About Cypress Growth Capital
Cypress Growth Capital provides royalty financing for emerging companies. Royalty financing provides growth capital in exchange for a fixed percentage of a company's future revenue (royalty). The company pays the royalty monthly until its total payments reach a mutually agreed upon cap, which is typically expressed as a multiple of the investment amount. The royalty investment is reflected as a long term, secured promissory note on the company's balance sheet, with the principal amount treated as a long-term liability. In most cases, a portion of the royalty payments is tax-deductible, significantly reducing the after-tax cost of the loan. Royalty financing also includes a small stock warrant as a way for the investor to participate in the long-term success of the business.
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Latest Cypress Growth Capital News
Aug 10, 2023
.…on why Dallas startup founders are drawn to his firm’s equity-preserving approach. Dallas has proven to be an ideal home base for Cypress Growth Capital, Quincy Preston wrote last week in Dallas Innovates. The firm’s unique model is defying norms in the funding landscape by fostering rapid growth without diluting entrepreneurial control. And startup founders in North Texas seem to like what they see in that equity-preserving approach. “It’s a perfect market for us, and I don’t see it slowing down,” said Thapar (seen above at left with firm Co-Founders Barton Goodwin and Ed Mello). Cypress recently made its landmark 50th portfolio investment with a $4 million stake in Utah’s ChartSquad, a medical records software provider disrupting the $10 billion industry. “We have been extremely busy investing in companies while many investors are sitting on the sideline waiting for an autocorrection,” Thapar told us. Cypress is focused on companies that haven’t raised significant capital previously and are now seeking smaller investments—often between $1 and $5 million—to fuel their growth. The firm’s approach, which emphasizes giving these companies greater control and flexibility, appears to be a thriving model. Thapar peels back the curtain on his firm in our story, which you can read here . For more of who said what about all things North Texas, check out Every Last Word. Get on the list. Dallas Innovates, every day. Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day. One quick signup, and you’re done. R E A D N E X T Dallas-based Cypress Growth Capital is defying norms in the funding landscape. Not your traditional venture capitalist, this trailblazing firm hit a landmark with its 50th portfolio investment—and fourth major play this year—a $4 million stake in medical records disruptor, ChartSquad. Managing Director Vik Thapar peels back the curtain on the firm's unique model, which fosters rapid growth without diluting entrepreneurial control. Read “who said what” in our roundup of quotes about all things North Texas, including ENO8's Jeff Francis; MyndVR's Chris Brickler and Ted Werth; Axxess' John Olajide; the Urban Land Institute's Ron Pressman; Dallas Mayor Eric Johnson; the Mavs Foundation's Katie Edwards; UT Arlington's Yi Hong; HomeUSA.com's Ben Caballero; ParkHub's George Baker Sr.; and more. Dallas-based venture capital company Cypress Growth Capital announced it has invested $2 million in PFA Solutions, a Virginia-based provider of software solutions tailored to the unique needs of private equity, venture capital, and other alternative asset management and investment firms. “As investment firms have grown in size and complexity, the importance of compensation structures and employee satisfaction has increased,” Cypress Managing Director Vik Thapar said in a statement. “PFA helps firms manage these issues in a streamlined manner, saving investment managers time and money. The executives at PFA have deep industry expertise and relationships. We are very excited about the… A subsidiary of Boston-based Bain Capital Credit is backing the launch of Legacy Corporate Lending, a new asset-based lending company headquartered in Plano that will serve middle market companies that might not be able to readily access traditional forms of lending. “We are excited to establish this well-capitalized platform in partnership with Bain Capital Credit at a time when lending provides an essential solution to many companies,” Legacy Corporate Lending CEO Clark Griffith said in a statement. “We see a significant opportunity to leverage our combined credit investment and industry expertise to provide borrowers with flexible, solutions-oriented capital. We look… TAGS:
Cypress Growth Capital Investments
Cypress Growth Capital has made 23 investments. Their latest investment was in ChartSquad as part of their Unattributed on August 8, 2023.
Cypress Growth Capital Investments Activity
Cypress Growth Capital Fund History
4 Fund Histories
Cypress Growth Capital has 4 funds, including CGC Royalty Investments IV.
Cypress Growth Capital Team
2 Team Members
Cypress Growth Capital has 2 team members, including , .