- Since launching mid 2018, achieved over $5M in total sales (unaudited) and over 5M threats blocked across more than 25,000 Gryphons
- Over 160% YoY revenue growth and 480% YoY recurring subscription revenue growth from FY2018 to FY2019
- Intellectual property protected by 5 patents issued and other patents pending, which covers machine learning based network protection and parental controls
- Co-founder & CEO was one of the key inventors of the MiFi mobile hotspot and currently holds 25 patents
- Over $5.8M raised to date from noted angel groups such as ATI, Frontier, and Hyderabad Angels as well as an oversubscribed past SeedInvest round
- Total Amount Raised: US $3,665,188
- Total Investors: 1136
- Total Round Size: US $10,000,000
- Series A-1 :
- Minimum Investment: US $1,000 per investor
- : Preferred Equity
- US $25,000,000 :
The explosion of connected devices is increasing our vulnerability to cyber-attacks that can violate our privacy, expose us to identity theft, and expose our kids to inappropriate content from the Internet.
- There are currently 20 billion connected devices globally, projected to grow to 74 billion by 2025
- Three out of four of those devices are vulnerable to being hacked
- Kids as young as five years old have stumbled on to inappropriate material online by accident
- 88% of parents are concerned about their kids' online activities
Internet addiction is becoming an epidemic
The cyber security market is expected to be a $270 Billion market and Gryphon's directly addressable market is $29 Billion growing at 15% CAGR.
Gryphon offers an innovative cloud managed network based protection service platform that's powerful yet simple. The platform involves an elegant high performance WiFi router system, a simple to use App, and machine learning that will continuously improve over time and usage. With Homebound, Gryphon completes that protection with patented mobile protection when away from the home network.
The platform is simple to setup and scalable because the protection works at the network layer to block unwanted content, malware, and intrusions for any connected device on the network.
Gryphon is also suitable for schools and small businesses because the solution can be set up in just minutes without an IT manager or expensive and complicated hardware. Independent schools and small businesses can now afford enterprise level protection for their network.
- Over 25,000 Gryphons sold
Average monthly ad spend of $40k and monthly revenue of $235k (1H 2020)
Over 160% YoY 2019 revenue growth
- Over $5Million in total sales
- More than 2000 customer reviews
- Awarded Best of CES 2019 by Tech Aeris
- Named best parental control solution 2 years in a row by Fatherly
Gryphon is a cloud managed network protection platform powered by machine learning. The platform includes a family of powerful wireless mesh WiFi routers, cloud management application, and a smart phone app that runs on iOS and Android for easy user control. Gryphon is also the only platform that also offers complete protection with Homebound™, a patented approach to network protection when outside the home network for mobile devices.
Product is sold as a direct to consumer mesh WiFi router system and an optional annual recurring advanced network protection service.
Some Key Benefits Of The Gryphon Platform:
- Easy install (Less than 10 minutes) and super fast wireless connections from 1.2 to 4.2Gbps with WiFi6
- Whole house coverage with no dead spots using mix and match mesh WiFi technology
- Complete protection including mobile with Homebound™
- Content filtering by age group with dynamic content databased augmented with machine learning from crowd sourced intelligence
- Real time request and approvals for on the go management
- Screen time management (set bedtimes and homework times)
- 24/7 intelligent intrusion detection with daily threat database updates
- Vulnerability scanning
- Malware and ransomware protection for all devices on the network
- Control popular Apps like Fortnite, TikTok, YouTube, Instagram, and Snapchat
AI Makes It Better
Our patent pending AI based intrusion detection enhances protection over the traditional rules based approach for the growing number of IoT devices. The AI learns the traffic behaviors of the devices and detects abnormal activities. Machine learning is also being applied to content filtering where we are crowd sourcing the approvals of all the parents and using that data along with other sources to build a better content filtering database. With usage and scale, the Gryphon platform gets better.
Having the cloud means that your Gryphon will always be up to date with the latest security software, content filters, and malware database. It also means that you can now securely access Gryphon from anywhere using the smart phone App.
The HomeBound App automatically and securely routes all traffic on your mobile device back through your Gryphon mesh router before it goes out to the internet.
The same great protection with Gryphon in the home network can now be with you on the go – even when using cellular or public WiFi hotspots.
Advanced Network Protection – provides data encryption, privacy, and malware filtering while connected using the HomeBound App on your smartphone.
Parental Control System – with Homebound installed on your child’s smartphone, you can now manage them as if they never left home.
The Gryphon family of security and parental control mesh WiFi routers are available on Amazon, Walmart, Best Buy, eBay, FRYS Electronics, Newegg, and Gryphon's website.
John has been innovating in wireless networking for over 23 years, helping to build the world's first digital mobile phone using the CDMA technology at Motorola and was the co-inventor of MiFi, the world's first personal hotspot that disrupted Steve Job's Apple demo. A few years ago, he found one of his daughters accidentally stumbling on to inappropriate content while searching on the Internet. The existing solutions were just too clumsy and frustrating to use. So he resigned from his executive position and started Gryphon with the same principles that made MiFi a success - simplicity, performance, and design.
Arup has been working with John for the last 9 years. Arup also headed up the engineering team that developed the first 4 generations of the media chip that powered the original iconic Apple iPods. He has always said that there is a unique joy when you see your product being used by so many people to help improve their lives. It makes all the challenges you go through worth it. His favorite quote is: "If it is easy, then it's not worth doing."
Together with a global team of experts, building a solution to safeguard our ever increasingly connected lives is an extremely difficult challenge but is something worth pursuing.
Investors who invest less than $330,000 will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.
SI Securities, LLC has the authority to prevent a closing from occurring if it determines, in its sole discretion, that this investment is no longer suitable at the time of the closing, which includes, but is not limited to, the Company raising at least US $500,000 in connection to the current round.
All investors will receive:
- Quarterly shareholder updates
- 20% discount code for any Gryphon product
Reservations will bump investors up one tier upon conversion to an investment by Friday, April 23rd at 11:59pm ET. For example, a reservation of $2,500-$4,999 that converts to an investment will earn Investor Perks for the $5,000 - $9,999 tier.
Invest $2,500 and receive a free Gryphon Guardian router with 1 year security subscription
Invest $5,000 and receive a free Gryphon Tower router with 1 year security subscription
Invest $10,000 and receive a free Gryphon AX WiFi6 router with 1 year security subscription
Invest $20,000 and receive a Gryphon AX WiFi6 2 Pack with wireless mesh and 5 years of security subscription and live video call with founders.
Invest $50,000 and receive a Gryphon AX WiFi6 2 Pack with wireless mesh and 5 years of security subscription, air travel for 2 within continental US, 3 nights 5 star hotel in San Diego, and dinner with CEO John Wu and other Gryphon executives
All perks are transferrable.
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Please note that due to share price calculations, some final investment amounts may be rounded down to the nearest whole share - these will still qualify for the designated perk tier. Additionally, investors must complete the online process and receive an initial email confirmation by the deadline stated above in order to be eligible for perks.
The graph below illustrates theor the of Gryphon's prior rounds by year.
Gryphon is positioned as the the most comprehensive and easy to use network protection and parental control solution to address the underserved home and small business segment within the overall cybersecurity market. Unlike our competitors, our focus is on leveraging data intelligence to build the best cloud managed network protection platform for both in and out of the home while also having the best performance.
Our financials were prepared on a “going concern” basis. Our financial statements were prepared on a “going concern” basis. Certain matters, as described below and in Note 11 to the accompanying financial statements indicate there may be substantial doubt about the company's ability to continue as a going concern. The Company has incurred losses from inception of $2,972,001 which raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's ability to raise additional capital from the issuance of debt or the sale of stock, its ability to commence profitable sales of its flagship product, and its ability to generate positive operational cash flow.
The Company depends on one primary product. The Company’s primary product is a secure WiFi router. Although the Company is developing other products, the Company’s survival in the near term depends on its ability to sell its primary product to a sufficient number of customers to make a profit. The Company’s current base of customers is still small, and the Company will only succeed if it can attract more customers for its primary product.
The Company uses Qualcomm and Gemtek for components and supply chain/manufacturing respectively. Heavy reliance on a single supplier and manufacturer poses risks of shortages, price increases, changes, delay and other issues that could disrupt and adversely affect its business.
We may not be successful in obtaining additional issued patents. Our success depends significantly on our ability to obtain, maintain and protect our proprietary rights to the technologies used in our services. We have filed multiple non-provisional and provisional patent applications, as detailed under “The Company’s Business”. Filing a non-provisional or provisional patent application only indicates that we are pursuing protection, but the scope of protection, or whether a patent will even be granted, is still undetermined. We have one issued patent and are minimally protected from our competitors. Moreover, any patents issued to us may be challenged, invalidated, found unenforceable or circumvented in the future. Any intellectual enforcement efforts the Company seeks to undertake, including litigation, could be time-consuming and expensive and could divert management’s attention.
There are existing companies in the Wi-Fi protection space that could introduce similar or enhance existing services. Other competitors that have significant funding may be able to cross sell products and services to its customers. If a larger, better funded company markets or creates a comparable service at a lower price point or with better features, the Company could be negatively impacted.
Through our operations, we collect and store certain personal information that our customers provide to purchase products or services, enroll in promotional programs, register on our website, or otherwise communicate and interact with us. We may share information about such persons with vendors that assist with certain aspects of our business. Security could be compromised and confidential customer or business information misappropriated. Loss of customer or business information could disrupt our operations, damage our reputation, and expose us to claims from customers, financial institutions, payment card associations and other persons, any of which could have an adverse effect on our business, financial condition and results of operations. In addition, compliance with tougher privacy and information security laws and standards may result in significant expense due to increased investment in technology and the development of new operational processes.
Our business could be negatively impacted by cyber security threats, attacks and other disruptions. Like others in our industry, we continue to face advanced and persistent attacks on our information infrastructure where we manage and store various proprietary information and sensitive/confidential data relating to our operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack our products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of our customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that we produce or procure from third-parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of our information infrastructure systems or any of our data centers as a result of software or hardware malfunctions, computer viruses, cyber attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect our business.
The Company has not filed a Form D for its offerings of convertible notes in 2016 and 2017. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.
If we do not respond to technological changes or upgrade our websites and technology systems, our growth prospects and results of operations could be adversely affected. To remain competitive, we must continue to enhance and improve the functionality and features of our websites and technology infrastructure. As a result, we will need to continue to improve and expand our hosting and network infrastructure and related software capabilities. These improvements may require greater levels of spending than we have experienced in the past. Without such improvements, our operations might suffer from unanticipated system disruptions, slow application performance or unreliable service levels, any of which could negatively affect our reputation and ability to attract and retain customers and contributors. Furthermore, in order to continue to attract and retain new customers, we are likely to incur expenses in connection with continuously updating and improving our user interface and experience. We may face significant delays in introducing new services, products and enhancements. If competitors introduce new products and services using new technologies or if new industry standards and practices emerge, our existing websites and our proprietary technology and systems may become obsolete or less competitive, and our business may be harmed. In addition, the expansion and improvement of our systems and infrastructure may require us to commit substantial financial, operational and technical resources, with no assurance that our business will improve.
The COVID-19 pandemic has affected how we are operating our business, and the duration and extent to which this will impact our future results of operations and overall financial performance remains uncertain. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Federal and state governments have implemented measures to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, work from home, and closure of non-essential businesses. To protect the health and well-being of our employees, partners and third-party service providers, we have implemented a near company-wide work-from-home requirement for most employees until further notice, made substantial modifications to employee travel policies, and cancelled or shifted our conferences and other marketing events to virtual-only for the foreseeable future. While we continue to monitor the situation and may adjust our current policies as more information and public health guidance become available, such precautionary measures could negatively affect our customer success efforts, sales and marketing efforts, or create operational or other challenges, such as a reduction in employee productivity because of the work from home requirement, any of which could harm our business and results of operations. Further, if the COVID-19 pandemic has a substantial impact on our employees, partners or third-party service providers’ health, attendance or productivity, our results of operations and overall financial performance may be adversely impacted. Additionally, if employees, partners or third-party services providers return to work during the COVID-19 pandemic, the risk of inadvertent transmission of COVID-19 through human contact could still occur and result in litigation.
Beginning in March 2020, the U.S. and global economies have reacted negatively in response to worldwide concerns due to the economic impacts of the COVID-19 pandemic. Although we have not yet experienced a material increase in customers cancellations or a material reduction in our retention rate in 2020, we may experience such an increase or reduction in the future, especially in the event of a prolonged economic down turn as a result of the COVID-19 pandemic. A prolonged economic downturn could result adversely affect demand for our offerings, retention rates and harm our business and results of operations, particularly in light of the fact that our solutions are discretionary purchases and thus may be more susceptible to macroeconomic pressures, as well impact the value of our Series A-1 Preferred Stock, ability to refinance our debt, and our access to capital. Additionally, we have faced supply chain and shipping issues as a result of the COVID-19 pandemic that could impact our ability to meet customer demands for our products.
The duration and extent of the impact from the COVID-19 pandemic depends on future developments that cannot be accurately forecasted at this time, such as the severity and transmission rate of the disease, the extent and effectiveness of containment actions and the impact of these and other factors on our employees, customers, partners and third-party service providers. If we are not able to respond to and manage the impact of such events effectively and if the macroeconomic conditions of the general economy or the industries in which we operate do not improve, or deteriorate further, our business, operating results, financial condition and cash flows could be adversely affected.
*Please refer to Offering Circular for full list of Risk Factors
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for theseshares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events \u2014 through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
Frequently Asked Questions
"The SEC has qualified this offering" means the SEC has permitted Gryphon to offer for sale the securities described in the Offering Circular to investors such as you. The SEC is not judging the merits, accuracy, or completeness of the offering and information in the Offering Circular.
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Gryphon. Once Gryphon accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Gryphon in exchange for your securities. At that point, you will be a proud owner in Gryphon.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page by clicking your profile icon in the top right corner.
Currently there is no market or liquidity for these securities. Right now Gryphon does not plan to list these securities on a national exchange or another secondary market. At some point Gryphon may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Gryphon either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is Gryphon's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. You will also find a copy of the Gryphon's Offering Circular, which has been qualified by the SEC. The Offering Circular includes important details about Gryphon's fundraise that you should review before investing.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Gryphon’s profile and Offering Circular.