Venture Lending & Leasing V 10-Q 2010 Q2 Quarterly report

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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

For the quarterly period ended June 30, 2010

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

For the transition period from ___________ to ______________

Commission file number 814-00731

Venture Lending & Leasing V, Inc.

(Exact Name of Registrant as specified in its charter)

Maryland	14-1974295
(State or other jurisdiction of incorporation or  organization)	(I.R.S. Employer Identification No.)
	(State or other jurisdiction of incorporation or  organiz ation)
2010 North First Street, Suite 310	San Jose, CA 95131
(Address of principal executive offices)	(Zip Code)

(408) 436-8577

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) 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 period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes [ ] No [ ]

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

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [x] Smaller reporting company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [x]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a p lan confirmed by a court.

Yes [ ] No [ ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Class	Outstanding as of August 12, 2010
Common Stock, $.001 par value	100,000

VENTURE LENDING & LEASING V, INC.

INDEX

PART I -- FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Statements of Assets and Liabilities (Unaudited) As of June 30, 2010 and December 31, 2009
	Condensed Statements of Operations (Unaudited) For the three and six months ended June 30, 2010 and 2009
	Condensed Statements of Changes in Net Assets (Unaudited) For the three and six months ended June 30, 2010 and 2009
	Condensed Statements of Cash Flows (Unaudited) For the six months ended June 30, 2010 and 2009
	Notes to Condensed Financial Statements (Unaudited)
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.	Quantitatve and Qualitative Disclosures About Market Risk
Item 4.	Controls and Procedures
Item 4T.	Controls and Procedures
PART II -- OTHER INFORMATION
Item 1.	Legal Proceedings
Item 1A.	Risk Factors
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.	Defaults Upon Senior Securities
Item 4.	Removed and Reserved
Item 5.	Other Information
Item 6.	Exhibits
SIGNATURES

VENTURE LENDING & LEASING V, INC.

CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

AS OF JUNE 30, 2010 AND DECEMBER 31, 2009

	June 30, 2010			December 31, 2009
ASSETS
Loans, at estimated fair value      (Cost of $142,894,491 and $147,804,586)	$	134,710,372		$	141,980,642
Cash and cash equivalents	33,587,750			33,064,846
Other investment (Cost of $768,021 a nd $768,247)	33,021			33,247
Other assets	2,197,397			2,201,051
Total assets	170,528,540			177,279,786
LIABILITIES
Accrued management fees	1,064,866			1,107,999
Accounts payable and other accrued liabilities	630,588			410,227
Total liabilities	1,695,454			1,518,226
NET ASSETS	$	168,833,086		$	175,761,560
Analysis of Net Assets:
Capital paid in on shares of capital stock	$	193,525,000		$	193,525,000
Return of capital distributions	(14,875,787		)	(10,307,488		)
Accumulated deficit	(9,816,127		)	(7,455,952		)
Net assets (equivalent to $1,688.33 and $1,757.62 per share based on      100,000 shares of capital stock outstanding - See Note 5)	$	168,833,086		$	175,761,560

See Notes to Condensed Financial Statements

3

VENTURE LENDING & LEASING V, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 200 9

	For the Three Months Ended			For the Three Months Ended			For the Six Months Ended			For the Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009
INVESTMENT INCOME:
Interest on loans	$	5,764,667		$	5,674,453		$	11,593,558		$	11,543,655
Other interest and other income	1,643			7,873			2,050			11,674
Total investment income	5,766,310			5,682,326			11,595,608			11,555,329
EXPENSES:
Management fees	1,065,803			1,126,726			2,149,916			2,566,558
Interest expense	66,950			66,836			133,568			9 7,758
Banking and professional fees	73,616			135,024			196,291			250,860
Other operating expenses	29,300			26,293			51,709			49,349
Total exp enses	1,235,669			1,354,879			2,531,484			2,964,525
Net investment income	4,530,641			4,327,447			9,064,124			8,590,804
Net realized loss from investments	(259,575		)	(2,176,922		)	(273,309		)	(2,399,810		)
Net change in unrealized loss from investments	(828,543		)	(1,212,290		)	(2,360,175		)	(5,355,000		)
Net realized and unrealized loss from investment activities	(1,088,118		)	(3,389,212		)	(2,633,484		)	(7,754,810		)
Net increase in net assets resulting from operations	$	3,442,523		$	938,235		$	6,430,640		$	835,994
Net increase in net assets resulting from operations per share	$	34.43		$	9.38		$	64.31		$	8.36
Weighted average shares outstanding	100,000			100,000			100,000			100,000

See Notes to Condensed Financial Statements

4

VENTURE LENDING & LEASING V, INC.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009

	For the Three Months Ended			For the Three Months Ended			For the Six Months Ended			For the Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009
Net increase in net assets resulting from operations:										&nb sp;
Net investment income	$	4,530,641		$	4,327,447		$	9,064,124		$	8,590,804
Net realized loss from  investments	(259,575		)	(2,176,922		)	(273,309		)	(2,399,810		)
Net change in unrealized loss from investments	(828,543		)	(1,212,290		)	(2,360,175		)	(5,355,000		)
Net increase in net assets resulting from operations	3,442,523			938,235			6,430,640			835,994
Distributions of income to shareholder	(4,271,066		)	(3,146,152		)	(8,790,815		)	(11,617,357		)
Return of capital to shareholder	(2,138,665		)	(4,128,628		)	(4,568,299		)	(4,128,628		)
Total decrease	(2,967,208		)	(6,336,545		)	(6,928,474		)	(14,909,991		)
Net assets
Beginning of period	171,800,294			184,132,669			175,761,560			192,706,115
End of period	$	168,833,086		$	177,796,124		$	168,833,086		$	177,796,124

See Notes to Condensed Financial Statements

5

VENTURE LENDING & LEASING V, INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009

	For the Six Months Ended			For the Six Months Ended
	June 30, 2010			June 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	6,430,640		$	835,994
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Net realized loss from investments	273,309			2,399,810
Net change in unrealized loss from investments	2,360,175			5,355,000
Net amortization of deferred costs related to borrowing facility	68,568			50,996
Net decrease in other assets and other investments	(64,688		)	(672,686		)
Net increase (decrease) in accounts payable, other accrued liabilities, and accrued management fees	177,228			(700,346		)
Origination of loans	(42,103,912		)	(32,110,315		)
Principal payments on loans	46,429,986			41,961,400
Acquisition of equity securities	(2,948,402		)	(1,536,174	)
Net cash provided by operating activities	10,622,904			15,583,679
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distribution to shareholder	(10,100,000		)	(10,000,000		)
Payment of bank facility fees and costs	—			(293,721		)
Borrowings under debt facility	—			1,000,000
Net cash used in financing activities	(10,100,000		)	(9,293,721		)
Net increase in cash and cash equivalents	522,904			6,289,958
CASH AND CASH EQUIVALENTS:
Beginning of period	33,064,846			21,972,037
End of period	$	33,587,750		$	28,261,995
SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE YEAR FOR:
Interest	$	60,667		$	96,008
NON-CASH ACTIVITIES:
Receipt of equity securities as repayment of loan	$	310,712		$	4,209,811
Distributions of equity securities to shareholder	$	3,259,114		$	5,745,985

See Notes to Condensed Financial Statements

6

VENTURE LENDING & LEASING V, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND OPERATIONS OF THE FUND

&nbs p;

Venture Lending & Leasing V, Inc. (the “Fund”), was incorporated in Maryland on August 21, 2006 as a nondiversified closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940 and is managed by Westech Investment Advisors, Inc. (“Manager” or “Management”).  One hundred percent of the stock of the Fund is held by Venture Lending & Leasing V, LLC (the “Company”).  Prior to commencing its operations on February 21, 2007, the Fund had no operations other than the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in September 2006.  This issuance of stock was a requirement in order to apply for a finance lender's license from the California Commissioner of Corporations.

In the Manager's opinion, the accompanying financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of financial position and results of operations for interim periods. Certain information and note disclosures normally included in audited annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted; however, the Fund believes that the disclosures made are adequate to make the information presented not misleading.  The interim results for the three and six months ended June 30, 2010 are not necessarily indicative of what the results would be for a full year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes included in the Fund's Annual Report on Form 10-K for the year ended December 31, 2009.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, money market funds, and demand deposits in banks with maturities of 90 days or less.

Interest Income

Int erest income on loans is recognized using the effective interest method including amounts from the amortization of discounts resulting from the allocation of amounts ascribed to equity securities received as part of the loan transaction.  Additionally, fees received as part of the transaction are added to the loan discount and amortized over the life of the loan.

Valuation Procedures

The Fund accounts for loans at fair value in accordance with the “Valuation Methods” below.  All valuations are dete rmined under the direction of the Manager, in accordance with this Policy.

The Fund's loans are valued in connection with the issuance of its periodic financial statements, the issuance or repurchase of the Fund's shares at a price equivalent to the current net asset value per share, and at such other times as required by law.  On a quarterly basis, Management will submit to the Board of Directors (“Board”) a “Valuation Report,” which details the rationale for the valuation of investments.

7

Valuation Methods

As of June 30, 2010 and December 31, 2009, the financial statements includ e nonmarketable investments ( $134,743,393 and $142,013,889 or approximately 79% and 80% of total assets, respectively) with fair values determined by the Manager in the absence of readily determinable market values.  Because of the inherent uncertainty of these valuations, estimated fair values of such investments may differ significantly from the values that would have been used had a ready m arket for the securities existed, and the differences could be material. Below is the information used by the Manager in making these estimates.

Fair value is the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants.  There is no secondary market for the loans, hence Management determines fair value based on hypothetical markets.  Venture loans are generally held to maturity and are recorded at estimated fair value.  Management determines whether to adjust the estimated fair value of a loan based on a number of factors, including but not limited to the borrower's payment history, available cash and “burn rate,” revenues, net income or loss, the likelihood that the borro wer will be able to secure additional financing in the future, as well as an evaluation of the general interest rate environment.  The amount of any valuation adjustment is determined based upon a credit analysis of the borrower and an analysis of the expected recovery from the borrower, including consideration of factors such as the nature and quality of the Fund's security interests in collateral, the estimated value of the Fund's collateral, the size of the loan, and the estimated time that will elapse before the Fund achieves a recovery.

Money market funds held as Cash and Cash Equivalents are valued at their most recently posted net asset value, if available, or at amortized cost, provided such amount is not materially different from quoted price.

Warrants and Stock

Warrants and stock that are received in connection with loan transactions generally will be assigned a fair value at the time of acquisition. These securities are then distributed by the Fund to the Company at the assigned value. Warrants are valued based on a modified Black-Scholes option pricing model which takes into account underlying stock value, expected term, volatility, risk-free interest rate, among other factors.  Warrants are typically distributed immediately upon receipt to the Company.

Nonaccrual Loans

The Fund's policy is to place a loan on nonaccrual status when the loan stops performing and Management deems that it is unlikely that the loan will return to performing status.  When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed for the quarter in which the loan was placed on nonaccrual status.  Any uncollected interest related to quarters prior to when the loan was placed on nonaccrual status is added to the principal balance, and the aggregate balanc e of the principal and interest is evaluated in accordance with the policy for valuation of loans in determining Management's best estimate of fair value. Interest received by the Fund on nonaccrual loans will be recorded on a cash basis.

As of June 30, 2010 and December 31, 2009, loans with a cost basis of $16.7 million and $11.3 million and a fair value of $8.5 million and $5.9 million, respectively, have been classified as nonaccrual.

Commitment Fees

Unearned income and commitment fees on loans are recognized using the effective interest method over the term of the loan. Commitment fees are carried as liabilities when received for commitments upon which no draws have been made. When the first draw is made, the fee is treated as unearned income and is recognized as described above.  If a draw is never made, the commitment fee less any applicable legal costs becomes recognized as other income after the commitment expires.

8

Deferred Bank Fees

Through June 30, 2010 the deferred bank fees and costs associated with the debt facility have been allocated over the estimated life of the facility, which was determined to be February 2011 (see Note 6).

Recently Issued Accounti ng Pronouncements

In January 2010, the FASB issued Accounting Standards Update No. 2010-06 (“ASU 2010-06”), Improving Disclosures about Fair Value Measurements, which, among other things, amends ASC 820 to require entities to separately present purchases, sales, issuances, and settlements in their reconciliation of Level 3 fair value measurements (i.e., to present such items on a gross basis rather than on a net basis), and which clarifies existing disclosure requirements provided by ASC 820  regarding the level of disaggregation and the inputs and valuation techniques used to measure fair value for measurements that fall within either Level 2 or Level 3 of the fair value hierarchy.  ASU 2010-06 is effective for interim and annual periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements (which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years).  The adoption of ASU 2010-06 did not have a material impact on the Fund's financial statements.  Certain parts of the ASU 2010-06 are not yet effective.  Management is currently assessing the impact that the adoption of ASU 2010-06 will have on the Fund's financial statement disclosures.

Tax Status

The Fund plans on qualifying as a Regulated Investment Company (“RIC”) and elected RIC treatment when it filed its tax return in 2007.  As long as the Fund qualifies as a RIC, it will not pay any federal or state corporate income tax on income that is distributed to its shareholder (pass-through status).  Should the Fund not qualify as a RIC or lose its qualification as a RIC, it could be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to its shareholder), and all distributions out of its earnings and profits will be taxable to its shareholder as ordinary income.  As of June 30, 2010 the Fund had no uncertain tax positions.

The Fund's tax years open to examination by major jurisdictions are 2006 and forward.

3. SUMMARY OF INVESTMENTS

Loans generally are made to borrowers pursuant to commitments whereby the Fund agrees to finance assets and provide working capital up to a specified amount for the term of the commitments, upon the terms and subject to the conditions specified by such commitment. As of June 30, 2010, the Fund's investments in loans are primarily to companies based within the United States and are diversified among borrowers in the industry segments shown below.  The percentage of net assets that each industry group represents is shown with the industry totals below  (the sum of the percentages does not equal 100 percent because the percentages are based on net assets as opposed to total loans).  

The Fund defines fair value as the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale.

Loan balances are summarized by borrower.  Typically a borrower's balance will be composed of several loans drawn under a commitment made by the Fund with the interest rate on each loan fixed at the time each loan is funded. Each loan drawn under a commitment has a different maturity date and amount.  For the three month period ended June 30, 2010 and 2009, the weighted-average interest rate on performing loans was 17.59% and 15.78%, respectively. For the six month period ended June 30, 2010 and 2009, the weighted-average interest rate on performing loans was 17.41% and 15.21%, respectively. Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including volatility, early payoffs, and recovery of interest from non-performing assets.

9

Loans as of June 30, 2010 are in non-affiliates and consist of the following (industry classifications are unaudited):

&nbs p;

	Percentage of		Estimated Fair			Par Value		Final
Borrower	Net Assets		Value 6/30/10			6/30/2010		Maturity Date
Biotechnology
Bioabsorbable Therapeutics, Inc.			$	87,811		$	912,811	*
IntegenX, Inc.			3,383,059			3,383,059		12/1/2012
Pathway Genomics Corporation			2,298,009			2,298,009		12/1/2012
Subtotal:	3.4	%	$	5,768,879		$	6,593,879
Carrier Networking
Opvista, Inc.			$	1,682,838	;	$	1,682,838	*
TimeData Corporation			193,906			193, 906		3/1/2012
Wavebender, Inc.			100,664			100,664		1/1/2011
Subtotal:	1.2	%	$	1,977,408		$	1,977,408
Computers & Storage
D-Wave Systems, Inc.			$	807,740		$	807,740	12/1/2012
Gear Six, Inc.			43,707			118,707		*
NComputing, Inc.			190,348			190,348		9/1/2010
Nexenta Systems, Inc.			808,355			808,355		5/1/2013
Vidyo, Inc.			336,379			336,379		10/1/2010
Subtotal:	1.3	%	$	2,186,529	&n bsp;	$	2,261,529
Enterprise Networking
Envivio, Inc.			$	687,161		$	687,161	1/1/2011
Vyatta, Inc.			558,297			558,297		2/1/2011
Subtotal:	0.7	%	$	1,245,458		$	1,245,458
&nbs p;
Internet
Akademos, Inc.			$	687,635		$	687,635	4/1/2013
Arcadia Entertainment, Inc.			29,505			229,505		*
Blekko, Inc.			3,108,666			3,108,666		2/1/2013
BuzzLogic, Inc.			596,664			596,664		4/1/2013
Collarity, Inc.			329,821			669,821		*
Cuil, Inc.			2,145,281			2,860,281		*
Delve Networks, Inc.			231,810			231,810		7/1/2011
Donnerwood Media, Inc.			322,349			322,349		5/1/2011
eduFire, Inc.			169,893			269,893		*
EForce Media, Inc.			62,432			1,512,432		*
Fwix, Inc.			42,118			42,118		4/1/2013
Genius.com Inc.			500,015			500,015		12/1/2012
iGroup Network, Inc.			276,410			276,410		4/1/2012
Inigral, Inc.			64,149			64,149		8/1/2011

10

Insider Guides, Inc.			3,400,730		3,400,730		6/1/2013
Instructables, Inc.			269,167		269,167		7/1/2012
Involver, Inc.			370,493		370,493		6/1/2013
Loomia, Inc.			277,681		277,681		*
MGEL, Inc.			454,309		454,309		1/1/2013
MMJK, Inc.			1,466,374		1,466,374		12/1/2012
Multiply, Inc.			407,257		407,257		9/1/2011
PerformLine, Inc.			185,258		185,258		12/1/2011
Philotic, Inc.			171,161		171,161		1/1/2013
Plastic Jungle, Inc.			1,513,878		1,513,878		11/1/2012
Quantcast Corporation			3,278,929		3,278,929		1/1/2013
Rocket Fuel, Inc.			912,006		912,006		3/1/2013
Semantic Sugar, Inc .			228,625		228,625		7/1/2012
Sittercity, Inc.			940,607		940,607		1/1/2013
SugarSync, Inc.			194,075		194,075		5/1/2011
TheFind, Inc.			549,162		549,162		12/1/2011
ThisNext, Inc.			273,218		273,218		1/1/2012
Threadbox, Inc.	& nbsp;		276,222		276,222		8/1/2012
Topsy Labs, Inc.			2,413,632		2,413,632		4/1/2013
UStream.TV, Inc.			1,284,256		1,284,256		5/1/2012
Videojax, Inc.			1,476		288,380		*
Worktopia, Inc.			424,833		424,833		12/1/2011
Youku.com, Inc.			1,954,871		1,954,871		1/1/2012
Subtotal:	17.7	%	$	29,814,968	$	32,906,872
Medical Devices
Accuri Cytometers, Inc.			$	113,242	$	113,242	9/1/2010
AirXpanders, Inc.			407,528		407,528		9/1/2011
Biomerix Corporation			632,292		632,292		12/1/2011
Cellscape Corporation			312,123		312,123		12/1/2012
ConforMIS, Inc.			6,309,726		6,309,726		6/1/2012
CV Ingenuity Corporation			182,936		182,936		8/1/2012
CyberHeart, Inc.			549,830		729,830		*
Evera Medical, Inc.			—		567,215		*
iBalance Medical, Inc.			185,380		285,380		*
Intellidx, Inc.			203,786		903,786		*
Nellix, Inc.			2,888,787		2,888,787		12/1/2011
Oculus Innovative Sciences, Inc.			1,755,640		1,755,640		6/1/2013
PEAK Surgical, Inc.			1,761,294		1,761,294		7/1/2012
PinPointe U.S.A., Inc.			987,781		987,781		7/1/2012
Softscope Medical Technologies, Inc.			163,096		163,096		6/1/2011
Suneva Medical, Inc.			1,596,352		1,596,352		6/1/2013
Varix Medical Corpor ation			135,141		180,141		*
Subtotal:	10.8	%	$	18,184,934	$	19,777,149

11

Other Healthcare
NanoSphere, Inc.			$	631,437		$	631,437		8/1/2010
Subtotal:	0.4	%	$	631,437		$	631,437
Other Technology
Astro Gaming, Inc.			$	1,238,461		$	1,238,461		2/1/2013
Coulomb Technologies, Inc.			526,186			526,186			6/1/2013
Daylight Solutions, Inc.			1,388,085			1,388,085			12/1/2012
EcoSMART Technologies, Inc.			1,702,125			1,702,125			10/1/2012
EoPlex Tehcnologies, Inc.			393,803			393,803			3/1/2013
Integrity Block, Inc.			72,913			92,913			*
Global MailExpress, Inc.		5,442,862			5,442,862			4/1/2013
Oryxe Energy International, Inc.			350,998			480,998			*
Sezmi Corporation			1,003,937			1,003,937			2/1/2012
Solaria Corporation			1,484,317			1,484,317			3/1/2011
Soliant Energy, Inc.			522,438			522,438			7/1/2012
Sub-One Technology, Inc.			342,090			342,090			12/1/2011
WeatherBill, Inc.			3,739,793			3,739,793			4/1/2013
Subtotal:	10.8	%	$	18,208,008		$	18,358,008
Security
Dragnet Solutions, Inc.			$	392,012		$	392,012		6/1/2011
Guardian Analytics, Inc.			528,715			528,715			12/1/2011
Nevis Networks, Inc.			93,762			273,762			*
TrustedID, Inc.			452,821			452,821			6/1/2011
Subtotal:	0.9	%	$	1,467,310		$	1,647,310
Semiconductors & Equipment
Alereon, Inc.			$	1,137		$	76,137		*
Azuro, Inc.			1,048,208			1,048,208			9/1/2011
Discera, Inc.			78,394			78,394			1/1/2011
Intelleflex Corporation			495,104			495,104			4/1/2011
Newport Media, Inc.			3,610,897			3,610,897			1/1/2013
SiPort, Inc.			1,479,167			1,479,167			7/1/2012
Tela Innovations, Inc.			266,330			266,330			7/1/2011
Zenverge, Inc.			408,685		408,685			7/1/2011
Subtotal:	4.4	%	$	7,387,922		$	7,462,922
Software
Anchor Intelligence, Inc.			$	549,837		$	549,837		8/1/2011
Athena Design Systems, Inc.			20,849		53,849			*
Atlantis Computing, Inc.			192,384			192,384		9/1/2012
Berkeley Design Automation, Inc.			149,525			149,525			4/1/2011
BlueRoads Corporation			101,989			811,989			*
Cloudmar k, Inc.			6,331,521			6,331,521			2/1/2013

12

Cloudshare, Inc.			1,751,702		1,751,702		2/1/2012
Demandbase, Inc.			903,385		903,385		10/1/2012
Emergent Game Technologies, Inc.			2,603,588		2,603,588		12/1/2012
Future Point Systems, Inc.			167,779		167,779		5/1/2012
Gazillion, Inc.			814,812		814,812		3/1/2011
Global Analytics, Inc.			1,730,471		1,730,471		6/1/2013
Integrien Corporation			247,895		247,895		2/1/2012
JasperSoft, Inc.			581,658		581,658		5/1/2011
Kareo, Inc.			77,731		77,731		12/1/2010
KIT Digital, Inc.			5,600,251		5,600,251		9/1/2013
Knowledge Adventure, Inc.			1,987,845		1,987,845		5/1/2012
Market6, Inc.			51,554		51,554		7/1/2010
MarketFish, Inc.			211,057		211,057		9/1/2012
Medsphere Systems Corporation			2,797,621		2,797,621		10/1/2012
Orb Networks, Inc.			46,219		46,219		8/1/2010
Palantir Technologies, Inc.			5,483,673		5,483,673		11/1/2012
RingCube Technologies, Inc.			646,747		646,747		10/1/2011
RivalWatch, Inc.			445,695		445,695		2/1/2013
Skydeck, Inc.			329,362		329,362		2/1/2012
SOA Software, Inc.			1,264,364		1,264,364		4/1/2011
Universal Ad, Inc.			167,834		317,834		*
Verix, Inc.			1,145,337		1,145,337		8/1/2011
Viewdle, Inc.			299,098		299,098		12/1/2011
Widevine Technologies, Inc.			1,454,932		1,454,932		4/1/2012
Xtime, Inc.			519,671		519,671		6/1/2013
Subtotal:	22.9	%	$	38,676,386	$	39,569,386
Technology Services
SG Micro, Inc.			$	229,995	$	229,995	4/1/2011
Subtotal:	0.1	%	$	229,995	$	229,995
Wireless
Cellfire, Inc.			$	530,676	$	530,676	4/1/2011
DeFi Mobile, Ltd.			200,344		337,344		*
Dilithium Networks, Inc.			1,062,726		1,062,726		6/1/2011
Emotive Communications, Inc.			116,505		391,505		*
July Systems, Inc.			409,180		409,180		2/1/2012
Mobclix, Inc.			566,417		566,417		9/1/2012
Nextivity, Inc.			1,376,036		2,066,036		*
Ortiva Wireless, Inc.			688,697		688,697		5/1/2011
Quickoffice, Inc.			1,277,342		1,277,342		10/1/2012
SandLinks, Inc.			68,984		268,984		*
Send Me, Inc.			1,096,541		1,096,541		4/1/2012
Silent Communication, Ltd.			894,504		894,504		5/1/2013
Venturi Wireless, Inc.			643,186		643,186		1/1/2012

13

Subtotal:	5.3	%	$	8,931,138	$	10,233,138
Total: (Cost of $142,894,491)	79.8	%	$	134,710,372	$	142,894,491

* As of June 30, 2010, loans with a cost basis and fair value of $16.7 million and $8.5 million, respectively, have been classified as nonaccrual.During the period for which these loans have been on non-accrual status, no interest income has been recognized.

Loans as of December 31, 2009 are in non-affiliates and consist of the following (industry classifications are unaudited):

	Percentage of		Estimated Fair			Par Value			Final
Borrower	Net Assets		Value 12/31/09			12/31/2009			Maturity Date
Biotechnology
Bioabsorbable Therapeutics, Inc.			$	172,963		$	912,963		*
Microchip Biotechnologies, Inc.			3,749,728			3,749,728			11/1/2012
Pathway Genomics, Corp.			2,681,835			2,681,835			12/1/2012
SanBio, Inc.			470,563			470,563		;	6/1/2010
Trellis Bioscience, Inc.			173,790			173,790			12/1/2010
Subtotal:	4.1	%	$	7,248,879		$	7,988,879
Carrier Networking
Kodiak Networks, Inc.			$	196,266		$	196,266		4/1/2010
Opvista, Inc.			842,838			1,682,838			*
TimeData, Corp.		211,465			211,465			3/1/2012
Wavebender, Inc.			103,372			103,372			1/1/2011
Subtotal:	0.8	%	$	1,353,941		$	2,193,941
						&nbs p;
Computers & Storage
Cloudshield, Inc.			$	1,343,874		$	1,343,874		4/1/2011
D-Wave Systems, Inc.			940,132			940,132			12/1/2012
Gear Six, Inc.			291,222			291,222			12/1/2010
NComputing, Inc.			445,277			445,277			9/1/2010
Vidyo, Inc.			809,898			809,898			10/1/2010
Subtotal:	2.2	%	$	3,830,403		$	3,830,403
Enterprise Networking
Envivio, Inc.			$	1,451,594		$	1,451,594		1/1/2011
PacketMotion, Inc.			798,291			798,291			3/1/2011
Vyatta, Inc.			999,379			999,379			2/1/2011
Subtotal:	1.8	%	$	3,249,264		$	3,249,264
Internet
Aggregate Knowledge, Inc.			$	529,127		$	529,127		12/1/2011
Arcadia Entertainment, Inc.			79,505			229,505			*

14

Blekko, Inc.			307,107		307,107		12/1/2011
BuzzLogic, Inc.			486,303		486,303		8/1/2011
cc:Betty, Inc.			301,733		301,733		8/1/2012
Collarity, Inc.			535,618		715,618		*
Cuil, Inc.			3,563,005		3,563,005		12/1/2012
Delve Networks, Inc.			320,605		320,605		7/1/2011
Donnerwood Media, Inc.			483,185		483,185		5/1/2011
eduFire, Inc.			192,863		292,863		2/1/2012
EForce Media, Inc.			762,432		1,512,432		*
Fwix, Inc.			22,181		22,181		1/1/2013
Genius.com , Inc.			673,332		673,332		12/1/2012
iGroup Network, Inc.			372,082		372,082		4/1/2012
Inigral, Inc.			92,883		92,883		8/1/2011
Insider Guides, Inc.			2,698,751		2,698,751		4/1/2012
Instructables, Inc.			170,623		170,623		4/1/2012
Loomia, Inc.			351,522		351,522		12/1/2011
MMJK, Inc.			1,431,315		1,431,315		12/1/2012
Multiply, Inc.			570,185		570,185		9/1/201 1
PerformLine, Inc.			237,945		237,945		12/1/2011
Philotic,  Inc.			204,635		204,635		11/1/2012
Plastic Jungle, Inc.			1,289,857		1,289,857		9/1/2012
Quantcast, Corp.			4,169,098		4,169,098		1/1/2013
Radar Networks, Inc.			297,134		297,134		10/1/2010
RPM Communications, Inc.			62,632		222,632		*
Semantic Sugar, Inc.			270,261		270,261		7/1/2012
SugarSync, Inc.			288,289		288,289		5/1/2011
TheFind, Inc.			760,747		760,747		12/1/2011
ThisNext, Inc.			375,549		375,549		5/1/2011
Topsy Labs, Inc.			1,490,019		1,490,019		1/1/2013
UStream.TV, Inc.			1,604,259		1,604,259		5/1/2012
Videojax, Inc.			51,331		311,331		*
Worktopia, Inc.			573,291		573,291		11/1/2011
Youku.com, Inc.			2,795,891		2,795,891		1/1/2012
Subtotal:	16.2	%	$	28,415,295	$	30,015,295
Medical Devices
Accuri Cytometers, Inc.			$	328,882	$	328,882	9/1/2010
AirXpanders, Inc.			493,179		493,179		9/1/2011
Ample Medical, Inc.			18,734		32,734		*
Biomerix, Corp.			924,209		924,209		12/1/2011
Cellscape, Corp.			183,091		183,091		8/1/2012
ConforMIS, Inc.			7,575,646		7,575,646		6/1/2012
CV Ingenuity, Corp.			202,669		202,669		8/1/2012
CyberHeart, Inc.			975,031		975,031		8/1/2011
Evera Medical, Inc.			364,779		564,779		9/1/2011

15

iBalance Medical, Inc.			793,637		793,637			9/1/2010
Intellidx, Inc.			1,063,114		1,163,114			4/1/2011
Nellix, Inc.			4,069,940		4,069,940			12/1/2011
PEAK Surgical, Inc.			2,206,100		2,206,100			7/1/2012
PinPointe U.S.A., Inc.			1,167,049		1,167,049			7/1/2012
Softscope Medical Technologies, Inc.			262,893		262,893			6/1/2011
Suneva Medical, Inc.			878,666		878,666			11/1/2012
Varix Medical, Inc.			192,363		192,363			9/1/2011
Subtotal:	12.3	%	$	21,699,982	$	22,013,982		&nb sp;
Other Healthcare					;
Advanced ICU Care, Inc.			$	109,827	$	109,827		10/1/2010
NanoSphere, Inc.			1,890,288		1,890,288			8/1/2010
Skylight Healthcare Systems, Inc.			2,415,766		2,415,766			10/1/2011
Subtotal:	2.5	%	$	4,415,881	$	4,415,881
Other Technology
Astro Gaming, Inc.			$	897,216	$	897,216		7/1/2012
Daylight Solutions, Inc.			1,353,208		1,353,208			12/1/2012
EcoSMART Technologies, Inc.			1,731,687		1,731,687			10/1/2012
EoPlex Tehcnologies,  Inc.			527,634		527,634			6/1/2011
Integrity Block, Inc.			72,913		92,913			*
Global MailExpress, Inc.			1,254,624		1,254,624			4/1/2013
Oryxe Energy International, Inc.			391,642		521,642			*
Sezmi, Corp.			1,793,646		1,793,646			2/1/2012
Solaria, Corp.			2,463,265		2,463,265		&nbs p;	3/1/2011
Soliant Energy, Inc.			610,442		610,442			7/1/2012
Sub-One Technology, Inc.			424,104		424,104			12/1/2011
Subtotal:	6.6	%	$	11,520,381	$	11,670,381
Security
Dragnet Solutions, Inc.			$	574,091	$	574,091		6/1/2011
Guardian Analytics, Inc.			619,189		619,189			8/1/2011
Nevis Networks, Inc.			123,762		303,762			*
TrustedID, Inc.			645,609		645,609			6/1/2011
Subtotal:	1.1	%	$	1,962,651	$	2,142,651
Semiconductors & Equipment
Alereon, Inc.			$	528,072	$	528,072		7/1/2010
Azuro, Inc.			1,418,087		1,418,087			9/1/2011
Cswitch			—		36,944			*
Discera, Inc.			198,132		198,132			1/1/2011
Insilica, Inc.			502,965		502,965			11/1/2010
Integrated Materials, Inc.			117,533		117,533			3/1/2010
Intelleflex, Corp.			811,691		811,691			4/1/2011

16

InvenSense, Inc.			282,415		282,415			1/1/2011
Newport Media, Inc.			3,186,448		3,186,448			5/1/2012
Revera, Inc.			486,037		486,037			2/1/2011
SiPort, Inc.			1,889,710		1,889,710			7/1/2012
Teknovus, Inc.			1,448,894		1,448,894			9/1/2011
Tela Innovations, Inc.			459,437		459,437			7/1/2011
Zenverge, Inc.			588,121		588,121			7/1/2011
Subtotal:	6.8	%	$	11,917,542	$	11,954,486
Software
Anchor Intelligence, Inc.			$	648,108	$	648,108		12/1/2011
Athena Design Systems, Inc.			20,849		53,849			*
Atlantis Computing, Inc.			191,426		191,426			9/1/2012
Berkeley Design Automation, Inc.			421,775		421,775			4/1/2011
BlueRoads, Corp.			101,989		811,989			*
Cloudmark, Inc.			2,581,960		2,581,960			12/1/2011
Cloudshare, Inc.			2,210,122		2,210,122			2/1/2012
Demandbase, Inc.			293,081		293,081			11/1/2010
Emergent Game Technologies, Inc.			2,515,770		2,515,770			12/1/2012
Future Point Systems, Inc.			181,817		181,817			4/1/2012
Gazillion, Inc.			1,312,700		1,312,700			3/1/2011
Integrien, Corp.			394,734		394,734			7/1/2010
JasperSoft, Inc.			862,849		862,849		;	5/1/2011
Kabira Technologies, Inc.			1,069,892		1,069,892			12/1/2010
Kareo, Inc.			101,619		101,619			12/1/2010
Knowledge Adventure, Inc.			2,462,690		2,462,690			5/1/2012
Market6, Inc.			301,142		301,142			7/1/2010
MarketFish, Inc.			225,979		225,979			9/1/2012
Medsphere Systems, Corp.			1,490,789		1,490,789			5/1/2012
Orb Networks, Inc.			158,962		158,962			8/1/2010
Palantir Technologies, Inc.			5,509,085		5,509,085			11/1/2012
RingCube Technologies, Inc.			765,749		765,749			10/1/2011
RivalWatch, Inc.			205,850		205,850			9/1/2012
Skydeck, Inc.			401,579		401,579			2/1/2012
SOA Software, Inc.			1,863,653		1,863,653			4/1/2011
Universal Ad, Inc.			154,304		304,304			*
Verix, Inc.			1,221,314		1,221,314			8/1/2011
Viewdle, Inc.			380,423		380,423			12/1/2011
Widevine Technologies, Inc.			1,777,475		1,777,475			4/1/2012
Xtime, Inc.			499,574		499,574			7/1/2011
Zoove, Corp.			104,936		104,936			7/1/2011
Subtotal:	17.3	%	$	30,432,195	$	31,325,195
Technology Services
OpSource, Inc.			$	1,935,343	$	1,935,343		12/1/2011

17

SG Micro, Inc.			380,841		380,841		4/1/2011
Subtotal:	1.3	%	$	2,316,184	$	2,316,184
Wireless
Cellfire, Inc.			$	1,041,066	$	1,041,066	4/1/2011
DeFi Mobile, Ltd.			337,344		337,344		*
Dilithium Networks, Inc.			1,530,907		1,530,907		6/1/2011
Emotive Communications, Inc.			143,630		393,630		*
Hands-On Mobile, Inc.			638,217		638,217		5/1/2010
July Systems, Inc.			523,480		523,480		*
Nextivity, Inc.			1,376,036		2,066,036		*
Ortiva Wireless, Inc.			1,018,036		1,018,036		5/1/2011
Quickoffice, Inc.			1,634,620		1,634,620		10/1/2012
SandLinks, Inc.			125,324		255,324		*
Send Me, Inc.			1,529,053		1,529,053		4/1/2012
Silent Communication, Ltd.			602,305		602,305		9/1/2012
SmartDrive Systems, Inc.			240,106		240,106		6/1/2010
Venturi Wireless, Inc.			892,694		892,694		1/1/2012
Vivotech, Inc.			1,985,226		1,985,226		8/1/2011
Subtotal:	7.7	%	$	13,618,044	$	14,688,044
Total: (Cost $147,804,586)	80.8	%	$	141,980,642	$	147,804,586

*As of December 31, 2009, loans with a cost basis and fair value of $11.3 million and $5.9 million, respectively, have been classified as nonaccrual. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

The Fund provides asset-based financing primarily to start-up and emerging growth venture-capital-backed companies.  These loans are generally secured by assets of the borrowers.  As a result, the Fund is subject to general credit risk associated with such companies.  At June 30, 2010, the Fund had unexpired unfunded commitments to borrowers of $58.0 million.

Valuation Hierarchy

The Fund categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Fund's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entir ety. The three levels of the fair value hierarchy are defined as follows:

Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date .
Level 2	Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3	Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

18

The Fund's cash equivalents were valued at the net asset value of the money market fund. As a result, these measurements are classified as Level 1. The Fund uses estimated exit values when determining the value of its investments.  Because these transactions are individually negotiated and unique, and there is no market in which these assets trade, the inputs for these assets, which are discussed in the Valuation Methods listed above, are classified as Level 3.  

The following table presents the balances of assets as of June 30, 2010 and December 31, 2009 measured at fair value on a recurring basis:

As of June 30, 2010	Level 1		Level 3		Total
ASSETS:
Loans to borrowers	$	—	$	134,710,372	$	134,710,372
Other investment	—		33,021		33,021
Cash equivalents	33,587,750		—		33,587,750
Total assets	$	33,587,750	$	134,743,393	$	168,331,143

As of Decem ber 31, 2009	Level 1		Level 3		Total
ASSETS:
Loans to borrowers	$	—	$	141,980,642	$	141,980,642
Other investment	—		33,247		33,247
Cash equivalents	33,064,846		—		33,064,846
Total assets	$	33,064,846	$	142,013,889	$	175,078,735

The following table provides a summary of changes in Level 3 assets m easured at fair value on a recurring basis:

	For the Six Months Ended						For the Six Months Ended
	June 30, 2010						June 30, 2009
	Loans to borrowers			Other investment			Loans to borrowers				Other investment
Beginning balance	$	141,980,642		$	33,247		$	170,594,873			$	—
Acquisitions and originations	42,103,912			—			32,110,315			875,000
Additional investments				2,374
Principal reductions	(46,740,698		)	(2,600		)	(46,171,211		)		(100,000		)
Net change in unre alized loss from investments	(2,360,175		)	—			(4,620,000		)		(735,000		)
Net realized loss from investments	(273,309		)	—		&nb sp;	(2,399,810		)		—
Ending balance	$	134,710,372		$	33,021		$	149,514,167			$	40,000

4. EARNINGS PER SHARE

Basic earnings per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding.  Diluted earnings per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding, including the dilutive effects of potential common shares (e.g., stock options).  The Fund has no instruments that would be potential common shares; thus, reported basic and diluted earnings per share are the same.

5. CAPITAL STOCK

As of June 30, 2010 and December 31, 2009, there were 10,000,000 shares of $0.001 par value common stock authorized, and 100,000 shares issued and outstanding.  Total committed capital of the Company is $270.0 million.  Total contributed capital to the Company through June 30, 2010 and December 31, 2009 was $202.5 million, of which $193.5 million was contributed to the Fund.

19

The chart below shows the distributions of the Fund for the six months ended June 30, 2010 and 2009.

	For the Six Months Ended		For the Six Months Ended
	June 30, 2010		June 30, 2009
Cash distributions	$	10,100,000	$	10,000,000
Distributions of equity securities	3,259,114		5,745,985
Total distributions to shareholder	$	13,359,114	$	15,745,985

Final classification of the distributions as either a return of capital or a distribution of income is an annual determination made at the end of each year dependent upon the Fund's cu rrent year and cumulative earnings and profits.

6. DEBT FACILITY

On February 20, 2009, the Fund entered into agreements with Union Bank, N.A. that established a secured revolving loan facility in an initial amount of up to $30,000,000.  The Fund has the option to request that lenders providing such facility increase the borrowing availability there under to no more than $230,000,000 in the aggregate, as commitments may be obtained, however, the lenders are under no obligation to do s o.  Additional fees would be required to be paid in order to upsize the facility. Loans under the facility may be, at the option of the Fund, either Reference Rate loans or LIBOR loans. The interest rate on this facility is LIBOR plus 2.50 percent or Reference Rate plus 0.75 percent. The facility will terminate on February 18, 2011, but can be accelerated under an event of default such as failure by the Fund to make timely interest or principal payments.   The balance of the Fund's outstanding debt as of December 31. 2009 and June 30, 2010 is zero, respectively.

Borrowings under this facility are collateral ized by receivables under loans advanced by the Fund with assignment to the financial institution, plus other assets of the Fund.  The amortization schedule for each borrowing under the facility is expected to correspond to the amortization of the loans supporting each borrowing.  The Fund pays a commitment fee of 0.40 percent (annual fee paid quarterly) based on the total commitment related to the facility. This fee reduces to 0.25 percent when the facility is more than fifty percent utilized.

Bank fees of $155,000 were incurred in connection with initially procuring the facility.  Legal costs of $138,721 were incurred in negotiating the facility. Both the bank fees and the legal costs have been capitalized and are being amortized on a straight line ba sis over the expected life of the facility (February 2011).

The facility is revolving and as such does not have a specified repayment schedule, though advances are secured by the assets of the Fund and thus repayments will be required as assets decline.

The facility contains various covenants including financial covenants related to: (i) Debt to Net Worth Ratio, (ii) Minimum Debt Service Coverage Ratio, (iii) Interest Coverage Ratio, (iv) Asset Coverage, (v) Asset Coverage Under Investment Company Act, (vi) Maximum Loan Loss Reserves, and (vii) Unfunded Commitment Ratio. There are also various restrictive covenants, including limitations on (i) the incurrence of liens, (ii) consolidations, mergers and asset sales, and (iii) capital expenditures. As of June 30, 2010, the Fund was in compliance with these covenants.

7.  OTHER INVESTMENT

In 2009, the Fund repossessed the collater al from a borrower who was having financial difficulties.  At the time of the repossession, the loan from the borrower had a cost basis of $2,433,298 and a book value of $1,213,298.  The repossessed assets were immediately contributed to a newly formed LLC (Sensors Licensing, LLC, “SL LLC”) in conjunction with a licensing agreement between SL LLC and an unaffiliated third party.  The Fund and Venture Lending & Leasing IV, Inc. each have a 50% ownership interest in SL LLC.

20

At the time the assets were contributed to SL LLC they were valued at $1,750,000 based on expectations of cash flows from the licensing arrangement.  The Fund took a realized loss on the loan in the amount of $1,558,298 at the time the transaction was consummated in 2009.  The realized loss is the difference between the Fund's portion of the value of the assets repossessed and the book value of $2,433,298.

SL LLC collected $200,000 and distributed $100,000 to the Fund.  The unaffiliated third party cancelled the licensing agreement during 2009. SL LLC continues to distribute proceeds from the sale of equipment as cash becomes available.

Because the collateral is highly customized and no current buyer or lessee has been identified, the Fund had taken a $735,000 fair market reduction in 2009, which represents the difference between the previously determined fair value, the collections to date, and the expected liquidation value of the assets should no buyer or lessee be found. The Fund's portion of the expected liquidation value of the asset as of June 30, 2010 is $33,021.

8.  FINANCIAL HIGHLIGHTS

Accounting principles generally accepted in the United States of America require disclosure of financial highlights of the Fund for the periods presented, the three and six months ended June 30, 2010 and 2009.  The total rate of return is defined as the return based on the change in value during the period of a theoretical investment made at the beginning of the period.  The total rate of return assumes a constant rate of return for the Fund during the period reported and weights each cash flow by the amount of time held in the Fund.  This required methodology differs from an internal rate of return.

The ratios of expenses and net investment income to average net assets, calculated below, are annualized and are computed based upon the aggregate weighted average net assets of the Fund for the periods presented.  Net investment income is inclusi ve of all investment income net of expenses, and excludes realized or unrealized gains and losses.

Beginning and ending net asset values per share are based on the beginning and ending number of shares outstanding.  Other per share information is calculated based upon the aggregate weighted average net assets of the Fund for the periods presented.

21

The following per share data and ratios have been derived from the information provided in the financial statements:

	For the Three Months Ended			For the Three Months Ended			For the Six Months Ended				For the Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010				June 30, 2009
Total return*	8.10		%	2.04		%	6.02		%		0.91		%
Per share amounts:
Net asset value, beginning of period	$	1,718.00		$	1,841.33		$	1,757.62			$	1,927.06
Net investment income	45.31			43.27			90.64			85.91
Net change in unrealized and realized loss from investments	(10.88		)	(33.89		)	(26.34		)		(77.55		)
Net increase in net assets from operations	34.43			9.38			64.30				8.36
Capital contributions	—			—			—				—
Return of capital to shareholder	(21.39		)	(41.29		)	(45.68		)		(41.29		)
Income distributions to shareholder	(42.71		)	(31.46		)	(87.91		)		(116.17		)
Net asset value, end of period	$	1,688.33		$	1,777.96		$	1,688.33			$	1,777.96
Net assets, end of period	$	168,833,086		$	177,796,124		$	168,833,086			$	177,796,124
							&nbs p;
Ratios to average net assets:
Expenses *	2.89		%	2.94		%	2.94		%		3.15		%
Net investment income *	10.61		%	9.40		%	10.52		%		9.12		%
* Annualized

9.  SUBSEQUENT EVENTS

Subsequent events have been reviewed through August 12, 2010. No additional disclosure is required.

22

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

The information in this Quarterly Report on Form 10-Q contains certain “forward-lookin g statements” within the meaning of the securities laws.  These forward-looking statements reflect the current view of Venture Lending & Leasing V, Inc. (the “Fund”) with respect to future events and financial performance and are subject to a number of risks and uncertainties, many of which are beyond the Fund's control.  All statements, other than statements of historical facts included in this report, regarding the strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of the Fund are forward-looking statements.  When used in this report, the words “will”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.  All forward-looking statements speak only as of the date of this report.  The Fund does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

General

The Fund is 100% owned by Venture Lending & Leasing V, LLC (the “Company”).  The Fund's shares of Common Stock, $.001 par value were sold to its shareholder under a stock purchase agreement. &n bsp;The Fund has issued 100,000 of the Fund's 10,000,000 authorized shares.  The Fund's shareholder may make additional capital contributions to the Fund.

In addition to the historical information contained herein, this Quarterly Report on Form 10-Q contains certain forward-looking statements.  The reader of this Quarterly Report should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome.  The Fund's actual results could differ materially from those suggested by such forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual v ersus projected growth in assets, return on assets, loan losses, expenses, rates charged on loans and earned on securities investments and competition.  This entire Quarterly Report should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Fund's business.

Overview

The Fund is a financial services company primarily providing financing and advisory services to a variety of carefully selected venture-backed companies primarily located throughout the United States with a focus on growth oriented companies.  The Fund's portfolio is expected to become well diversified and consists of companies in the communications, information services, media, and technology, including software and technology-enabled business services, bio-technology, and medical devices industry sectors, among others.  The Fund's capital is generally used by our portfolio companies to finance acquisitions of fixed assets and/or for working capital.  On February 21, 2007, the Fund completed its first closing of capital, made its first investments, and became a non-diversified, closed-end investment company that elected to be treated as a business development company under the Investment Company Act of 1940.  The Fund elected to be treated for federal income tax purposes as a regulated investment company under the Internal Revenue Code with the f iling of its federal corporate income tax return for 2007.  Pursuant to this election, the Fund generally will not have to pay corporate-level taxes on any income it distributes to the stockholder as dividends, allowing the Fund's shareholder to substantially reduce or eliminate its corporate-level tax liability.

The Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a Regulated Investment Company (“RIC”) under the Internal Revenue Code.  If the Fund fails to meet these requirements, it will be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to the Company) and all distribut ions out of its earnings and profits will be taxable to the Members of the Company as ordinary income; thus, such income will be subject to a double layer of tax.  There is no assurance that the Fund will meet the ongoing requirements to qualify as a RIC for tax purposes.

23

The Fund's investment objective is to achieve a high total return.  The Fund seeks to achieve its investment objective by providing debt financing to portfolio companies.  Since inception, the Fund's investing activities have focused primarily on private debt securities.  The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments.  The Fund generally distributes these warrants to its shareholder upon receipt.  The Fund also has guidelines for the percentages of total assets which will be invested in different types of assets.

The portfolio investments of the Fund consist of debt financing to e arly and late stage venture capital backed technology companies.  The borrower's ability to repay its loans may be adversely impacted by a number of factors, and as a result, the loan may not fully be repaid.  Furthermore, the Fund's security interest in any collateral over the borrower's assets may be insufficient to make up any shortfall in payments.

Transactions with Venture Lending & Leasing VI, Inc. (“Fund VI”)

The Manager also serves as investment manager for Fund VI.  Initially the amount of each Investment has been allocated 50% to the Fund and 50% to Fund VI so long as the Fund has capital available to invest.  This percentage may be changed after the final close of capital at which time a determination of the percentage allocation will be made. After February 2011, the Fund no longer is permitted to enter into new commitments to borrowers; however, the Fund will be permitted to fund existing commitments.  While investing the Fund's capital in the same companies in which Fund VI is also investing could provide the Fund with greater diversification and access to larger transactions, it could also result in a slower pace of investment than would be the case if the Fund were investing in companies by itself. 

Although the Fund and Fund VI intend to invest in the same companies in the manner describ ed above, the Fund may, at any time, with the approval of its Board of Directors, (i) discontinue investing with Fund VI with respect to any or all future investments or (ii) choose to invest in different proportions with Fund VI than described above.  In addition, the Fund has no control over Fund VI, which is not required to invest with the Fund in any particular proportion or at all, and may choose to discontinue investing with the Fund or to invest in different proportions than described in the preceding paragraph.  In the event that Fund VI and the Fund invest other than in the pro rata manner described above (which can occur only with each Board of Directors approval), the Manager may have a conflict of interest in determining which of Fund VI and the Fund will invest in a particular company and, if both, in what proportions. 

To the extent that clients, other than Fund VI, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with procedures approved by the Fund's Board of Directors (including a majority of the disinterested directors).

Critical Accounting Policies

We identified the most critical accounting principles upon which our financial statements depend and determined the critical accounting principles by considering accounting policies that involve the most complex or subjective decisions or assessments.  The two critical accounting policies relate to the valuation of loans and treatment of non-accrual loans.

Loans are held at estimated fair value as determined by Management, in accordance with the valuation methods described in the valuation of loans section of Note 2 of the Fund's Annual Report on Form 10-K for the year ended December 31, 2009 (Summary of Significant Accounting Policies).  Critical factors in determining the fair value of a loan include payment history, collateral position, financial strength of the borrower, prospects for the borrower's raising future equity rounds, likelihood of sale or acquisition of the borrower, and length of expected holding period of the loan, as well as an evaluation of the general interest rate environment.  The actual value of the loans may differ from Management's estimates which would affect net income as well as assets.

24

Results of Operations - For the three and six months ended June 30, 2010 and 2009

Total investment income for the three months ended June 30, 2010 and 2009 was $5.8 million and $5.7 million, respectively, which primarily consisted of interest on venture loans outstanding.  Total investment income for the six months ended June 30, 2010 and 2009 was $11.6 million and $11.6 million, respectively, which primarily consisted of interest on venture loans outstanding.  The increase was primarily due to the increase in interest rates, as average interest rates increased from 15.78% for the three months ended June 30, 2009 to 17.59% for the three months ended June 30, 2010; and 15.21% for the six months ended June 30, 2009 to 17.41% for the six months ended June 30, 2010. This was partially offset by the decrease in the average loan outstanding to $131.1 million for the three months ended June 30, 2010 from $143.8 million for the three months ended June 30, 2009; and to $133.2 million for the six months ended June 30, 2010 from $151.7 million for the six months ended June 30, 2009. Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including volatility, early payoffs, and recovery of interest from non-performing assets.

Management fees for the three months ended June 30, 2010 and 2009 were $1.1 million and $1.1 million, respectively. Management fees for the six months ended June  30, 2010 and 2009 were $2.1 million and $2.6 million, respectively. Management fees are calculated as a percentage of assets, and because assets declined, management fees declined proportionally.

Total interest expense was less than $0.1 million and $0.1 million for the three months ended June 30, 2010 and 2009, respectively.  Total interest expense was $0.1 million and less than $0.1 million for the six months ended June 30, 2010 and 2009, respectively. In 2010, no debt was drawn and the interest expense is composed of fees associated with the facility.  Interest expense for 2009 was only for a partial period as the facility was not entered into until February 20, 2009.

Total banking and professional fees for the three months ended June 30, 2010 and 2009 were less than $0.1 million and $0.1 million, respectively. Total banking and professional fees for the six months ended June 30, 2010 and 2009 were $0.2 million and $0.3 million, respectively. The decline in the banking and professional fees was primarily due to the decrease in the legal fees.

Total other operating expenses for the three and six months ended June 30, 2010 and 2009 were less than $0.1 million, respectively.

Net investment income for the three months ended June 30, 2010 and 2009 was $4.5 million and $4.3 million, respectively. Net investment income for the six months ended June 30, 2010 and 2009 was $9.1 million and $8.6 million, respectively.

Total net realized loss from investments was $0.3 million and $2.2 million for the three months ended June 30, 2010 and 2009 respectively. Total net realized loss from investments was $0.3 million and $2.4 million for the six months ended June 30, 2010 and 2009, respectively.

Net change in unrealized loss from investments was $0.8 million and $1.2 million for the three months ended June 30, 2010 and 2009, respectively.  Net change in unrealized loss from investments activities was $2.4 million and $5.4 million for the six months ended June 30, 2010 and 2009, respectively.  The unrealized loss consists of fair market value adjustment taken against loans.  

Net increase in net assets resulting from operations for the three months ended June 30, 2010 and 2009 was $3.4 million and $0.9 million, respectively.  On a per share basis, the net increase in net assets resulting from operations was $34.43 and $9.38 for the three months ended June 30, 2010 and 2009, respectively. Net increase in net assets resulting from operations for the six months ended June 30, 2010 and 2009 was $6.4 million and $0.8 million, respectively.  On a per share basis, the net increase in net assets resulting from operations was $64.31 and $8.36 for the six months ended June 30, 2010 and 2009, respectively.

25

Liquidity and Capital Resources - June 30, 2010 and December 31, 2009

Total capital contributed to the Fund was $193.5 million, prior to distribution of capital, as of Ju ne 30, 2010 and December 31, 2009.  Committed capital to the Company at June 30, 2010 and December 31, 2009 was $270.0 million, of which $202.5 million has been called.  The remaining $67.5 million in committed capital as of June 30, 2010 is due to expire in February 2012 as the five year anniversary will have passed, at which time n o further capital can be called.

On February 20, 2009, the Fund entered into agreements with Union Bank, N.A. that established a secured revolving loan facility in an initial amount of up to $30,000,000.  The Fund has the option to request that lenders providing such facility increase the borrowing availability thereunder to no more than $230,000,000 in the aggregate, as commitments may be obtained, however, the lenders are under no obligation to do so.  Additional fees would be required to be paid in order to upsize the facility. Borrowings by the Fund will be collateralized by the personal property and other assets of the Fund.  Loans under the facility may be, at the option of the Fund, eit her Reference Rate loans or LIBOR loans.  The Fund will pay interest on its borrowings and will also pay a fee on the unused portion of the facility.  The facility will terminate on February 18, 2011, but can be accelerated under an event of default such as failure by the Fund to make timely interest or principal payments.  On September 11, 2009, the Fund fully paid its borrowing under the debt facility and does not have a balance as of June 30, 2010.

As of June 30, 2010 and December 31, 2009, 19.7% and 18.7%, respectively, of the Fund's assets consisted of cash and cash equivalents.  The Fund invested its assets in venture loans during the three and six months ended June 30, 2010 and 2009.  Amounts disbursed under the Fund's loan commitments totaled approximately $42.1 million during the six months ended June 30, 2010.  Net loan amounts outstanding after amortization and fair market adjustment decreased by approximately $7.3 million for the same period.  Unexpired, unfunded commitments totaled appr oximately $58.0 million as of June 30, 2010.

As of	Cumulative Amount Disbursed	Principal Reductions and Fair Market Adjustment	Balance Outstanding – Fair Value	Unexpired Unfunded Commitments
June 30, 2010	$353.1 million	$218.4 million	$134.7 million	$58.0 million
December 31, 2009	$311.0 million	$169.0 million	$142.0 million	$62.4 million

Venture loans are privately negotiated transactions.  Investments in these assets are relatively illiquid.  It is the Fund's experience that not all unfunded commitments will be used by borrowers.

The Fund seeks to meet the requirements to qua lify for the special pass-through status available to RICs under the Internal Revenue Code, and thus to be relieved of federal income tax on that part of its net investment income and realized capital gains that it distributes to its shareholder.  To qualify as a RIC, the Fund must distribute to its shareholder for each taxable year at least 90% of its investment company taxable income (consisting generally of net investment income and net short-term capital gain) (“Distribution Requirement”).  To the extent that the terms of the Fund's venture loans provide for the receipt by the Fund of additional interest at the end of the loan term or provide for the receipt by the Fund of a purchase price for the asset at the end of the loan term (“residual income”), the Fund would be required to accrue such residual income over the life of the loan, and to include such accrued income in its gross income for each taxable year even if it receives no portion of such residual income in tha t year.  Thus, in order to meet the Distribution Requirement and avoid payment of income taxes or an excise tax on undistributed income, the Fund may be required in a particular year to distribute as a dividend an amount in excess of the total amount of income it actually receives.  Those distributions will be made from the Fund's cash assets, from amounts received through amortization of loans or from borrowed funds.

26

Item 3.Quantitative and Qualitative Disclosures About Market Risk

The Fund's business activities contain elements of risk.  The Fund considers the principal types of market risk to be interest rate risk and credit risk.  The Fund considers the management of risk essential to conducting its business and to maintaining profitability.  Accordingly, the Fund's risk management procedures are designed to ide ntify and analyze the Fund's risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.  

The Fund anticipates managing its credit risk by maintaining a portfolio that is diverse by industry, size of investment, stage of development, and borrower.  The Fund has limited exposure to public market price fluctuations as the Fund primarily invests in private business enterprises and the Fund generally distributes all equity securities upon receipt to the Company.

The Fund's sensitivity to changes in interest rates is regularly monitored and analyzed by measuring the characteristics of assets and liabilities.  The Fund utilizes various methods to assess interest rate risk in terms of the potential effect on interest income net of interest expense, the value of net assets and the value at risk in an effort to ensure that the Fund is insulated from any significant adverse effects from changes in interest rates.  

Based on the model used for the sensitivity of interest inc ome net of interest expense, if the balance sheet were to remain constant and no actions were taken to alter the existing interest rate sensitivity, a hypothetical immediate 100 basis point change in interest rates would have affected net income by less than $0.1 million.  This translates to less than 1% of net income for the six months ended June 30, 2010.  Although Management believes that this measure is indicative of the Fund's sensitivity to interest rate changes, it makes estimates to adjust for potential changes in credit quality, size and composition of the balance sheet and other business developments that could affect net income.  Accordingly, no assurances can be given that actual resu lts would not differ materially from the potential outcome simulated by these estimates.

Although Management believes that this measure is indicative of the Fund's sensitivity to interest rate changes, it makes estimates to adjust for potential changes in credit quality, size and composition of the balance sheet and other business developments that could affect net income.  Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by these estimates.

Item 4.Controls and Procedures:

See response to Item 4T.

Item 4T.  Controls and Procedures:

Evaluation of Disclosure Controls and Procedures:

As of the end of the period covered by this quarterly report on Form 10-Q, the Fund's chief executive officer and chief financial officer conducted an evaluation of the Fund's disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934).  Based upon this evaluation, the Fund's chief ex ecutive officer and chief financial officer concluded that the Fund's disclosure controls and procedures were effective in timely alerting them of any material information relating to the Fund that is required to be disclosed by the Fund in the reports it files or submits under the Securities Exchange Act of 1934.

Changes in Internal Controls:

There were no changes in the Fund's internal controls or in other factors that could materially af fect these controls during the period covered by this quarterly report on Form 10-Q.

27

PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings

The Fund may become party to certain lawsuits from time to time in the normal course of business.  While the outcome of these legal proceedings cannot at this time be predicted with certainty, the Fund does not expect these proceedings will have a material effect upon the Fund's financial condition or results of operation.  Management is not aware of any pending legal proceedings involving the Fund.

Item 1A.Risk Factors

See item 1A - 'Risk Factors' in the Fund's 2009 Annual Report on Form 10-K for a detailed description of the risks attendant to the Fund and its business.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Prior to the Fund's commencement of operations on February 21, 2007, the Fund sold 100,000 shares to the Fund's sole shareholder, Venture Lending & Leasing V, LLC for $25,000 in September 2006.  No other shares of the Fund have been sold; however, the Fund received an additional $193.5 million of paid in capital during the period from February 21, 2007 through June 30, 2010 which is expected to be used to acquire venture loans and fund operations.

Item 3.Defaults Upon Senior Securities

Not applicable

Item 4.Removed and Reserved

None

Item 5.Other Information

None

28

Item 6.Exhibits

Exhibit Number	Description
3(i)	Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on August 21, 2006, incorporated by reference to the Fund's Form 10 filed with the Securities and Exchange Commission on October 10, 2006.
3(ii)	Amended and Restated Bylaws of the Fund, incorporated by reference to the Fund's Form 10-K filed with the Securities and Exchange Commission, March 25, 2010.
4.1	Form of Purchase Agreement between the Fund and the Company, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 10, 2006.
31.1-32.2	Certifications pursuant to The Sarbanes-Oxley Act of 2002.

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.

VENTURE LENDING & LEASING V, INC.
(Registrant)
		Chairman and Chief Executive Officer
By:	/S/ Maurice C. Werdegar	By:	/S/ Martin D. Eng
Maurice C. Werdegar		Martin D. Eng
Chairman and Chief Executive Officer		Chief Financial Officer
Date:	August 12, 2010	Date:	August 12, 2010

30

EXHIBIT INDEX

Exhibit Number	Description
3(i)	Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on August 21, 2006, incorporated by reference to the Fund's Form 10 filed with the Securities and Exchange Commission on October 10, 2006.
3(ii)	Amended and Restated Bylaws of the Fund, incorporated by reference to the Fund's Form 10-K filed with the Securities and Exchange Commission, March 25, 2010.
4.1	Form of Purchase Agreement between the Fund and the Company, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 10, 2006.
31.1-32.2	Certifications pursuant to The Sarbanes-Oxley Act of 2002.

31

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14

I, Martin D. Eng certify that:

1.I have reviewed this quarterly report on Form 10-Q of Venture Lending & Leasing V, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its c onsolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 12, 2010

/S/ Martin D. Eng

Martin D. Eng

Chief Financial Officer

32

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14

I, Maurice C. Werdegar, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Venture Lending & Leasing V, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the per iods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiv eness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has mate rially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 12, 2010

/S/ Maurice C. Werdegar

Maurice C. Werdegar

Chief Executive Officer

33

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Venture Lending & Leasing V, Inc. (the "Fund") on Form 10-Q for the period ending June 30, 2010 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Maurice C. Werdegar, Chief Executive Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Fund.

/S/ Maurice C. Werdegar

Maurice C. Werdegar

Chief Executive Officer

August 12, 2010

34

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Venture Lending & Leasing V, Inc. (the "Fund") on Form 10-Q for the period ending June 30, 2010 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Martin D. Eng, Chief Financial Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly pres ents, in all material respects, the financial condition and result of operations of the Fund.

/S/ Martin D. Eng

Martin D. Eng

Chief Financial Officer

August 12, 2010

35