July 13, 2021
WOODSIDE, Calif., July 13, 2021 – Runway Growth Capital LLC (“Runway”), a leading provider of growth loans to both venture and non-venture backed companies seeking an alternative to raising equity, today announced the close of a senior secured term loan of $15 million to CrossRoads Extremity Systems (“CrossRoads”). Based in Memphis, Tennessee, CrossRoads is a leading innovator in the foot and ankle orthopedic industry, addressing bunions and foot complications with a range of novel implants and instruments to drive better patient outcomes, alleviate suffering, and improve the healthcare economics.
In the past two quarters, Runway has announced five life sciences sector deals totaling $175 million in credit; including Allurion, VERO Biotech, Gynesonics, SetPoint Medical, and CrossRoads.
CrossRoads creates breakthrough products that enable surgeons to improve surgeries and help patients heal faster. Founded by three tenured orthopedic product executives and an executive team that boasts 170 years of combined experience in the high-tech medical device industry. CrossRoads focus is the foot and ankle community with innovative technologies that improve the operating room experience and patient outcomes through simplicity and accuracy for the surgeon, and sustainability and cost reduction for healthcare institutions.
“CrossRoads foundational focus on the materials and methods required for effective foot and ankle surgical recovery sets the company apart in our opinion. From surgical outcomes to the overall cost of specialized medical procedures, CrossRoads has established a new standard of excellence in foot and ankle surgery,” says Rob Lake, Managing Director and Head of Life Sciences at Runway. “Patients are increasingly seeking better outcomes from surgical procedures on their feet and ankles, including the ability to quickly return to everyday activities such as walking, running and exercising.”
“Runway quickly understood how important specialized foot and ankle treatment and care is, in particular, the nuances of our technology and engineering competencies as they relate to our overall business approach,” said Vernon Hartdegen, Co-Founder and CEO of CrossRoads Extremity Systems. “The Runway team endeavored to truly understand the specifics of our business, and create a deal structure that will allow us to meet patient demand for new technologies, while enabling surgeons to perform complex procedures with more precision to expedite patient healing.”
CrossRoads’ foundational technology leverages a novel, hybrid approach to fracture fixation, using nitinol (nickel-titanium alloy) staples, through specialty anatomic plates to deliver both compression and stability. This unique staple compression plate combination enables quicker and more reliable healing. The $2-3 billion foot and ankle sector is the fastest-growing sector of the orthopedic market. There is an emerging need for more specialized treatments for foot and ankle complications, due in part to favorable demographics, desire for faster return to activity after surgery, and improved cosmetic effects after bunion removal.
“We welcome CrossRoads to Runway’s portfolio of innovative life sciences companies and support its effort to increase access and provide improved care for patients who depend on foot and ankle treatment,” Lake added.
Runway Growth Capital LLC is the investment advisor to investment funds, including Runway Growth Credit Fund Inc., 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 $10 million to $70 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 our website at www.runwaygrowth.com.
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 Runway’s filings with the Securities and Exchange Commission. Runway undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
CrossRoads was founded in 2014 and is headquartered in Memphis, TN. It is the only foot and ankle company commercializing breakthrough technologies for faster healing. The company is driven to serve the foot and ankle community with innovative technologies that improve the operating room experience and patient outcomes through simplicity and accuracy for the surgeon, and sustainability and cost reduction for healthcare institutions. CrossRoads Staple Compression Plate™ (SCP) technology is the only bone plating system on the market today to simultaneously offer enhanced stability with continuous compression; optimizing conditions for bone healing infusion procedures. The Company leverages this technology in a broad range of procedure-specific, sterile-packed implants and instrument systems cleared for both lower and upper extremity indications. The CrossRoads EcoSMART® Instrument Service provides sterilized, reusable instruments for every surgical case; as well as post-surgery retrieval and reprocessing of those instruments. EcoSMART® reduces the inefficiencies of traditional non-sterile instrument trays and eliminates the waste associated with typical disposable instruments.