.
• Signix Inc. is seeking $2 million to help expand its growing electronic signature business.
  The company enables electronic signatures to be transmitted, verified, and stored remotely from any personal computer and projects its annual sales will exceed $11 million by 2007.