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Cypress Growth Capital company logo
Debt & Specialty Finance
cypressgrowthcapital.com

Investments

23

Portfolio Exits

11

Funds

4

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.

Headquarters Location

100 Crescent Court Suite 700

Dallas, Texas, 75201,

United States

214-459-8118

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Latest Cypress Growth Capital News

The Last Word: Cypress Growth Capital’s Vik Thapar on the Dallas Entrepeneur Difference

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

23 Investments

Cypress Growth Capital has made 23 investments. Their latest investment was in ChartSquad as part of their Unattributed on August 8, 2023.

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Cypress Growth Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

8/3/2023

Unattributed

ChartSquad

$4M

Yes

1

7/18/2023

Unattributed

PickNik Robotics

Yes

1

7/17/2023

Unattributed

PFA Solutions

$2M

Yes

1

2/14/2023

Unattributed

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$99M

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10

9/30/2022

Unattributed

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$99M

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10

Date

8/3/2023

7/18/2023

7/17/2023

2/14/2023

9/30/2022

Round

Unattributed

Unattributed

Unattributed

Unattributed

Unattributed

Company

ChartSquad

PickNik Robotics

PFA Solutions

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Amount

$4M

$2M

$99M

$99M

New?

Yes

Yes

Yes

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Co-Investors

Sources

1

1

1

10

10

Cypress Growth Capital Portfolio Exits

11 Portfolio Exits

Cypress Growth Capital has 11 portfolio exits. Their latest portfolio exit was MG Stover on April 13, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

4/13/2022

Acquired

$99M

3

1/13/2022

Acquired

$99M

1

12/8/2020

Acquired

$99M

1

11/18/2020

Acquired

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$99M

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10

3/18/2020

Acquired

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$99M

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10

Date

4/13/2022

1/13/2022

12/8/2020

11/18/2020

3/18/2020

Exit

Acquired

Acquired

Acquired

Acquired

Acquired

Companies

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Valuation

$99M

$99M

$99M

$99M

$99M

Acquirer

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Sources

3

1

1

10

10

Cypress Growth Capital Acquisitions

1 Acquisition

Cypress Growth Capital acquired 1 company. Their latest acquisition was HomeSphere on October 28, 2015.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

10/28/2015

Debt

$99M

$7.84M

Management Buyout

1

Date

10/28/2015

Investment Stage

Debt

Companies

Valuation

$99M

Total Funding

$7.84M

Note

Management Buyout

Sources

1

Cypress Growth Capital Fund History

4 Fund Histories

Cypress Growth Capital has 4 funds, including CGC Royalty Investments IV.

Closing Date

Fund

Fund Type

Status

Amount

Sources

5/31/2021

CGC Royalty Investments IV

$50M

1

11/2/2017

CGC Royalty Investments III

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$99M

10

5/7/2014

CGC Royalty Investments II

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$99M

10

12/31/2011

CGC Royalty Investments I LLC

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$99M

10

Closing Date

5/31/2021

11/2/2017

5/7/2014

12/31/2011

Fund

CGC Royalty Investments IV

CGC Royalty Investments III

CGC Royalty Investments II

CGC Royalty Investments I LLC

Fund Type

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Status

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Amount

$50M

$99M

$99M

$99M

Sources

1

10

10

10

Cypress Growth Capital Team

2 Team Members

Cypress Growth Capital has 2 team members, including , .

Name

Work History

Title

Status

Edward J Mello

Founder

Current

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Name

Edward J Mello

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Work History

Title

Founder

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Status

Current

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