Technology-focused investment firm raises second fund worth $50M

May 14, 2014
Austin Business Journal

Cypress Growth Capital LLC has completed raising a $50 million second fund targeting technology business services, software and information-based companies

The Dallas-based firm, which operates an Austin office, collected the capital from a family office investor group, according to a news release

Cypress Growth Capital has made several investments in Austin that firm officials declined to name. The firm, which employs five workers, opened its Austin office earlier this year

Cypress Growth operates with a royalty-based business model as an alternative to traditional equity and debt financing, according to the firm’s website

Overall, investing activity has picked up in Central Texas this year. Last week, Austin-based ATX Seed Ventures I LP reported raising $5.5 million of a planned $25 million financing from 16 investors, according to a filing with the U.S. Securities and Exchange Commission

Investments in Austin-area venture-backed companies increased 163 percent during the first quarter, rising sharply to $213.8 million compared with $81.7 million during the same period last year, Dow Jones VentureSource reported

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