Runway Growth Capital expects its deal pipeline for loans to late-stage private companies to pick up steam in 2023 after a slower start to the year.
As a provider of venture debt via senior term loans of $10 million to $100 million to technology, consumer and life sciences companies, Runway Growth Capital has a window into the middle-market businesses that help make up the backbone of the U.S. economy. At the moment, the firm’s pipeline of loans is more healthy, although companies remain keen on containing expenses and preparing for multiple outcomes.
Spreng launched Runway Growth Capital after working as an investment banker at Solomon Brothers, in asset management for Lloyd’s Bank, and venture capital funding in Silicon Valley. Unlike venture capitalists who typically get a seat on the board and an ownership stake in their portfolio companies, debt offers a way for company founders to raise capital without diluting their equity ownership.
Some examples of 2023 transactions by Runway Growth Capital include a $40 million senior secured loan to Elevate Services Inc., a software and services provider to legal departments at large companies, as well as a $50 million loan to Madison Reed, a hair color specialist focused on the female market.