WOODSIDE, Calif., February 9, 2023 – 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 commitment of $50 million to Madison Reed, a digitally enabled omni-channel prestige hair color company predominantly focused on women.
The funding will be used to grow customer acquisition, expand retail channels, and continue to expand the network of more than eighty hair color bars (stores) nationally. Runway’s non-dilutive growth loan will provide Madison Reed with needed late-stage growth capital.
“We are excited to partner with the premier brand in the beauty space,” said Brian Sapp, Managing Director at Runway. “Madison Reed has proven success through its omni-channel distribution network that allows customers to reach its products through a direct-to-consumer subscription, at branded hair color bars, and on the shelves of major national retailers. We have seen the substantial growth the brand has had since inception, and Runway is eager to be a part of their next evolution.”
“We were impressed with the speed in which Runway was able to provide flexible working capital and their partnership approach, and we were extremely interested in the non-dilutive nature of the loan,” said Amy Errett, Founder and CEO of Madison Reed. “This deal with Runway will help us take Madison Reed to the next level in building the prestige brand in Hair Color.”
About Runway Growth Capital LLC
Runway Growth Capital LLC is the investment advisor to investment funds, including Runway Growth Finance Corp. (Nasdaq: RWAY), a business development company, and other private funds, 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 $100 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 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.
About Madison Reed
Madison Reed is a hair color company revolutionizing the way women color their hair. The fast-growing disruptor has created a luxurious hair-color formula with a Smart-8 Free formula (free of PPD, ammonia, parabens, resorcinol, phthalates, gluten, SLS and titanium dioxide) that are typically used by other hair color brands. For those who prefer to color their hair at home, Madison Reed uses proprietary color-matching technology and a team of on-call colorists to help women choose the perfect shade of hair color, which is delivered to their door. For those who prefer to have Madison Reed color applied with the help of a professional, there are Madison Reed Hair Color Bars. Products can be found online at www.madison-reed.com and www.ulta.com, or in store at Ulta Beauty and Madison Reed Hair Color Bars.