Member Spotlight: Runway Growth Capital

For this deep dive, we spoke to David Spreng, founder and CEO of Runway Growth Capital.

Runway Growth Capital (“Runway”) is a venture debt firm specializing in minimally dilutive financing for late and growth-stage companies. We typically lend to companies considered late-stage (Series C and later) to allow early investors and management to avoid the dilution of continuous equity raises. To date, our portfolio companies average 13 years old and generate around $50 million in revenue, with a clear path to profitability. Unlike lenders targeting early-stage startups, we focus on partnering with high-quality, late-stage companies, providing them with the capital, knowledge, and network needed to navigate both successes and challenges.

We support a wide range of innovative companies in technology, life sciences/healthcare, and select consumer product and service industries. Our venture debt is minimally dilutive, allowing founders and early investors to preserve more ownership compared to traditional equity financing. We believe this distinctive approach positions Runway not just as a lender, but as a strategic partner committed to the growth and success of sophisticated, forward-thinking businesses.

Overall, we develop tight-knit relationships based on trust, transparency, and communication. It’s this authentic collaboration that is the foundation of a true partnership –and why it is critical for borrowers to have a trusted partner as a lender. Having a steady hand as well as the patience to work through the inevitable bumps in the road is what we believe really separates the “founder-friendly” investors from the “not-so founder-friendly” investors.

What defines your portfolio?

Our borrowers are what we believe to be some of the highest quality late-stage companies within the venture ecosystem. We collaborate with management teams across various industries, including technology (SaaS, fintech, enterprise tech, edtech, AI, machine learning, and other related tech-enabled industries), life sciences/healthcare (biotech & biopharma, medical devices, other specialties), and select consumer products and services (including internet retail and financial services). This diverse sector engagement highlights our dedication to providing tailored financial support during critical growth stages, ensuring that our partners have the resources they need to succeed.

Tell us about the current VC landscape in your geography/region.

Runway focuses on late and growth-stage companies with a clear path to profitability in technology, life sciences/healthcare and select consumer product and service industries (rather than any specific geography or region). The venture landscape across these verticals has experienced significant shifts in the past few years, which reflect broader changes in the startup ecosystem.

The technology sector, while still a major focus for VC investment, has faced some recalibration. Investors are becoming more cautious, pulling back from the hyperactive funding cycles of previous years. In our view, this shift is partly due to a reevaluation of AI and other emerging technologies, as well as a general reassessment of risk and reward expectations. Nonetheless, technology companies with strong fundamentals and clear paths to profitability continue to secure significant funding.

In life sciences/healthcare, we’ve seen a surge in investment driven by advancements in biotech and healthcare technologies. Companies with strong clinical pipelines and innovative solutions are attracting substantial funding, as investors recognize the potential for high returns and societal impact. Despite some economic headwinds, the life sciences and healthcare sectors remain robust, with a steady influx of capital supporting groundbreaking research and development.

In the consumer sector, there has been a notable rise in investment activity, particularly for companies that demonstrate resilience and adaptability in changing market conditions. Businesses that have successfully navigated the challenges of the past few years are showing strong growth potential and profitability.

In our opinion, the overall market is currently focusing on sustainable growth and profitability, and in this environment specifically, we expect companies to continue to seek minimally dilutive capital to extend runway and supplement equity. Runway’s strategy aligns with these trends, as we continue to support late-stage companies in tech, life sciences/healthcare and consumer sectors that exhibit strong performance in these verticals.

What are the benefits of being an NVCA member?

Being a member of the NVCA provides numerous benefits, particularly in terms of advocacy, networking, and education.

First and foremost, NVCA plays a crucial role in representing the interests of the venture capital community in Washington, D.C. The association advocates for policies that support entrepreneurship and encourage innovation, which are critical as we navigate complex regulatory and economic environments. This advocacy ensures that the interests of venture firms and the companies they invest in are considered in policy making.

Networking is another significant benefit. NVCA events and meetings are invaluable opportunities for connecting with other professionals in the venture capital space. These interactions facilitate the exchange of ideas, strategies, and insights essential for staying ahead in a competitive and rapidly evolving industry.

Lastly, NVCA provides extensive resources and educational programs that help venture firms excel in their practice. Whether it’s data insights, industry reports, or professional development workshops, these resources are designed to enhance the operational effectiveness and strategic thinking of its members.

Overall, in our opinion, being a part of the NVCA means being at the forefront of the venture community, where we can collectively drive growth, innovation, and success across the industries with which we work.

What’s ahead for your firm?

Moving forward, we aim to continue our mission of supporting passionate entrepreneurs in building great businesses and educating founders and investors about the key advantages and strategic benefits of venture debt.

Partnering with companies poised to benefit from our work is our priority, and we’re dedicated to helping as many companies as possible achieve great success. Ultimately, we’d like to challenge the IPO market by providing late-stage companies with capital that is significantly more attractive than funding from the public markets.