Runway Growth Capital, a provider of growth loans to both venture and non-venture-backed companies seeking an alternative to raising equity, closed 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 80 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,” Brian Sapp, managing director at Runway, said. “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,” Amy Errett, founder and CEO of Madison Reed, said. “This deal with Runway will help us take Madison Reed to the next level in building the prestige brand in hair color.”