In November 2018, Mobius Imaging, LLC, a 10-year-old private medical device company focused in the intra-operative imaging space, was seeking capital to grow its product development, sales and marketing efforts.
In less than a year of obtaining their loans, Mobius Imaging and an affiliate were acquired for a purchase price of up to $500 million.
Mobius was not-yet-profitable, which made attracting lenders challenging. At the time, the Company was exploring equity options which would have required them to take significant dilution.
While this was not a traditional venture lending opportunity, Runway recognized Mobius’ tremendous value and growth trajectory. The team structured a deal that provided Mobius with the capital it needed to execute on its plan, increase sales, and boost awareness.
Less than a year later, Mobius and an affiliate were acquired by a medical device industry leader for a purchase price of up to $500 million in October of 2019. By partnering with Runway for a minimally dilutive growth loan, Mobius members were able to maintain their ownership percentages. Given the short timeframe between the capital raise and sale of the business, it would have been unfortunate for the Mobius equity holders to give up such a significant portion of the proceeds to newcomers.