runway growth capital expects its deal pipeline for loans to latestage private companies to pick up steam in 2023 after a slower start to the year as a provider of venture debt via senior term loans of 10 million to 100 million to technology consumer and life sciences companies runway growth capital has a window into the middlemarket businesses that help make up the backbone of the us economy “our borrowers are still cautiously optimistic” runway growth capital founder david spreng told marketwatch “there’s a conservative weatherthestorm mentality with a plan b so they’ll be ready to invest in the business if opportunities present themselves or maybe do an acquisition” the first quarter and second quarters were “purposely slow” for runway growth capital amid the us regionalbank crisis uncertainty around the number and amount of federal reserve interest rate hikes and the debt ceiling debate in congress at the moment the firm’s pipeline of loans is more healthy although companies remain keen on containing expenses and preparing for multiple outcomes “it’s a difficult environment because no one knows where the economy is going” said spreng who is also ceo and chief investment officer of the firm with 23 billion in total loan commitments since it was founded in 2015 “we…have been deploying capital more slowly it’ll pick up in the second half” runway growth capital typically handles 10 financings a year to companies that prefer issuing debt rather than selling equity to venture capital or private equity firms investors this year it’s on track to do eight spreng launched runway growth capital after working as an investment banker at solomon brothers in asset management for lloyd’s bank and venture capital funding in silicon valley “i had realized that being one of 3000 venture capital firms in silicon valley was difficult and not as rewarding as i’d hoped” spreng said “i wanted to do something more impactful”” he saw a market opportunity to provide debt to revenuegenerating companies that needed more capital to reach the next stage of their life through initial public offerings profitability or a merger with a larger company unlike venture capitalists who typically get a seat on the board and an ownership stake in their portfolio companies debt offers a way for company founders to raise capital without diluting their equity ownership “companies were staying private longer and they were outliving the ability of earlystage venture funds to provide capital” spreng said “borrowers wanted inexpensive late stage money” nowadays runway growth capital operates out of offices in menlo park calif chicago and new york city it issues private loans and manages a public business development company runway growth finance corp rway  some examples of 2023 transactions by runway growth capital include a 40 million senior secured loan to elevate services inc a software and services provider to legal departments at large companies as well as a 50 million loan to madison reed a hair color specialist focused on the female market its average borrower generates well above 100 million in revenue is 13 years old and has raised 150 million in venture capital backing looking ahead runway growth capital plans to hire two more employees in addition to the 28 people now working at the firm while economists and pundits debate whether the us economy will head into a recession runway growth capital is seeing good credit quality among its borrowers “we don’t have anybody among borrowers that’s absolutely that’s missing their numbers” spreng said “i can’t even call this a soft landing it’s better than anyone expected” also read megabank head count holds nearly steady in second quarter as lenders compete for business