Driven By Passion: Runway Growth Capital Educates The World About Venture Debt

Runway Growth Capital plays an important role in raising awareness of venture debt financing for late and growth-stage companies by taking a hands-on approach to conducting research, educating the media and participating in events to share knowledge about the benefits of this unique type of funding. To David Spreng, chairman, founder, CEO and CIO of Runway, having passion is important and he uses this to help entrepreneurs find the capital they need to achieve their goals.

“This process of educating the world on what we do was driven by passion and a firm belief that debt, when used in the right situation, can really benefit entrepreneurs and they need to know about it,” Spreng says. “You can choose not to use it but you certainly should know about it.”

Spreng describes the venture debt community as “collegial and tight knit.” The firm participated in the inaugural Venture Debt Conference put on by DealFlow Events in 2023. Spreng calls the conference a first of its kind for the venture debt space, with the event further contributing to the advocacy of the asset class and its benefits, while simultaneously providing an environment where industry leaders and lenders can come together to learn and collaborate.

Runway took part in multiple speaking sessions at the most recent Venture Debt Conference on March 6 in New York City, which included discussions on the evolving face of venture debt, how to navigate the current market successfully, and why choosing the right partner matters. Beyond conference participation, the firm routinely educates stakeholders on the financial solutions that it offers through one-on-one discussions.

Runway prides itself as both a financial supporter and a strategic partner that takes a collaborative approach with its portfolio companies. The firm provides capital and delivers strategic advice by working in tandem with the management teams of the companies in which it invests. This partnership approach demonstrates Runway’s commitment to its borrowers through successes and challenges.

Runway further contributes to the growth of the industry by actively participating in the broader business and financial community by engaging in forums and channels that provide opportunities to spread further awareness.

“We spend most time thinking of ourselves and where we fit, and how we can help educate the venture community,” Spreng says. “It’s fun educating people.”

Spreng’s belief in education stretches beyond Runway as well, as he served on the board of the Network for Teaching Entrepreneurship from 2005 to 2022, with Runway sponsoring its annual gala in recent years.

The number of venture-debt-backed companies has been increasing in recent years, and so has the awareness of the industry as a whole. As this trend continues, Spreng believes it is important for the press, borrowers and the general public to better understand the venture debt product, noting that amidst potential turbulence, the “industry is ever-changing and evolving.”

“My biggest fear is that our industry gets a bad reputation without being really responsible for it,” Spreng says.

In an effort to avoid such a negative perception, Runway strives to engender a more comprehensive understanding of the venture debt industry while working to curate genuine partnerships with its portfolio companies. •