Mar 29, 2018

May 25, 2006 10:29 AM Eastern Daylight Time AUDUBON, Pa.--( BUSINESS WIRE )--May 25, 2006--NextStage Capital, an early stage venture capital fund focused on Mid-Atlantic technology companies, announced a co-investment along with Zon Capital and Ben Franklin Technology Partners of Northeast Pennsylvania of approximately $2 million in RCD Technology Corporation, based in Quakertown, PA. RCD Technology has a proprietary patented technology for producing high margin specialty RFID (radio frequency ID) tags and low cost RFID antennae at a fraction of the cost of other competitors. The RFID Tag market is expected to grow to $3B by 2009 (InStat, 2005), fueled by the enhanced capabilities and cost efficiencies that RFID has to offer industries such as the supply chain industry, the banking industry, and the transportation industry, among others. While the success of the "Wal-Mart initiative" has been a primary driver, numerous other high-value applications are taking hold. In the transportation industry for example, over 500 cities worldwide have initiatives to replace magnetic reader technology with RFID technology. Another example is the banking industry where nearly every bank has initiatives to roll out RFID-based cards. "RFID technology continues to gain momentum in the market," said Dan McKinney, General Partner of NextStage Capital. "Through our due diligence, we were able to validate that there are numerous RFID initiatives underway where the numbers are staggering. We were also able to confirm that RCD's proprietary technology is unique and highly valuable to these market initiatives. NextStage Capital is pleased to be working with RCD's outstanding team of seasoned entrepreneurs." "We began benefiting from NextStage Capital's value-added resources and capabilities long before they even finished their investment," Jeff White, CEO of RCD Technology, said. "Being an early stage company, RCD needed to expand its human capital as well as build out our market penetration strategy. NextStage was able to provide assistance in both vetting market opportunities as well as the successful recruitment of several seasoned professionals into our company. We are thrilled to be working with a great investment team in NextStage Capital, Zon Capital, and Ben Franklin Technology Partners Northeast." "The investment in RCD Technology demonstrates how the Commonwealth's dollars are helping emerging businesses grow and expand," said Department of Community and Economic Development Secretary Dennis Yablonsky. "With the state's investment in NextStage Capital through the New PA Venture Capital Investment Program, NextStage is able to provide needed capital to promising technology-based companies which will prosper in Pennsylvania, and create jobs for our working men and women." "Over the next few years, approximately $1 billion in venture capital dollars will be available to Pennsylvania companies as a result of public/private partnerships. By creating incentives for venture capital partnerships, the Commonwealth will insure that the state's high growth companies are able to remain here and create jobs for a New Pennsylvania," Secretary Yablonsky added. About NextStage Capital NextStage Capital, L.P. is an early stage venture capital fund focused on investing in undiscovered software and hardware technology and/or services companies in the Mid-Atlantic region. NextStage Capital's investment approach is to find entrepreneurs with solid track records who offer a unique and powerful value proposition to customers in growing market sectors. In addition to providing strategic counsel, NextStage Capital offers its portfolio companies value-added recruiting services at no charge through its partnership with TWC, a recruitment process outsourcing (RPO) company with more than a decade of building management teams for many of the region's most successful venture-backed companies. For more information on NextStage Capital, please visit www.nextstagecapital.com . About RCD Technology Corporation RCD Technology Corporation offers a proprietary patented technology for producing a low-cost, high-range radio frequency identification (RFID) antenna at a fraction of the cost of other competitors. Its manufacturing process takes advantage of the enhanced reading distance inherent with high-conductivity copper traces. This process provides a number of distinct advantages, including a lower cost burden compared to high silver content conductive inks, the elimination of costs caused by the etched waste of copper or aluminum, the reduction of production variances associated with precious-metal inks, and the ability to produce double-sided antennae or second-sided circuitry. For more information on RCD Technology, please visit www.rcdtechnology.com .