Runway Growth Capital and PitchBook Release 2024-2025 Venture Debt Review: Survey Respondents Dismiss "Rescue Financing" Label, Embrace Strategic Role of Debt

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Runway Growth Capital (NASDAQ:RWAY) and PitchBook have released their 2024-2025 Venture Debt Review, revealing significant shifts in the venture debt landscape. The report highlights that venture debt reached a record $53 billion in 2024, despite lower deal counts.

Key findings show that nearly 60% of venture debt financings occurred at late or venture-growth stages, and 67% of respondents focus on funding expansion-stage companies. The study reveals a significant perception shift, with 61% of respondents no longer viewing venture debt as "rescue financing". While exit value increased to $152.9B in 2024, IPO timelines are at their longest in over a decade, with over 1,300 companies valued at $500M+.

Positive

• Record venture debt deal value of $53 billion in 2024
• Exit value rose to $152.9B in 2024
• Strong focus on late-stage and expansion-stage companies (67% of respondents)
• Improved market perception of venture debt as strategic financing

Negative

• Deal count dropped to lowest level in decade
• IPO timelines are the longest in over a decade
• Market becoming increasingly concentrated

The report finds that a majority of survey participants view venture debt as a flexible, founder friendly alternative to equity that supports growth without dilution rather than a last resort.

MENLO PARK, Calif., Aug. 26, 2025 /PRNewswire/ -- Runway Growth Capital LLC ("Runway"), a leading provider of growth loans to venture and non-venture-backed companies seeking an alternative to raising equity, today announced the release of the 2024-2025 Venture Debt Review, produced in partnership with PitchBook. The annual report provides a comprehensive look at the evolving venture debt landscape, pairing PitchBook's proprietary market data with Runway's original survey of founders, investors, and lenders—offering a view into how stakeholders are using debt in today's market. 

The release of this year's report comes against the backdrop of an increasingly concentrated venture debt market. PitchBook data previously released in early 2025 showed total venture debt deal value reached a record $53 billion in 2024—even as deal count dropped to the lowest level in a decade. This backdrop sets the stage for Runway's deeper exploration of why debt is being used more selectively and strategically than ever. This reflects broader trends already visible across the ecosystem, including fewer, larger transactions as startups use debt more strategically to extend runway and preserve equity.

Runway's proprietary survey findings offer fresh insight into how attitudes toward venture debt are shifting—highlighting changes in founder psychology, deal preferences, and broader market dynamics. Among the most notable data points:

• Late-stage lending is increasing
  • Nearly 60% of venture debt financings in 2024 occurred at the late or venture-growth stage.
  • 67% of respondents said they're focused on funding expansion-stage companies, underscoring the increasing role of venture debt in supporting post product-market fit growth.
    
    
• Liquidity constraints are driving demand
  • While exit value rose to $152.9B in 2024, IPO timelines are the longest in over a decade, with 1,300+ companies still valued at $500M+.
    
    
• Perceptions and founder priorities are changing
  • 61% of respondents no longer view venture debt as "rescue financing."
  • Founders are prioritizing flexibility and control over headline interest rates.
    
    
• Borrower behavior is evolving
  • In past years, interest rates were the top concern for founders; today, in a higher-rate environment, they prioritize flexibility, speed, and control in deal structures.
  • Lenders are responding by offering more borrower-friendly covenants and tailored repayment terms, suggesting a more sophisticated market dynamic.

"After years of capital abundance, startups are entering a new phase—one where how you raise money matters more than how much," said David Spreng, Founder and CEO of Runway Growth Capital. "This report shows that venture debt has become a strategic lever for founders seeking flexibility and control in a more selective funding environment. We're seeing a real departure from the old notion that debt is a sign of distress—this year's data shows it's increasingly a sign of discipline."

The report also highlights prominent 2024 deals, such as Cohesity's $3.1 billion debt financing following a $1B+ equity round, showcasing how venture debt can power ambitious growth plans without forcing founders to surrender equity.

The full report, including charts and commentary, is available for download at http://runwaygrowth.com/venture-debt-review

About Runway Growth Capital
Runway Growth Capital LLC is an investment adviser to investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY), a business development company, and other private funds, which are lenders of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, these funds provide senior term loans of a target of $30 million to $150 million to fast-growing companies based in the United States and Canada. For more information on Runway Growth Capital LLC and its platform, please visit www.runwaygrowth.com. 

About PitchBook
PitchBook is a financial data and software company that provides transparency into the capital markets to help professionals discover and execute opportunities with confidence and efficiency. PitchBook collects and analyzes detailed data on the entire venture capital, private equity, and M&A landscape—including public and private companies, investors, funds, investments, exits, and people. The company's data and analysis are available through the PitchBook Platform, industry news, and in-depth reports. Founded in 2007, PitchBook operates globally with more than 3,000 team members. Its platform, data, and research serve over 100,000 professionals around the world. In 2016, Morningstar acquired PitchBook, which now operates as an independent subsidiary.

Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition, or results and involve a number of risks and uncertainties. Actual results may differ materially from those in forward looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission made by Runway and Runway's affiliated funds. Neither Runway nor Runway's affiliated funds undertake a duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

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SOURCE Runway Growth Capital LLC

FAQ

What were the key findings of Runway Growth Capital's 2024-2025 Venture Debt Review?

The review found that venture debt reached $53 billion in 2024, with 60% of financings in late-stage companies. Additionally, 61% of respondents no longer view venture debt as rescue financing, indicating a shift towards strategic use of debt.

How has the venture debt market changed in 2024 according to RWAY's report?

The market saw record deal value of $53 billion but lower deal count, indicating larger, more strategic transactions. The focus has shifted to late-stage lending with 67% of respondents targeting expansion-stage companies.

What are the current trends in IPO timelines according to the 2024-2025 Venture Debt Review?

IPO timelines are currently at their longest point in over a decade, with more than 1,300 companies valued at $500M+ waiting to go public.

How have founder priorities changed in the venture debt market?

Founders are now prioritizing flexibility and control over interest rates, with lenders responding by offering more borrower-friendly covenants and tailored repayment terms.

What was the largest venture debt deal mentioned in RWAY's 2024-2025 review?

The report highlighted Cohesity's $3.1 billion debt financing following a $1B+ equity round as a prominent 2024 deal.