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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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• Deloitte & Touche LLP

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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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The key risks to Hercules Capital's (HTGC) business include:

1. Credit Risk and Portfolio Quality Deterioration: Hercules Capital faces significant credit risk due to its concentration in volatile sectors, particularly technology and life sciences. Venture-backed companies in these sectors are inherently subject to rapid changes in fortune and macroeconomic shifts, which can lead to increased defaults or write-downs in HTGC's portfolio. A rising trend in Payment-in-Kind (PIK) interest income further signals potential stress among borrowers, as it allows HTGC to recognize interest income without receiving immediate cash, which could mask underlying issues if economic conditions worsen. The overall macroeconomic uncertainty is causing companies to freeze decision-making, which could drive non-accruals higher. A declining Net Asset Value (NAV) per share also indicates potential problems with portfolio quality.
2. Vulnerability to Declining IPO and M&A Activity, and Warrant Valuation Risks: Hercules Capital's business model incorporates equity warrants from pre-IPO tech and life sciences firms as part of its venture debt financing. This strategy is highly dependent on robust IPO and M&A activity to realize the value of these warrants. A slowdown in these activities can lead to declining private company valuations, causing HTGC's warrants to lose value. Such a decline could also create regulatory challenges for HTGC, as it must maintain a 200% asset coverage ratio, potentially forcing asset sales or dividend cuts if valuations drop sharply.
3. Intense Competition in the Venture Lending Market: The growing demand for private credit investments, including Business Development Companies (BDCs), has led to increased competition among fund managers to source high-quality and sustainable deals. Hercules Capital competes with other BDCs and venture debt providers, and this intensifying competition can put pressure on yields, margins, and the long-term earnings visibility of the company. Sourcing profitable deals is particularly challenging in a higher interest rate environment.

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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:

• Global Venture Debt Market: The worldwide venture debt market expanded to an aggregate deal value of $83.4 billion in 2024.
• 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.
• U.S. Technology Venture Debt Market: U.S. tech venture debt is estimated to rise to US$14–16 billion in 2024.
• 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:

1. 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.
2. 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.
3. 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.
4. 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.