Article: Diamond State Cashes In on Sale of KC Company.

Venture Fund Also Backing Atlanta Company Founded by Former LR Residents

DIAMOND STATE VENTURES, the venture capital fund created with much fanfare last year by Arkansas Capital Corp., hit pay-dirt on one of its first investments.

Diamond State invested $750,000 in January in Digital Archaeology of Lenexa, Kan., a suburb of Kansas City. When Digital Archaeology was sold last week for $87 million, Diamond State's s return in cash and stock for its nine-month investment was more than three times the amount invested, according to Joe Hays, the fund's managing member.

He would not be more specific.

Also last week, Diamond State completed a ...

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