Runway Growth Capital, a provider of growth loans to venture and non-venture-backed companies seeking an alternative to raising equity, released the 2024–2025 Venture Debt Review, produced in partnership with PitchBook.
The release of this year’s report comes against the backdrop of an increasingly concentrated venture debt market. PitchBook data previously released in early 2025 showed total venture debt deal value reached a record $53 billion in 2024, even as deal count dropped to the lowest level in a decade. This backdrop sets the stage for Runway’s deeper exploration of why debt is being used more selectively and strategically than ever. This reflects broader trends already visible across the ecosystem, including fewer, larger transactions as startups use debt more strategically to extend runway and preserve equity.
Runway’s survey findings offer fresh insight into how attitudes toward venture debt are shifting, highlighting changes in founder psychology, deal preferences and broader market dynamics. Among the most notable data points:
- Late-stage lending is increasing
- Nearly 60% of venture debt financings in 2024 occurred at the late or venture-growth stage.
- 67% of respondents said they’re focused on funding expansion-stage companies, underscoring the increasing role of venture debt in supporting post product-market fit growth.
- Liquidity constraints are driving demand
- While exit value rose to $152.9B in 2024, IPO timelines are the longest in over a decade, with 1,300+ companies still valued at $500+ million.
- Perceptions and founder priorities are changing
- 61% of respondents no longer view venture debt as “rescue financing.”
- Founders are prioritizing flexibility and control over headline interest rates.
- Borrower behavior is evolving
- In past years, interest rates were the top concern for founders; today, in a higher-rate environment, they prioritize flexibility, speed and control in deal structures.
- Lenders are responding by offering more borrower-friendly covenants and tailored repayment terms, suggesting a more sophisticated market dynamic.
“After years of capital abundance, startups are entering a new phase — one where how you raise money matters more than how much,” David Spreng, founder and CEO of Runway Growth Capital, said. “This report shows that venture debt has become a strategic lever for founders seeking flexibility and control in a more selective funding environment. We’re seeing a real departure from the old notion that debt is a sign of distress. This year’s data shows it’s increasingly a sign of discipline.”
The report also highlights prominent 2024 deals, such as Cohesity’s $3.1 billion debt financing following a $1+ billion equity round.
