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 of $15 million for CrossRoads Extremity Systems.
Based in Memphis, TN, CrossRoads is a participant in the foot and ankle orthopedic industry, addressing bunions and foot complications with a range of implants and instruments. The company was founded by three orthopedic product executives and has an executive team that boasts 170 years of combined experience in the high-tech medical device industry.
“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,” Rob Lake, managing director and head of life sciences at Runway Growth Capital, said. “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,” Vernon Hartdegen, co-founder and CEO of CrossRoads Extremity Systems, said. “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 hybrid approach to fracture fixation, using nitinol (nickel-titanium alloy) staples, through specialty anatomic plates to deliver both compression and stability.
“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 said.
In the past two quarters, Runway Growth Capital has completed five life sciences sector deals totaling $175 million in credit, including transactions with Allurion, VERO Biotech, Gynesonics, SetPoint Medical and CrossRoads.
