FAQs

Yes – Runway Growth Finance Corp. is a Business Development Company (“BDC”).

A Business Development Company (“BDC”) is a closed-end investment company that invests primarily in small and mid-sized private businesses. This form of company was created by Congress in 1980 as amendments to the Investment Company Act of 1940.

We originate senior-secured loans to late/growth stage venture companies; entrepreneurs use the proceeds of our venture debt as a supplement or alternative to venture equity financing.

Runway Growth Finance Corp. seeks to be the leading non-bank lender to late/growth stage venture companies. We have an income generation strategy with potential for capital appreciation through equity stakes we receive in connection with our loans. Our portfolio companies often have institutional equity sponsorship from VC and PE firms, but we also pursue non-sponsored transactions; to the best of our knowledge, we are the only venture lender pursuing non-sponsored transactions as well.

Venture Debt refers to non-convertible secured loans (which typically include warrants) to pre-profit, VC/PE-backed companies. These companies are often not yet profitable and do not yet qualify for asset-backed or cash flow loans. Proceeds of the loan are invested to scale the business, in hopes of increasing top-line revenues rather than achieving immediate cash flow positivity.

Runway Growth Finance Corp. operates squarely in the late-stage/growth debt market, in which the borrower is more mature than an early-stage company. Typically, these companies have a proven business model, many years of operating history and revenue, and a path toward consistent profitability.

Runway Growth Finance Corp. lends primarily to businesses in the Technology, Life Sciences, and Select Other Industries, which include consumer products and services and business services. We will consider many different types of late/growth stage businesses that are asset-light, mission critical, and have steady recurring revenue.

The net asset value per share may be obtained in our public filings (Forms 10-Q and 10-K) with the Securities and Exchange Commission via its website (www.sec.gov) or through our Investor Relations home page.

Our fiscal year ends of December 31 each year.

Runway Growth Finance Corp. intends to pay a dividend to shareholders of record on a quarterly basis, though there is no guarantee that we will generate sufficient income to pay a dividend, and any dividend distributions are subject to approval by our Board of Directors.

Yes. We have a dividend reinvestment plan for our shareholders, which is an “opt out” dividend reinvestment plan. Under this plan, if we declare a cash dividend, our shareholders who have not elected to “opt out” of our dividend reinvestment plan will have their cash distribution automatically reinvested in additional shares of our common stock, rather than receiving the cash dividends. In order to receive cash dividends, investors must opt out of the dividend reinvestment program with paperwork from the stock agent, American Stock Transfer & Trust Company (“AST”). See below for contact information for AST.

You will receive a Form 1099 by January 31st of the following year.

No. Our distribution is generally not a 'qualified distribution' for tax purposes. As a regulated investment company, Runway Growth Finance Corp. generally does not pay income taxes on its earnings at the Corporate level but passes its income through to shareholders. A portion of our distribution is therefore usually taxable to shareholders at their ordinary income tax rates and a portion may qualify for the long-term capital gains tax rates.

American Stock Transfer & Trust Company (“AST”)
59 Maiden Lane
Plaza Level
New York, NY 10038
Phone: 718-921-8200
Email: info@amstock.com
 

You may contact American Stock Transfer & Trust Company (“AST”) at info@amstock.com or 718-921-8200.