January 12, 2021
Categories: Press Releases
WOODSIDE, CA, January 12, 2021—Runway Growth Credit Fund Inc. (the “Fund” or “Runway Growth”), a leading provider of growth loans to both venture and non-venture backed companies seeking an alternative to raising equity, provided an operational and portfolio update for the fourth quarter ended December 31, 2020.
“Investment activity was strong during the fourth quarter and we believe that our pipeline entering 2021 is quite attractive. We completed $132.4 million in loans and other investments to new and existing portfolio companies during the fourth quarter. We are seeing strong interest in our life sciences vertical and demand for growth loans in the technology sector is increasing and approaching pre-COVID-19 levels,” said Runway Growth CEO, David Spreng. “In a year challenged by economic uncertainty, market volatility, and financial hardship, we are pleased to support the growth of new and existing portfolio companies. In doing so, we diversified and expanded our portfolio to $510 million in loan principal outstanding to 23 companies across multiple technology and life sciences sectors in North America and the United Kingdom.”
Since the onset of the COVID-19 pandemic, our primary priorities have been 1) the health and well-being of our team, while maintaining our current business operations, and 2) protecting our investors’ capital by supporting the efforts of our portfolio companies to adjust to the uncertain and rapidly changing environment. Our business continuity/work from home plan continues and our team, in four locales, is working together seamlessly on a socially-distanced basis. We expect that our work from home protocols will remain in place through the first half of 2021 and, for some of our team, potentially longer. We continue to work closely with our portfolio companies to identify and assess their current business circumstances and the impact of the COVID-19 pandemic on their teams, business, liquidity, and capital structures, and our portfolio companies have responded well. We are pleased with the adaptability and resilience demonstrated by our team, our business partners, and our portfolio companies. With more than nine months of remote operations behind us, we believe we have proven we can successfully originate, underwrite, and monitor investments without business travel and with the effective use of technology to maintain strong communications and build relationships.
Runway Growth funded six loans and other investments during the fourth quarter ended December 31, 2020, including three new investments in new portfolio companies and three follow-on investments in existing portfolio companies, as follows:
During the fourth quarter ended December 31, 2020, Runway Growth experienced the following liquidity events totaling $28.1 million, including:
In December, in conjunction with the Porch.com, Inc. merger into special purpose acquisition company (“SPAC”) PropTech Acquisition Corp. (NASDAQ: PTA, now PRCH), Runway Growth exercised our warrant in Porch.com and received 38,079 shares of common stock of PRCH. Additionally, on December 22, 2020, current portfolio company Ouster, Inc. (“Ouster”) publicly announced its plan to merge with SPAC Colonade Acquisition Corp. (NYSE: CLA). The transaction is subject to approval of CLA shareholders and, if approved, is expected to close during the first half of 2021. The Fund holds a warrant in Ouster Inc. Series B Preferred Stock, which, post-transaction, would represent approximately 1.8 million shares of Ouster common stock upon exercise. If successfully completed, Ouster’s transaction with CLA would result in Fund ownership of approximately 1.2 million shares of CLA common stock.
Further reflecting on fourth quarter and full year 2020, Spreng added: “In the first half of 2020, there was great uncertainty in our economy and the capital markets. Throughout the year, we actively engaged with our portfolio companies to help them address those uncertainties. Our portfolio companies are making prudent decisions and delivering results that have led to favorable portfolio performance for the Fund. In addition, our team has embraced the new work from home protocol. We funded nearly $300 million in loans in 2020 in a difficult environment. We will continue to make prudent growth and venture debt investments as companies seek our financing solutions. We believe that we have a conservative balance sheet with substantial liquidity in the form of cash, unutilized revolving credit facility capacity and undrawn equity capital commitments. In 2021, we expect the Fund will surpass the $1.0 billion milestone in loan commitments originated since beginning operations in December 2016. I want to thank our investors, our team, and portfolio companies for their effort and support in creating successful outcomes for portfolio companies, their employees, and our investors.”
About Runway Growth Capital LLC and Runway Growth Credit Fund, Inc.
Runway Growth Capital LLC is the investment advisor to Runway Growth Credit Fund Inc., a lender of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, the Fund provides senior term loans of $10 million to $50 million to fast-growing companies primarily based in the United States and Canada. The Fund is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940. For more on the Fund and its manager, Runway Growth Capital LLC, 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, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy. 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 Growth’s filings with the Securities and Exchange Commission. Runway Growth 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.
Thomas B. Raterman, Chief Financial Officer, firstname.lastname@example.org
Jay Kolbe, Co-Founder and Senior Managing Partner, Impact Partners jay@Impactpartnerspr.com