ATLANTA – Another early-stage venture firm – the third in the last few months – is launching in Atlanta.

CEO Ventures, formerly VC South, expects to close a fund in the second quarter and plans to invest up to $4 million in about one SaaS company a quarter, founder Michael Price told the Atlanta Business Chronicle.

SaaS companies are particularly attractive when economic times are tough because they allow companies to use cost-cutting or efficiency enhancing software without making large capital investments up front.

Two other Atlanta-based funds, TechOperators and Buckhead Investment Partners, launched recently and will also target early-stage funding.

The funds see low company valuations and the dearth of early-stage capital as reasons to invest now even while traditional venture firms are focused on supporting portfolio companies and cutting back on new investments.

Price told the Chronicle CEO Ventures also owns a survey company that it can use to ask potential buyers if a given product is desirable.

He also said the time to invest is during a downturn because companies started in good times seldom make money.

Online: VC South: http://tiny.pl/v4db

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