Venture Debt Review 2024-2025 (Runway Growth Capital)

Summary

• Aggregate venture debt deal value in 2024 surged past $53 billion despite transaction volume falling below 1,400 completed deals.p.5
• US VC exit value climbed to $152.9 billion across 1,140 exits in 2024, while more than 1,300 private companies held valuations of $500 million+.p.5
• Nearly 60% of 2024 venture debt financings occurred at the late or venture-growth stage.p.5
• Runway Growth Capital's survey indicated that 67% of respondents focus primarily on expansion-stage companies.p.5
• Over the next 12–18 months, planned funding sources included private equity at 55.6%, venture capital at 44.4%, and venture debt at 41.7%.p.10
• Survey findings showed that 61% of respondents disagree with the view that venture debt is rescue financing.p.9

Key insights

1. Venture debt aggregate deal value reached over $53 billion in 2024 while total transaction count dropped to its lowest level since 2016.p.5
2. Late-stage and venture-growth companies accounted for nearly 60% of all venture debt financings in 2024.p.5
3. The median time to exit via public listing for VC-backed companies reached 9.9 years in 2024.p.5
4. Energy venture debt activity saw 29 completed deals in 2024 compared to 33 in 2023.p.7
5. Cohesity secured a $3.1 billion debt financing package following its $1 billion+ Series G equity round.p.7
6. Lightshift Energy raised $80 million in venture debt financing in April to expand operations and workforce.p.8
7. A clear majority of 61% of survey respondents stated that venture debt is not considered rescue financing.p.9
8. Private equity was the most frequently selected upcoming funding source at 55.6%, followed by venture capital at 44.4%.p.10