It’s no coincidence that the same 20 venture firms make the Midas list every year!
They have an edge… And, now so do you! Join over 10,000 investors using Edge to access the best deals and the best data available to the online private market.
Brief: Gryphon offers a cloud-managed, network-based protection service platform against cyber threats. The system comes with a high-performance Wi-Fi system, a simple app, and comprehensive network security across multiple devices. Gryphon Online Safety has generated $7.8 million in total sales and shipped more than 50,000 units.
Subscribe to Edge for Gryphon’s full investment report 👉 Check the Charts 📈
View on Republic: Term Sheet
Security Type: Crowd SAFE
Amount Raised: $125,761
Minimum Investment: $250
Here's what I like: If you thought cybersecurity was a buzzword a few years ago, just wait until everyone is running around with connected wallets while trading sensitive work materials via DMs… oh wait 🤦♂️
Like it or not, the future of in-home cybersecurity looks a lot like taking our shoes off when we enter the house or washing our hands before dinner. The more our digital world melds with the analog, the more vital it is for products like Gryphon routers to exist.
Also, how could you not like that its founder was one of the inventors of MiFi??? He’s literally been innovating in the mobile data space since the beginning.
Lastly, I am a huge fan of simplification. At its core, that is what Gryphon offers — a simple-to-use app paired with a cloud-based security network that is also the source of the Wi-Fi which all devices connect to. A single source digital moat for your home!
Here's what I don't love: Honestly, my main nitpick here is that I have a love/hate relationship with hardware. I love incredible products like Whoop. But for every Whoop we get, there are about 100 absolute bombs. Product innovation in hardware is particularly rough because unlike SaaS where you can easily pivot in functionality (with zero inventory), hardware is expensive to build, refine, store, and ship.
Gryphon not only has to compete with similar products, but also compete against itself by predicting demand and manufacturing responsibly.
Beyond my hardware hangups, cyber-security is an extremely complicated market for any company to target. With new threats appearing daily, you've gotta be ready to change on a dime. To say nothing of the fact that device makers like Apple are constantly pushing new products and updates that need to work seamlessly with network protections.
Who should invest and why: Overall I think this is a pretty low risk opportunity (as far as startups go) given the founding team’s experience, early traction, and relatively fair price at $35 million. Because Gryphon is not overpriced and holds numerous patents on its technology, even a “bad” outcome will more likely be acquisition vs a total bust.
Despite my hardware issues, there is at least one positive for hardware startups — you can actually try the product! So I think at minimum, I’d consider investing $500 just for the free Gryphon Guardian. Beyond that, if you’re a gearhead and/or see the massive market opportunity in cyber-security, this is a pretty cutting edge bet.
As always, startup investing is super high-risk, and anything can happen. Don't invest anything you can't afford to lose.
Invest in Gryphon here 👉 Term Sheet
DM’s open on Twitter & IG 🤳 @kitun.