Hercules Capital, Inc.

Overview

Hercules Capital, Inc. is a specialty-finance company and business development company (BDC) that provides senior-secured loans and structured debt to high-growth, venture-capital- and institutionally backed businesses. Its focus is on technology and life sciences, including software, drug discovery and development, healthcare services, and defense technologies; investments may also include warrants and other equity interests. The company invests primarily in U.S.-based businesses, with some investments outside the United States.[1][2]

Founded in 2003, Hercules states that its mission is to empower innovative companies with flexible credit solutions and provide investors access to alternative investments. It is headquartered in San Mateo and lists offices across the United States and in London; its company materials describe a team of more than 100 professionals. For the latest full reporting year available, FY2025, total investment income was approximately $532.5 million.[3]+3 [1]+7

Products & services

Hercules Capital’s principal offering is structured growth financing for venture-capital- and institutionally backed technology and life-sciences companies. Its financing may take the form of senior secured loans, including loans secured by borrower assets or intellectual property, and loans for specific assets; it also finances acquisitions, recapitalizations and refinancings. Eligible sectors include software, hardware, networking, semiconductors and IT services, as well as life-sciences businesses such as medical-device, biopharma, drug-development and healthcare-services companies.[8][9]

Loan structures include senior secured and unitranche debt, which combines senior and subordinated debt and may be divided into first-out and last-out positions. Hercules may also provide working-capital lines, typically secured by receivables and/or inventory, with rates based on benchmarks such as Prime, SOFR or SONIA plus a spread and floor; these lines generally mature in three to five years. At June 30, 2026, 97.8% of debt investments were floating-rate, and loans generally had short amortizing maturities of 36–48 months.[10]+2

Structured debt may include warrants, options, equity or conversion rights, and most debt investments include warrants. At June 30, 2026, the portfolio’s investment-type mix was 82.9% first-position senior secured debt, 10.9% second-position senior secured debt, 1.7% unsecured debt, 3.2% equity, 1.1% investment funds or vehicles and 0.2% warrant positions. Related services include loan origination, due-diligence and structuring, transaction and management services; fees include commitment, facility and exit fees. Hercules does not report revenue by individual financing product: Q2 2026 investment income comprised $125.7 million of interest income excluding PIK, $12.3 million of PIK interest and $11.1 million of fee income.[13]+4 [8]+8

Geographic presence

Hercules Capital invests primarily in U.S.-based companies and, to a lesser extent, foreign companies. Its investment-sourcing offices are in San Mateo, California; Boston, Massachusetts; New York, New York; San Diego, California; Denver, Colorado; and London, United Kingdom.[17]

The company’s principal executive office is at 1 North B Street, Suite 2000, San Mateo, California. Its annual report also lists leased offices in Westport, Connecticut, in addition to Boston, New York, Denver, San Diego, and London.[18]+2 The available disclosures do not give geographic revenue or portfolio percentages, or employee distribution by location. [17]+3

Business segments

Hercules Capital reports one operating segment. Although it evaluates portfolio companies across technology-related industries, management monitors the business on an aggregated basis; it does not report separate industry or other segment contributions. Its lending focus includes high-growth, venture-capital-backed companies in areas such as application and system software, drug discovery and development, healthcare services, and consumer and business services.[19][20]

As an alternative view of the portfolio—not a breakdown of reportable segments—the latest 2026 portfolio presentation lists first-position senior-secured debt at 82.9%, second-position senior-secured debt at 10.9%, unsecured debt at 1.7%, equity at 3.2%, investment funds and vehicles at 1.1%, and warrants at 0.2%. The presentation does not specify a more precise denominator for these percentages.[12] [19]+7

Company history

Hercules was formed in Maryland in December 2003 by founders including Manuel A. Henriquez and Roy Y. Liu, and began investment operations in September 2004. It completed its IPO in June 2005 and initially traded on Nasdaq; in April 2012, it moved its listing to the NYSE, retaining the ticker HTGC.[3]+4

In February 2016, the company changed its name from Hercules Technology Growth Capital, Inc. to Hercules Capital, Inc. It expanded into asset-based lending in March 2018 through its acquisition of Gibraltar Business Capital; Scott Bluestein became president and CEO in June 2019.[3]+2 [3]+12

Sources

• Hercules Capital, Inc. — Full financial report (2025 Y)
  9 citations

  [1][2][3][5][8][9][10][11][13]
• www.htgc.com[4]
• Hercules Capital, Inc. — Presentation (2025 Y)[6][7]
• Hercules Capital, Inc. — Presentation (2026 Q 2)
  5 citations

  [12][14][15][16][20]
• Hercules Capital, Inc. — Full financial report (2026 Q 2)
  3 citations

  [17][18][19]
• www.htgc.com[21]
• investor.htgc.com[22]
• www.htgc.com[23]
• investor.htgc.com[24]
• investor.htgc.com[25]
• investor.htgc.com[26]