Runway Growth Capital and PitchBook Release 2025-2026 Venture Debt Review: Venture Debt Hits Record $68.8 Billion

Runway Growth Capital (NASDAQ:RWAY) and PitchBook released the 2025-2026 Venture Debt Review, showing U.S. venture debt reached a record $68.8 billion in 2025 across roughly 1,000 deals.

Rhea-AI Summary

Runway Growth Capital (NASDAQ:RWAY) and PitchBook released the 2025-2026 Venture Debt Review, showing U.S. venture debt reached a record $68.8 billion in 2025 across roughly 1,000 deals.

The report highlights larger deal sizes, rising follow-on financings, AI-led equity concentration, and growing use of debt by later-stage, cash-flow-visible companies.

Argus May 27 session

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News Market Reaction – RWAY

On May 27, the first trading day after this news, RWAY closed 0.47% below the previous close.

Data tracked by StockTitan Argus for the May 27 session.

Market Context

This announcement highlights venture debt’s record $68.8B volume in 2025 and its growing role as a c...

Analysis

This announcement highlights venture debt’s record $68.8B volume in 2025 and its growing role as a core financing tool for later-stage, higher-quality companies. For Runway, which lends to growth businesses, the data underscore a supportive structural backdrop following its SWK acquisition and portfolio expansion. Investors may track deal sizes, follow-on volumes, sector mix (AI, SaaS, healthtech, cleantech), and exit activity totaling $286.9B as key indicators of opportunity and underwriting discipline in this market.

Key Figures

U.S. venture debt 2025: $68.8 billion Venture debt deals: roughly 1,000 transactions U.S. venture investments 2025: $321.6 billion +5 more

U.S. venture debt 2025

$68.8 billion

Total venture debt volume in the U.S. in 2025

Venture debt deals

roughly 1,000 transactions

Annual U.S. venture debt deal count in 2025

U.S. venture investments 2025

$321.6 billion

Total U.S. venture investments across 2025

Venture deals 2025

more than 17,000 deals

Total number of U.S. venture investment deals in 2025

AI share of deal value

63.5%

Portion of 2025 U.S. venture deal value concentrated in AI

75th percentile deal size

$27.7 million

U.S. venture debt deal size at 75th percentile in 2025

Median deal size

$5.5 million

Median U.S. venture debt deal size in 2025

Exit activity 2025

$286.9 billion

Total exit value in 2025, including debt-backed companies

Historical Context

5 past events · Latest: May 07

5 events

1. May 07

   Q1 2026 earnings

   24h Move

   -4.3%

   Reported Q1 2026 income, NAV, dividend, buyback and SWK-related metrics.

2. May 06

   Management changes

   24h Move

   +0.3%

   Promoted a new Chief Credit Officer and added a healthcare MD.

3. May 06

   Dividend declaration

   24h Move

   +0.0%

   Announced a second quarter 2026 cash dividend of $0.33 per share.

4. Apr 15

   Earnings call date

   24h Move

   +4.8%

   Set the release and conference call date for Q1 2026 results.

5. Apr 07

   SWK acquisition close

   24h Move

   -2.8%

   Closed SWK acquisition, expanding assets to $1.2B and sector exposure.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

venture debt, non-dilutive capital, saas, healthtech, +2 more

6 terms

venture debt financial

"This year's report finds that venture debt reached a record $68.8 billion"

Venture debt is a type of loan made to young, fast-growing companies that already raise venture capital; it acts like a bridge loan to give them extra cash without selling as much ownership. It matters to investors because it changes a company’s risk and reward mix—reducing immediate ownership dilution for founders but adding repayment obligations and possible small equity rights for lenders, which can affect future funding rounds, valuation and exit outcomes.

non-dilutive capital financial

"startups seek flexible, non-dilutive capital in a more disciplined funding"

Funding that does not require a company to issue new shares or reduce existing owners’ percentage of ownership, such as grants, certain loans, licensing deals, or customer prepayments. It matters to investors because it preserves each shareholder’s stake and per-share value—like getting a loan or a gift instead of selling part of the company—while still carrying obligations (repayment, milestones, or restrictions) that can affect future cash flow and growth.

saas technical

"The market is expanding beyond SaaSAI and SaaS continue to anchor activity"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

healthtech medical

"Growth in healthtech, cleantech and asset- or IP-heavy companies shows how"

Healthtech refers to companies that apply technology—such as software, sensors, telemedicine and artificial intelligence—to deliver, manage or analyze healthcare services and data, much like how banking apps digitized finance but for medical care. Investors care because healthtech can scale quickly, cut costs, create predictable revenue and unlock new markets, while also carrying specific risks from regulation, data privacy and the need for clinical validation that can affect returns.

cleantech technical

"Growth in healthtech, cleantech and asset- or IP-heavy companies shows how"

Cleantech describes products, services and technologies designed to reduce pollution, use resources more efficiently, or produce energy with lower environmental impact—think renewable power, energy-saving systems, electric transportation and waste-to-value processes. Investors care because cleantech can lower operating costs, meet tightening regulations, and tap growing consumer demand; like choosing a fuel-efficient car, companies that adopt or sell cleantech can gain cost advantages and long-term market relevance.

asset-backed financial

"structured around contracted revenue, recurring usage, asset-backed cash flows"

Asset-backed describes a loan, bond, or security that is supported by a specific pool of tangible or financial items—such as loans, receivables, leases, or property—that can be sold or collected to pay investors if the borrower can’t. Think of it like a loan tied to collateral: if payments stop, the assets provide a safety net, which changes the investment’s risk, expected return, and how regulators treat it.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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The report finds that venture debt has become a structural pillar of the venture ecosystem as startups seek flexible, non-dilutive capital in a more disciplined funding environment.

MENLO PARK, Calif., May 26, 2026 /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 2025-2026 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 perspective on how startups, lenders, and investors are navigating today's venture debt market.

This year's report finds that venture debt reached a record $68.8 billion in the U.S. in 2025, even as annual deal volume remained stable at roughly 1,000 transactions. The result is a clear signal that venture debt has become a larger, more strategic and more institutionalized part of the venture ecosystem.

U.S. venture investments reached $321.6 billion across more than 17,000 deals in 2025, but capital remained highly concentrated in Artificial Intelligence (AI), which accounted for 63.5% of deal value. Outside the market's most heavily funded AI companies, startups are operating in a more selective environment where equity investors and lenders are placing greater emphasis on revenue quality, capital efficiency, operating performance and path to profitability.

In turn, venture debt is increasingly being used by companies with strong fundamentals as a strategic financing tool to extend flexibility, preserve ownership and support growth without relying solely on dilutive equity capital.

"Venture debt has moved from the margins of the venture ecosystem toward its core," said David Spreng, Founder and CEO of Runway Growth Capital. "The fact that venture debt reached a record level while deal count remained stable shows this market is getting bigger and more sophisticated. High-quality companies are using debt as a strategic tool to extend flexibility, preserve ownership, maintain control and scale with discipline."

Among the most notable findings in the report:

• Venture debt reached a record high
  • U.S. venture debt reached $68.8 billion in 2025.
  • Annual deal volume remained stable at roughly 1,000 transactions, signaling durable adoption rather than a broad expansion in borrower count.

• Larger and repeat financings are driving the market
  • Deal sizes rose across the distribution, with the 75th percentile reaching $27.7 million and the median increasing to $5.5 million.
  • Follow-on financing volume increased from $4.7 billion across 129 deals in 2024 to $12.3 billion across 156 deals in 2025.

• Venture debt is becoming part of capital planning
  • The report finds that debt is increasingly being used by later-stage and scaled borrowers as part of deliberate financing strategies, rather than as a last-mile liquidity option.
  • Companies with stronger revenue visibility, customer retention, margin profiles and contracted cash flows are better positioned to access capital.

• The market is expanding beyond SaaS
  • AI and SaaS continue to anchor activity, with SaaS exceeding $28 billion in financing for the second consecutive year.
  • Growth in healthtech, cleantech and asset- or IP-heavy companies shows how debt is being tailored to a broader range of business models.

• Debt-backed companies are participating in the exit rebound
  • Exit activity reached $286.9 billion in value in 2025.
  • Venture debt-backed companies accounted for 37% of total exit value and 18% of exit count, both increases from the prior year.

The report also underscores that venture debt's expansion is not indiscriminate. While access to debt is improving, lenders remain focused on companies with underwritable fundamentals. In sectors such as cleantech and healthtech, debt is increasingly being structured around contracted revenue, recurring usage, asset-backed cash flows and other durable sources of value.

"The common thread is not sector," Spreng added. "It is underwritability. Companies that can demonstrate revenue quality, capital efficiency and clear paths to cash flow are finding that venture debt can be a powerful tool and amplify strong fundamentals."

Looking ahead to the rest of 2026, the report suggests that venture debt will continue to play a larger role as equity markets remain concentrated and companies seek more efficient ways to finance growth. The report concludes that in a venture environment defined by divergence, venture debt is emerging as both a source of discipline and a strategic advantage.

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

About Runway Growth Capital LLC

Runway Growth Capital LLC is the 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 $10 million to $150 million to fast-growing companies based in the United States, Canada and Western Europe. 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 the 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/runway-growth-capital-and-pitchbook-release-2025-2026-venture-debt-review-venture-debt-hits-record-68-8-billion-302781920.html

SOURCE Runway Growth Capital LLC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the key finding of the 2025-2026 Venture Debt Review for U.S. venture debt?

The review reports U.S. venture debt reached a record $68.8 billion in 2025. According to Runway Growth Capital, this occurred while deal volume stayed near 1,000 transactions, indicating larger financings and a more institutional role for venture debt.

How much venture capital was invested in the U.S. in 2025 according to Runway Growth Capital (RWAY)?

U.S. venture investments totaled $321.6 billion across more than 17,000 deals in 2025. According to Runway Growth Capital, 63.5% of deal value was concentrated in AI, leaving many non-AI startups in a more selective equity and lending environment.

How are venture debt deal sizes and follow-on financings changing in the 2025-2026 Venture Debt Review?

Deal sizes increased across the distribution, with larger and repeat financings driving growth. According to Runway Growth Capital, the 75th percentile reached $27.7 million, median deals hit $5.5 million, and follow-on volume rose from $4.7 billion to $12.3 billion year over year.

What sectors and business models are highlighted for venture debt in the Runway Growth Capital (RWAY) report?

AI and SaaS remain central, with SaaS exceeding $28 billion in financing for a second year. According to Runway Growth Capital, growth in healthtech, cleantech, and asset- or IP-heavy companies shows debt is being tailored to more diverse business models.

How are venture debt-backed companies contributing to exit activity in 2025?

Venture debt-backed companies represent a growing share of U.S. exits by value and count. According to Runway Growth Capital, 2025 exit value reached $286.9 billion, with debt-backed firms accounting for 37% of exit value and 18% of exit count.

Where can investors download the 2025-2026 Venture Debt Review from Runway Growth Capital?

Investors can download the full 2025-2026 Venture Debt Review directly from Runway Growth Capital’s website. According to Runway Growth Capital, the online report includes detailed charts, market statistics, and commentary on venture debt trends and capital strategies.