Cypress Growth Capital, a Dallas-based investment firm, recently expanded its portfolio with investments in two North Texas technology companies. Known for its non-dilutive funding approach, Cypress has added AirSight and Xcelocloud to its roster, bringing its total investments to 58 since 2011.

The firm has carved out a niche by focusing on scalable tech-enabled services and B2B SaaS solutions, particularly in the local market and in underserved areas outside major tech hubs.

Bullish on Texas tech for years, Cypress is committed to Dallas-Fort Worth. In a May interview with Dallas Innovates, Managing Director Vik Thapar said. “The market is getting bigger and better. We’ll continue to find more companies here and deploy capital locally.” 

AirSight: Securing airspace against drone threats

Richardson-based AirSight caught Cypress’s attention with its integrated solution for managing airborne drone threats. The startup, founded in 2019, combines multiple sensors into a single platform, giving industries from corrections to energy to law enforcement the tools to monitor airspace and respond to potential threats.

According to Cypress Partner Vincent Hsieh, AirSight fills a critical security need.

“Facilities that don’t properly secure their airspace will be vulnerable to aerial threats, and AirSight has built an effective turnkey solution to address this growing need,” Hsieh said.

While the investment amount remains under wraps, AirSight plans to use the funds to boost sales and marketing, forge new partnerships, and enhance its software capabilities.

For AirSight CEO Robert Tabbara, Cypress’s funding approach stood out. “As a bootstrapped company raising outside capital for the first time, it was important to find a partner who also offers guidance and support based on real-world experience leading and scaling tech companies,” he said in a statement.

Xcelocloud: Streamlining multi-vendor IT support

In a separate move announced this week, Cypress invested $5 million into Xcelocloud, a Dallas company tackling a significant challenge in IT management. Founded in 2017, Xcelocloud offers a multi-vendor support solution for large companies and government entities managing complex software, cloud service, and computer hardware environments.

Xcelocloud aims to “simplify the chaos.” In a LinkedIn post, the company noted that “managing IT across multiple vendors can feel like keeping too many plates spinning—one slip, and the whole operation could come crashing down.”

According to Cypress, the company’s AI-powered platform eases the burden of juggling providers like Microsoft, AWS, and Cisco. Its proprietary workflow management software allows the engineering team to “resolve technical problems more quickly and at a lower cost for customers.”

Mike Champion, Xcelocloud’s Founder and CEO, said the company is “solving a critical industry need” and felt that outside funding would allow it to magnify its impact. The company plans to allocate the funds toward partner management, marketing, platform development, and client success initiatives.

Hsieh praises Champion’s leadership. “Mike is a proven leader, steeped in the IT management industry,” he said in the announcement. “The culture he created has attracted an impressive executive team with the agility, breadth, and depth to handle rapid growth while also servicing existing customers with complex needs.”

“Patient” capital for the  unique needs of fast-growing companies

Cypress’s non-dilutive funding model offers a unique proposition: access to capital without requiring equity. The approach struck a chord with both AirSight and Xcelocloud as they look to accelerate growth while keeping control of their companies, the firm said.

Champion noted that Xcelocloud had multiple options for growth capital partners. “We selected Cypress because we highly value their insights and guidance, based on real-world experience leading and growing tech companies,” he said.

Cypress describes its funding as “flexible, patient debt capital,” tailored to the unique needs of fast-growing companies. The firm seeks partnerships with experienced founders who value guidance from a team that’s been in the trenches of scaling tech businesses.

Cypress’ own growth shows no signs of slowing. As we reported in May, Cypress closed its oversubscribed Fund V at $60 million in just 43 days, amid unprecedented deal activity. With 10 investments in the preceding 15 months and another deal in the pipeline at that time, Cypress has been rapidly expanding its portfolio and team.

The launch of the firm’s fifth fund coincided with the addition of new partner Cliff Sentell, with plans to further expand the team to support its growing roster of companies.

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