Small Company Investing

“Price is what you pay; value is what you get.” – Warren Buffet

Active involvement and passion for small companies make the difference

When it comes to small company investing, we do things a bit differently. Rather than investing in a number of companies and diluting our resources, we only consider businesses that meet a specific list of criteria. We invest selectively, based on the relationship and trust built between us and the business owners. We then make an investment and remain actively involved with the company to ensure a successful outcome.

We are passionate about working as partners with each company owner to ensure that they feel comfortable and satisfied through the entire growth process. Our strategy is not built on a foundation of risk. We consider it our responsibility to ensure that you feel your company is in good hands. As small company investors, we would consider it a disservice to business owners to create a situation where the risk outweighs the potential rewards.

All the benefits of investing, without the risk

Small Company Investing is an opportunity for investors who are interested in seeing maximum returns with minimum risk. By connecting capital with small companies, Gryphon allows both investors and business owners the chance to experience explosive results.

What is the difference between venture capital and small company investing? Venture capital is the investing of funds into a new company that has yet to prove itself. The potential return is very high, but so is the risk. In contrast, Small Company Investing, Gryphon’s specialty, is an area of investing focused only on allocating funds to companies that have already proven to be profitable with growth opportunities ahead. Thus, the potential return is very high, but the risk is significantly lower than venture capital investments.

How do we protect our investors?

We are very selective about the companies with which we work. We only invest in companies that have a strong foundation and a very large potential for rapid revenue and profit growth. Gryphon invests in companies at the front end of a growth spurt but after the high risk start-up phase has been passed. By investing in companies at this stage AND providing hands-on management services, Gryphon is an active participant in creating value on behalf of its investors.

Transaction parameters

We make investments from $250,000 to $2.5 million in small companies where the opportunity for substantial growth in profits, cash and value exist.

Investment Situations

  • Owner retirement / succession
  • Undercapitalized / restructuring
  • Buyouts
  • Growth capital
  • Recapitalization / refinancing

Investment Criteria

  • Annual sales of $2.5 – $25 million
  • EBITDA of $0.5 – $5 million
  • Geography: Western U.S.; Pacific Northwest preferred
  • Industry Exclusions: Real Estate, Natural Resources, Banking & Insurance

Become an Investor

Gryphon’s investors include successful business owners, executives, high net worth investors and others who are seeking superior returns for their investment dollar. We’ve created a fund – Gryphon Income & Growth Fund, LLC – which enables us to concentrate investor capital into a select number of investments on which we bring the full resources of Gryphon to grow portfolio company profits, cash flow and value.

The investment structure of Gryphon Income & Growth Fund, LLC provides the following advantages to investors:

  • Each transaction stands on its own merit and is fully vetted and underwritten prior to investment.
  • Only Gryphon’s clients are eligible for investment to ensure investor funds are protected, nurtured and maximized.
  • Investors receive monthly cash flow from interest and dividends PLUS appreciation potential through return enhancement mechanisms like equity stakes, warrants, royalties and end of investment success fees.
  • Low minimum investment level of only $100,000.
  • Use self-directed IRA’s as the investment mechanism, thus recognizing significant tax benefits.

Please contact us if you would like to learn more about investment opportunities through the Gryphon Income & Growth Fund, LLC.