Grayhawk Capital, a venture capital firm based in Scottsdale, was recently named the 2022 Small Business Investment Company of the Year by the Small Business Administration, making it the first Arizona firm to win the honor.
The SBA picks investment award winners based on success in investing and support for small businesses, especially in underserved markets. Grayhawk specifically won the SBIC award in the “established manager” category, alongside Dallas-based Valesco Commerce Street Capital which won in the “emerging manager” category.
“We’re grateful to be a part of the SBIC Program that plays a significant role in creating and sustaining jobs in the small business sector,” Grayhawk’s managing partner and co-founder Sherman Chu said in a statement. “It’s rewarding to assist in financing promising small businesses that require capital for their growth, expansion and modernization.”
Grayhawk’s award was announced on April 29 and the company received the award on May 5, during national small business week.
“These entrepreneurs have made significant impacts on their industries and our nation, advancing innovative solutions to global challenges, securing capital to help their firms thrive, or finding creative solutions to strengthen America’s supply chains,” SBA Administrator Isabel Guzman said in a statement about the awards.
The SBIC program is a debt program sponsored by the SBA. Once a fund, like Grayhawk, earns its SBIC license, the private fund invests its own capital, plus money borrowed with an SBA guarantee. Licensees include VC firms, private equity funds and others that invest in high-growth startups.
Grayhawk has received three SBIC licenses to date, one for each of its funds. Grayhawk raised $76 million for its third fund in November. The firm has made nearly 40 investments since 2000, with an aggregate exit value of more than $4 billion.
The SBIC program started in 1958 and invests about $4 billion into funds each year. SBIC money has previously gone to major companies including Apple, Intel, Fedex, Tesla and Costco as they were scaling up.
There are more than 300 licensed SBICs in the country, but Grayhawk is the only one based in Arizona.
