Hercules Capital, Inc. is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; domestic and international corporate expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans or leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, emerging growth, mid venture, and late venture financing. The firm invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The firm generally seeks to invest in companies that have been operating for at least six to 12 months prior to the date of their investment. It prefers to invest in technology, energy technology, sustainable and renewable technology, and life sciences. Within technology the firm focuses on advanced specialty materials and chemicals; communication and networking, consumer and business products; consumer products and services, digital media and consumer internet; electronics and computer hardware; enterprise software and services; gaming; healthcare services; information services; business services; media, content and information; mobile; resource management; security software; semiconductors; semiconductors and hardware; and software sector. Within energy technology, it invests in agriculture; clean technology; energy and renewable technology, fuels and power technology; geothermal; smart grid and energy efficiency and monitoring technologies; solar; and wind. Within life sciences, the firm invests in biopharmaceuticals; biotechnology tools; diagnostics; drug discovery, development and delivery; medical devices and equipment; surgical devices; therapeutics; pharma services; and specialty pharmaceuticals. It also invests in educational services. The firm invests primarily in United States based companies and considers investment in the West Coast, Mid-Atlantic regions, Southeast and Midwest; particularly in the areas of software, biotech and information services. The firm prefers to invest between $10 million to $250 million in equity per transactions. It invests generally between $1 million to $40 million in companies focused primarily on business services, communications, electronics, hardware, and healthcare services. The firm invests primarily in private companies but also have investments in public companies. For equity investments, the firm seeks to represent a controlling interest in its portfolio companies which may exceed 25% of the voting securities of such companies. The firm seeks to invest a limited portion of its assets in equipment-based loans to early-stage prospective portfolio companies. These loans are generally for amounts up to $3 million but may be up to $15 million for certain energy technology venture investments. The firm allows certain debt investments have the right to convert a portion of the debt investment into equity. It also co-invests with other private equity firms. The firm seeks to exit its investments through initial public offering, a private sale of equity interest to a third party, a merger or an acquisition of the company or a purchase of the equity position by the company or one of its stockholders. The firm has structured debt with warrants which typically have maturities of between two and seven years with an average of three years; senior debt with an investment horizon of less than three years; equipment loans with an investment horizon ranging from three to four years; and equity related securities with an investment horizon ranging from three to seven years. The firm prefers to invest through its balance sheet capital. The firm formerly known as Hercules Technology Growth Capital, Inc. Hercules Capital, Inc. was founded in December 2003 and is based in Palo Alto, California with additional offices in Connecticut; Boston, Massachusetts; San Diego, California; Westport, Connecticut; Elmhurst, Illinois; Santa Monica, California; McLean, Virginia; New York, New York; Radnor, Pennsylvania; and Washington, District of Columbia and London, United Kingdom.
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Here are 1-2 brief analogies for Hercules Capital (HTGC):
- Sallie Mae (SLM) for venture-backed tech and life sciences companies. (It's a specialized lender for a specific, high-growth market segment.)
- Sequoia Capital for debt. (It operates in the venture ecosystem, targeting similar high-growth companies as top-tier venture capital firms, but primarily through debt financing rather than equity.)
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- Venture Debt and Growth Capital Loans: Provides customized debt financing solutions to privately held and publicly traded venture capital-backed technology, life science, and other high-growth companies.
- Equity Investments (Warrants): Acquires warrants or direct equity stakes, typically alongside their debt investments, to participate in the potential upside of client companies.
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Hercules Capital (HTGC) is a Business Development Company (BDC) that provides debt and equity financing to privately held, venture-backed companies, primarily in technology and life sciences sectors. Therefore, HTGC sells primarily to other companies.
Given its business model as a BDC, Hercules Capital does not have "major customers" in the traditional sense of companies purchasing products or services from them. Instead, its portfolio consists of investments in numerous companies to which it provides capital. These are referred to as its "portfolio companies."
HTGC's investment strategy focuses on providing capital to high-growth, innovative companies, which are almost exclusively private entities. Due to their private nature, these companies do not have public stock symbols. The company diversifies its investments across a broad portfolio of these private companies, typically avoiding significant concentration in any single investment that would constitute a "major customer."
Examples of sectors they frequently invest in include:
- Technology (e.g., software, SaaS, fintech, cybersecurity)
- Life Sciences (e.g., biotechnology, pharmaceuticals, medical devices)
- Sustainable and Renewable Technology
Because their portfolio companies are private and diversified, listing specific "major customers" with public symbols is not applicable to Hercules Capital's business model.
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Scott Bluestein, Chief Executive Officer and Chief Investment Officer
Scott Bluestein was named Chief Executive Officer and President of Hercules Capital in July 2019, having previously served as Chief Investment Officer since 2014. He joined Hercules in 2010 as Chief Credit Officer. Before joining Hercules, he founded and served as a partner of Century Tree Capital Management, a fund focused on senior secured debt investments with warrants and equity co-investments in small and micro-cap public and private companies. He also served as a managing director at Laurus – Valens Capital Management.
Seth Meyer, Chief Financial Officer and Chief Accounting Officer
Seth Meyer joined Hercules Capital in March 2019 as Chief Financial Officer and Chief Accounting Officer. He brings over 30 years of international business management and strategic planning experience in the financial services industry. Most recently, he served as the CFO of Swiss Re's Commercial Insurance business unit for more than six years. Prior to that, he held various positions at Swiss Re, including Group Tax Director and Finance Division Operating Officer. His earlier career included roles at PricewaterhouseCoopers, Jackson National Life Insurance Company, KPMG Peat Marwick, and Burke & Stegman CPAs.
Kiersten Zaza Botelho, General Counsel and Chief Compliance Officer
Kiersten Zaza Botelho serves as the General Counsel, Chief Compliance Officer, and Corporate Secretary for Hercules Capital.
Christian Follmann, Chief Operating Officer
Christian Follmann was promoted to Chief Operating Officer in February 2022. He has been with Hercules Capital for over 19 years, starting as an analyst intern in 2006 and progressively taking on roles such as associate and director of investment analysis and strategy.
Charlie Vandis, Chief Credit Officer
Charlie Vandis was promoted to Chief Credit Officer in February 2022. He joined Hercules Capital in 2017 to lead the East Coast Credit Team. Before joining Hercules, Mr. Vandis spent 16 years at GE Capital, where he primarily worked as an underwriter and portfolio manager, supporting private equity and strategic led buyouts, recapitalizations, acquisitions, and refinancings.
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Hercules Capital, Inc. (HTGC) primarily provides senior secured venture debt financing, which often includes warrants, to high-growth, venture capital and private equity-backed companies. They focus on sectors such as technology, life sciences, and sustainable/renewable technology industries.
The addressable markets for Hercules Capital's main products and services are as follows:
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Global Venture Debt Market: The worldwide venture debt market expanded to an aggregate deal value of $83.4 billion in 2024.
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U.S. Venture Debt Market: The U.S. venture debt market is projected to reach $27.83 billion in 2025, with traditional venture debt accounting for approximately $23.94 billion of that total. In 2024, U.S. venture debt deals reached $53.3 billion in investments.
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U.S. Technology Venture Debt Market: U.S. tech venture debt is estimated to rise to US$14–16 billion in 2024.
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U.S. Life Sciences/Biotechnology Venture Debt Market: More than $20 billion in venture debt was invested in biotech and pharma through the third quarter of 2022 in the U.S.
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Hercules Capital (HTGC) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
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Sustained Strong Origination and Growth in Debt Investment Portfolio: Hercules Capital anticipates continued robust origination activity, leading to further expansion of its debt investment portfolio. The company has demonstrated a consistent ability to generate record fundings and commitments, particularly within the high-growth technology and life sciences sectors, which are central to its investment strategy.
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Strategic Deployment of Robust Liquidity and Conservative Balance Sheet: The company maintains a strong liquidity position and conservative leverage. Management has indicated plans to gradually increase its leverage towards its target range to fund additional high-quality loans, which is expected to directly increase its earning assets and net investment income.
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Growth in Fee Income from Capital Markets Activity and Expanding Adviser Platform: Analysts project an increase in M&A and capital markets activity, which could generate higher fee income for Hercules Capital through its investment opportunities. Additionally, the expansion of its adviser platform, including the successful closure of new institutional private equity funds, is a significant contributor to fee-based revenue.
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Expansion into New Financial Products and Asset Classes: Hercules Capital is poised to enhance future revenues and net asset value through the expansion into new financial products and a strategic focus on diversifying its asset portfolio.
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Share Repurchases
- Hercules Capital made no common stock repurchases during the years ended 2021, 2022, or 2023.
- The company may, from time to time, seek to repurchase its common stock through cash purchases in open market transactions or privately negotiated deals.
Share Issuance
- As of September 30, 2025, approximately 19.6 million shares remained available for issuance and sale under the 2024 Equity Distribution Agreements.
- During the nine months ended September 30, 2025, Hercules Capital issued 10.4 million shares of common stock, generating total accumulated net proceeds of $188.8 million.
- In 2024, the company issued and sold 11.7 million shares of common stock, receiving approximately $218.3 million in net proceeds.
- In 2023, 22.7 million shares of common stock were issued and sold, resulting in approximately $338.2 million in net proceeds.
Inbound Investments
- In June 2020, Hercules Capital completed a private offering of $70.0 million in 4.31% Notes due June 2025.
- The company utilizes a diversified funding mix, including retail bond issuances such as the 6.25% Notes due 2033.
Outbound Investments
- Hercules Capital reached a milestone of $25.0 billion in total cumulative debt commitments to over 700 companies since its inception in October 2004.
- As of Q3 2025, total gross new debt and equity commitments were $846.2 million, with total gross fundings of $504.6 million.
- Year-to-date ending Q3 2025, the company had total debt and equity commitments of $2.87 billion and total fundings of $1.75 billion.
- The company's investment portfolio as of June 30, 2025, was diversified at $4.2 billion across 123 portfolio companies, primarily focused on senior secured venture debt in technology and life sciences sectors.
