Hercules Capital (HTGC) 10-Q 2021 Q2 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00702

HERCULES CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Maryland	74-3113410
(State or Jurisdiction of Incorporation or Organization)	(IRS Employer  Identification Number)
400 Hamilton Ave., Suite 310 Palo Alto, California (Address of Principal Executive Offices)	94301 (Zip Code)

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $0.001 per share	HTGC	New York Stock Exchange
5.25% Notes due 2025	HCXZ	New York Stock Exchange
6.25% Notes due 2033	HCXY	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☐     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒

On July 22, 2021, there were 115,840,092 shares outstanding of the Registrant’s common stock, $0.001 par value.

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION		3
Item 1.	Consolidated Financial Statements	3
	Consolidated Statements of Assets and Liabilities as of June 30, 2021 (unaudited) and December 31, 2020	3
	Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (unaudited)	5
	Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2021 and 2020 (unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited)	7
	Consolidated Schedule of Investments as of June 30, 2021 (unaudited)	8
	Consolidated Schedule of Investments as of December 31, 2020	18
	Notes to Consolidated Financial Statements (unaudited)	29
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	64
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	82
Item 4.	Controls and Procedures	83
PART II. OTHER INFORMATION		84
Item 1.	Legal Proceedings	84
Item 1A.	Risk Factors	84
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	85
Item 3.	Defaults Upon Senior Securities	85
Item 4.	Mine Safety Disclosures	85
Item 5.	Other Information	85
Item 6.	Exhibits and Financial Statement Schedules	86
SIGNATURES		89

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts, unless the context otherwise requires.

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

	June 30, 2021		December 31, 2020
	(unaudited)
Assets
Investments, at fair value:
Non-control/Non-affiliate investments (cost of $2,307,766 and $2,175,651, respectively)	$	2,444,849	$	2,288,338
Control investments (cost of $77,901 and $65,257, respectively)		66,491		57,400
Affiliate investments (cost of $13,307 and $74,450, respectively)		9,750		8,340
Total investments, at fair value (cost of $2,398,974 and $2,315,358, respectively)		2,521,090		2,354,078
Cash and cash equivalents		18,447		198,282
Restricted cash		5,766		39,340
Interest receivable		19,063		19,077
Right of use asset		8,039		9,278
Other assets		6,167		3,942
Total assets	$	2,578,572	$	2,623,997
Liabilities
Debt (net of debt issuance costs - Note 5)	$	1,177,515	$	1,286,638
Accounts payable and accrued liabilities		36,886		36,343
Operating lease liability		7,813		9,312
Total liabilities	$	1,222,214	$	1,332,293
Net assets consist of:
Common stock, par value		116		115
Capital in excess of par value		1,163,910		1,158,198
Total distributable earnings		192,332		133,391
Total net assets	$	1,356,358	$	1,291,704
Total liabilities and net assets	$	2,578,572	$	2,623,997
Shares of common stock outstanding ($0.001 par value and 200,000,000 authorized)		115,867		114,726
Net asset value per share	$	11.71	$	11.26

See notes to consolidated financial statements

3

The following table presents the assets and liabilities of our consolidated securitization trusts for the 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes (see “Note 5 – Debt”), which are variable interest entities, or VIEs. The assets of our securitization VIEs can only be used to settle obligations of our consolidated securitization VIEs, these liabilities are only the obligations of our consolidated securitization VIEs, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statements of Assets and Liabilities above.

	June 30, 2021		December 31, 2020
(Dollars in thousands)	(unaudited)
Assets
Restricted Cash	$	5,766	$	39,340
2027 Asset-Backed Notes, investments in securities, at value (cost of $219,537 and $267,657, respectively)		222,212		269,551
2028 Asset-Backed Notes, investments in securities, at value (cost of $321,429 and $355,236, respectively)		325,135		356,097
Total assets	$	553,113	$	664,988
Liabilities
2027 Asset-Backed Notes, net (principal of $117,896 and $180,988, respectively) (1)	$	116,571	$	178,812
2028 Asset-Backed Notes, net (principal of $196,485 and $250,000, respectively) (1)		194,749		247,647
Total liabilities	$	311,320	$	426,459

(1)

The Company’s 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes are presented net of the associated debt issuance costs. See “Note 5 – Debt”.

See notes to consolidated financial statements

4

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Investment income:
Interest income
Non-control/Non-affiliate investments	$	60,276		$	62,667		$	123,258		$	128,005
Control investments		1,029			731			1,828			1,377
Affiliate investments		1			157			2			377
Total interest income		61,306			63,555			125,088			129,759
Fee income
Commitment, facility and loan fee income
Non-control/Non-affiliate investments		5,263			3,511			8,666			7,707
Control investments		15			5			23			10
Total commitment, facility and loan fee income		5,278			3,516			8,689			7,717
One-time fee income
Non-control/Non-affiliate investments		2,975			897			4,541			4,111
Total one-time fee income		2,975			897			4,541			4,111
Total fee income		8,253			4,413			13,230			11,828
Total investment income		69,559			67,968			138,318			141,587
Operating expenses:
Interest		14,490			15,076			29,240			29,608
Loan fees		2,220			1,650			5,020			3,444
General and administrative
Legal expenses		526			991			954			1,890
Tax expenses		1,746			899			3,184			2,034
Other expenses		3,542			3,973			6,710			7,998
Total general and administrative		5,814			5,863			10,848			11,922
Employee compensation
Compensation and benefits		8,349			7,180			18,153			15,394
Stock-based compensation		2,926			2,515			5,670			4,955
Total employee compensation		11,275			9,695			23,823			20,349
Total gross operating expenses		33,799			32,284			68,931			65,323
Expenses allocated to the Adviser Subsidiary		(1,204	)		—			(2,137	)		—
Total net operating expenses		32,595			32,284			66,794			65,323
Net investment income		36,964			35,684			71,524			76,264
Net realized gain (loss) and change in unrealized appreciation (depreciation) on investments:
Net realized gain (loss) on investments
Non-control/Non-affiliate investments		47,861			141			55,631			7,108
Affiliate investments		(62,143	)		—			(62,143	)		—
Total net realized gain (loss) on investments		(14,282	)		141			(6,512	)		7,108
Net change in unrealized appreciation (depreciation) on investments
Non-control/Non-affiliate investments		3,075			23,613			21,097			(34,816	)
Control investments		(5,255	)		2,642			(3,553	)		(5,209	)
Affiliate investments		62,229			(315	)		64,338			(10,305	)
Total net change in unrealized appreciation (depreciation) on investments		60,049			25,940			81,882			(50,330	)
Total net realized gain (loss) and change in unrealized appreciation (depreciation) on investments:		45,767			26,081			75,370			(43,222	)
Net increase (decrease) in net assets resulting from operations	$	82,731		$	61,765		$	146,894		$	33,042
Net investment income before investment gains and losses per common share:
Basic	$	0.32		$	0.32		$	0.62		$	0.69
Change in net assets resulting from operations per common share:
Basic	$	0.71		$	0.55		$	1.27		$	0.29
Diluted	$	0.65		$	0.55		$	1.21		$	0.29
Weighted average shares outstanding
Basic		114,654			111,558			114,480			110,256
Diluted		129,572			111,729			122,188			110,504
Distributions paid per common share:
Basic	$	0.39		$	0.32		$	0.76		$	0.72

See notes to consolidated financial statements

5

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

						Capital in			Distributable
	Common Stock					excess			Earnings			Net
For the Three Months Ended June 30, 2021	Shares			ParValue		of par value			(loss)			Assets
Balance as of March 31, 2021		115,768		$	116	$	1,160,519		$	154,759		$	1,315,394
Net increase (decrease) in net assets resulting from operations		—			—		—			82,731			82,731
Public offering, net of offering expenses		—			—		(3	)		—			(3	)
Issuance of common stock due to stock option exercises		41			—		888			—			888
Retired shares from net issuance		(12	)		—		(486	)		—			(486	)
Issuance of common stock under restricted stock plan		36			—		—			—			—
Retired shares for restricted stock vesting		(33	)		—		(725	)		—			(725	)
Distributions reinvested in common stock		67			—		1,070			—			1,070
Distributions		—			—		—			(45,158	)		(45,158	)
Stock-based compensation (1)		—			—		2,647			—			2,647
Balance as of June 30, 2021		115,867		$	116	$	1,163,910		$	192,332		$	1,356,358
For the Six Months Ended June 30, 2021
Balance as of December 31, 2020		114,726		$	115	$	1,158,198		$	133,391		$	1,291,704
Net increase (decrease) in net assets resulting from operations		—			—		—			146,894			146,894
Public offering, net of offering expenses		—			—		(198	)		—			(198	)
Issuance of common stock due to stock option exercises		263			—		3,633			—			3,633
Retired shares from net issuance		(62	)		—		(1,089	)		—			(1,089	)
Issuance of common stock under restricted stock plan		960			1		(1	)		—			—
Retired shares for restricted stock vesting		(154	)		—		(3,906	)		—			(3,906	)
Distributions reinvested in common stock		134			—		2,110			—			2,110
Distributions		—			—		—			(87,953	)		(87,953	)
Stock-based compensation (1)		—			—		5,163			—			5,163
Balance as of June 30, 2021		115,867		$	116	$	1,163,910		$	192,332		$	1,356,358

(1)

Stock-based compensation includes $25 and $50 of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2021.

						Capital in			Distributable
	Common Stock					excess			Earnings			Net
For the Three Months Ended June 30, 2020	Shares			Par Value		of par value			(loss)			Assets
Balance as of March 31, 2020		110,601		$	111	$	1,182,080		$	(85,111	)	$	1,097,080
Net increase (decrease) in net assets resulting from operations		—			—		—			61,765			61,765
Public offering, net of offering expenses		3,525			4		38,696			—			38,700
Issuance of common stock under restricted stock plan		52			—		—			—			—
Retired shares for restricted stock vesting		(10	)		—		(282	)		—			(282	)
Distributions reinvested in common stock		62			—		643			—			643
Distributions		—			—		—			(36,002	)		(36,002	)
Stock-based compensation (1)		—			—		2,126			—			2,126
Balance as of June 30, 2020		114,230		$	115	$	1,223,263		$	(59,348	)	$	1,164,030
For the Six Months Ended June 30, 2020
Balance as of December 31, 2019		107,364		$	108	$	1,145,106		$	(12,165	)	$	1,133,049
Net increase (decrease) in net assets resulting from operations		—			—		—			33,042			33,042
Public offering, net of offering expenses		5,966			6		73,656			—			73,662
Issuance of common stock due to stock option exercises		29			—		362			—			362
Retired shares from net issuance		(24	)		—		(376	)		—			(376	)
Issuance of common stock under restricted stock plan		801			1		(1	)		—			—
Retired shares for restricted stock vesting		(27	)		—		(1,162	)		—			(1,162	)
Distributions reinvested in common stock		121			—		1,470			—			1,470
Distributions		—			—		—			(80,225	)		(80,225	)
Stock-based compensation (1)		—			—		4,208			—			4,208
Balance as of June 30, 2020		114,230		$	115	$	1,223,263		$	(59,348	)	$	1,164,030

(1)

Stock-based compensation includes $23 and $44 of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2020.

See notes to consolidated financial statements

6

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

	For the Six Months Ended June 30,
	2021			2020
Cash flows used in operating activities:
Net increase in net assets resulting from operations	$	146,894		$	33,042
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investments		(629,146	)		(365,890	)
Fundings assigned to External Funds		75,286			—
Principal and fee payments received on investments		394,801			269,234
Proceeds from the sale of investments		70,596			19,802
Net unrealized (appreciation) depreciation on investments		(81,882	)		50,330
Net realized loss (gain) on investments		6,512			(7,108	)
Accretion of paid-in-kind principal		(4,990	)		(4,230	)
Accretion of loan discounts		(1,789	)		(2,345	)
Accretion of loan discount on convertible notes		336			336
Accretion of loan exit fees		(11,372	)		(12,692	)
Change in deferred loan origination revenue		14,846			3,664
Unearned fees related to unfunded commitments		(2,503	)		(688	)
Amortization of debt fees and issuance costs		3,840			2,489
Depreciation		187			222
Stock-based compensation and amortization of restricted stock grants (1)		5,163			4,208
Change in operating assets and liabilities:
Interest receivable		14			749
Other assets		1,978			(1,387	)
Accounts payable		—			(16	)
Accrued liabilities		(956	)		(2,488	)
Net cash used in operating activities		(12,185	)		(12,768	)
Cash flows used in investing activities:
Purchases of capital equipment		(12	)		(67	)
Net cash used in investing activities		(12	)		(67	)
Cash flows used in financing activities:
Issuance of common stock		—			73,856
Offering expenses		(198	)		(194	)
Retirement of employee shares		(1,362	)		(1,178	)
Distributions paid		(85,843	)		(78,755	)
Issuance of debt		590,495			445,288
Repayments of debt		(700,658	)		(467,957	)
Debt issuance costs		(553	)		(1,419	)
Fees paid for credit facilities and debentures		(3,093	)		(2,319	)
Net cash used in financing activities		(201,212	)		(32,678	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(213,409	)		(45,513	)
Cash, cash equivalents, and restricted cash at beginning of period		237,622			114,996
Cash, cash equivalents, and restricted cash at end of period	$	24,213		$	69,483
Supplemental disclosures of cash flow information and non-cash investing and financing activities:
Interest paid		28,711			28,761
Income tax, including excise tax, paid		3,624			2,486
Distributions reinvested	$	2,110		$	1,470

(1)

Stock-based compensation includes $50 and $44 of restricted stock and option expense related to director compensation for the six months ended June 30, 2021 and 2020, respectively.

The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:

	For the Six Months Ended June 30,
(Dollars in thousands)	2021		2020
Cash and cash equivalents	$	18,447	$	35,884
Restricted cash		5,766		33,599
Total cash, cash equivalents, and restricted cash presented in the Consolidated Statements of Cash Flows	$	24,213	$	69,483

See “Note 2 – Summary of Significant Accounting Policies” for a description of restricted cash and cash equivalents.

See notes to consolidated financial statements

7

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Debt Investments
Communications & Networking
1-5 Years Maturity
Cytracom Holdings LLC(11)(17)(18)	Communications & Networking	Senior Secured	February 2025	Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%	$	7,000	$	6,837	$	7,000
Rocket Lab Global Services, LLC(16)	Communications & Networking	Senior Secured	June 2024	Interest rate PRIME + 4.90% or Floor rate of 8.15%, 3.25% Exit Fee	$	88,000		87,182		87,182
Subtotal: 1-5 Years Maturity								94,019		94,182
Subtotal: Communications & Networking (6.94%)*								94,019		94,182
Consumer & Business Products
1-5 Years Maturity
Grove Collaborative, Inc. (17)(19)	Consumer & Business Products	Senior Secured	April 2025	Interest rate PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee	$	9,800		9,572		9,572
Subtotal: 1-5 Years Maturity								9,572		9,572
Subtotal: Consumer & Business Products (0.71%)*								9,572		9,572
Diversified Financial Services
1-5 Years Maturity
Hercules Adviser LLC (7)	Diversified Financial Services	Unsecured	May 2023	Interest rate FIXED 5.00%	$	3,000		3,000		3,000
Subtotal: 1-5 Years Maturity								3,000		3,000
Greater than 5 Years Maturity
Gibraltar Business Capital, LLC (7)	Diversified Financial Services	Unsecured	September 2026	Interest rate FIXED 14.50%	$	15,000		14,639		13,936
	Diversified Financial Services	Unsecured	September 2026	Interest rate FIXED 11.50%	$	10,000		9,808		9,385
Total Gibraltar Business Capital, LLC					$	25,000		24,447		23,321
Subtotal: Greater than 5 Years Maturity								24,447		23,321
Subtotal: Diversified Financial Services (1.94%)*								27,447		26,321
Drug Delivery
1-5 Years Maturity
Antares Pharma Inc. (10)(11)	Drug Delivery	Senior Secured	July 2022	Interest rate PRIME + 4.50% or Floor rate of 8.50%, 4.14% Exit Fee	$	25,000		26,442		26,576
Subtotal: 1-5 Years Maturity								26,442		26,576
Subtotal: Drug Delivery (1.96%)*								26,442		26,576
Drug Discovery & Development
Under 1 Year Maturity
Mesoblast (5)(10)(11)(13)	Drug Discovery & Development	Senior Secured	March 2022	Interest rate PRIME + 4.95% or Floor rate of 9.70%, 9.40% Exit Fee	$	50,000		53,968		53,968
Petros Pharmaceuticals, Inc. (p.k.a. Metuchen Pharmaceuticals LLC)	Drug Discovery & Development	Senior Secured	December 2021	Interest rate PRIME + 7.25% or Floor rate of 11.50%, 3.05% Exit Fee	$	3,425		3,422		3,422
Stealth Bio Therapeutics Corp. (10)(11)	Drug Discovery & Development	Senior Secured	January 2022	Interest rate PRIME + 5.50% or Floor rate of 9.50%, 8.30% Exit Fee	$	5,456		5,686		5,686
TG Therapeutics, Inc. (10)(13)	Drug Discovery & Development	Senior Secured	March 2022	Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.25% Exit Fee	$	22,800		23,571		23,571
Subtotal: Under 1 Year Maturity								86,647		86,647
1-5 Years Maturity
Albireo Pharma, Inc. (10)(11)(17)	Drug Discovery & Development	Senior Secured	July 2024	Interest rate PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee	$	10,000		10,116		10,346
Aldeyra Therapeutics, Inc. (11)	Drug Discovery & Development	Senior Secured	October 2023	Interest rate PRIME + 3.10% or Floor rate of 8.60%, 6.95% Exit Fee	$	15,000		15,521		15,738
Applied Genetic Technologies Corporation (11)	Drug Discovery & Development	Senior Secured	April 2024	Interest rate PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee	$	20,000		20,073		20,088
Aveo Pharmaceuticals, Inc. (11)(15)	Drug Discovery & Development	Senior Secured	September 2023	Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee	$	35,000		35,323		35,682
Axsome Therapeutics, Inc. (10)(13)(17)	Drug Discovery & Development	Senior Secured	October 2025	Interest rate PRIME + 5.90% or Floor rate of 9.15%, 4.85% Exit Fee	$	50,000		49,417		51,562
Bicycle Therapeutics PLC (5)(10)(11)	Drug Discovery & Development	Senior Secured	October 2024	Interest rate PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee	$	24,000		24,091		24,059
BridgeBio Pharma LLC (12)(13)(16)(17)	Drug Discovery & Development	Senior Secured	May 2025	Interest rate PRIME + 4.40% or Floor rate of 7.65%, 5.54% Exit Fee	$	100,000		102,776		104,292
Century Therapeutics (11)	Drug Discovery & Development	Senior Secured	April 2024	Interest rate PRIME + 6.30% or Floor rate of 9.55%, 3.95% Exit Fee	$	10,000		9,982		10,398
Chemocentryx, Inc. (10)(11)	Drug Discovery & Development	Senior Secured	December 2022	Interest rate PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee	$	20,000		20,919		21,140
	Drug Discovery & Development	Senior Secured	February 2024	Interest rate PRIME + 3.25% or Floor rate of 8.50%, 7.15% Exit Fee	$	5,000		5,099		5,364
Total Chemocentryx, Inc.					$	25,000		26,018		26,504

See notes to consolidated financial statements

8

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Codiak Biosciences, Inc. (11)	Drug Discovery & Development	Senior Secured	October 2024	Interest rate PRIME + 3.75% or Floor rate of 9.00%, 5.50% Exit Fee	$	25,000	$	25,304	$	25,361
G1 Therapeutics, Inc. (10)(11)(17)	Drug Discovery & Development	Senior Secured	June 2025	Interest rate PRIME + 6.20% or Floor rate of 9.45%, 6.95% Exit Fee	$	26,000		26,216		26,425
Geron Corporation (10)(13)	Drug Discovery & Development	Senior Secured	October 2024	Interest rate PRIME + 5.75% or Floor rate of 9.00%, 6.55% Exit Fee	$	22,750		22,772		22,804
Hibercell, Inc. (15)	Drug Discovery & Development	Senior Secured	May 2025	Interest rate PRIME + 5.40% or Floor rate of 8.65%, 4.95% Exit Fee	$	17,000		16,897		16,897
Humanigen, Inc. (9)(10)	Drug Discovery & Development	Senior Secured	March 2025	Interest rate PRIME + 5.50% or Floor rate of 8.75%, 6.75% Exit Fee	$	20,000		20,019		20,019
Kaleido Biosciences, Inc. (13)	Drug Discovery & Development	Senior Secured	January 2024	Interest rate PRIME + 6.10% or Floor rate of 9.35%, 7.55% Exit Fee	$	22,500		23,203		23,251
Nabriva Therapeutics (5)(10)	Drug Discovery & Development	Senior Secured	June 2023	Interest rate PRIME + 4.30% or Floor rate of 9.80%, 9.95% Exit Fee	$	5,000		5,391		5,368
Scynexis, Inc.	Drug Discovery & Development	Senior Secured	March 2025	Interest rate PRIME + 5.80% or Floor rate of 9.05%, 3.95% Exit Fee	$	16,000		15,706		15,706
Seres Therapeutics, Inc. (11)	Drug Discovery & Development	Senior Secured	November 2023	Interest rate PRIME + 4.40% or Floor rate of 9.65%, 4.85% Exit Fee	$	25,000		25,474		26,293
Syndax Pharmaceutics Inc. (13)	Drug Discovery & Development	Senior Secured	September 2023	Interest rate PRIME + 5.10% or Floor rate of 9.85%, 4.99% Exit Fee	$	20,000		20,428		20,860
uniQure B.V. (5)(10)(11)(16)(17)	Drug Discovery & Development	Senior Secured	June 2023	Interest rate PRIME + 3.35% or Floor rate of 8.85%, 4.95% Exit Fee	$	35,000		35,871		36,140
	Drug Discovery & Development	Senior Secured	June 2023	Interest rate PRIME + 5.00% or Floor rate of 8.25%, 4.85% Exit Fee	$	35,000		35,170		35,171
Total uniQure B.V.					$	70,000		71,041		71,311
Unity Biotechnology, Inc. (10)(11)	Drug Discovery & Development	Senior Secured	August 2024	Interest rate PRIME + 6.10% or Floor rate of 9.35%, 6.25% Exit Fee	$	25,000		25,204		25,974
Valo Health, LLC (p.k.a. Integral Health Holdings, LLC) (11)	Drug Discovery & Development	Senior Secured	May 2024	Interest rate PRIME + 6.45% or Floor rate of 9.70%, 3.85% Exit Fee	$	11,500		11,416		11,485
X4 Pharmaceuticals, Inc. (11)(13)	Drug Discovery & Development	Senior Secured	July 2024	Interest rate PRIME + 3.75% or Floor rate of 8.75%, 8.80% Exit Fee	$	32,500		33,602		34,025
Yumanity Therapeutics, Inc. (11)	Drug Discovery & Development	Senior Secured	January 2024	Interest rate PRIME + 4.00% or Floor rate of 8.75%, 5.92% Exit Fee	$	15,000		15,298		15,415
Subtotal: 1-5 Years Maturity								651,288		659,863
Subtotal: Drug Discovery & Development (55.04%)*								737,935		746,510
Healthcare Services, Other
1-5 Years Maturity
Carbon Health Technologies, Inc. (13)(17)(19)	Healthcare Services, Other	Senior Secured	March 2025	Interest rate PRIME + 5.60% or Floor rate of 8.85%, 3.95% Exit Fee	$	11,250		11,201		11,201
Equality Health, LLC (14)(17)	Healthcare Services, Other	Senior Secured	February 2026	Interest rate PRIME + 6.25% or Floor rate of 9.50%, PIK Interest 1.55%	$	35,166		34,825		34,825
The CM Group LLC (11)(17)	Healthcare Services, Other	Senior Secured	June 2024	Interest rate 1-month LIBOR + 9.35% or Floor rate of 10.35%	$	9,286		9,174		9,284
	Healthcare Services, Other	Senior Secured	June 2024	Interest rate 3-month LIBOR + 9.35% or Floor rate of 10.35%	$	1,000		1,000		1,000
Total The CM Group LLC					$	10,286		10,174		10,284
Subtotal: 1-5 Years Maturity								56,200		56,310
Subtotal: Healthcare Services, Other (4.15%)*								56,200		56,310
Information Services
Under 1 Year Maturity
Planet Labs, Inc. (11)	Information Services	Senior Secured	June 2022	Interest rate PRIME + 5.50% or Floor rate of 11.00%, 3.00% Exit Fee	$	25,000		25,172		25,172
Subtotal: Under 1 Year Maturity								25,172		25,172
1-5 Years Maturity
Yipit, LLC (11)(17)(18)	Information Services	Senior Secured	May 2024	Interest rate 1-month LIBOR + 8.88% or Floor rate of 9.88%	$	11,970		11,781		11,970
Subtotal: 1-5 Years Maturity								11,781		11,970
Subtotal: Information Services (2.74%)*								36,953		37,142
Internet Consumer & Business Services
Under 1 Year Maturity
EverFi, Inc. (13)(14)(16)	Internet Consumer & Business Services	Senior Secured	May 2022	Interest rate PRIME + 3.90% or Floor rate of 9.15%, PIK Interest 2.30%	$	85,063		84,561		84,561
Intent (p.k.a. Intent Media, Inc.) (8)(14)	Internet Consumer & Business Services	Senior Secured	September 2021	PIK Interest 10.13%, 1.20% Exit Fee	$	2,170		2,195		93
Nextroll, Inc. (14)(19)	Internet Consumer & Business Services	Senior Secured	June 2022	Interest rate PRIME + 3.75% or Floor rate of 7.00%, PIK Interest 2.95%, 3.50% Exit Fee	$	21,235		21,737		21,737

See notes to consolidated financial statements

9

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Snagajob.com, Inc. (13)	Internet Consumer & Business Services	Senior Secured	October 2021	Interest rate PRIME + 6.90% or Floor rate of 10.15%, 3.05% Exit Fee	$	43,005	$	43,950	$	43,325
	Internet Consumer & Business Services	Senior Secured	October 2021	Interest rate PRIME + 7.80% or Floor rate of 11.05%, 3.05% Exit Fee	$	5,173		5,295		5,206
Total Snagajob.com, Inc.					$	48,178		49,245		48,531
Tectura Corporation (7)(8)(14)	Internet Consumer & Business Services	Senior Secured	May 2021	PIK Interest 5.00%	$	10,680		240		—
	Internet Consumer & Business Services	Senior Secured	May 2021	Interest rate FIXED 8.25%	$	8,250		8,250		8,250
	Internet Consumer & Business Services	Senior Secured	May 2021	PIK Interest 5.00%	$	13,023		13,023		124
Total Tectura Corporation					$	31,953		21,513		8,374
Xometry, Inc. (13)	Internet Consumer & Business Services	Senior Secured	May 2022	Interest rate PRIME + 3.95% or Floor rate of 8.70%, 6.25% Exit Fee	$	15,000		15,713		16,153
Subtotal: Under 1 Year Maturity								194,964		179,449
1-5 Years Maturity
AppDirect, Inc. (11)(17)	Internet Consumer & Business Services	Senior Secured	August 2024	Interest rate PRIME + 5.90% or Floor rate of 9.15%, 7.95% Exit Fee	$	30,790		31,050		31,768
ePayPolicy Holdings, LLC (11)(17)	Internet Consumer & Business Services	Senior Secured	December 2024	Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%	$	8,190		8,008		8,019
Houzz, Inc. (9)(13)(14)(16)	Internet Consumer & Business Services	Senior Secured	November 2022	Interest rate PRIME + 3.20% or Floor rate of 8.45%, PIK Interest 2.50%, 4.50% Exit Fee	$	52,056		52,960		55,306
Landing Holdings Inc. (14)(15)	Internet Consumer & Business Services	Senior Secured	March 2023	Interest rate PRIME + 6.00% or Floor rate of 9.25%, PIK Interest 2.55%	$	10,061		9,884		9,884
Rhino Labs, Inc. (14)(15)(17)	Internet Consumer & Business Services	Senior Secured	March 2024	Interest rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 2.25%	$	8,043		7,847		7,847
SeatGeek, Inc. (14)	Internet Consumer & Business Services	Senior Secured	June 2023	Interest rate PRIME + 5.00% or Floor rate of 10.50%, PIK Interest 0.50%	$	60,454		59,629		59,201
Skyword, Inc. (14)	Internet Consumer & Business Services	Senior Secured	September 2024	Interest rate PRIME + 3.88% or Floor rate of 9.38%, PIK Interest 1.90%, 4.00% Exit Fee	$	12,307		12,472		12,268
Thumbtack, Inc. (13)(14)	Internet Consumer & Business Services	Senior Secured	September 2023	Interest rate PRIME + 3.45% or Floor rate of 8.95%, PIK Interest 1.50%, 3.95% Exit Fee	$	25,423		25,521		26,025
Varsity Tutors LLC (13)(14)(17)	Internet Consumer & Business Services	Senior Secured	August 2023	Interest rate PRIME + 5.25% or Floor rate of 10.75%, PIK Interest 0.55%, 3.00% Exit Fee	$	39,374		39,792		41,331
Wheels Up Partners LLC (11)	Internet Consumer & Business Services	Senior Secured	July 2022	Interest rate 3-month LIBOR + 8.55% or Floor rate of 9.55%	$	11,544		11,517		12,006
Worldremit Group Limited (5)(10)(16)(19)	Internet Consumer & Business Services	Senior Secured	February 2025	Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%, 3.00% Exit Fee	$	96,750		95,005		95,005
Subtotal: 1-5 Years Maturity								353,685		358,660
Greater than 5 Years Maturity
Houzz, Inc. (9)(13)(14)(16)	Internet Consumer & Business Services	Convertible Debt	May 2028	PIK Interest 5.50%	$	20,000		20,000		20,000
Subtotal: Greater than 5 Years Maturity								20,000		20,000
Subtotal: Internet Consumer & Business Services (41.15%)*								568,649		558,109
Manufacturing Technology
1-5 Years Maturity
Velo3d, Inc. (17)(19)	Manufacturing Technology	Senior Secured	October 2023	Interest rate PRIME + 5.75% or Floor rate of 9.00%, 8.80% Exit Fee	$	5,357		5,321		5,321
Subtotal: 1-5 Years Maturity								5,321		5,321
Subtotal: Manufacturing Technology (0.39%)*								5,321		5,321
Medical Devices & Equipment
Under 1 Year Maturity
Quanterix Corporation(11)	Medical Devices & Equipment	Senior Secured	October 2021	Interest rate PRIME + 2.75% or Floor rate of 8.00%, 0.96% Exit Fee	$	7,688		7,800		7,800
Subtotal: Under 1 Year Maturity								7,800		7,800
Subtotal: Medical Devices & Equipment (0.58%)*								7,800		7,800
Software
Under 1 Year Maturity
Regent Education (14)	Software	Senior Secured	January 2022	Interest rate FIXED 10.00%, PIK Interest 2.00%, 7.94% Exit Fee	$	3,147		3,260		1,252
Subtotal: Under 1 Year Maturity								3,260		1,252
1-5 Years Maturity
3GTMS, LLC. (11)(18)	Software	Senior Secured	February 2025	Interest rate 3-Month LIBOR + 9.28% or Floor rate of 10.28%	$	11,667		11,453		11,500
Abrigo (18)	Software	Senior Secured	May 2023	Interest rate 3-month LIBOR + 7.88% or Floor rate of 8.88%	$	37,143		36,775		37,143
	Software	Senior Secured	May 2023	Interest rate 3-month LIBOR + 5.96% or Floor rate of 6.96%	$	2,260		2,231		2,260
Total Abrigo					$	39,403		39,006		39,403

See notes to consolidated financial statements

10

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Bitsight Technologies, Inc. (13)(17)(19)	Software	Senior Secured	November 2025	Interest rate PRIME + 6.75% or Floor rate of 10.00%, 3.50% Exit Fee	$	12,500	$	12,333	$	12,619
Businessolver.com, Inc. (11)(17)	Software	Senior Secured	May 2023	Interest rate 6-month LIBOR + 7.50% or Floor rate of 8.50%	$	41,300		40,876		41,300
Campaign Monitor Limited (11)(19)	Software	Senior Secured	November 2025	Interest rate 6-month LIBOR + 8.90% or Floor rate of 9.90%	$	33,000		32,402		33,000
Clarabridge, Inc. (12)(13)(14)(17)	Software	Senior Secured	May 2024	Interest rate PRIME + 5.30% or Floor rate of 8.55%, PIK Interest 2.25%	$	56,461		56,057		57,026
Cloud 9 Software (13)	Software	Senior Secured	April 2024	Interest rate 3-month LIBOR + 8.20% or Floor rate of 9.20%	$	10,000		9,885		10,000
CloudBolt Software Inc. (11)(19)	Software	Senior Secured	October 2024	Interest rate PRIME + 6.70% or Floor rate of 9.95%, 2.95% Exit Fee	$	10,000		9,833		9,945
Dashlane, Inc. (11)(14)(17)(19)	Software	Senior Secured	July 2025	Interest rate PRIME + 3.05% or Floor rate of 7.55%, PIK Interest 1.10%, 7.10% Exit Fee	$	20,603		21,421		21,421
Delphix Corp. (13)(19)	Software	Senior Secured	February 2023	Interest rate PRIME + 5.50% or Floor rate of 10.25%, 5.00% Exit Fee	$	60,000		60,795		61,853
Envisage Technologies, LLC (13)(18)	Software	Senior Secured	March 2025	Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%	$	12,025		11,765		12,025
Esentire, Inc. (5)(10)(18)	Software	Senior Secured	May 2024	Interest rate 3-month LIBOR + 9.96% or Floor rate of 10.96%	$	21,000		20,644		20,644
ExtraHop Networks, Inc. (13)(19)	Software	Senior Secured	September 2023	Interest rate PRIME + 7.00% or Floor rate of 10.25%, 2.50% Exit Fee	$	15,000		14,893		15,917
FreedomPay, Inc. (13)(17)(19)	Software	Senior Secured	June 2023	Interest rate PRIME + 7.70% or Floor rate of 10.95%, 3.55% Exit Fee	$	10,000		10,060		10,219
Gryphon Networks Corp. (17)	Software	Senior Secured	January 2026	Interest rate 3-month LIBOR + 9.69% or Floor rate of 10.69%	$	5,232		5,093		5,093
Ikon Science Limited (5)(10)(11)(17)(18)	Software	Senior Secured	October 2024	Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%	$	7,000		6,775		7,000
Jolt Software, Inc. (14)	Software	Senior Secured	October 2022	Interest rate PRIME + 3.00% or Floor rate of 8.50%, PIK Interest 1.75%, 4.50% Exit Fee	$	7,706		7,859		7,975
Kazoo, Inc. (p.k.a. YouEarnedIt, Inc.) (11)(18)	Software	Senior Secured	July 2023	Interest rate 3-month LIBOR + 10.14% or Floor rate of 11.14%	$	8,650		8,431		8,382
Khoros (p.k.a Lithium Technologies) (11)(17)	Software	Senior Secured	October 2022	Interest rate 6-month LIBOR + 8.00% or Floor rate of 9.00%	$	55,000		54,390		55,000
Logicworks (13)(17)	Software	Senior Secured	January 2024	Interest rate PRIME + 7.50% or Floor rate of 10.75%	$	10,000		9,830		9,922
Mixpanel, Inc. (14)(19)	Software	Senior Secured	August 2024	Interest rate PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.80%, 3.00% Exit Fee	$	20,245		20,024		20,676
Mobile Solutions Services (11)(17)(18)	Software	Senior Secured	December 2025	Interest rate 6-month LIBOR + 9.87% or Floor rate of 10.87%	$	18,650		18,101		18,282
Nuvolo Technologies Corporation (13)(19)	Software	Senior Secured	July 2025	Interest rate PRIME + 7.70% or Floor rate of 10.95%, 1.75% Exit Fee	$	15,000		14,919		14,918
Pollen, Inc. (14)(17)	Software	Senior Secured	November 2023	Interest rate PRIME + 4.75% or Floor rate of 8.00%, PIK Interest 0.50%, 4.50% Exit Fee	$	7,439		7,445		7,593
Pymetrics, Inc (14)	Software	Senior Secured	October 2022	Interest rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 1.75%, 4.00% Exit Fee	$	9,581		9,621		9,560
Reltio, Inc. (13)(14)(19)	Software	Senior Secured	July 2023	Interest rate PRIME + 5.70% or Floor rate of 8.95%, PIK Interest 1.70%, 4.95% Exit Fee	$	10,160		10,127		10,402
Tact.ai Technologies, Inc. (11)(14)	Software	Senior Secured	February 2023	Interest rate PRIME + 4.00% or Floor rate of 8.75%, PIK Interest 2.00%, 5.50% Exit Fee	$	5,133		5,168		5,195
ThreatConnect, Inc. (13)(17)(18)	Software	Senior Secured	May 2026	Interest rate 3-month LIBOR + 8.26% or Floor rate of 9.26%	$	11,200		10,857		10,857
Udacity, Inc. (14)(17)	Software	Senior Secured	September 2024	Interest rate PRIME + 4.50% or Floor rate of 7.75%, PIK Interest 2.00%, 3.00% Exit Fee	$	35,487		35,229		36,504
Subtotal: 1-5 Years Maturity								575,292		584,231
Greater than 5 Years Maturity
Imperva, Inc. (19)	Software	Senior Secured	January 2027	Interest rate 3-month LIBOR + 7.75% or Floor rate of 8.75%	$	20,000		19,839		19,810
Subtotal: Greater than 5 Years Maturity								19,839		19,810
Subtotal: Software (44.63%)*								598,391		605,293
Sustainable and Renewable Technology
Under 1 Year Maturity
Pineapple Energy LLC (6)(8)(9)(17)	Sustainable and Renewable Technology	Convertible Debt	January 2022	Interest rate FIXED 10.00%	$	40		40		40
Subtotal: Under 1 Year Maturity								40		40
1-5 Years Maturity
Impossible Foods, Inc. (12)(13)	Sustainable and Renewable Technology	Senior Secured	July 2022	Interest rate PRIME + 3.95% or Floor rate of 8.95%, 9.00% Exit Fee	$	27,211		31,194		31,328

See notes to consolidated financial statements

11

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Pineapple Energy LLC (6)(8)(9)(17)	Sustainable and Renewable Technology	Senior Secured	December 2023	PIK Interest 10.00%	$	7,500	$	7,500	$	7,500
Pivot Bio, Inc. (14)(15)	Sustainable and Renewable Technology	Senior Secured	April 2024	Interest rate PRIME + 4.90% or Floor rate of 8.15%, PIK Interest 1.25%, 3.25% Exit Fee	$	31,583		31,372		31,372
Subtotal: 1-5 Years Maturity								70,066		70,200
Subtotal: Sustainable and Renewable Technology (5.18%)*								70,106		70,240
Total: Debt Investments (165.40%)*							$	2,238,835	$	2,243,376

See notes to consolidated financial statements

12

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Equity Investments
Communications & Networking
Peerless Network Holdings, Inc.	Communications & Networking	Equity	Common Stock		3,328	$	—	$	10
	Communications & Networking	Equity	Preferred Series A		1,135,000		1,230		4,891
Total Peerless Network Holdings, Inc.					1,138,328		1,230		4,901
Subtotal: Communications & Networking (0.36%)*							1,230		4,901
Consumer & Business Products
TechStyle, Inc. (p.k.a. Just Fabulous, Inc.)	Consumer & Business Products	Equity	Common Stock		42,989		128		429
Subtotal: Consumer & Business Products (0.03%)*							128		429
Diversified Financial Services
Gibraltar Business Capital, LLC (7)	Diversified Financial Services	Equity	Common Stock		830,000		1,884		1,404
	Diversified Financial Services	Equity	Preferred Series A		10,602,752		26,122		19,469
Total Gibraltar Business Capital, LLC					11,432,752		28,006		20,873
Hercules Adviser LLC (7)	Diversified Financial Services	Equity	Member Units				35		10,923
Subtotal: Diversified Financial Services (2.34%)*							28,041		31,796
Drug Delivery
AcelRx Pharmaceuticals, Inc. (4)	Drug Delivery	Equity	Common Stock		176,730		1,329		244
Aytu BioScience, Inc. (p.k.a. Neos Therapeutics, Inc.) (4)	Drug Delivery	Equity	Common Stock		13,600		1,500		68
BioQ Pharma Incorporated	Drug Delivery	Equity	Preferred Series D		165,000		500		175
Kaleo, Inc.	Drug Delivery	Equity	Preferred Series B		82,500		1,007		1,946
PDS Biotechnology Corporation (p.k.a. Edge Therapeutics, Inc.) (4)	Drug Delivery	Equity	Common Stock		2,498		309		31
Subtotal: Drug Delivery (0.18%)*							4,645		2,464
Drug Discovery & Development
Albireo Pharma, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		25,000		1,000		880
Applied Molecular Transport(4)(10)	Drug Discovery & Development	Equity	Common Stock		1,000		42		46
Aveo Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		190,179		1,715		1,253
Bicycle Therapeutics PLC (4)(5)(10)	Drug Discovery & Development	Equity	Common Stock		98,100		1,871		2,978
BridgeBio Pharma LLC (4)(16)	Drug Discovery & Development	Equity	Common Stock		231,329		2,255		14,101
Cerecor, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		119,087		1,000		389
Chemocentryx, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		17,241		1,000		231
Concert Pharmaceuticals, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		70,796		1,367		299
Dare Biosciences, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		13,550		1,000		26
Dynavax Technologies (4)(10)	Drug Discovery & Development	Equity	Common Stock		20,000		550		197
Genocea Biosciences, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		27,933		2,000		65
Hibercell, Inc.(15)	Drug Discovery & Development	Equity	Preferred Series B		3,466,840		4,250		4,481
Humanigen, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		43,243		800		752
Kaleido Biosciences, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		86,585		1,000		644
Paratek Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		76,362		2,744		522
Rocket Pharmaceuticals, Ltd. (4)	Drug Discovery & Development	Equity	Common Stock		944		1,500		42
Savara, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		11,119		203		19
Sio Gene Therapies, Inc. (p.k.a. Axovant Gene Therapies Ltd.) (4)(10)	Drug Discovery & Development	Equity	Common Stock		16,228		1,269		44
Tricida, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		68,816		863		297
uniQure B.V. (4)(5)(10)(16)	Drug Discovery & Development	Equity	Common Stock		17,175		332		529
Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)	Drug Discovery & Development	Equity	Preferred Series B		510,308		3,000		5,461
X4 Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		198,277		1,641		1,289
Subtotal: Drug Discovery & Development (2.55%)*							31,402		34,545
Healthcare Services, Other
23andMe, Inc. (4)	Healthcare Services, Other	Equity	Common Stock		828,360		5,094		9,684
Carbon Health Technologies, Inc.	Healthcare Services, Other	Equity	Preferred Series C		217,880		1,687		1,964
Subtotal: Healthcare Services, Other (0.86%)*							6,781		11,648
Information Services
Zeta Global Corp.(4)(20)	Information Services	Equity	Common Stock		295,861		—		1,926
Subtotal: Information Services (0.14%)*							—		1,926
Internet Consumer & Business Services
Black Crow AI, Inc. (6)	Internet Consumer & Business Services	Equity	Preferred Series Seed		872,797		1,000		1,309
Black Crow AI, Inc. affiliates(21)	Internet Consumer & Business Services	Equity	Preferred Note		3		3,000		3,000
Brigade Group, Inc.	Internet Consumer & Business Services	Equity	Common Stock		9,023		93		—
Contentful Global, Inc. (p.k.a. Contentful, Inc.) (5)(10)	Internet Consumer & Business Services	Equity	Preferred Series C		41,000		138		582
	Internet Consumer & Business Services	Equity	Preferred Series D		108,500		500		1,585
Total Contentful Global, Inc. (p.k.a. Contentful, Inc.)					149,500		638		2,167

See notes to consolidated financial statements

13

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
DoorDash, Inc. (4)	Internet Consumer & Business Services	Equity	Common Stock		200,000	$	2,305	$	35,666
Lyft, Inc. (4)	Internet Consumer & Business Services	Equity	Common Stock		100,738		5,263		6,093
Nextdoor.com, Inc.	Internet Consumer & Business Services	Equity	Common Stock		328,190		4,854		9,997
OfferUp, Inc.	Internet Consumer & Business Services	Equity	Preferred Series A		286,080		1,663		1,863
	Internet Consumer & Business Services	Equity	Preferred Series A-1		108,710		632		708
Total OfferUp, Inc.					394,790		2,295		2,571
Oportun (4)	Internet Consumer & Business Services	Equity	Common Stock		48,365		578		968
Reischling Press, Inc. (p.k.a. Blurb, Inc.)	Internet Consumer & Business Services	Equity	Common Stock		1,163		15		—
Savage X Holding, LLC	Internet Consumer & Business Services	Equity	Class A Units		42,137		13		106
Tectura Corporation (7)	Internet Consumer & Business Services	Equity	Common Stock		414,994,863		900		—
	Internet Consumer & Business Services	Equity	Preferred Series BB		1,000,000		—		—
Total Tectura Corporation					415,994,863		900		—
TFG Holding, Inc.	Internet Consumer & Business Services	Equity	Common Stock		42,989		89		303
Uber Technologies, Inc. (p.k.a. Postmates, Inc.) (4)	Internet Consumer & Business Services	Equity	Common Stock		32,991		317		1,653
Subtotal: Internet Consumer & Business Services (4.71%)*							21,360		63,833
Medical Devices & Equipment
Flowonix Medical Incorporated	Medical Devices & Equipment	Equity	Preferred Series AA		221,893		1,500		—
Gelesis, Inc.	Medical Devices & Equipment	Equity	Common Stock		227,013		—		903
	Medical Devices & Equipment	Equity	Preferred Series A-1		243,432		502		1,016
	Medical Devices & Equipment	Equity	Preferred Series A-2		191,626		500		778
Total Gelesis, Inc.					662,071		1,002		2,697
Medrobotics Corporation	Medical Devices & Equipment	Equity	Preferred Series E		136,798		250		—
	Medical Devices & Equipment	Equity	Preferred Series F		73,971		155		—
	Medical Devices & Equipment	Equity	Preferred Series G		163,934		500		—
Total Medrobotics Corporation					374,703		905		—
ViewRay, Inc. (4)	Medical Devices & Equipment	Equity	Common Stock		36,457		333		241
Subtotal: Medical Devices & Equipment (0.22%)*							3,740		2,938
Software
CapLinked, Inc.	Software	Equity	Preferred Series A-3		53,614		51		90
Docker, Inc.	Software	Equity	Common Stock		20,000		4,284		58
Druva Holdings, Inc. (p.k.a. Druva, Inc.)	Software	Equity	Preferred Series 2		458,841		1,000		1,680
	Software	Equity	Preferred Series 3		93,620		300		392
Total Druva Holdings, Inc. (p.k.a. Druva, Inc.)					552,461		1,300		2,072
HighRoads, Inc.	Software	Equity	Common Stock		190		307		—
Lightbend, Inc.	Software	Equity	Preferred Series D		384,616		265		98
Palantir Technologies (4)	Software	Equity	Common Stock		1,668,337		10,198		43,978
SingleStore, Inc. (p.k.a. memsql, Inc.)	Software	Equity	Preferred Series E		580,983		2,000		1,911
Sprinklr, Inc. (4)(20)	Software	Equity	Common Stock		700,000		3,749		10,948
Subtotal: Software (4.36%)*							22,154		59,155
Surgical Devices
Gynesonics, Inc.	Surgical Devices	Equity	Preferred Series B		219,298		250		18
	Surgical Devices	Equity	Preferred Series C		656,538		282		55
	Surgical Devices	Equity	Preferred Series D		1,991,157		712		175
	Surgical Devices	Equity	Preferred Series E		2,786,367		429		271
	Surgical Devices	Equity	Preferred Series F		1,523,693		118		209
	Surgical Devices	Equity	Preferred Series F-1		2,418,125		150		303
Total Gynesonics, Inc.					9,595,178		1,941		1,031
Subtotal: Surgical Devices (0.08%)*							1,941		1,031
Sustainable and Renewable Technology
Impossible Foods, Inc.	Sustainable and Renewable Technology	Equity	Preferred Series E-1		188,611		2,000		2,032
Modumetal, Inc.	Sustainable and Renewable Technology	Equity	Preferred Series A-1		103,584		500		—
NantEnergy LLC (p.k.a. NantEnergy, Inc.)	Sustainable and Renewable Technology	Equity	Common Units		59,665		102		—
Pineapple Energy LLC (6)	Sustainable and Renewable Technology	Equity	Class A Units		17,647		4,767		901

See notes to consolidated financial statements

14

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Proterra, Inc. (4)	Sustainable and Renewable Technology	Equity	Common Stock		455,890	$	543	$	7,801
Pivot Bio, Inc.	Sustainable and Renewable Technology	Equity	Preferred Series D		59,307		4,500		4,500
Subtotal: Sustainable and Renewable Technology (1.12%)*							12,412		15,234
Total: Equity Investments (16.95%)*						$	133,834	$	229,900
Warrant Investments
Communications & Networking
Spring Mobile Solutions, Inc.	Communications & Networking	Warrant	Common Stock		2,834,375		418		—
Subtotal: Communications & Networking (0.00%)*							418		—
Consumer & Business Products
Penumbra Brands, LLC (p.k.a. Gadget Guard)	Consumer & Business Products	Warrant	Common Stock		1,662,441		228		—
Grove Collaborative, Inc.	Consumer & Business Products	Warrant	Common Stock		83,625		433		395
TechStyle, Inc. (p.k.a. Just Fabulous, Inc.)	Consumer & Business Products	Warrant	Preferred Series B		206,185		1,101		2,115
The Neat Company	Consumer & Business Products	Warrant	Common Stock		54,054		365		—
Whoop, Inc.	Consumer & Business Products	Warrant	Preferred Series C		68,627		18		940
Subtotal: Consumer & Business Products (0.25%)*							2,145		3,450
Drug Delivery
Aerami Therapeutics (p.k.a. Dance Biopharm, Inc.)	Drug Delivery	Warrant	Common Stock		110,882		74		—
BioQ Pharma Incorporated	Drug Delivery	Warrant	Common Stock		459,183		1		46
PDS Biotechnology Corporation (p.k.a. Edge Therapeutics, Inc.) (4)	Drug Delivery	Warrant	Common Stock		3,929		390		2
Subtotal: Drug Delivery (0.00%)*							465		48
Drug Discovery & Development
Acacia Pharma Inc. (4)(5)(10)	Drug Discovery & Development	Warrant	Common Stock		201,330		304		43
ADMA Biologics, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		89,750		295		—
Albireo Pharma, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		5,311		61		85
Axsome Therapeutics, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		15,541		681		394
Brickell Biotech, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		9,005		119		—
Century Therapeutics (4)	Drug Discovery & Development	Warrant	Common Units		16,112		37		202
Concert Pharmaceuticals, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		61,273		178		11
Dermavant Sciences Ltd. (10)	Drug Discovery & Development	Warrant	Common Stock		223,642		101		460
Evofem Biosciences, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		7,806		266		—
Genocea Biosciences, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		41,176		165		7
Motif Bio PLC (4)(10)	Drug Discovery & Development	Warrant	Common Stock		121,337,041		282		—
Myovant Sciences, Ltd. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		73,710		460		753
Paratek Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		469,388		643		1,110
Stealth Bio Therapeutics Corp. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		500,000		158		1
Scynexis, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		60,591		188		193
TG Therapeutics, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		147,058		564		3,843
Tricida, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		31,352		281		—
Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)	Drug Discovery & Development	Warrant	Common Units		102,216		257		492
X4 Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		108,334		672		78
Yumanity Therapeutics, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		15,414		110		51
Subtotal: Drug Discovery & Development (0.57%)*							5,822		7,723
Electronics & Computer Hardware
908 Devices, Inc. (4)	Electronics & Computer Hardware	Warrant	Common Stock		49,078		101		1,090
Subtotal: Electronics & Computer Hardware (0.08%)*							101		1,090
Information Services
InMobi Inc. (10)	Information Services	Warrant	Common Stock		65,587		82		—
Netbase Solutions, Inc.	Information Services	Warrant	Preferred Series 1		60,000		356		529
Planet Labs, Inc.	Information Services	Warrant	Common Stock		357,752		615		4,119
Sapphire Digital, Inc. (p.k.a. MDX Medical, Inc.)	Information Services	Warrant	Common Stock		2,812,500		283		885
Subtotal: Information Services (0.41%)*							1,336		5,533
Internet Consumer & Business Services
Aria Systems, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series G		231,535		73		—
Cloudpay, Inc. (5)(10)	Internet Consumer & Business Services	Warrant	Preferred Series B		6,763		54		213
First Insight, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series B		75,917		96		81
Houzz, Inc.(16)	Internet Consumer & Business Services	Warrant	Common Stock		529,661		20		236
Intent (p.k.a. Intent Media, Inc.)	Internet Consumer & Business Services	Warrant	Common Stock		140,077		168		—
Interactions Corporation	Internet Consumer & Business Services	Warrant	Preferred Series G-3		68,187		204		526
Landing Holdings Inc. (15)	Internet Consumer & Business Services	Warrant	Common Stock		11,806		116		108

See notes to consolidated financial statements

15

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Lendio, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series D		127,032	$	39	$	83
LogicSource	Internet Consumer & Business Services	Warrant	Preferred Series C		79,625		30		149
Rhino Labs, Inc. (15)	Internet Consumer & Business Services	Warrant	Common Stock		13,106		470		305
RumbleON, Inc. (4)	Internet Consumer & Business Services	Warrant	Common Stock		5,139		87		37
SeatGeek, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		1,379,761		843		654
ShareThis, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series C		493,502		547		—
Skyword, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series B		444,444		83		30
Snagajob.com, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		600,000		16		55
	Internet Consumer & Business Services	Warrant	Preferred Series A		1,800,000		782		55
	Internet Consumer & Business Services	Warrant	Preferred Series B		1,211,537		62		25
Total Snagajob.com, Inc.					3,611,537		860		135
Tapjoy, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series D		748,670		316		280
The Faction Group LLC	Internet Consumer & Business Services	Warrant	Preferred Series AA		8,076		234		915
Thumbtack, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		190,953		553		1,098
Worldremit Group Limited (5)(10)(16)	Internet Consumer & Business Services	Warrant	Preferred Series D		77,215		129		137
Xometry, Inc. (4)(20)	Internet Consumer & Business Services	Warrant	Preferred Series B		87,784		47		3,611
Subtotal: Internet Consumer & Business Services (0.63%)*							4,969		8,598
Media/Content/Info
Zoom Media Group, Inc.	Media/Content/Info	Warrant	Preferred Series A		1,204		348		—
Subtotal: Media/Content/Info (0.00%)*							348		—
Medical Devices & Equipment
Aspire Bariatrics, Inc.	Medical Devices & Equipment	Warrant	Common Stock		22,572		455		—
Flowonix Medical Incorporated	Medical Devices & Equipment	Warrant	Preferred Series AA		155,325		362		—
	Medical Devices & Equipment	Warrant	Preferred Series BB		725,806		351		—
Total Flowonix Medical Incorporated					881,131		713		—
Intuity Medical, Inc.	Medical Devices & Equipment	Warrant	Preferred Series B-1		3,076,323		294		455
Medrobotics Corporation	Medical Devices & Equipment	Warrant	Preferred Series E		455,539		370		—
Outset Medical, Inc. (4)	Medical Devices & Equipment	Warrant	Common Stock		62,794		402		1,979
SonaCare Medical, LLC	Medical Devices & Equipment	Warrant	Preferred Series A		6,464		188		—
Tela Bio, Inc. (4)	Medical Devices & Equipment	Warrant	Common Stock		15,712		61		14
Subtotal: Medical Devices & Equipment (0.18%)*							2,483		2,448
Semiconductors
Achronix Semiconductor Corporation	Semiconductors	Warrant	Preferred Series C		360,000		160		1,185
	Semiconductors	Warrant	Preferred Series D-2		750,000		99		3,190
Total Achronix Semiconductor Corporation					1,110,000		259		4,375
Subtotal: Semiconductors (0.32%)*							259		4,375
Software
Bitsight Technologies, Inc.	Software	Warrant	Common Stock		29,691		284		598
CloudBolt Software, Inc.	Software	Warrant	Common Stock		211,342		117		147
Cloudian, Inc.	Software	Warrant	Common Stock		477,454		72		84
Couchbase, Inc.	Software	Warrant	Common Stock		105,350		462		749
Dashlane, Inc.	Software	Warrant	Common Stock		560,536		405		377
Delphix Corp.	Software	Warrant	Common Stock		718,898		1,593		3,351
DNAnexus, Inc.	Software	Warrant	Preferred Series C		909,091		97		87
Evernote Corporation	Software	Warrant	Common Stock		62,500		106		57
ExtraHop Networks, Inc.	Software	Warrant	Common Stock		154,784		191		1,253
Fuze, Inc.	Software	Warrant	Preferred Series F		256,158		89		—
Lightbend, Inc.	Software	Warrant	Preferred Series C-1		854,787		130		74
Mixpanel, Inc.	Software	Warrant	Common Stock		82,362		252		554
Nuvolo Technologies Corporation	Software	Warrant	Common Stock		50,000		88		440
OneLogin, Inc.	Software	Warrant	Common Stock		381,620		305		826
Poplicus, Inc.	Software	Warrant	Common Stock		132,168		—		—
Pymetrics, Inc.	Software	Warrant	Common Stock		150,943		77		171
RapidMiner, Inc.	Software	Warrant	Preferred Series C-1		4,982		24		51
Reltio, Inc.	Software	Warrant	Common Stock		69,120		215		268
Signpost, Inc.	Software	Warrant	Series Junior 1 Preferred		474,019		314		—

See notes to consolidated financial statements

16

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2021

(unaudited)

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
SingleStore, Inc. (p.k.a. memsql, Inc.)	Software	Warrant	Preferred Series D		312,596	$	103	$	633
Tact.ai Technologies, Inc.	Software	Warrant	Common Stock		1,041,667		206		546
Udacity, Inc.	Software	Warrant	Common Stock		486,359		218		510
ZeroFox, Inc.	Software	Warrant	Preferred Series C-1		648,350		100		341
Subtotal: Software (0.82%)*							5,448		11,117
Specialty Pharmaceuticals
Alimera Sciences, Inc. (4)	Specialty Pharmaceuticals	Warrant	Common Stock		30,581		132		45
Subtotal: Specialty Pharmaceuticals (0.00%)*							132		45
Surgical Devices
Gynesonics, Inc.	Surgical Devices	Warrant	Preferred Series C		151,123		67		14
TransMedics Group, Inc. (p.k.a Transmedics, Inc.) (4)	Surgical Devices	Warrant	Common Stock		64,440		139		1,107
Subtotal: Surgical Devices (0.08%)*							206		1,121
Sustainable and Renewable Technology
Agrivida, Inc.	Sustainable and Renewable Technology	Warrant	Preferred Series D		471,327		120		—
Fulcrum Bioenergy, Inc.	Sustainable and Renewable Technology	Warrant	Preferred Series C-1		280,897		275		922
Halio, Inc. (p.k.a. Kinestral Technologies, Inc.)	Sustainable and Renewable Technology	Warrant	Preferred Series A		325,000		155		184
	Sustainable and Renewable Technology	Warrant	Preferred Series B		131,883		63		61
Total Halio, Inc. (p.k.a. Kinestral Technologies, Inc.)					456,883		218		245
Polyera Corporation	Sustainable and Renewable Technology	Warrant	Preferred Series C		311,609		337		—
Subtotal: Sustainable and Renewable Technology (0.09%)*							950		1,167
Total: Warrant Investments (3.44%)*						$	25,082	$	46,715
Total: Investments in Securities (185.79%)*						$	2,397,751	$	2,519,991
Investment Funds & Vehicles
Forbion Growth Opportunities Fund I C.V. (5)(10)(17)	Drug Discovery & Development	Investment Funds & Vehicles					1,223		1,099
Total: Investments in Investment Funds & Vehicles (0.08%)*						$	1,223	$	1,099
Total: Investments (185.87%)*						$	2,398,974	$	2,521,090

* Value as a percent of net assets

(1)

Preferred and common stock, warrants, and equity interests are generally non-income producing.

(2)

Interest rate PRIME represents 3.25% as of June 30, 2021. 1-month LIBOR, 3-month LIBOR and 6-month LIBOR represent 0.10%, 0.15%, and 0.16%, respectively, as of June 30, 2021.

(3)

Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes totaled $190.4 million, $66.5 million and $123.9 million, respectively. The tax cost of investments is $2.5 billion.

(4)

Except for warrants in 26 publicly traded companies and common stock in 33 publicly traded companies, all investments are restricted as of June 30, 2021 and were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s board of directors (the “Board”). No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(5)

Non-U.S. company or the company’s principal place of business is outside the United States.

(6)

Affiliate investment as defined under the Investment Company Act of 1940, as amended, (the “1940 Act”) in which Hercules owns at least 5% but generally less than 25% of the company’s voting securities.

(7)

Control investment as defined under the 1940 Act in which Hercules owns at least 25% of the company’s voting securities or has greater than 50% representation on its board.

(8)

Debt is on non-accrual status as of June 30, 2021, and is therefore considered non-income producing. Note that as of June 30, 2021, only the PIK, or payment-in-kind, portion is on non-accrual for the Company’s debt investment in Tectura Corporation.

(9)

Denotes that all or a portion of the debt investment is convertible debt.

(10)

Indicates assets that the Company deems not “qualifying assets” under section 55(a) of 1940 Act. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets.

(11)

Denotes that all or a portion of the debt investment secures the notes offered in the 2027 Asset-Backed Notes or 2028 Asset-Backed Notes (as defined in Note 5).

(12)

Denotes that all or a portion of the debt investment is pledged as collateral under the Wells Facility (as defined in Note 5).

(13)

Denotes that all or a portion of the debt investment is pledged as collateral under the Union Bank Facility (as defined in Note 5).

(14)

Denotes that all or a portion of the debt investment principal includes accumulated PIK interest and is net of repayments.

(15)

Denotes that all or a portion of the investment in this portfolio company is held by Hercules Capital IV, L.P., the Company’s wholly owned small business investment company.

(16)

Denotes that the fair value of the Company’s total investments in this portfolio company represent greater than 5% of the Company’s total net assets as of June 30, 2021.

(17)

Denotes that there is an unfunded contractual commitment available at the request of this portfolio company as of June 30, 2021. Refer to “Note 11 - Commitments and Contingencies”.

(18)

Denotes unitranche debt with first lien “last-out” senior secured position and security interest in all assets of the portfolio company whereby the “last-out” portion will be subordinated to the “first-out” portion in a liquidation, sale or other disposition.

(19)

Denotes second lien senior secured debt.

(20)

Denotes all or a portion of the public equity or warrant investment was acquired in a transaction exempt from registration under the Securities Act of 1933 (“Securities Act”) and may be deemed to be “restricted securities” under the Securities Act. As of June 30, 2021, the aggregate fair value of these securities is $16,485, or 1.22% of the Company’s net assets.

(21)

Denotes investment in a non-voting security in the form of a promissory note. The terms of the notes provide the Company with a lien on the issuers' shares of Common Stock in portfolio company Black Crow AI, Inc., subject to release upon repayment of the outstanding balance of the notes. As of June 30, 2021, the Black Crow AI, Inc. affiliates promissory notes had an outstanding balance of $3.0 million.

See notes to consolidated financial statements

17

` 

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Debt Investments
Communications & Networking
1-5 Years Maturity
Cytracom Holdings LLC (11)(17)(18)	Communications & Networking	Senior Secured	February 2025	Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%	$	7,000	$	6,819	$	6,955
Subtotal: 1-5 Years Maturity								6,819		6,955
Subtotal: Communications & Networking (0.59%)*								6,819		6,955
Diversified Financial Services
1-5 Years Maturity
Gibraltar Business Capital, LLC (7)	Diversified Financial Services	Unsecured	March 2023	Interest rate FIXED 14.50%	$	15,000		14,838		14,970
Subtotal: 1-5 Years Maturity								14,838		14,970
Subtotal: Diversified Financial Services (1.28%)*								14,838		14,970
Drug Delivery
1-5 Years Maturity
Antares Pharma Inc. (10)(11)(15)	Drug Delivery	Senior Secured	July 2022	Interest rate PRIME + 4.50% or Floor rate of 4.50%, 4.14% Exit Fee	$	40,000		41,104		41,242
Subtotal: 1-5 Years Maturity								41,104		41,242
Subtotal: Drug Delivery (3.52%)*								41,104		41,242
Drug Discovery & Development
Under 1 Year Maturity
Genocea Biosciences, Inc. (11)	Drug Discovery & Development	Senior Secured	May 2021	Interest rate PRIME + 3.00% or Floor rate of 8.00%, 5.90% Exit Fee	$	12,922		13,892		13,892
Petros Pharmaceuticals, Inc. (p.k.a. Metuchen Pharmaceuticals LLC)	Drug Discovery & Development	Senior Secured	December 2021	Interest rate PRIME + 7.25% or Floor rate of 11.50%, 3.05% Exit Fee	$	6,653		7,167		7,156
Stealth Bio Therapeutics Corp. (10)(11)	Drug Discovery & Development	Senior Secured	July 2021	Interest rate PRIME + 5.50% or Floor rate of 9.50%, 7.69% Exit Fee	$	9,027		10,463		10,463
Subtotal: Under 1 Year Maturity								31,522		31,511
1-5 Years Maturity
Acacia Pharma Inc. (5)(10)(11)	Drug Discovery & Development	Senior Secured	January 2022	Interest rate PRIME + 4.50% or Floor rate of 9.25%, 3.95% Exit Fee	$	5,452		5,775		5,754
Albireo Pharma, Inc. (10)(11)	Drug Discovery & Development	Senior Secured	July 2024	Interest rate PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee	$	10,000		9,995		10,106
Aldeyra Therapeutics, Inc. (11)	Drug Discovery & Development	Senior Secured	October 2023	Interest rate PRIME + 3.10% or Floor rate of 9.10%, 6.95% Exit Fee	$	15,000		15,349		15,623
Applied Genetic Technologies Corporation (11)	Drug Discovery & Development	Senior Secured	December 2023	Interest rate PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee	$	10,000		10,025		10,163
Aveo Pharmaceuticals, Inc. (11)	Drug Discovery & Development	Senior Secured	September 2023	Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee	$	15,000		15,069		15,069
Axsome Therapeutics, Inc. (10)(17)	Drug Discovery & Development	Senior Secured	October 2025	Interest rate PRIME + 5.90% or Floor rate of 9.15%, 4.85% Exit Fee	$	50,000		49,023		49,023
Bicycle Therapeutics PLC (5)(10)(11)(17)	Drug Discovery & Development	Senior Secured	October 2024	Interest rate PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee	$	15,000		14,984		14,984
BridgeBio Pharma LLC (12)(13)(16)	Drug Discovery & Development	Senior Secured	November 2023	Interest rate PRIME + 3.85% or Floor rate of 8.75%, 6.35% Exit Fee	$	35,000		36,163		36,930
	Drug Discovery & Development	Senior Secured	November 2023	Interest rate PRIME + 2.85% or Floor rate of 8.60%, 5.75% Exit Fee	$	20,000		20,541		20,977
	Drug Discovery & Development	Senior Secured	November 2023	Interest rate PRIME + 3.10% or Floor rate of 8.85%, 5.75% Exit Fee	$	20,000		20,400		20,822
Total BridgeBio Pharma LLC					$	75,000		77,104		78,729
Century Therapeutics (11)	Drug Discovery & Development	Senior Secured	April 2024	Interest rate PRIME + 6.30% or Floor rate of 9.55%, 3.95% Exit Fee	$	10,000		9,897		9,897
Chemocentryx, Inc. (10)(11)(15)	Drug Discovery & Development	Senior Secured	December 2022	Interest rate PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee	$	20,000		20,704		21,031
	Drug Discovery & Development	Senior Secured	February 2024	Interest rate PRIME + 3.25% or Floor rate of 8.50%, 7.15% Exit Fee	$	5,000		5,039		5,332
Total Chemocentryx, Inc.					$	25,000		25,743		26,363
Codiak Biosciences, Inc. (11)(17)	Drug Discovery & Development	Senior Secured	October 2024	Interest rate PRIME + 3.75% or Floor rate of 9.00%, 5.50% Exit Fee	$	25,000		25,099		25,223
Dermavant Sciences Ltd. (10)(13)	Drug Discovery & Development	Senior Secured	June 2023	Interest rate PRIME + 4.45% or Floor rate of 9.95%, 6.95% Exit Fee	$	20,000		20,615		20,553
Eidos Therapeutics, Inc. (10)(13)	Drug Discovery & Development	Senior Secured	October 2023	Interest rate PRIME + 3.25% or Floor rate of 8.50%, 5.95% Exit Fee	$	8,750		8,905		9,182
G1 Therapeutics, Inc. (10)(11)(17)	Drug Discovery & Development	Senior Secured	June 2024	Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee	$	20,000		20,053		20,404
Geron Corporation (10)(17)	Drug Discovery & Development	Senior Secured	October 2024	Interest rate PRIME + 5.75% or Floor rate of 9.00%, 6.55% Exit Fee	$	16,250		16,158		16,158
Kaleido Biosciences, Inc. (13)	Drug Discovery & Development	Senior Secured	January 2024	Interest rate PRIME + 6.10% or Floor rate of 9.35%, 7.55% Exit Fee	$	22,500		22,916		23,135
Mesoblast (5)(10)(11)(13)	Drug Discovery & Development	Senior Secured	March 2022	Interest rate PRIME + 4.95% or Floor rate of 9.70%, 8.70% Exit Fee	$	50,000		53,043		53,086
Nabriva Therapeutics (5)(10)	Drug Discovery & Development	Senior Secured	June 2023	Interest rate PRIME + 4.30% or Floor rate of 9.80%, 7.01% Exit Fee	$	5,000		5,259		5,251
Seres Therapeutics, Inc. (11)	Drug Discovery & Development	Senior Secured	November 2023	Interest rate PRIME + 4.40% or Floor rate of 9.65%, 4.85% Exit Fee	$	25,000		25,238		25,990

See notes to consolidated financial statements

18

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Syndax Pharmaceutics Inc. (13)	Drug Discovery & Development	Senior Secured	September 2023	Interest rate PRIME + 5.10% or Floor rate of 9.85%, 4.99% Exit Fee	$	20,000	$	20,221	$	20,582
TG Therapeutics, Inc. (10)(13)	Drug Discovery & Development	Senior Secured	March 2022	Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.25% Exit Fee	$	30,000		30,423		30,820
Tricida, Inc. (11)(13)(15)(16)	Drug Discovery & Development	Senior Secured	April 2023	Interest rate PRIME + 2.35% or Floor rate of 8.35%, 11.04% Exit Fee	$	75,000		78,266		79,452
uniQure B.V. (5)(10)(11)	Drug Discovery & Development	Senior Secured	June 2023	Interest rate PRIME + 3.35% or Floor rate of 8.85%, 4.95% Exit Fee	$	35,000		35,660		36,849
Unity Biotechnology, Inc. (10)	Drug Discovery & Development	Senior Secured	August 2024	Interest rate PRIME + 6.10% or Floor rate of 9.35%, 6.25% Exit Fee	$	25,000		24,938		24,938
Valo Health, LLC (p.k.a. Integral Health Holdings, LLC) (11)	Drug Discovery & Development	Senior Secured	May 2024	Interest rate PRIME + 6.45% or Floor rate of 9.70%, 3.85% Exit Fee	$	11,500		11,279		11,394
X4 Pharmaceuticals, Inc. (11)	Drug Discovery & Development	Senior Secured	July 2024	Interest rate PRIME + 3.75% or Floor rate of 8.75%, 8.80% Exit Fee	$	32,500		33,082		33,097
Yumanity Therapeutics, Inc. (11)	Drug Discovery & Development	Senior Secured	January 2024	Interest rate PRIME + 4.00% or Floor rate of 8.75%, 7.25% Exit Fee	$	15,000		15,129		15,350
Subtotal: 1-5 Years Maturity								679,248		687,175
Subtotal: Drug Discovery & Development (61.26%)*								710,770		718,686
Electronics & Computer Hardware
Under 1 Year Maturity
Glo AB (8)(10)(14)	Electronics & Computer Hardware	Senior Secured	February 2021	Interest rate PRIME + 6.20% or Floor rate of 10.45%, PIK Interest 1.75%, 5.03% Exit Fee	$	1,631		2,145		2,145
Subtotal: Under 1 Year Maturity								2,145		2,145
Subtotal: Electronics & Computer Hardware (0.18%)*								2,145		2,145
Healthcare Services, Other
1-5 Years Maturity
The CM Group LLC (17)	Healthcare Services, Other	Senior Secured	June 2024	Interest rate 1-month LIBOR + 9.35% or Floor rate of 10.35%	$	10,358		10,229		10,086
Velocity Clinical Research, Inc. (13)(17)(18)	Healthcare Services, Other	Senior Secured	November 2024	Interest rate 1-month LIBOR + 9.08% or Floor rate of 10.08%	$	9,823		9,511		9,887
Subtotal: 1-5 Years Maturity								19,740		19,973
Subtotal: Healthcare Services, Other (1.70%)*								19,740		19,973
Information Services
Under 1 Year Maturity
Sapphire Digital, Inc. (p.k.a. MDX Medical, Inc.) (14)(15)(19)	Information Services	Senior Secured	December 2021	Interest rate PRIME + 6.25% or Floor rate of 9.50%, PIK Interest 1.70%, 5.30% Exit Fee	$	15,825		16,216		16,216
Subtotal: Under 1 Year Maturity								16,216		16,216
1-5 Years Maturity
Planet Labs, Inc. (11)	Information Services	Senior Secured	June 2022	Interest rate PRIME + 5.50% or Floor rate of 11.00%, 3.00% Exit Fee	$	25,000		24,902		24,957
Yipit, LLC (11)(17)(18)	Information Services	Senior Secured	May 2024	Interest rate 1-month LIBOR + 8.88% or Floor rate of 9.88%	$	12,000		11,782		12,000
Subtotal: 1-5 Years Maturity								36,684		36,957
Subtotal: Information Services (4.53%)*								52,900		53,173
Internet Consumer & Business Services
Under 1 Year Maturity
Black Crow AI, Inc. (8)(9)	Internet Consumer & Business Services	Convertible Debt	October 2021	PIK Interest 1.00%	$	3,000		2,993		1,565
	Internet Consumer & Business Services	Convertible Debt	October 2021	PIK Interest 1.00%	$	1,000		1,000		643
Total Black Crow AI, Inc.					$	4,000		3,993		2,208
Intent (p.k.a. Intent Media, Inc.) (8)(14)	Internet Consumer & Business Services	Senior Secured	September 2021	PIK Interest 10.13%, 1.20% Exit Fee	$	4,125		4,150		1,413
Snagajob.com, Inc. (13)	Internet Consumer & Business Services	Senior Secured	June 2021	Interest rate PRIME + 6.90% or Floor rate of 10.15%, 3.05% Exit Fee	$	43,005		43,917		43,754
	Internet Consumer & Business Services	Senior Secured	June 2021	Interest rate PRIME + 7.80% or Floor rate of 11.05%, 3.05% Exit Fee	$	5,173		5,281		5,255
Total Snagajob.com, Inc.					$	48,178		49,198		49,009
Tectura Corporation (7)(8)(14)	Internet Consumer & Business Services	Senior Secured	March 2021	PIK Interest 5.00%	$	10,680		240	—
	Internet Consumer & Business Services	Senior Secured	March 2021	Interest rate FIXED 8.25%	$	8,250		8,250		8,250
	Internet Consumer & Business Services	Senior Secured	March 2021	PIK Interest 5.00%	$	13,023		13,023		350
Total Tectura Corporation					$	31,953		21,513		8,600
Subtotal: Under 1 Year Maturity								78,854		61,230
1-5 Years Maturity
AppDirect, Inc. (11)	Internet Consumer & Business Services	Senior Secured	August 2024	Interest rate PRIME + 5.90% or Floor rate of 9.15%, 7.95% Exit Fee	$	30,790		30,712		30,712
ePayPolicy Holdings, LLC (11)(17)	Internet Consumer & Business Services	Senior Secured	December 2024	Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%	$	8,000		7,799		8,080

See notes to consolidated financial statements

19

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
EverFi, Inc. (13)(14)(16)	Internet Consumer & Business Services	Senior Secured	May 2022	Interest rate PRIME + 3.90% or Floor rate of 9.15%, PIK Interest 2.30%	$	84,081	$	83,900	$	84,987
Houzz, Inc. (13)(14)	Internet Consumer & Business Services	Senior Secured	November 2022	Interest rate PRIME + 3.20% or Floor rate of 8.45%, PIK Interest 2.50%, 4.50% Exit Fee	$	51,403		51,854		52,151
Nextroll, Inc. (14)(19)	Internet Consumer & Business Services	Senior Secured	June 2022	Interest rate PRIME + 3.85% or Floor rate of 9.35%, PIK Interest 2.95%, 3.50% Exit Fee	$	20,921		21,240		21,526
SeatGeek, Inc. (14)	Internet Consumer & Business Services	Senior Secured	June 2023	Interest rate PRIME + 5.00% or Floor rate of 10.50%, PIK Interest 0.50%	$	60,301		59,292		57,561
Skyword, Inc. (14)	Internet Consumer & Business Services	Senior Secured	September 2024	Interest rate PRIME + 3.88% or Floor rate of 9.38%, PIK Interest 1.90%, 4.00% Exit Fee	$	12,196		12,291		12,021
Thumbtack, Inc. (13)(14)	Internet Consumer & Business Services	Senior Secured	September 2023	Interest rate PRIME + 3.45% or Floor rate of 8.95%, PIK Interest 1.50%, 3.95% Exit Fee	$	25,231		25,096		25,348
Varsity Tutors LLC (13)(14)(17)	Internet Consumer & Business Services	Senior Secured	August 2023	Interest rate PRIME + 5.25% or Floor rate of 10.75%, PIK Interest 0.55%, 3.00% Exit Fee	$	39,264		39,438		40,272
Wheels Up Partners LLC (11)	Internet Consumer & Business Services	Senior Secured	July 2022	Interest rate 3-month LIBOR + 8.55% or Floor rate of 9.55%	$	13,436		13,387		13,337
Xometry, Inc. (13)	Internet Consumer & Business Services	Senior Secured	May 2022	Interest rate PRIME + 3.95% or Floor rate of 8.70%, 6.18% Exit Fee	$	11,000		11,431		11,556
	Internet Consumer & Business Services	Senior Subordinate	May 2022	Interest rate PRIME + 3.95% or Floor rate of 8.70%, 6.25% Exit Fee	$	4,000		4,157		4,219
Total Xometry, Inc.					$	15,000		15,588		15,775
Subtotal: 1-5 Years Maturity								360,597		361,770
Subtotal: Internet Consumer & Business Services (36.06%)*								439,451		423,000
Media/Content/Info
1-5 Years Maturity
Bustle (14)(15)	Media/Content/Info	Senior Secured	June 2023	Interest rate PRIME + 4.35% or Floor rate of 9.35%, PIK Interest 1.95%, 4.45% Exit Fee	$	21,045		21,279		21,555
Subtotal: 1-5 Years Maturity								21,279		21,555
Subtotal: Media/Content/Info (1.84%)*								21,279		21,555
Medical Devices & Equipment
Under 1 Year Maturity
Intuity Medical, Inc. (11)(15)	Medical Devices & Equipment	Senior Secured	June 2021	Interest rate PRIME + 5.00% or Floor rate of 9.25%, 6.95% Exit Fee	$	11,217		12,365		12,365
Quanterix Corporation (11)	Medical Devices & Equipment	Senior Secured	October 2021	Interest rate PRIME + 2.75% or Floor rate of 8.00%, 0.96% Exit Fee	$	7,688		7,752		7,752
Sebacia, Inc. (8)	Medical Devices & Equipment	Senior Secured	January 2021	Interest rate PRIME + 4.35% or Floor rate of 8.85%	$	1,000		1,000	—
Subtotal: Under 1 Year Maturity								21,117		20,117
Subtotal: Medical Devices & Equipment (1.71%)*								21,117		20,117
Software
Under 1 Year Maturity
ZocDoc (11)(19)	Software	Senior Secured	August 2021	Interest rate PRIME + 6.20% or Floor rate of 10.95%, 2.00% Exit Fee	$	30,000		30,509		30,509
Subtotal: Under 1 Year Maturity								30,509		30,509
1-5 Years Maturity
3GTMS, LLC. (11)(17)(18)	Software	Senior Secured	February 2025	Interest rate 3-Month LIBOR + 9.28% or Floor rate of 10.28%	$	10,000		9,762		9,754
Abrigo (18)	Software	Senior Secured	March 2023	Interest rate 3-month LIBOR + 7.88% or Floor rate of 8.88%	$	38,457		37,993		38,264
	Software	Senior Secured	March 2023	Interest rate 3-month LIBOR + 5.96% or Floor rate of 6.96%	$	2,312		2,273		2,296
Total Abrigo					$	40,769		40,266		40,560
Bitsight Technologies, Inc. (19)	Software	Senior Secured	November 2025	Interest rate PRIME + 6.75% or Floor rate of 10.00%, 3.50% Exit Fee	$	12,500		12,289		12,289
Businessolver.com, Inc. (11)(17)	Software	Senior Secured	May 2023	Interest rate 6-month LIBOR + 7.50% or Floor rate of 8.50%	$	33,650		33,248		33,640
	Software	Senior Secured	May 2023	Interest rate 6-month LIBOR + 7.50% or Floor rate of 8.50%	$	7,650		7,532		7,579
Total Businessolver.com, Inc.					$	41,300		40,780		41,219
Campaign Monitor Limited (11)(19)	Software	Senior Secured	November 2025	Interest rate 6-month LIBOR + 8.90% or Floor rate of 9.90%	$	33,000		32,348		33,304
Clarabridge, Inc. (12)(13)(14)(17)	Software	Senior Secured	May 2024	Interest rate PRIME + 5.30% or Floor rate of 8.55%, PIK Interest 2.25%	$	55,823		55,359		56,940
Cloud 9 Software (13)	Software	Senior Secured	April 2024	Interest rate 3-month LIBOR + 8.20% or Floor rate of 9.20%	$	10,000		9,867		10,030

See notes to consolidated financial statements

20

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
CloudBolt Software Inc. (17)(19)	Software	Senior Secured	October 2024	Interest rate PRIME + 6.70% or Floor rate of 9.95%, 2.95% Exit Fee	$	5,000	$	4,867	$	4,867
Cloudian, Inc. (11)	Software	Senior Secured	November 2022	Interest rate PRIME + 3.25% or Floor rate of 8.25%, 9.75% Exit Fee	$	15,000		15,883		15,883
Couchbase, Inc. (11)(15)(19)	Software	Senior Secured	June 2024	Interest rate PRIME + 5.25% or Floor rate of 10.75%, 3.75% Exit Fee	$	25,000		25,167		25,761
Dashlane, Inc. (11)(14)(17)(19)	Software	Senior Secured	April 2022	Interest rate PRIME + 4.05% or Floor rate of 8.55%, PIK Interest 1.10%, 8.50% Exit Fee	$	10,294		10,808		10,838
	Software	Senior Secured	March 2023	Interest rate PRIME + 4.05% or Floor rate of 8.55%, PIK Interest 1.10%, 4.95% Exit Fee	$	10,195		10,312		10,343
Total Dashlane, Inc.					$	20,489		21,120		21,181
Delphix Corp. (13)(19)	Software	Senior Secured	February 2023	Interest rate PRIME + 5.50% or Floor rate of 10.25%, 5.00% Exit Fee	$	60,000		59,932		61,159
Envisage Technologies, LLC (13)(18)	Software	Senior Secured	March 2025	Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%	$	9,750		9,525		9,750
ExtraHop Networks, Inc. (19)	Software	Senior Secured	September 2023	Interest rate PRIME + 7.00% or Floor rate of 10.25%, 2.50% Exit Fee	$	15,000		14,745		14,745
FreedomPay, Inc. (13)(19)	Software	Senior Secured	June 2023	Interest rate PRIME + 7.70% or Floor rate of 10.95%, 3.55% Exit Fee	$	10,000		9,972		10,126
Ikon Science Limited (5)(10)(11)(17)(18)	Software	Senior Secured	October 2024	Interest rate 3-month LIBOR + 9.00% or Floor rate of 10.00%	$	7,000		6,744		6,724
Jolt Software, Inc. (14)	Software	Senior Secured	October 2022	Interest rate PRIME + 3.00% or Floor rate of 8.50%, PIK Interest 1.75%, 4.50% Exit Fee	$	7,639		7,725		7,828
Kazoo, Inc. (p.k.a. YouEarnedIt, Inc.) (11)(18)	Software	Senior Secured	July 2023	Interest rate 3-month LIBOR + 10.15% or Floor rate of 11.15%	$	8,695		8,477		8,509
Khoros (p.k.a Lithium Technologies) (11)	Software	Senior Secured	October 2022	Interest rate 6-month LIBOR + 8.00% or Floor rate of 9.00%	$	56,208		55,585		56,207
Logicworks (17)	Software	Senior Secured	January 2024	Interest rate PRIME + 7.50% or Floor rate of 10.75%	$	10,000		9,801		9,801
Mixpanel, Inc. (14)(19)	Software	Senior Secured	August 2024	Interest rate PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 1.80%, 3.00% Exit Fee	$	20,062		19,703		19,703
Mobile Solutions Services (17)(18)	Software	Senior Secured	December 2025	Interest rate 6-month LIBOR + 9.87% or Floor rate of 10.87%	$	5,500		5,323		5,400
	Software	Senior Secured	December 2025	Interest rate 6-month LIBOR + 9.87% or Floor rate of 10.87%	$	13,150		12,731		12,672
Total Mobile Solutions Services					$	18,650		18,054		18,072
Nuvolo Technologies Corporation (13)(17)(19)	Software	Senior Secured	April 2023	Interest rate PRIME + 7.25% or Floor rate of 11.50%	$	15,000		14,867		14,993
Optimizely Mergerco, Inc. (17)(18)	Software	Senior Secured	October 2025	Interest rate 6-month LIBOR + 10.00% or Floor rate of 11.00%	$	50,000		48,561		48,559
Pollen, Inc. (14)(15)(17)	Software	Senior Secured	November 2023	Interest rate PRIME + 4.75% or Floor rate of 8.00%, PIK Interest 0.50%, 4.50% Exit Fee	$	7,420		7,366		7,366
Pymetrics, Inc. (14)	Software	Senior Secured	October 2022	Interest rate PRIME + 5.50% or Floor rate of 8.75%, PIK Interest 1.75%, 4.00% Exit Fee	$	9,497		9,409		9,409
Regent Education (14)	Software	Senior Secured	January 2022	Interest rate FIXED 10.00%, PIK Interest 2.00%, 7.94% Exit Fee	$	3,220		3,315		3,316
Reltio, Inc. (13)(14)(17)(19)	Software	Senior Secured	July 2023	Interest rate PRIME + 5.70% or Floor rate of 8.95%, PIK Interest 1.70%, 4.95% Exit Fee	$	10,073		9,928		10,136
SingleStore, Inc. (p.k.a. memsql, Inc.) (11)(14)(17)	Software	Senior Secured	May 2023	Interest rate PRIME + 4.70% or Floor rate of 7.95%, PIK Interest 0.75%, 3.95% Exit Fee	$	5,021		5,012		5,137
Tact.ai Technologies, Inc. (11)(14)	Software	Senior Secured	February 2023	Interest rate PRIME + 4.00% or Floor rate of 8.75%, PIK Interest 2.00%, 5.50% Exit Fee	$	5,081		4,995		4,970
ThreatConnect, Inc. (13)(17)(18)	Software	Senior Secured	May 2024	Interest rate 3-month LIBOR + 8.26% or Floor rate of 9.26%	$	4,500		4,391		4,441
Udacity, Inc. (14)(17)	Software	Senior Secured	September 2024	Interest rate PRIME + 4.50% or Floor rate of 7.75%, PIK Interest 2.00%, 3.00% Exit Fee	$	35,130		34,700		34,700
Vela Trading Technologies (11)(14)(18)	Software	Senior Secured	July 2022	Interest rate 3-month LIBOR + 12.00% or Floor rate of 11.50%, PIK Interest 2.50%	$	18,131		17,826		14,505
ZeroFox, Inc. (13)	Software	Senior Secured	January 2023	Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.00% Exit Fee	$	20,000		20,118		20,118
Subtotal: 1-5 Years Maturity								668,459		672,062

See notes to consolidated financial statements

21

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Maturity Date	Interest Rate and Floor (2)	Principal Amount		Cost (3)		Value (4)
Greater than 5 Years Maturity
Imperva, Inc. (19)	Software	Senior Secured	January 2027	Interest rate 3-month LIBOR + 7.75% or Floor rate of 8.75%	$	20,000	$	19,828	$	20,000
Subtotal: Greater than 5 Years Maturity								19,828		20,000
Subtotal: Software (61.60%)*								718,796		722,571
Sustainable and Renewable Technology
Under 1 Year Maturity
Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)(8)(14)	Sustainable and Renewable Technology	Senior Secured	January 2021	PIK Interest 10.00%	$	681		681		—
Subtotal: Under 1 Year Maturity								681		—
1-5 Years Maturity
Impossible Foods, Inc. (12)(13)	Sustainable and Renewable Technology	Senior Secured	July 2022	Interest rate PRIME + 3.95% or Floor rate of 8.95%, 9.00% Exit Fee	$	38,868		42,285		42,548
Pineapple Energy LLC (6)(8)(9)	Sustainable and Renewable Technology	Senior Secured	December 2023	PIK Interest 10.00%	$	7,500		7,500		7,500
Subtotal: 1-5 Years Maturity								49,785		50,048
Subtotal: Sustainable and Renewable Technology (4.27%)*								50,466		50,048
Total: Debt Investments (178.54%)*							$	2,099,425	$	2,094,435

See notes to consolidated financial statements

22

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Equity Investments
Communications & Networking
Peerless Network Holdings, Inc.	Communications & Networking	Equity	Common Stock		3,328	$	—	$	8
	Communications & Networking	Equity	Preferred Series A		1,135,000		1,230		3,800
Total Peerless Network Holdings, Inc.					1,138,328		1,230		3,808
Subtotal: Communications & Networking (0.29%)*							1,230		3,808
Consumer & Business Products
Intelligent Beauty, Inc.	Consumer & Business Products	Equity	Preferred Series B		111,156		230		743
Subtotal: Consumer & Business Products (0.06%)*							230		743
Diversified Financial Services
Gibraltar Business Capital, LLC (7)	Diversified Financial Services	Equity	Common Stock		830,000		1,884		2,276
	Diversified Financial Services	Equity	Preferred Series A		10,602,752		26,122		31,554
Total Gibraltar Business Capital, LLC					11,432,752		28,006		33,830
Subtotal: Diversified Financial Services (2.62%)*							28,006		33,830
Drug Delivery
AcelRx Pharmaceuticals, Inc. (4)	Drug Delivery	Equity	Common Stock		176,730		1,329		219
BioQ Pharma Incorporated (15)	Drug Delivery	Equity	Preferred Series D		165,000		500		504
Kaleo, Inc.	Drug Delivery	Equity	Preferred Series B		82,500		1,007		4,117
Neos Therapeutics, Inc. (4)(15)	Drug Delivery	Equity	Common Stock		125,000		1,500		78
PDS Biotechnology Corporation (p.k.a. Edge Therapeutics, Inc.) (4)	Drug Delivery	Equity	Common Stock		2,498		309		5
Subtotal: Drug Delivery (0.38%)*							4,645		4,923
Drug Discovery & Development
Albireo Pharma, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		25,000		1,000		938
Aveo Pharmaceuticals, Inc. (4)(15)	Drug Discovery & Development	Equity	Common Stock		190,175		1,715		1,097
Bicycle Therapeutics PLC (4)(5)(10)	Drug Discovery & Development	Equity	Common Stock		98,100		1,871		1,761
BridgeBio Pharma LLC (4)(16)	Drug Discovery & Development	Equity	Common Stock		203,579		2,000		14,476
Cerecor, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		119,087		1,000		314
Chemocentryx, Inc. (4)(10)(15)	Drug Discovery & Development	Equity	Common Stock		17,241		1,000		1,068
Concert Pharmaceuticals, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		70,796		1,367		895
Dare Biosciences, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		13,550		1,000		18
Dynavax Technologies (4)(10)	Drug Discovery & Development	Equity	Common Stock		20,000		550		89
Eidos Therapeutics, Inc. (4)(10)	Drug Discovery & Development	Equity	Common Stock		15,000		255		1,974
Genocea Biosciences, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		27,932		2,000		67
Paratek Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		76,362		2,744		478
Rocket Pharmaceuticals, Ltd. (4)	Drug Discovery & Development	Equity	Common Stock		944		1,500		52
Savara, Inc. (4)(15)	Drug Discovery & Development	Equity	Common Stock		11,119		203		13
Sio Gene Therapies, Inc. (p.k.a. Axovant Gene Therapies Ltd.) (4)(10)	Drug Discovery & Development	Equity	Common Stock		16,228		1,269		45
Tricida, Inc. (4)(15)(16)	Drug Discovery & Development	Equity	Common Stock		68,816		863		485
uniQure B.V. (4)(5)(10)	Drug Discovery & Development	Equity	Common Stock		17,175		332		621
Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)	Drug Discovery & Development	Equity	Preferred Series B		510,308		3,000		3,000
X4 Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Equity	Common Stock		83,334		641		536
Subtotal: Drug Discovery & Development (2.16%)*							24,310		27,927
Healthcare Services, Other
23andMe, Inc.	Healthcare Services, Other	Equity	Common Stock		360,000		5,094		7,546
Subtotal: Healthcare Services, Other (0.58%)*							5,094		7,546
Internet Consumer & Business Services
Contentful, Inc. (5)(10)	Internet Consumer & Business Services	Equity	Preferred Series C		82		138		270
	Internet Consumer & Business Services	Equity	Preferred Series D		217		500		785
Total Contentful, Inc.					299		638		1,055
Countable Corporation (p.k.a. Brigade Group, Inc.)	Internet Consumer & Business Services	Equity	Common Stock		9,023		93		—
DoorDash, Inc. (4)	Internet Consumer & Business Services	Equity	Common Stock		525,000		6,051		58,706
Fastly, Inc. (4)	Internet Consumer & Business Services	Equity	Common Stock		6,238		8		545
Lyft, Inc. (4)	Internet Consumer & Business Services	Equity	Common Stock		200,738		10,487		9,862
Nextdoor.com, Inc.	Internet Consumer & Business Services	Equity	Common Stock		328,190		4,854		8,994
OfferUp, Inc.	Internet Consumer & Business Services	Equity	Preferred Series A		286,080		1,663		1,867
	Internet Consumer & Business Services	Equity	Preferred Series A-1		108,710		632		709
Total OfferUp, Inc.					394,790		2,295		2,576

See notes to consolidated financial statements

23

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Oportun (4)	Internet Consumer & Business Services	Equity	Common Stock		48,365	$	577	$	937
Reischling Press, Inc. (p.k.a. Blurb, Inc.)	Internet Consumer & Business Services	Equity	Common Stock		1,163		15		—
Tectura Corporation (7)	Internet Consumer & Business Services	Equity	Common Stock		414,994,863		900		—
	Internet Consumer & Business Services	Equity	Preferred Series BB		1,000,000		—		—
Total Tectura Corporation					415,994,863		900		—
Uber Technologies, Inc. (p.k.a. Postmates, Inc.) (4)	Internet Consumer & Business Services	Equity	Common Stock		32,991		317		1,683
Subtotal: Internet Consumer & Business Services (6.53%)*							26,235		84,358
Medical Devices & Equipment
Flowonix Medical Incorporated	Medical Devices & Equipment	Equity	Preferred Series AA		221,893		1,500		—
Gelesis, Inc.	Medical Devices & Equipment	Equity	Common Stock		227,013		—		626
	Medical Devices & Equipment	Equity	Preferred Series A-1		191,210		425		554
	Medical Devices & Equipment	Equity	Preferred Series A-2		191,626		500		540
Total Gelesis, Inc.					609,849		925		1,720
Medrobotics Corporation (15)	Medical Devices & Equipment	Equity	Preferred Series E		136,798		250		—
	Medical Devices & Equipment	Equity	Preferred Series F		73,971		155		—
	Medical Devices & Equipment	Equity	Preferred Series G		163,934		500		—
Total Medrobotics Corporation					374,703		905		—
Outset Medical, Inc. (4)	Medical Devices & Equipment	Equity	Common Stock		38,243		527		1,947
ViewRay, Inc. (4)(15)	Medical Devices & Equipment	Equity	Common Stock		36,457		333		139
Subtotal: Medical Devices & Equipment (0.29%)*							4,190		3,806
Software
CapLinked, Inc.	Software	Equity	Preferred Series A-3		53,614		51		78
Docker, Inc.	Software	Equity	Common Stock		20,000		4,284		24
Druva Holdings, Inc. (p.k.a. Druva, Inc.)	Software	Equity	Preferred Series 2		458,841		1,000		3,644
	Software	Equity	Preferred Series 3		93,620		300		777
Total Druva Holdings, Inc. (p.k.a. Druva, Inc.)					552,461		1,300		4,421
HighRoads, Inc.	Software	Equity	Common Stock		190		307		—
Lightbend, Inc.	Software	Equity	Preferred Series D		384,616		265		165
Palantir Technologies (4)	Software	Equity	Common Stock		1,668,337		10,198		36,015
SingleStore, Inc. (p.k.a. memsql, Inc.)	Software	Equity	Preferred Series E		580,983		2,000		2,153
Sprinklr, Inc.	Software	Equity	Common Stock		700,000		3,749		7,088
Subtotal: Software (3.87%)*							22,154		49,944
Surgical Devices
Gynesonics, Inc. (15)	Surgical Devices	Equity	Preferred Series B		219,298		250		14
	Surgical Devices	Equity	Preferred Series C		656,538		282		44
	Surgical Devices	Equity	Preferred Series D		1,991,157		712		137
	Surgical Devices	Equity	Preferred Series E		2,786,367		429		213
	Surgical Devices	Equity	Preferred Series F		1,523,693		118		181
	Surgical Devices	Equity	Preferred Series F-1		2,418,125		150		259
Total Gynesonics, Inc.					9,595,178		1,941		848
TransMedics Group, Inc. (p.k.a Transmedics, Inc.) (4)	Surgical Devices	Equity	Common Stock		162,617		2,550		3,236
Subtotal: Surgical Devices (0.32%)*							4,491		4,084
Sustainable and Renewable Technology
Impossible Foods, Inc.	Sustainable and Renewable Technology	Equity	Preferred Series E-1		188,611		2,000		2,540
Modumetal, Inc.	Sustainable and Renewable Technology	Equity	Preferred Series A-1		103,584		500		1
Pineapple Energy LLC (6)	Sustainable and Renewable Technology	Equity	Class A Units		17,647		4,767		840

See notes to consolidated financial statements

24

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Proterra, Inc.	Sustainable and Renewable Technology	Equity	Preferred Series 5		99,280	$	500	$	329
Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)	Sustainable and Renewable Technology	Equity	Common Stock		488		61,502		—
Subtotal: Sustainable and Renewable Technology (0.29%)*							69,269		3,710
Total: Equity Investments (17.39%)*						$	189,854	$	224,679
Warrant Investments
Communications & Networking
Spring Mobile Solutions, Inc.	Communications & Networking	Warrant	Common Stock		2,834,375		418		—
Subtotal: Communications & Networking (0.00%)*							418		—
Consumer & Business Products
Gadget Guard (15)	Consumer & Business Products	Warrant	Common Stock		1,662,441		228		—
The Neat Company	Consumer & Business Products	Warrant	Common Stock		54,054		365		—
Whoop, Inc.	Consumer & Business Products	Warrant	Preferred Series C		68,627		18		1,152
Subtotal: Consumer & Business Products (0.09%)*							611		1,152
Drug Delivery
Aerami Therapeutics (p.k.a. Dance Biopharm, Inc.) (15)	Drug Delivery	Warrant	Common Stock		110,882		74		—
BioQ Pharma Incorporated	Drug Delivery	Warrant	Common Stock		459,183		1		579
Neos Therapeutics, Inc. (4)(15)	Drug Delivery	Warrant	Common Stock		70,833		285		—
PDS Biotechnology Corporation (p.k.a. Edge Therapeutics, Inc.) (4)	Drug Delivery	Warrant	Common Stock		3,929		390		—
Subtotal: Drug Delivery (0.04%)*							750		579
Drug Discovery & Development
Acacia Pharma Inc. (4)(5)(10)	Drug Discovery & Development	Warrant	Common Stock		201,330		304		184
ADMA Biologics, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		89,750		295		5
Albireo Pharma, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		5,310		61		97
Axsome Therapeutics, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		15,541		681		682
Brickell Biotech, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		9,005		119		—
Century Therapeutics	Drug Discovery & Development	Warrant	Common Units		40,540		37		43
Concert Pharmaceuticals, Inc. (4)(10)(15)	Drug Discovery & Development	Warrant	Common Stock		61,273		178		183
CytRx Corporation (15)	Drug Discovery & Development	Warrant	Common Stock		105,694		160		—
Dermavant Sciences Ltd. (10)	Drug Discovery & Development	Warrant	Common Stock		223,642		101		460
Evofem Biosciences, Inc. (4)(15)	Drug Discovery & Development	Warrant	Common Stock		7,806		266		3
Genocea Biosciences, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		41,176		165		20
Motif BioSciences Inc. (10)	Drug Discovery & Development	Warrant	Common Stock		121,337,041		282		—
Myovant Sciences, Ltd. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		73,710		460		1,031
Ology Bioservices, Inc. (15)	Drug Discovery & Development	Warrant	Common Stock		171,389		838		—
Paratek Pharmaceuticals, Inc. (4)(15)	Drug Discovery & Development	Warrant	Common Stock		469,388		644		960
Stealth Bio Therapeutics Corp. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		500,000		158		—
TG Therapeutics, Inc. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		147,058		563		5,307
Tricida, Inc. (4)(15)(16)	Drug Discovery & Development	Warrant	Common Stock		31,353		280		8
Urovant Sciences, Ltd. (4)(10)	Drug Discovery & Development	Warrant	Common Stock		99,777		383		744
Valo Health, LLC (p.k.a. Integral Health Holdings, LLC)	Drug Discovery & Development	Warrant	Common Units		102,216		257		296
X4 Pharmaceuticals, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		108,334		673		87
Yumanity Therapeutics, Inc. (4)	Drug Discovery & Development	Warrant	Common Stock		15,414		110		98
Subtotal: Drug Discovery & Development (0.79%)*							7,015		10,208
Electronics & Computer Hardware
908 Devices, Inc. (4)(15)	Electronics & Computer Hardware	Warrant	Common Stock		49,078		101		1,215
Subtotal: Electronics & Computer Hardware (0.09%)*							101		1,215
Information Services
InMobi Inc. (10)	Information Services	Warrant	Common Stock		65,587		82		—
NetBase Solutions, Inc.	Information Services	Warrant	Preferred Series 1		60,000		356		498
Planet Labs, Inc.	Information Services	Warrant	Common Stock		357,752		615		273
Sapphire Digital, Inc. (p.k.a. MDX Medical, Inc.) (15)	Information Services	Warrant	Common Stock		2,812,500		283		566
Subtotal: Information Services (0.10%)*							1,336		1,337
Internet Consumer & Business Services
Aria Systems, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series G		231,535		73		—
Cloudpay, Inc. (5)(10)	Internet Consumer & Business Services	Warrant	Preferred Series B		6,763		54		126
First Insight, Inc. (15)	Internet Consumer & Business Services	Warrant	Preferred Series B		75,917		96		91
Houzz, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		529,661		20		150
Intent (p.k.a. Intent Media, Inc.)	Internet Consumer & Business Services	Warrant	Common Stock		140,077		168		—
Interactions Corporation	Internet Consumer & Business Services	Warrant	Preferred Series G-3		68,187		204		549
Just Fabulous, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series B		206,184		1,102		2,791

See notes to consolidated financial statements

25

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
Lendio, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series D		127,032	$	39	$	32
LogicSource	Internet Consumer & Business Services	Warrant	Preferred Series C		79,625		30		104
RumbleON, Inc. (4)	Internet Consumer & Business Services	Warrant	Common Stock		5,139		87		32
SeatGeek, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		1,379,761		842		1,548
ShareThis, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series C		493,502		547		—
Skyword, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series B		444,444		83		78
Snagajob.com, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		600,000		16		53
	Internet Consumer & Business Services	Warrant	Preferred Series A		1,800,000		782		58
	Internet Consumer & Business Services	Warrant	Preferred Series B		1,211,537		62		27
Total Snagajob.com, Inc.					3,611,537		860		138
Tapjoy, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series D		748,670		316		16
The Faction Group LLC	Internet Consumer & Business Services	Warrant	Preferred Series AA		8,076		234		736
Thumbtack, Inc.	Internet Consumer & Business Services	Warrant	Common Stock		190,953		553		262
Xometry, Inc.	Internet Consumer & Business Services	Warrant	Preferred Series B		87,784		47		527
Subtotal: Internet Consumer & Business Services (0.56%)*							5,355		7,180
Media/Content/Info
WP Technology, Inc. (Wattpad, Inc.) (5)(10)	Media/Content/Info	Warrant	Common Stock		255,818		3		—
Zoom Media Group, Inc.	Media/Content/Info	Warrant	Preferred Series A		1,204		348		—
Subtotal: Media/Content/Info (0.00%)*							351		—
Medical Devices & Equipment
Aspire Bariatrics, Inc. (15)	Medical Devices & Equipment	Warrant	Preferred Series B-1		112,858		455		—
Flowonix Medical Incorporated	Medical Devices & Equipment	Warrant	Preferred Series AA		155,325		362		—
	Medical Devices & Equipment	Warrant	Preferred Series BB		725,806		351		—
Total Flowonix Medical Incorporated					881,131		713		—
Gelesis, Inc.	Medical Devices & Equipment	Warrant	Preferred Series A-1		74,784	78			156
InspireMD, Inc. (4)(5)(10)	Medical Devices & Equipment	Warrant	Common Stock		23	0			—
Intuity Medical, Inc. (15)	Medical Devices & Equipment	Warrant	Preferred Series B-1		3,076,323	294			394
Medrobotics Corporation (15)	Medical Devices & Equipment	Warrant	Preferred Series E		455,539	370			—
NinePoint Medical, Inc.	Medical Devices & Equipment	Warrant	Preferred Series A-1		587,840	170			—
Outset Medical, Inc. (4)	Medical Devices & Equipment	Warrant	Common Stock		62,794	402			1,982
Sebacia, Inc.	Medical Devices & Equipment	Warrant	Preferred Series D		778,301	133			—
SonaCare Medical, LLC	Medical Devices & Equipment	Warrant	Preferred Series A		6,464		188		—
Tela Bio, Inc. (4)	Medical Devices & Equipment	Warrant	Common Stock		15,712		61		9
Subtotal: Medical Devices & Equipment (0.20%)*							2,864		2,541
Semiconductors
Achronix Semiconductor Corporation	Semiconductors	Warrant	Preferred Series C		360,000		160		175
	Semiconductors	Warrant	Preferred Series D-2		750,000		99		717
Total Achronix Semiconductor Corporation					1,110,000		259		892
Subtotal: Semiconductors (0.07%)*							259		892
Software
Bitsight Technologies, Inc.	Software	Warrant	Common Stock		29,691		208		208
CloudBolt Software Inc.	Software	Warrant	Common Stock		158,506		91		132
Cloudian, Inc.	Software	Warrant	Common Stock		477,454		72		29
Couchbase, Inc.	Software	Warrant	Common Stock		263,377		462		1,023
Dashlane, Inc.	Software	Warrant	Common Stock		346,747		303		297
Delphix Corp.	Software	Warrant	Common Stock		718,898		1,594		1,857
DNAnexus, Inc.	Software	Warrant	Preferred Series C		909,091		97		153
Evernote Corporation	Software	Warrant	Common Stock		62,500		106		70

See notes to consolidated financial statements

26

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

Portfolio Company	Sub-Industry	Type of Investment (1)	Series	Shares		Cost (3)		Value (4)
ExtraHop Networks, Inc.	Software	Warrant	Common Stock		154,784	$	191	$	265
Fuze, Inc. (15)	Software	Warrant	Preferred Series F		256,158		89		—
Lightbend, Inc. (15)	Software	Warrant	Preferred Series C-1		854,787		130		169
Mixpanel, Inc.	Software	Warrant	Common Stock		82,362		252		516
Nuvolo Technologies Corporation	Software	Warrant	Common Stock		50,000		88		192
OneLogin, Inc. (15)	Software	Warrant	Common Stock		381,620		305		610
Poplicus, Inc.	Software	Warrant	Common Stock		132,168		—		—
Pymetrics, Inc.	Software	Warrant	Common Stock		150,943		77		182
RapidMiner, Inc.	Software	Warrant	Preferred Series C-1		4,982		24		46
Reltio, Inc.	Software	Warrant	Common Stock		69,120		215		216
SignPost, Inc.	Software	Warrant	Series Junior 1 Preferred		474,019		314		—
SingleStore, Inc. (p.k.a. memsql, Inc.)	Software	Warrant	Preferred Series D		312,596		103		714
Tact.ai Technologies, Inc.	Software	Warrant	Common Stock		1,041,667		206		204
Udacity, Inc.	Software	Warrant	Common Stock		486,359		218		284
ZeroFox, Inc.	Software	Warrant	Preferred Series C-1		648,350		100		363
Subtotal: Software (0.58%)*							5,245		7,530
Specialty Pharmaceuticals
Alimera Sciences, Inc. (4)	Specialty Pharmaceuticals	Warrant	Common Stock		30,581		132		5
Subtotal: Specialty Pharmaceuticals (0.00%)*							132		5
Surgical Devices
Gynesonics, Inc. (15)	Surgical Devices	Warrant	Preferred Series C		151,123		67		10
TransMedics Group, Inc. (p.k.a Transmedics, Inc.) (4)	Surgical Devices	Warrant	Common Stock		64,441		139		487
Subtotal: Surgical Devices (0.04%)*							206		497
Sustainable and Renewable Technology
Agrivida, Inc.	Sustainable and Renewable Technology	Warrant	Preferred Series D		471,327		120		—
Fulcrum Bioenergy, Inc.	Sustainable and Renewable Technology	Warrant	Preferred Series C-1		280,897		274		744
Kinestral Technologies, Inc.	Sustainable and Renewable Technology	Warrant	Preferred Series A		325,000		155		261
	Sustainable and Renewable Technology	Warrant	Preferred Series B		131,883		63		91
Total Kinestral Technologies, Inc.					456,883		218		352
NantEnergy, Inc. (p.k.a. Fluidic, Inc.)	Sustainable and Renewable Technology	Warrant	Preferred Series D		61,804		102		—
Polyera Corporation (15)	Sustainable and Renewable Technology	Warrant	Preferred Series C		311,609		338		—
Proterra, Inc.	Sustainable and Renewable Technology	Warrant	Common Stock		36,630		1		14
	Sustainable and Renewable Technology	Warrant	Preferred Series 4		477,517		41		376
Total Proterra, Inc.					514,147		42		390
Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)	Sustainable and Renewable Technology	Warrant	Class A Units		1		—		—
Subtotal: Sustainable and Renewable Technology (0.12%)*							1,094		1,486
Total: Warrant Investments (2.68%)*						$	25,737	$	34,622
Total: Investments in Securities (182.22%)*						$	2,315,016	$	2,353,736
Investment Funds & Vehicles
Forbion Growth Opportunities Fund I C.V. (5)(10)(17)	Drug Discovery & Development	Investment Funds & Vehicles					342		342
Total: Investments in Investment Funds & Vehicles (0.03%)*						$	342	$	342
Total: Investments before Cash and Cash Equivalents (182.25%)*						$	2,315,358	$	2,354,078
Cash & Cash Equivalents
GS Financial Square Government Fund		Cash & Cash Equivalents					96,000		96,000
Total: Investments in Cash & Cash Equivalents (7.43%)*						$	96,000	$	96,000
Total: Investments after Cash and Cash Equivalents (189.68%)*						$	2,411,358	$	2,450,078

* Value as a percent of net assets

(1)

Preferred and common stock, warrants, and equity interests are generally non-income producing.

(2)

Interest rate PRIME represents 3.25% as of December 31, 2020. 1-month LIBOR, 3-month LIBOR, and 6-month LIBOR represent, 0.14%, 0.24%, and 0.36%, respectively, as of December 31, 2020.

See notes to consolidated financial statements

27

HERCULES CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(dollars in thousands)

(3)

Gross unrealized appreciation, gross unrealized depreciation, and net unrealized depreciation for federal income tax purposes totaled $166.2 million, $126.1 million, and $40.1 million, respectively. The tax cost of investments is $2.3 billion.

(4)

Except for warrants in 27 publicly traded companies and common stock in 30 publicly traded companies, all investments are restricted as of December 31, 2020 and were valued at fair value using Level 3 significant unobservable inputs as determined in good faith by the Company’s Board. No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(5)

Non-U.S. company or the company’s principal place of business is outside the United States.

(6)

Affiliate investment as defined under the Investment Company Act of 1940, as amended, (the “1940 Act”) in which Hercules owns at least 5% but generally less than 25% of the company’s voting securities.

(7)

Control investment as defined under the 1940 Act in which Hercules owns at least 25% of the company’s voting securities or has greater than 50% representation on its board.

(8)

Debt is on non-accrual status as of December 31, 2020 and is therefore considered non-income producing. Note that only the PIK portion is on non-accrual for the Company’s debt investments in Glo AB and Tectura Corporation.

(9)

Denotes that all or a portion of the debt investment is convertible debt.

(10)

Indicates assets that the Company deems not “qualifying assets” under section 55(a) of 1940 Act. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets.