Cypress Growth Capital has closed its third royalty-based growth capital fund at $42 million. CGC Royalty Investments III LP will focus on providing growth financing to emerging software and technology-enabled services companies in the Southwest. The fund’s investors include premier family offices and foundations.
Cypress Growth Capital recently announced the closing of its third royalty-based growth capital fund, CGC Royalty Investments III, LP. Building on the success of the firm’s prior funds, this $42M vehicle will provide Cypress’ distinctive, equity-preserving form of growth capital to emerging software and technology-enabled services companies in the Southwest. Investors include a diversified group of premier family offices and foundations.
“We were well positioned to quickly raise the new fund based on our market-leading position as the largest and most active royalty-based growth capital firm in the United States,” said Bart Goodwin, Co-Founder and Managing Director of Cypress Growth Capital. “With a track record of more than two dozen royalty-based investments since 2011 and consistently successful outcomes for our portfolio companies, our royalty model is a compelling alternative to venture capital and traditional debt options.”
“The Cypress investment allowed us to conduct a management buyout of the company,” said Glenn Renner, CEO of HomeSphere, the homebuilding industry’s first and only B2B digital lead generation and customer retention platform. “Their highly flexible, debt-based structure allowed us to maintain our valuable equity, saving us millions in our subsequent sale to a private equity firm.”
“We look at hundreds of alternative investment opportunities each year,” remarked Andy Swartz, Chief Investment Officer of the J. Cleo Thompson Family Office in Dallas, Texas. “What stood out to us about Cypress Growth Capital were their consistently high returns and the way their unique approach reduces risk through the rapid return of invested capital. ”
With the closing of the new fund, the Cypress team will continue to offer its operating and entrepreneurial experience to its portfolio companies.
About Cypress Growth Capital For an entrepreneur considering growth funding, Cypress Growth Capital provides an innovative alternative to equity and traditional debt. Our firm invests up to $5,000,000 in emerging companies using a royalty-based approach that preserves an entrepreneur’s equity and control. Drawing on a proven track record of royalty-based investments in more than two-dozen software and technology-enabled services companies since 2011, Cypress provides a flexible, patient form of capital that is well suited to the unique financing needs of young, growing companies. Our partners have extensive operating experience providing useful, practical assistance. With more than $100,000,000 of capital under management across three funds, Cypress is the largest and most active royalty-based growth capital investor in the United States.