Runway Growth Capital

Best for: Late-stage, revenue-generating technology, healthcare and consumer companies that need $10 million or more in senior debt instead of another equity round, and can accept a lien on company assets plus a small warrant.

Not for: Seed or early startups, businesses that need under $10 million, or founders who want published pricing.

Lender List verdict: Runway Growth Capital writes large growth loans of $10 million to $150 million and reports its results publicly through its listed fund, RWAY. Expect floating interest with a floor, upfront and end-of-term fees and warrants; our $30 million example costs about 13.5% APR before the warrant.

Runway Growth Capital at a glance

Runway Growth Capital lends $10 million to $150 million to late- and growth-stage companies through senior secured term loans.

What is Runway Growth Capital?

Runway Growth Capital is a growth lender, with offices in Menlo Park, Chicago and New York, that manages Runway Growth Finance Corp., a business development company formed in 2015 and listed on Nasdaq as RWAY since October 2021. Runway says it has funded more than 110 companies.

BC Partners bought all of Runway Growth Capital LLC in January 2025; Runway says its team and independence are unchanged. In April 2026 the fund bought SWK Holdings, a life sciences lender, lifting healthcare to about 32% of the portfolio.

How Runway Growth Capital venture debt works

Runway Growth Capital venture debt is a senior secured term loan of 36 to 60 months with monthly interest at a floating rate over SOFR or Prime, subject to a floor. Principal is generally due at maturity, though some loans carry scheduled principal repayments before then.

• Uses: expanding headcount, entering new markets, or bridging to a bigger equity round
• Security: 98% of the fund's loans are senior secured
• Equity kicker: warrants or other equity rights sit alongside most loans
• Sectors: enterprise software, AI and fintech; medical devices, diagnostics and digital health; tech-enabled consumer brands

Who qualifies for Runway Growth Capital

Runway Growth Capital lends to late- and growth-stage companies that already generate revenue; Value Add VC places its borrowers at Series C and later.

Runway publishes no revenue, credit-score or time-in-business floor. In 2018 founder David Spreng told Axial the firm lends with or without venture backing, values IP and contracts as collateral and keeps loans under 20% of company value.

Runway Growth Capital rates, fees and warrants: what it really costs

Runway Growth Capital's loans paid cash interest of 6.3% to 14.7% at June 30, 2026, and the fund earned a 14.2% yield on its debt that quarter. Value Add VC puts typical pricing at SOFR plus 6% to 8%.

• Interest: floating with a floor; portfolio spreads run SOFR plus 3.75% to 11%
• Upfront fee: charged as original issue discount (market norm 1% to 2%, per Value Add VC)
• End-of-term payment: a one-time percentage of principal, mostly 0.5% to 10.5% in the portfolio
• Prepayment and amendment fees: can apply
• Warrants: Value Add VC reports 0.5% to 1% coverage

Worked example: a $30 million, 48-month loan at 12% with a 1% upfront fee ($300,000) and a 4% end-of-term payment ($1.2 million). Assuming 12 months interest-only, you pay $300,000 a month in year one, then $996,429 a month for 36 months. Interest totals about $9.47 million, so total borrowing cost is about $10.97 million, roughly 13.5% APR. A 0.75% warrant adds $225,000 of equity at your last round price.

Runway Growth Capital requirements

Runway Growth Capital has no published credit score or revenue minimum; underwriting is company-level, based on stage, revenue and assets.

Pros and cons

Runway Growth Capital's strengths are check size and light warrants; its drawbacks are the $10 million minimum and unpublished terms.

Pros

• Single facilities up to $150 million
• Warrant coverage reported at 0.5% to 1%, below many rivals
• Public BDC: yields, terms and non-accruals reported quarterly
• Monthly interest with principal often due at maturity

Cons

• $10 million minimum rules out most small businesses
• Upfront, end-of-term and prepayment fees add to the rate
• Senior lien on company assets, including IP
• No published pricing or timeline
• New owner (BC Partners) since 2025; strategy could shift

Runway Growth Capital vs. Hercules Capital vs. Lighter Capital

Runway Growth Capital lends up to $150 million, compared with $500 million at Hercules Capital and $4 million per plan at Lighter Capital.

Hercules Capital figures are from its 10-K and site; Lighter Capital figures are from its own site; both checked 2026-10-26 or later.

Choose Runway Growth Capital for one large loan with light dilution. Choose Hercules Capital if you need more than $150 million or milestone-linked life sciences funding. Choose Lighter Capital if you run a SaaS business with $200K+ ARR and need up to $4 million.

Runway Growth Capital alternatives on Lender List

The closest Runway Growth Capital alternative on Lender List is Lighter Capital, for smaller SaaS companies.

• Lighter Capital — up to $4 million per plan from $200K ARR, typically funded in 3 to 4 weeks
• Recurring revenue lending — loans sized to ARR
• Browse all venture debt lenders on Lender List

Frequently asked questions about Runway Growth Capital

Is Runway Growth Capital the Same as Runway Growth Finance Corp.? No, but they work as one lender. Runway Growth Finance Corp. is the Nasdaq-listed fund (RWAY) that owns the loans, while Runway Growth Capital LLC is the outside investment adviser that finds, underwrites and manages them. Companies seeking a loan talk to the Runway Growth Capital team.

Who Is Runway Growth Finance's Investment Adviser? Runway Growth Capital LLC is the external adviser to Runway Growth Finance Corp. On January 30, 2025, a fund advised by BC Partners Advisors L.P. bought the majority of the adviser and BC Partners affiliate Mount Logan Capital bought the rest. Runway is led by David Spreng and Michael Rovner.

How Much Does Runway Growth Capital Manage? About $1.2 billion. Runway Growth Finance held $1.2 billion of investments in 79 companies at June 30, 2026, with total assets of $1.22 billion. Value Add VC estimates the platform at $1.6 billion, and its owner, BC Partners Credit, runs about $10 billion.

Is Runway Growth Stock Publicly Traded? Yes. Runway Growth Finance Corp. has traded on Nasdaq as RWAY since its October 2021 IPO at $14.60 a share. Net asset value was $11.91 a share at June 30, 2026, and third-quarter 2026 results are due November 5, 2026.

Is Runway Growth Capital Legit? Yes. Its fund, formed in 2015, is an SEC-reporting business development company listed on Nasdaq since October 2021, with $1.2 billion invested in 79 companies. It discloses loans, yields and non-accruals every quarter. No BBB or Trustpilot borrower profile exists.

Does Runway Growth Capital Take Warrants? Usually, yes. Runway's fund aims to earn income from loans first and gains on warrants and other equity second, so most loans carry an equity kicker. Value Add VC reports coverage of 0.5% to 1% of the loan, lighter than many smaller venture lenders.

How Do I Apply to Runway Growth Capital? Use the "Get In Touch" form on runwaygrowth.com or call the fund's Chicago office at (312) 698-6902; the firm also has Menlo Park and New York offices. There is no online application or published timeline, and diligence comes before any term sheet.

Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.