Gray Line Partners is a new Seattle-based investment firm led by two longtime tech and finance executives who graduated from the United States Military Academy. The firm focuses on investing in software-as-a-service businesses across North America, targeting companies with $2-to-$10 million in annual recurring revenue. Unlike traditional venture capital firms, Gray Line is an early growth equity firm that invests in companies that have proven product market fit and demonstrated the ability to acquire and retain customers efficiently.
The firm believes that many SaaS businesses do not need a lot of investment to spur sales and grow profits, especially with the help of AI technology. AI can help businesses do more with less, making them less reliant on future investment. Gray Line recently led an $11.5 million funding round for Actuate, a New York startup developing computer vision software for remote security camera monitoring and threat detection. This AI-fueled tech can allow security guards to respond to alerts on hundreds of cameras, making humans more productive and efficient.
Gray Line typically leads investments and is using AI to help identify potential investment opportunities. The firm has built its own sourcing model that scours the internet for information and identifies attractive companies based on its thesis and parameters. This allows the firm to be extremely scalable on the investing front. Eddie Kang, managing partner at Gray Line, was a captain in the U.S. Army and served in Korea and Afghanistan before transitioning into investment banking. Rob Hammond, partner at Gray Line, also has a background in finance and tech, having previously worked at Canoo and Rothschild & Co.
The name of the firm, Gray Line Partners, is a nod to the phrase “The Long Gray Line,” which refers to alumni from West Point. The name symbolizes the idea of alumni helping and being successful together. Both Kang and Hammond have extensive experience in the tech and finance industries, with Kang having worked with firms such as Telescope Partners, Next47, and Point72 Ventures. Hammond worked with Kang at Point72 and brings further experience from his time at Canoo and Rothschild & Co.
Gray Line Partners is focused on building a portfolio of software-as-a-service businesses with strong fundamentals and proven efficiency in customer acquisition and retention. The firm’s strategy of investing in companies that do not require excessive capital to spur growth may prove successful given the current state of the venture ecosystem. With the use of AI technology in identifying and investing in potential opportunities, Gray Line is poised to make a significant impact in the industry and help these businesses reach their full potential.
