By Mike Boyer
The Cincinnati Enquirer

PC On Call, the Cincinnati provider of information technology services to small and medium-sized businesses, has won $3 million in new venture capital funding from a Cleveland firm.

The funding from Early Stage Partners LP , which focuses on investments in life sciences, technology and materials companies, is the largest part of $5 million in new venture capital PC On Call is seeking to support its growth plans.

"Outsourced information technology is a growing, great market,'' said Charles C. MacMillan, chief financial officer of the 14-month-old venture capital firm.

He said his firm, which has committed about $8 million to eight investments, also was impressed with PC On Call's management.

Fred Pugh, PC On Call CEO, said the company has a contingent commitment of another $1 million and expects to raise the rest, its third round of venture capital funding, despite tough capital markets.

"I think we'll get it all in,'' he said. PC On Call has raised about $25 million in two previous rounds of venture capital funding.

Pugh said Early Stage Partners made a small investment in his company last year, and he stayed in touch, leading to the new investment.

MacMillan said this is Early Stage's first investment in a Cincinnati firm. The fund, which received a startup grant from the Ohio Department of Development's Technology Action Fund, is focusing on new Ohio-based enterprises.

Pugh said PC On Call will use the new investment to upgrade its operating systems and roll out a new service providing predictive maintenance and network protection.

PC On Call, which closed its four offices outside Ohio last year in the face of the recession and the slowdown in computer spending, still has plans to expand nationally, Pugh said.

Depending on the state of the economy, the company hopes to expand beyond Ohio next year, he said.

The company, which employs 120, now operates in Cleveland, Columbus and Cincinnati.

The privately held company doesn't disclose revenues, but Pugh said more than 90 percent of the company's business is providing IT services to companies with 125 or fewer computer terminals.

Long-range, the company - started in 1996 by entrepreneur Steve Pollak with a single van - hopes eventually to expand to 42 cities.

E-mail mboyer@enquirer.com