FIRST QUARTER 2017 INVESTOR PRESENTATION Financing the Growth of - - PowerPoint PPT Presentation

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May 4, 2017 FIRST QUARTER 2017 INVESTOR PRESENTATION Financing the Growth of Tomorrows Companies Today TM IMPORTANT NOTICE: FORWARD LOOKING STATEMENTS This presentation may contain forward -looking statements within the meaning of the

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FIRST QUARTER 2017 INVESTOR PRESENTATION

May 4, 2017

Financing the Growth of Tomorrow’s Companies Today

TM

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This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act

  • f 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section

21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act. The information disclosed in this presentation is made as

  • f

the date hereof and reflects Hercules’ current assessment of its financial performance for the period reported. Actual financial results filed with the Securities and Exchange Commission in the future may differ from those contained herein in the event of additional adjustments recorded prior to the filing of its financial statements. This presentation may contain “forward-looking statements.” These forward-looking statements include comments with respect to our financial objectives, loan portfolio growth, strategies and results of our operations. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and risks, both general and specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future Company results to differ materially from these statements. Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates and stock indices, the effects of competition in the areas in which we operate, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other uncertainties and events. Historical results discussed in this presentation are not indicative of future results. This presentation should be read in conjunction with our recent SEC filings.

2

IMPORTANT NOTICE: FORWARD LOOKING STATEMENTS

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FIRST QUARTER 2017 INVESTOR PRESENTATION

May 4, 2017

Company & Strategic Overview Financial Highlights Portfolio Highlights Venture Capital Market Opportunity Analyst Coverage Key Performance Highlights Supplemental Information

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SLIDE 4

KEY PERFORMANCE HIGHLIGHTS

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SLIDE 5

5

Q1 2017 HIGHLIGHTS

(1) Based on NII, excludes realized and unrealized gains/losses. (2) As of April 25, 2017 (3) Excludes the one-time expense from the one-time redemption expense of the 2019 Notes plus one month non-recurring interest expense overlap (4) Net regulatory leverage is defined as regulatory leverage less cash balance at period end.

Robust Earnings

  • Net Investment Income (“NII”) of $22.7M, up 12.8% Y-Y
  • NII per share of $0.28(3)/Adjusted NII per share of $0.31
  • 47 consecutive quarters of distributions since IPO
  • 2016 projected earnings spillover of $34.2M or $0.42/share

Strong Shareholder Returns

  • 1YR/3YR/5YR Total Shareholder Returns: 36.3%/34.0%/89.4% (as of

3/31/17)

  • ROAE(1): 11.9%; Adjusted ROAE of 13.0%(3)
  • ROAA(1): 6.2%; Adjusted ROAA of 6.8%(3)
  • Net Interest Margin (“NIM”): 10.1%

High-Yield Portfolio of Earning Assets

  • Total Debt Investments: $1.40B at cost, up 12.7% Y-Y
  • Effective Yield: 13.4%

Industry-Leading Originations Platform

  • $6.7B in total debt commitments since inception
  • Cumulative Total Net Realized Gains/(Loss) since inception of $0.9M
  • Total debt & equity commitments: $191.0M
  • Gross debt & equity fundings: $153.3M

Strong Liquidity and Balance Sheet

  • $343.1M available liquidity
  • $218.0M additional leverage capacity
  • Regulatory leverage and net leverage: 73.0% and 54.7%(4)

Strong Capital Raising Position

  • Price-to-NAV: 1.59x(2)
  • “ATM” Equity and Debt Distribution Agreements
  • Investment Grade Credit Ratings: S&P: BBB- | KBRA: BBB+
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SLIDE 6

36.3% 34.0% 89.4% 28.9% 10.8% 36.0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1- Year 3-Year 5-Year

HTGC Peer Group

HTGC -TOTAL SHAREHOLDER RETURN % (TSR)vs. PEER GROUP

6 (a) Peer Group: AINV, ARCC, BKCC, FSC, FSIC, GBDC, GSBD, KCAP, MAIN, MCC, NMFC, PNNT, PSEC, SLRC, TCAP, TCPC, TCRD, TICC,TSLX (b) TSR is defined as stock appreciation plus distributed dividend distributions Source: S&P Capital IQ as of March 31, 2017

(a)

(b)

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SLIDE 7

$0.33 $1.23 $2.43 $3.75 $5.01 $5.81 $6.69 $7.64 $8.75 $9.99 $11.23 $12.47 $13.09

$0 $2 $4 $6 $8 $10 $12 $14

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017

Cumulative Distributions Declared (per Share)

$13.09 per share or ~$624 million in Historical Cumulative Distributions Since June 2005 IPO 2017 Distributions Paid: $0.62

12.5% 10.1% 11.7% 13.4% 11.9% 10.2% 10.8% 11.0% 10.0% 9.3%

0% 2% 4% 6% 8% 10% 12% 14% 2013 2014 2015 2016 Q1 2017

HTGC Peer Group

7.7% 5.2% 6.1% 6.8% 6.2% 6.6% 6.5% 6.0% 5.4% 5.2%

0% 2% 4% 6% 8% 10% 2013 2014 2015 2016 Q1 2017

HTGC Peer Group

DELIVERING STRONG SHAREHOLDER RETURNS

Return on Average Assets % (ROAA)

7

Return on Average Equity % (ROAE)

(a) Peer Group: AINV, ARCC, BKCC, FSC, FSIC, GBDC, GSBD, KCAP, MAIN, MCC, NMFC, PNNT, PSEC, SLRC, TCAP, TCPC, TCRD, TICC,TSLX (b) Does not include the benefit of the litigation settlement

(a) (a)

Source: S&P Capital IQ as of 3/31/17. Return on Average Assets excluding cash. NII divided by average of beginning of period total assets excluding cash and end of period total assets excluding cash. Source: S&P Capital IQ as of 3/31/17. Return on Average Equity based on NII. NII divided by average of beginning of period equity and end of period equity.

(1) Q1 09 distribution was paid in 10% cash and 90% stock; (2) Includes special $0.04 distribution paid in December 2009 (2) Note: The Yield Calculation may include a potential tax return of capital. Any portion of a distribution that is ultimately deemed to be a tax return of capital should not be considered. The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of its distributions for a full year. The tax attributes of its distributions for the years ended December 31, 2008 through December 31, 2016 were paid 100% from earnings and profits; however, there can be no certainty to shareholders that this determination is representative of what the tax attributes of its 2016 distributions to shareholders will actually be.

(1, 2) (b) (b)

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SLIDE 8

$9.76 $9.54 $9.42 $9.75 $10.00 $10.09 $10.42 $10.51 $10.58 $10.42 $10.22 $10.18 $10.47 $10.26 $10.02 $9.94 $9.81 $9.66 $9.86 $9.90 $9.76

$11.08 $11.34 $11.01 $11.13 $12.25 $13.94 $15.25 $16.40 $14.07 $16.16 $14.46 $14.88 $13.48 $11.55 $10.11 $12.19 $12.01 $12.42 $13.56 $14.11 $15.13

1.14 1.19 1.17 1.14 1.23 1.38 1.49 1.56 1.33 1.55 1.41 1.46 1.29 1.13 1.01 1.23 1.22 1.29 1.38 1.42 1.55

0.65 0.85 1.05 1.25 1.45 1.65 1.85 2.05 $8 $10 $12 $14 $16 NAV Stock Price Price to Book

HERCULES CONSISTENTLY MAINTAINS A PREMIUM TO NAV

8

Price to NAV

CREATES A STRONG CAPITAL RAISING POSITION TO SUPPORT GROWTH

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SLIDE 9

$747.4 $1,123.6 $1,221.7 $1,299.2 $1,334.8 $1,464.2 $1,586.2

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800

2011 2012 2013 2014 2015 2016 Q1 2017

$39.6 $48.1 $73.1 $71.8 $73.5 $100.3 $22.7 $0 $20 $40 $60 $80 $100

2011 2012 2013 2014 2015 2016 Q1 2017

HERCULES KEY PERFORMANCE HIGHLIGHTS

Net Investment Income “NII”

($ in millions)

9

$79.9 $97.5 $139.7 $143.7 $157.1 $175.1 $46.4 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

2011 2012 2013 2014 2015 2016 Q1 2017

Total Investment Income

($ in millions)

Total Assets

($ in millions)

$587.4 $914.3 $906.3 $1,035.3 $1,252.3 $1,511.5 $1,525.1

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800

2011 2012 2013 2014 2015 2016 Q1 2017

Total Investments at Cost

($ in millions)

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Cumulative Total Aggregate Net Realized Gains/(Losses), Since Inception

($50.1) ($50.1) ($47.0) ($32.1) ($12.0) ($6.9) ($2.3) $3.1 $14.9 $20.1 $5.1 $4.6 $3.2

($50.1) ($47.0) ($32.1) ($12.0) ($6.9) ($2.3) $0.9

  • $60
  • $50
  • $40
  • $30
  • $20
  • $10

$0 $10 $20 $30

2011 2012 2013 2014 2015 2016 Q1 2017

Net Realized Gains Net Realized Loss Carry Forward Cumulative Net Realized Loss

$ in millions $0.2 $0.5 $0.9 $1.4 $1.5 $2.1 $2.7 $3.4 $4.0 $4.9 $5.7 $6.5 $6.7

$0.2 $0.4 $0.7 $1.1 $1.2 $1.5 $1.9 $2.4 $2.9 $3.5 $4.2 $4.9 $5.0

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017

Cumulative Commitments Cumulative Fundings

$ in billions

Cumulative Debt Commitment and Fundings, Since Inception

PORTFOLIO GROWTH WITH UNDERWRITING DISCIPLINE

10

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Illustration: Debt investment portfolio of $1.4 billion and growing provides increased dividend payout(1)

PORTFOLIO GROWTH LEADS TO DIVIDEND COVERAGE GROWTH THROUGH NII

(1) Debt Investment portfolio at $1.4 billion, at cost, as of March 31, 2017. Assumes constant effective yield, NII margin of 52.0% and constant weighted average shares of 81.4 million. Projections are subject to change due to impact from active participation in the Company’s equity ATM program.

$1,400 $1,500 $1,600 $1,700 $1.21 $1.29 $1.38 $1.47 $1.30 $1.39 $1.48 $1.57

$1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 $1.80 $1.90 $2.00 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 + $0 Million + $100 Million + $200 Million + $300 Million NII per share Debt Investment Balance at Cost ($ in millions)

Debt Investment Portfolio Balance at Cost NII P/S @ Core Yield of 13.5% NII P/S @ Effective Yield of 14.5%

11

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$2,435

$5,229 $8,251 $11,273 $24,211 $37,592

+0.03 +0.06 +0.10 +0.14 +0.30 +0.46

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

25 50 75 100 200 300

Earning per Share(1) Net Income ($ in thousands) Basis Point Increase in Prime Rate

Net Income EPS

We anticipate each 25 bps, or 0.25%, increase in the Prime Rate to contribute ~$2.4 million to Net Interest Income, or $0.03 per share annually

RISING INTEREST RATES & HIGH ASSET SENSITIVITY WILL BENEFIT HERCULES SIGNIFICANTLY

(1) EPS calculated on basic weighted shares outstanding of 81.4 million as of March 31, 2017. Estimates are subject to change due to impact from active participation in the Company’s equity ATM program. 12

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COMPANY & STRATEGIC OVERVIEW

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HERCULES AT-A-GLANCE

WARRANT & EQUITY PORTFOLIO

WARRANT HOLDINGS

142

WARRANT GAAP FAIR VALUE

$32.0 million

WARRANT GAAP COST

$46.6 million

EQUITY HOLDINGS

55

EQUITY GAAP FAIR VALUE

$62.3 million

EQUITY GAAP COST

$79.2 million

142

COMPANIES

LIQUIDITY & BALANCE SHEET

LIQUIDITY

$343.1 million

REGULATORY LEVERAGE

73.0%

ADDITIONAL DEBT CAPACITY

$218.0 million

INVESTMENT GRADE RATINGS

S&P: BBB- KBRA: BBB+

SECURITIZATION INVESTMENT GRADE RATINGS

KBRA: A(sf)

$343.1

MILLION

DEBT INVESTMENT PORTFOLIO

DEBT INVESTMENT COST BASIS

$1.40 billion

DEBT INVESTMENT FAIR VALUE

$1.31 billion

EFFECTIVE YIELD

13.4%

NUMBER OF COMPANIES

85

SHORT TERM MATURITIES

36-42 months

INVESTMENT SIZE

$5 TO $100 MILLION

$1.40

BILLION

14

MARKET CAPITALIZATION

FOUNDED DECEMBER 2003

IPO: June 2005 “HTGC”

ENTERPRISE VALUE

$1.9 billion(1)

MARKET CAPITALIZATION

$1.28 billion(1)

NET ASSET VALUE PER SHARE

$9.76 as of 3/31/17

HISTORICAL PRICE/NAV

~1.3x to ~1.6x range

CURRENT PRICE/NAV

1.59x(1)

$1.28

BILLION

(1) As of April 25, 2017

LARGEST BUSINESS DEVELOPMENT COMPANY (BDC) FOCUSED ON PROVIDING FINANCING TO HIGH-GROWTH VENTURE CAPITAL-BACKED COMPANIES

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SLIDE 15

What We Don’t Do and What We Are Not

▪ No oil and gas exposure ▪ No CLO exposure ▪ No CMBS or RMBS exposure ▪ No metals or minerals exposure

What We Do

▪ We focus primarily on innovative high-growth venture capital backed companies at their

expansion (venture growth) and established stages in a broadly diversified variety of technology, life sciences and sustainable and renewable technology industries

▪ Highly asset sensitive debt investment portfolio – 92.8% floating rate loans and with interest rate

floors(1)

▪ We are generally the only lender and 90.9% are "true" first lien senior secured(1) ▪ Substantially all of our debt investments include warrants for potential additional total return ▪ Substantially all of our debt investments have short term amortizing maturities (36-42 months) ▪ Focused on strong and sustainable shareholder returns

WHY IS HERCULES DIFFERENT THAN OTHER BDCs

(1) As of March 31, 2017 15

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SLIDE 16

Hercules’ At-the-Market “ATM” Equity and Debt Distribution Agreements

▪ Equity Distribution Agreement: Up to a total of 12 million shares of common stock ▪ Debt Distribution Agreement: Up to $150.0 million of 6.25% Notes due 2024

The Benefits and Competitive Advantages

▪ “Just-in-Time” access provides control on the timing, pricing and amount of capital raised, with full

control over leverage ratios

▪ Ideal for raising growth capital when needed, proceeds expeditiously invested in new investments ▪ More cost effective ▪ Equity is highly accretive to NAV

The Results

▪ Equity ATM Capital Program in Q1 2017: sold ~3.3 million shares for net proceeds of ~ $46.9 million

  • All accretive to NAV at a price-to-book of 1.47x

▪ Debt ATM Capital Program in Q1 2017: sold 225,475 bonds for net proceeds of ~ $5.7 million

STRATEGIC ACCESS TO EQUITY AND DEBT CAPITAL MARKETS

16

HERCULES’ SUCCESSFUL ATM DISTRIBUTION PROGRAMS

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SLIDE 17

WE ARE AT CENTER STAGE OF THE INNOVATION ECONOMY

17

Technology Life Sciences Sustainable and Renewable Technology Special Situations

We Invest at the Expansion “Venture Growth” and Established Stage

HERCULES HAS DOMAIN EXPERTISE IN FOUR SPECIALIZED LENDING GROUPS “WE ARE NOT GENERALISTS”

$6.7 billion in total debt commitments to over 375 companies since inception Offices in key venture capital markets – CA | MA | NY | DC | IL | CT Over 500 different VC & PE firms, financial investors Over 125 portfolio companies completed/announced an IPO or M&A event since inception

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FINANCIAL HIGHLIGHTS

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SLIDE 19

INCOME STATEMENT: Q1 2017 VS. Q1 2016 SUMMARY RESULTS

19

2017 2016 Year/Year ($ in 000's, except per share amounts) (unaudited) (unaudited) Change Interest Income

$ 42,861 $ 36,474 18%

Fee Income

3,504 2,465 42%

Total Investment Income

46,365 38,939 19%

Interest and Loan Fees

12,445 8,006 55%

General and Administrative

4,064 3,580 14%

Employee Compensation

7,178 7,256

  • 1%

Total Operating Expenses

23,687 18,842 26%

Pre-Tax Net Investment Income-NII

22,678 20,097 13%

Net Realized and Unrealized Gain / (Loss)

(28,266) (4,468)

Net Increase in Net Assets from Operations

(5,588) 14,295

  • 139%

NII - Net Investment Income per Share (Basic)

$ 0.28 $ 0.28 0%

DNOI - Distributable Net Operating Income per Share

$ 0.30 $ 0.32

  • 6%

Weighted Average Shares Outstanding - Basic

81,420 71,172 14% Three Months Ended March 31,

(a) Amount includes the one-time cost associated with the redemption of the 2019 Notes plus the one-month non-recurring interest expense overlap of $2.1 million (a)

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CURRENT & HISTORICAL INCOME STATEMENTS

20

Three Months Twelve Months Ended March 31, Ended December 31, ($ in 000's, except per share amounts) 2017 2016 2015 2014 Interest Income

$ 42,861

$ 158,727 $ 140,266 $ 126,618 Fee Income 3,504 16,324 16,866 17,047 Total Investment Income

46,365

175,051 157,132 143,665 Interest and Loan Fees 12,445 37,058 36,889 33,390 General and Administrative 4,064 16,106 16,658 10,209 Employee Compensation 7,178 29,543 30,083 26,165 Total Operating Expenses

23,687

82,707 86,630 70,334 Other Income

  • 8,000

(1)

  • Pre-Tax Net Investment Income - NII

22,678

100,344 73,501 71,750 Net Realized and Unrealized Gain / (Loss) (28,266) (31,641) (30,585) (562) Net Increase in Net Assets from Operations

$ (5,588)

$ 68,703 $ 42,916 $ 71,188 NII - Net Investment Income per Share (Basic)

$ 0.28

$ 1.34 $ 1.04 $ 1.13 DNOI - Distributable Net Operating Income per Share

$ 0.30

$ 1.45 $ 1.19 $ 1.31 Weighted Average Shares Outstanding - Basic

81,420

73,753 69,479 61,862

(a) (a) Amount includes the one-time cost associated with the redemption of the 2019 Notes plus the one-month non-recurring interest expense overlap of $2.1 million

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CURRENT & HISTORICAL BALANCE SHEET

21

($ in 000's, except per share amounts) 2017 2016 2015 2014 ASSETS

Investments

$ 1,406,267

$ 1,423,942 $ 1,200,638 $ 1,020,737

Cash and cash equivalents

148,140 13,044 95,196 227,116

Restricted cash

12,924 8,322 9,191 12,660

Interest receivable

11,484 11,614 9,239 9,453

Other assets

7,433 7,282 9,720 13,774 Total Assets

$ 1,586,248

$ 1,464,204 $ 1,323,984 $ 1,283,740 LIABILITIES

Accounts Payable and Accrued Liabilites

16,513 21,463 17,241 14,101

Credit Facilities

  • 5,016

50,000

  • Long-term Liabilites (Convertible Notes)

222,542

  • 17,478

17,170

2021 Asset-Backed Notes

100,388 107,972 126,995 126,093

2019 Notes

  • 108,818

108,179 166,012

2024 Notes

251,240 245,490 100,128 99,795

Long-term SBA Debentures

187,669 187,501 186,829 186,162 Total Liabilites

$ 778,352

$ 676,260 $ 606,850 $ 624,876 Net Assets

$ 807,896

$ 787,944 $ 717,134 $ 658,864

Shares Outstanding

82,801

79,555 72,118 64,715 Net Assets per Share

$ 9.76

$ 9.90 $ 9.94 $ 10.18 March 31, December 31,

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SLIDE 22

16.9% 16.7% 16.0% 12.9% 13.8% 16.4% 14.2% 13.2% 14.4% 14.6% 14.4% 13.4% 13.9% 13.8% 13.0% 12.8% 13.2% 12.6% 13.3% 12.9% 13.4% 13.2% 12.9% 12.2% 10.6% 10.7% 10.3% 10.2% 9.8% 9.4% 9.2% 9.1% 9.2% 9.2% 9.2% 8.9%

6% 8% 10% 12% 14% 16% 18% 20% Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

Effective Yield

GAAP Effective Yield Core Yield Loan Coupon Rate

EFFECTIVE YIELD VS. CORE YIELD – LEADS TO STRONG EARNINGS

(1) Core Yield excludes Early Repayments and One-Time Fees, and includes income and fees from expired commitments (2) Effective Yield is inclusive of all fees, including all realized unamortized fees and all realized transaction fees including but not limited to amendment fees and prepayment fees (1) 22

MEDIAN CORE YIELD FROM Q2 2014 TO Q1 2017: 13.1%

(2)

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SLIDE 23

$614.6 $647.1

$693.8 $827.5 $881.0 $949.7 $894.5 $822.0 $798.4 $898.0 $907.9 $923.9 $1,058.0 $1,137.6 $1,077.6 $1,110.2 $1,205.7 $1,211.8 $1,224.1 $1,328.8 $1,311.9 14.6% 15.2% 14.4% 14.3% 14.3% 15.7% 17.7% 15.1% 17.9% 16.9% 16.7% 16.0% 12.9% 13.8% 16.4% 14.2% 13.2% 14.4% 14.6% 14.4% 13.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

  • $100

$100 $300 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Effective Yield (%) Total Debt Investments, at value (millions)

Total Debt Investments at fair value Effective Yield

HIGH-YIELD PORTFOLIO OF EARNING ASSETS

23

MEDIAN EFFECTIVE YIELD FROM Q1 2012 TO Q1 2017 OF 14.6%

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SLIDE 24

$26,376 $28,137 $27,065 $23,127 $28,974 $38,242 $29,900 $30,933 $34,688 $34,953 $37,418 $33,920

10.1% 10.4% 9.7% 8.2% 10.2% 13.4% 10.2% 10.1% 11.0% 11.1% 11.8% 10.1%

0% 3% 6% 9% 12% 15% 18% 21%

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1 -17

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

Net Interest Margin % Net Interest Margin (in thousands) Net Interest Margin ($) Net Interest Margin (%)

STRONG, CONSISTENT NET INTEREST MARGIN - NIM

(1) Net Interest Margin = Net Interest Income/Average Yielding Assets excluding Equity Investments 24

(1)

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SLIDE 25

EFFECTIVE YIELDS

Early Payoffs Lead to Higher Effective Yields and Earnings

IMPACT OF EARLY PAYOFFS ON EFFECTIVE YIELDS

(1) Core Yield excludes Early Repayments and One-Time Fees, and includes income from expired commitments

UNSCHEDULED EARLY PAYOFFS

($ IN MILLIONS)

1 25

16.9% 16.7% 16.0% 12.9% 13.8% 16.4% 14.2% 13.2% 14.4% 14.6% 14.4% 13.4% 13.9% 13.8% 13.0% 12.8% 13.2% 12.6% 13.3% 12.9% 13.4% 13.2% 12.9% 12.2% 10.6% 10.7% 10.3% 10.2% 9.8% 9.4% 9.2% 9.1% 9.2% 9.2% 9.2% 8.9% 5% 10% 15% 20%

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 GAAP Effective Yield Core Yield Loan Coupon Rate

$38.7 $84.0 $146.7 $46.5 $47.3 $189.2 $105.5 $55.0 $117.6 $84.2 $67.2 $100.3

4.2% 9.0% 15.4% 4.3% 4.0% 17.1% 9.2% 4.4%

9.4%

6.6% 4.9% 7.2%

0% 5% 10% 15% 20%

$0 $50 $100 $150 $200

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Early Payoffs Early Payoffs as % of Ending Total Debt Investment Balance at Cost

(1)

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SLIDE 26

$95.3 $104.0 $147.7 $134.1 $159.1 $109.6 $75.4 $64.6 $71.2 $73.9 $59.7 $75.9 10.4% 11.2% 15.5% 12.4% 13.6% 9.9% 6.5% 5.2% 5.7% 5.8% 4.3% 5.4%

$0.0 $30.0 $60.0 $90.0 $120.0 $150.0 $180.0

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

0% 2% 4% 6% 8% 10% 12% 14% 16%

Available Unfunded Commitments (in millions) Unfunded Commitments as % of Ending Debt Investment Balance at Cost

Available Unfunded Commitments (in millions) Unfunded Commitments as % of Total Ending Debt Investment Balance at Cost

EFFECTIVE MANAGEMENT OF UNFUNDED COMMITMENTS AS A PERCENTAGE OF ENDING DEBT INVESTMENT PORTFOLIO BALANCE

(1) Amount represents available unfunded commitments, including undrawn revolving facilities, which are available at the request by the portfolio company.

(1)

26

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SLIDE 27

$5,359 $6,319 $8,454 $7,414 $9,925 $12,472 $7,559 $8,265 $9,732 $9,736 $10,874 $9,410

1.8% 2.1% 2.7% 2.3% 3.1% 3.9% 2.3% 2.4% 2.8% 2.8% 3.1% 2.6%

0% 1% 2% 3% 4% 5% 6% 7% 8%

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000

OPEX as a % of Average Total Assets OPEX (in thousands)

Non-Interest and Fees Expense (excluding interest expense, fees, RSU & stock option expense) Non-Interest and Fees Expense as a % of Average Total Assets

2.7% of Average Total Assets from Q2-14 to Q4-16

NON-INTEREST AND FEE EXPENSE TO AVERAGE TOTAL ASSETS

RSU = Restricted Stock Units

27

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SLIDE 28

$7,825 $9,142 $11,166 $10,134 $12,193 $14,651 $9,764 $10,836 $11,334 $11,178 $12,301 $11,242

23.0% 24.7% 30.3% 31.2% 32.0% 31.1% 24.8% 27.8% 26.0% 24.8% 22.2% 24.2%

0% 5% 10% 15% 20% 25% 30% 35%

Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

$0 $5,000 $10,000 $15,000 $20,000

Non-Interest OPEX as a % of Total Investment Income Non-Interest OPEX (in thousands) Non-Interest Expense Non-Interest Expense as a % of Total Investment Income

NON-INTEREST EXPENSE / TOTAL INVESTMENT INCOME

28

slide-29
SLIDE 29

Steady credit quality rating – no oil & gas or CLO exposure

(1) Debt only; based on fair value

$827.5 $822.0 $923.9 $1,058.0 $1,137.6 $1,077.6 $1,110.2 $1,205.7 $1,211.8 $1,224.1 $1,328.8 $1,311.9

2.06 2.20 2.24 2.26 2.25 2.33 2.16 2.17 2.11 2.32 2.41 2.43

1.0 2.0 3.0 4.0 5.0

$0 $300 $600 $900 $1,200 Q4 12 Q4 13 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2-16 Q3-16 Q4-16 Q1-17 Credit Rating Debt Portfolio Value ($ in millions) Debt Portfolio Value Weighted Investment Credit Rating

(1)

High Quality Low Quality

CREDIT DISCIPLINE AND CONSISTENT PORTFOLIO PERFORMANCE

29

Credit Grading at Fair Value, Q1 2016 - Q1 2017 ($ in millions) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Grade 1 - High 287.4 23.8% 328.1 27.1% 269.8 22.0% 275.8 20.8% 260.2 19.8% Grade 2 636.0 52.7% 602.9 49.8% 516.5 42.3% 590.5 44.4% 591.7 45.1% Grade 3 202.2 16.8% 226.9 18.7% 372.0 30.4% 329.4 24.8% 356.9 27.2% Grade 4 40.4 3.4% 43.0 3.5% 40.8 3.3% 58.9 4.4% 78.9 6.0% Grade 5 - Low 39.7 3.3% 10.9 0.9% 25.1 2.0% 74.2 5.6% 24.2 1.9% Weighted Avg. 2.17 2.11 2.32 2.41 2.43

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SLIDE 30

Wells Fargo 12.3% Union Bank 7.7% Convertible Notes 23.6% July 2024 Notes 26.5% SBA License 1 - HTII 15.3% SBA License 2 - HTII 4.2% Asset Backed Notes 10.4%

$120.0 $75.0 $230.0 $258.5 $41.2 $149.0 $101.4

($ in millions)

DIVERSIFIED SOURCES OF FUNDING: Q1 2017

30

Entity Capitalization

Capital Source as of 3/31/17 $ in Millions % of Total Equity $807.9 50.9% SBA Debentures $190.2 12.0% Asset-Backed Notes $101.4 6.4% Convertible Notes $230.0 14.5% 2024 Notes (Baby Bonds) $258.5 16.2% Credit Facilities $0.0 0.0% Total Capital $1,588.0 100.0%

Debt Capital Stack Total Corporate Capitalization

SBA Debentures 12.0% Equity 50.9% Asset-Backed Notes 6.4% Credit Facilities 0.0% Convertible Notes 14.5% 2024 Notes (Baby Bonds) 16.2%

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SLIDE 31

(1) Interest rate range for the SBA debentures does not include annual fees

DIVERSIFIED SOURCES OF FUNDING (AS OF 3/31/17)

31

Wells Fargo Credit Facility Union Bank Credit Facility Notes SBA Debentures – Total debt of $190.2 million Securitization January 2022

  • Conv. Sr. Notes

July 2024 Notes License 1 - HTII License 2- HTIII DATE ENTERED

  • Aug. 2008
  • Feb. 2010
  • Jan. 2017

July 2014

  • Sept. 2006

May 2010

  • Nov. 2014

FACILITY SIZE

($ inmillions)

$120.0 $75.0 $230.0 $258.5 $41.2 $149.0 $101.4 INTEREST RATE LIBOR + 325bps LIBOR + 325bps 4.375% unsecured 6.25% unsecured Range(1) from 3.2% to 4.6% Range(1) from 2.2% to 4.1% 3.524% MATURITY

  • Aug. 2018

May 2019 February 2022 July 2024 Mature ten years after borrowing April 2021 ADDITIONAL INFO (Expandable up to $300.0) (Expandable up to $200.0) S&P: BBB- KBRA: BBB+ NYSE: HTGX S&P: BBB- KBRA: BBB+ Set in March and September (range from 2.2% to 5.5%) Rated A(sf) by Kroll OUTSTANDING

($ inmillions)

$0.0 $0.0 $230.0 $258.5 $41.2 $149.0 $101.4

Debt Maturity Schedule

$75.9 $25.5 $230.0 $21.8 $29.4 $53.8 $60.5 $24.8 $258.5 $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 2022 2023 2024

Securitization Convertible Notes SBA Bonds July 2024 Notes

slide-32
SLIDE 32

UNLEVERAGED BALANCE SHEET: PLENTY OF ROOM FOR GROWTH

73.0% Regulatory Leverage, excluding SBA 54.7% Net Regulatory Leverage, excluding SBA and cash 96.6% GAAP Leverage, including SBA

1:1

BDC Regulatory Limitation of Debt to Equity Ratio

$998M

Potential Max Debt of

1.24:1

Potential Max Debt to Equity Ratio of

Equity – $807.9 Million

Asset-Backed Notes – $101.4 Million Unsecured Notes – $488.5 Million SBIC Debenture – $190.2 Million March 31, 2017

Additional Debt Capacity – $218.0 Million

Credit Facilities 1) Revolving accordion credit facility for up to $300.0 million with Wells Fargo Capital Finance, $120.0 million expanded commitment. 2) Revolving accordion credit facility for up to $200.0 million with Union Bank, $75.0 million initial commitment. SBA Additional Leverage: 1st SBIC license issued in September 2006 by the SBA, 2nd SBIC license issued in May 2010 by the SBA. SEC exemptive order approved on April 5, 2007 rendering SBA licensees not subject to BDC 1:1 leverage restrictions. Leverage ratios determined using Principal Amount of Debt 32

slide-33
SLIDE 33

PORTFOLIO HIGHLIGHTS

slide-34
SLIDE 34

HERCULES’ INVESTMENT PORTFOLIO: Q1 2017

34

Communications & Networking 1.0% Consumer & Business Products 2.0% Drug Delivery 7.0% Drug Discovery & Development 31.0% Sustainable & Renewable Technology 8.0% Healthcare Services, Other 2.9% Information Services 0.4% Internet Consumer & Business Services 7.1% Media/Content/Info 10.1% Medical Devices & Equipment 6.6% Semiconductors 0.6% Software 18.6% Specialty Pharmaceuticals 2.8% Diagnostic & Surgical

Devices 0.9%

Electronics & Computer Hardware 0.5% Biotechnology Tools 0.5%

Number of Active Loan Companies 85 Average Debt Outstanding per Loan Company $16.5M Total Unfunded Commitments $137.4M Portfolio at Fair Value (as of 3/31/17) $1.41B Debt Investments $1.31B Equity Investments $62.3M Warrant Positions $32.0M

DIVERSIFICATION % OF DEBT INVESTMENTS, FAIR VALUE

TECHNOLOGY 40% LIFE SCIENCES 52% SUSTAINABLE & RENEWABLE TECHNOLOGY 8%

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SLIDE 35

Six (6) Existing Portfolio Companies in IPO Registration – YTD Q1 2017

▪ Six (6) companies filed confidentially under the JOBS Act

Q1 2017 Net Realized Gains of $3.2 million Current Warrant and Equity Portfolio – Q1 2017

HERCULES WARRANT & EQUITY PORTFOLIO: POTENTIAL FUTURE UPSIDE FOR SHAREHOLDERS

▪ 142 warrant holdings

  • GAAP fair value ~$32.0 million
  • GAAP cost ~$46.6 million
  • ~$103.8 million in nominal Exercise Value

(as of March 31, 2017)

▪ 55 equity holdings

  • GAAP fair value ~$62.3 million
  • GAAP cost ~$79.2 million

35

▪ Illustrative models of potential warrant gains (as of 3/31/17)

  • Assumption: 50% of warrants will not monetize
  • GAAP cost ~$46.6 million
  • Based on 81.4 million weighted average shares

$51.9M x 2X multiple: $103.8M - $46.6M cost = $57.2M unrealized gain = $0.70/share $51.9M x 3X multiple: $155.7M - $46.6M = $109.1M unrealized gain = $1.34/share $51.9M x 4X multiple: $207.6M - $46.6M = $161.0M unrealized gain = $1.98/share

slide-36
SLIDE 36

SELECT LIST OF DIVERSIFIED PORTFOLIO COMPANIES

36

Technology Life Sciences Sustainable & Renewable Technology Special Situations

36

(a) Equity-only Investments

(a) (a) (a) (a) (a)

slide-37
SLIDE 37

24.1% 26.2% 23.7% 29.7% 31.0% 2.2% 5.1% 4.3% 2.7% 2.8% 11.4% 13.5% 7.5% 7.6% 6.6% 4.0% 6.0% 2.8% 1.3% 1.0% 5.2% 2.6% 6.8% 8.7% 13.7% 7.7% 7.0% 13.4% 6.8% 7.4% 6.8% 7.1% 2.9% 9.7% 10.1% 7.2% 12.3% 12.3% 15.4% 18.6% 18.1% 6.7% 13.3% 10.9% 8.0% 1.5% 2.0%

6.2%

3.0% 2.0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 Q1 2017 % Total Investment Portfolio at Fair Value

Electronics & Computer Hardware Consumer & Business Products Diagnostic & Surgical Device Healthcare Services, Other Sustainable & Renewable Software Semiconductors Media/Content/Info Internet Consumer & Business Services Drug Delivery Information Services Communications & Networking Medical Devices & Equipment Specialty Pharmaceuticals Drug Discovery & Development Biotechnology Tools

$910.3 $1,020.7 $1,200.6

($M)

$1,423.9

A BROADLY DIVERSIFIED PORTFOLIO RE-BALANCED ACCORDING TO OUR ASSESSMENT OF ONGOING MARKET CONDITIONS MITIGATES RISK

37

8.0% 4.0%

$1,406.3

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SLIDE 38

DIVERSIFIED INVESTMENT APPROACH MITIGATES RISK

More than 500 Venture Capital Firms & Investors Technology Life Sciences Sustainable & Renewable Special Situations Expansion or “Venture Growth” & Established “Key VC Investment Centers

Palo Alto Boston Washington DC Los Angeles Chicago Hartford

FINANCIAL SPONSORS INDUSTRY SECTORS STAGES OF DEVELOPMENT GEOGRAPHIC LOCATION

Four Key Diversification Strategies

38

slide-39
SLIDE 39

VENTURE CAPITAL MARKET OPPORTUNITY

slide-40
SLIDE 40

$13.1

$17.9

$49.5 $94.1 $36.8 $22.6 $20.3 $23.6 $25.1 $31.2 $34.5 $33.3 $25.2 $28.9 $36.7 $34.8 $36.4 $58.5 $76.6 $53.8

$14.5

2,211 2,547 4,590 6,350 3,341 2,484 2,294 2,462 2,633 2,892 3,155 3,123 2,799 3,204 3,729 3,906 4,048 4,278 4,115 3,718 1032

1,000 2,000 3,000 4,000 5,000 6,000 7,000 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Q1 17 # of Deals Dollars Invested (billions) ($ in Billions) # of deals

Venture Capital Investment Activity 1997 – Q1 2017

OVER $767 BILLION VENTURE CAPITAL INVESTMENT

Source: Dow Jones VentureSource as of Q1 2017 40

$26.9 $54.6 $85.5 $42.5 $12.5 $10.4 $18.9 $29.0 $31.9 $39.3 $29.8 $14.9 $17.9 $21.1 $23.3 $21.8 $34.6 $36.6 $43.7 $8.1

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Q1 17 Funds Raised (In Billions)

Venture Capital Fundraising Activity 1997 – Q1 2017

slide-41
SLIDE 41

0% 20% 40% 60% 80% 100% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IPOs M&A

2.0 2.8 3.8 4.6 5.4 6.0 6.5 5.8 5.5 5.3 5.3 5.2 5.0 5.0 4.6 4.9 4.6 4.5 6.5 5.7 5.6 5.6 6.2 6.8 8.7 7.9 8.2 6.4 7.3 6.9 7.0 6.7 7.2 6.0

2 4 6 8 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IPOs M&A

Venture Debt Complements Equity Financing and Optimizes Capital Structure

WHY VENTURE BACKED COMPANIES USE VENTURE DEBT?

41

As Time to Exit has Increased... ... More Money Needs to Be Raised

1

Less dilutive than new VC round

2

Lengthens time before next equity round

3

Provides negotiating leverage for higher valuations

4

Leverages returns

  • f equity investors

Source: Dow Jones VentureSource as of Q1 2017

Median Time from Initial Equity Funding Breakdown of Venture Backed Liquidity Events

Source: Dow Jones VentureSource as of Q1 2017

Q1 Q1

slide-42
SLIDE 42

$26.5 $22.5

$43.3 $48.9 $46.7 $44.5 $88.3 $58.2 $117.8

$23.3

456 438 607 588 528 508 573 530 862 154 200 400 600 800 1,000 $0 $20 $40 $60 $80 $100 $120 $140

08 09 10 11 12 13 14 15 16 Q1 17

# of Deals Amount Paid (billions) ($ in Billions) # M&A Deals

EXITS OF VENTURE CAPITAL-BACKED COMPANIES

Source: Dow Jones VentureSource as of Q1 2017 42

$0.6 $0.9 $3.3 $5.4 $11.2 $8.2 $9.4 $6.4 $2.8 $4.0 9 8 48 46 51 75 108 67 38 7 20 40 60 80 100 120 $0 $2 $4 $6 $8 $10 $12

08 09 10 11 12 13 14 15 16 Q1 17

# of Deals Amount Raised (billions) ($ in Billions) # of IPOs

Mergers & Acquisitions Initial Public Offerings

slide-43
SLIDE 43

Commitments as % of VC Dollars Invested

0.9% 0.8% 1.4% 1.2% 0.8% 1.8% 1.7% 1.8% 1.9% 1.6% 1.0% 1.5% 1.3%

HERCULES TOTAL COMMITMENTS VS. VC DOLLARS

VENTURE CAPITAL INVESTMENT ACTIVITY 2005 –Q1 2017

Source: Dow Jones VentureSource as of Q1 2017

▪ Hercules’ uncompromising yield and credit underwriting standards drives commitments ▪ Market conditions determine commitment activity more than pure VC investment activity ▪ Hercules’ 12-year historical average: 1.4%

43

$25.1 $31.2 $34.5 $33.3 $25.2 $28.9 $36.7 $34.8 $36.4 $58.5 $76.6 $53.8 $14.5 $215 $243 $494 $413 $186 $523 $630 $637 $705 $905 $745 807 $191

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 05 06 07 08 09 10 11 12 13 14 15 16 Q1 17 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000

VC Dollars Invested (billions) Hercules Debt and Equity Commitments (millions)

VC Dollars Invested Hercules Debt & Equity Commitments

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SLIDE 44

HERCULES’ PORTFOLIO COMPANY IPOs

Source: Dow Jones VentureSource as of Q1 2017 44

48 46 51 75 108 67 38 2 2 7 5 8 7 1 1 2 3 4 5 6 7 8 9 20 40 60 80 100 120

10 11 12 13 14 15 16 Q1 17

Hercules’ Portfolio Company IPOs Venture Backed IPOs

VC-backed IPOs Hercules' PoCo IPOs

Participation as % of Total VC-Backed IPOs

4% 4% 14% 7% 7% 10% 3% 0% PROVIDING INVESTOR ACCESS TO SOME OF AMERICA’S MOST PROMISING COMPANIES

▪ M&A represents on average 80% of venture capital investment exits

7

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SLIDE 45

INVESTMENT HIGHLIGHTS

45

Large Market Opportunity Attractive Yields and Equity Upside from Warrant Portfolio Focused on strong and sustainable shareholder returns Experienced Management Team Platform in Place to Grow Portfolio Strong Balance Sheet and Diverse Funding Sources Strong Venture Capital and Private Equity Relationships Strict Focus on Credit Underwriting Process

slide-46
SLIDE 46

ANALYST COVERAGE

slide-47
SLIDE 47

BROAD INDUSTRY ANALYST COVERAGE – 10 FIRMS

47

Jonathan Bock (Initiated Coverage 4/25/2011) Ryan Lynch (Initiated Coverage 2/19/2013) Jason Arnold (Initiated Coverage 12/14/2007) Robert Dodd (Initiated Coverage 7/26/2012) Aaron James Deer (Initiated Coverage 9/29/2011) John Hecht (Initiated Coverage 6/30/2015) Merrill Ross (Initiated Coverage 6/5/2013) Casey Alexander Initiated Coverage 6/23/15) Mitchel Penn (Initiated Coverage 1/14/2015) Chris York (Initiated Coverage 10/24/2012)

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SLIDE 48

SUPPLEMENTAL INFORMATION

slide-49
SLIDE 49

Business Development Company (BDC)

▪ Regulated by the SEC under the Investment Company Act of 1940 ▪ Leverage limited to approximately 1:1 debt/equity, unless an SEC exemptive order exists to exclude SBA

debt

▪ Investments are required to be carried at fair value ▪ Majority of Board of Directors must be independent ▪ Offer managerial assistance to portfolio companies

Regulated Investment Company (RIC)

▪ Distribute taxable income as dividends to shareholders ▪ Mandates asset diversification ▪ Eliminates corporate taxation ▪ Allows for the retention of capital gains and/or spillover of taxable income

Small Business Investment Company (SBIC)

▪ Two Small Business Investment Company (“SBIC”) licenses granted through the U.S. Small Business

Administration (“SBA”)

▪ Currently, $190.2 million exemption from SEC leverage restrictions for BDCs, excludes all SBIC debt from

BDC 1:1 leverage test

Hercules is an Internally Managed BDC under the 1940 Act and a RIC for Tax Purposes

REGULATION AND STRUCTURE

49

slide-50
SLIDE 50

▪ Rapidly amortizing principal balance

and current cash-pay interest

▪ “Security interest” – generally first

security interest in all assets of borrower

▪ Simultaneous or recent equity round;

in addition sponsor commitment for continued financial support

▪ Generally expect sufficient capital at

time of investment to support

  • perations and debt service for at least

9 -18 months

▪ Diversification across industry

sub-sectors, development stages and financial sponsors

50

INVESTMENT STRUCTURE MITIGATES CAPITAL RISK

Note: Capital at risk reduced by fees, principal payments and interest payments. Assumes 36 month term, 1% origination fee, 11% interest, and a level payment schedule.

Reduction of Invested Capital at Risk

94% 71% 48% 25% 79% 60% 40% 20% 99% 0% 20% 40% 60% 80% 100% 3 6 9 12 15 18 21 24 27 30 33 36 Term of Loan (Months) % of Remaining HTGC's Capital at Risk Level Payment w/ 6-mo I/O Level Payment

Nearly 1/3 of invested capital returned in 12-months

slide-51
SLIDE 51

PRIMARILY INVEST AT STAGES OF HIGH GROWTH

51

Expansion Stage Established

Type of Company

Follow-on Rounds

  • f Growth Capital

(Series B-Liquidity Event) Private Late Stage/ Select Public Companies

Equity Capital Provider

Venture Capital/ Private Equity Public Markets/ Private Equity

Expectation for Additional Sponsor Support

1–3 Additional Rounds 0–2 Additional Rounds

Targeted Warrant Gain Potential

3–7 x 2–4 x

Potential Time to Liquidity

4–6 years 2–4 years