Gryphon Online Safety is raising funds on Wefunder with a valuation cap of $35 million. This valuation reflects the company's solid traction in the market, with $12 million in revenue since launch and a threefold increase in paid subscribers over the past two years. The company has also sold 80,000 units and holds ten patents, contributing to its strong intellectual property portfolio. Additionally, Gryphon Online Safety's licensing pipeline includes names such as MaxLinear and Qualcomm, indicating potential for future revenue growth through strategic partnerships.

However, the company has reported a 22.5% decrease in annual revenue, with the most recent fiscal year-end revenue being $2,146,155. This decline in revenue growth concerns investors, and the company's ability to reverse this trend will be critical for justifying the current valuation and ensuring future profitability.

The valuation cap set at $35 million compared to the recent revenue results in a revenue multiple of 16.31x. While this multiple is on the higher end, it is not uncommon in the cybersecurity industry, which often commands higher multiples due to the sector's high demand and growth potential. The cybersecurity market is expected to grow significantly. Gryphon Online Safety's addressable market within the 2024 US Cybersecurity space could provide ample opportunity for expansion and justify the current valuation if the company can capitalize on this growth.

Overall, Gryphon Online Safety's current valuation and fundraising efforts align with the company's progress and potential in the cybersecurity market. However, investors should closely monitor the company's revenue growth and market expansion strategies to assess the likelihood of a successful exit and the potential for a 10X return on investment.

Gryphon Online Safety operates in the rapidly growing cybersecurity market, addressing the increasing need for home network protection amid rising cyber threats. The sizeable addressable market in the US hit $78.31 billion in 2024, and there is a significant opportunity for Gryphon to capture market share. The market is experiencing a compound annual growth rate (CAGR) of 9.79%, indicative of a healthy and expanding industry.

The rise in cyber threats, including malware, ransomware, phishing, and identity theft, drives demand for robust home cybersecurity solutions. Gryphon's cloud-managed, network-based protection service offering is poised to meet this need with its high-performance WiFi system, user-friendly app, and adaptive machine-learning capabilities. With its impressive $12 million in total sales and a threefold increase in paid subscribers over two years, Gryphon demonstrates strong market acceptance and a growing customer base.

Further fueling Gryphon's market relevance is the global shift towards remote work and online learning, accelerated by the COVID-19 pandemic. This shift has made securing home networks and devices a priority for many consumers. Gryphon's comprehensive approach, which includes patented mobile protection outside the home network, addresses these contemporary security concerns.

In summary, Gryphon Online Safety is well-positioned in a sizable and growing market, with clear drivers and trends supporting the continued expansion of its cybersecurity products and services.

Gryphon Online Safety is spearheaded by a team with substantial experience in the cybersecurity and IoT industries. The company was co-founded by CEO John Wu and CTO Arup Bhattacharya, who both have over a decade of industry experience. Together, they combine more than thirty years of experience, providing a solid foundation of knowledge and expertise in the cybersecurity sector. This depth of experience is crucial in a rapidly evolving industry and requires a deep understanding of the technological and security landscapes. Both spent time at Novatel Wireless, a 5G cloud company committed to enterprise solutions, before founding the company. Their past shared experience also indicates that the pair knows how to work well together and likely shares a strong network.

As first-time founders, Wu and Bhattacharya have successfully navigated the early stages of business growth, as evidenced by Gryphon Online Safety's reported $12 million in total sales and a threefold increase in paid subscribers over the past two years. Their commitment to the company further underscores their full-time dedication to their roles. Though neither has past entrepreneurial experience, both have served in managerial roles in past companies. 

The founders have demonstrated their ability to raise significant funding, with over $13 million in prior rounds. This suggests a strong confidence level from investors in the founders' vision and the company's potential. 

The team at Gryphon Online Safety consists of 23 members, although there has been no growth since the last funding round. These individuals fill roles in finance, business development, and tech support. The team is robust, but the headcount may also be one of the biggest factors contributing to the company's burn.

Gryphon Online Safety distinguishes itself in the cybersecurity market through its innovative approach to network protection that integrates a high-performance mesh WiFi system with a user-friendly app and advanced machine learning capabilities. The company's cloud-managed network-based protection service platform is designed to offer a robust defense against cyber threats, which is critical as home and business networks face increasingly sophisticated attacks.

With 80,000 units sold and more than $12 million in revenue since launch, Gryphon has demonstrated market traction and customer trust. Its threefold growth in paid subscribers over the past two years indicates a strong product-market fit and a growing demand for its services. The company's licensing pipeline, including notable names like MaxLinear and Qualcomm, further reinforces its standing in the industry and suggests potential for strategic partnerships to enhance its offering.

While Gryphon competes with established players such as ASUS, TP-Link, and LinkSYS in the router space and Norton in the broader cybersecurity domain, its differentiation lies in the seamless integration of hardware and software to create a comprehensive security solution. Some articles have noted it as one of the best parental control routers for mesh Wi-Fi. The router appears to be middle-of-the-road when it comes to pricing. 

Gryphon's focus on ease of use through its app may appeal to consumers who are not tech-savvy but still require robust security for their connected devices. The company's portfolio of 10 patents underlines its commitment to innovation and may provide a competitive edge by protecting its unique technological advancements. It should be noted, however, that several other direct competitors exist, and the market, though large, is very crowded.

Gryphon Online Safety has shown a promising trajectory in the cybersecurity market with the sale of 80,000 router units and bringing in over $12 million in revenue since its launch. The company's growth is highlighted by a threefold increase in paid subscribers in the last two years, signaling a robust demand for its cloud-managed network-based protection service platform. Gryphon's innovative system, which includes a high-performance WiFi router, an easy-to-use app, and machine learning capabilities, has resonated well with consumers seeking cybersecurity solutions.

Despite these achievements, Gryphon's financial health shows areas of concern. The offering circular reported $101,543 in average monthly burn and cash in hand of $73,796. The company may face liquidity challenges if additional funds are not raised or if revenue does not increase to offset expenses. This is compounded by a decline in annual revenue by 22.5% over the past two years. The company's cash position indicates a need for careful financial management and possibly additional capital infusion to sustain operations and fund growth initiatives.

However, Gryphon's intellectual property portfolio, including ten patents and a licensing pipeline with companies such as MaxLinear and Qualcomm, suggests potential for future revenue streams and strategic partnerships that could bolster the company's position. Gryphon's distribution model, which includes major distributors like Amazon, provides a solid platform for reaching customers.

Overall, Gryphon Online Safety is at a critical juncture where it must balance growth efforts with financial sustainability. The company's success in product sales and subscriber growth is commendable. Still, the recent downturn in revenue and the current cash burn rate require strategic financial planning and execution to ensure long-term viability and profit generation.

Gryphon Online Safety, while established in the cybersecurity space with $12 million in total sales and a growing subscriber base, faces several risks that potential investors should consider.

The company operates in a competitive market, with direct competitors such as ASUS, TP-Link, and LinkSYS and indirect competitors like Norton. This competitive environment could pose a challenge in maintaining and increasing market share, especially when these competitors have strong brand recognition and substantial resources.

Financially, Gryphon Online Safety has a substantial monthly burn rate of $101,543 against a cash reserve of $73,796, suggesting continuous capital infusion is needed to sustain operations. The company's short-term debt of $2.2 million also highlights some potential financial risk.

Another key risk is the company’s reported negative annual revenue growth of -22.50%. This decline in revenue could signal underlying issues with market acceptance, sales strategy, or competition that may affect future profitability if not addressed.

The cybersecurity industry is large and expanding, and Gryphon Online Safety is carving out a niche in this lucrative market with its mesh wifi routers. With $12 million in sales and a threefold increase in paid subscribers in two years, Gryphon has demonstrated significant traction in a competitive space. This growth indicates a strong product-market fit and customer satisfaction as more users turn to Gryphon for reliable and effective cybersecurity solutions.

Gryphon's high-performance WiFi system, user-friendly app, and advanced machine learning technology provide a comprehensive and evolving defense against cyber threats. The machine learning aspect of Gryphon's technology means that it is designed to improve over time, offering long-term value to customers and maintaining its competitive edge as cyber threats evolve. Additionally, Gryphon's intellectual property, including patents, provides a protective moat in a competitive environment. 

The company's business model, which includes recurring revenue streams, is also a strong positive. Recurring revenue models are attractive for their predictability and potential for long-term customer relationships. Gryphon's ability to retain customers and grow its subscriber base is a testament to the effectiveness and essential nature of its service offering.

Despite Gryphon Online Safety's compelling product offering focused on cybersecurity, potential investors have significant concerns. The company is still pre-profit and experiencing negative revenue growth, with an annual revenue drop of 22.50% reported. This suggests challenges in customer acquisition or retention or perhaps increasing competition that is impacting Gryphon's market share.

The high monthly burn rate of $101,543 against a cash position of $73,796 is also concerning, as it indicates that without additional funding, the company could face cash flow problems imminently. This is compounded by the alarming net income figure of nearly -$3.2 million, which raises questions about the company's current cost structure and scalability.

Investors may also question Gryphon's valuation cap of $35 million, which may be considered optimistic given the company's current financial risks. With the need for significant sales and marketing investment to stimulate growth, there is considerable risk associated with this investment, particularly if the company fails to reverse the negative revenue trend and control its monthly expenditure.

With a focus on family internet protection powered by AI, Gryphon has developed high-performance WiFi systems complemented by an easy-to-use app and advanced machine-learning capabilities. The platform is continuously improving, adapting to new threats, and refining its defenses.

The company has experienced significant traction in the cybersecurity market, having sold over 80,000 units and generated more than $12 million in revenue since its launch. Gryphon's impressive patent portfolio, which includes ten patents, and its licensing pipeline with industry giants such as MaxLinear and Qualcomm underscore the company's innovative edge and potential for growth within the sector.

Gryphon is competing with established brands like ASUS, TP-Link, and LinkSYS in the massive but crowded cybersecurity market. The shift towards remote work and online learning has only increased the demand for robust home network security solutions, a trend that Gryphon is well-positioned to capitalize on.

With a valuation cap of $35 million, Gryphon Online Safety is engaged in a new funding round on Wefunder via a SAFE. The current discounted valuation cap is set at $31.5 million.