Hercules Capital Market Research Report
Company Overview
Name, Mission of the Company
- Name: Hercules Capital, Inc. (NYSE: HTGC)
- Mission: Hercules Capital aims to empower innovative entrepreneurs by providing senior secured venture growth loans, focusing on flexibility and low dilution capital financing which complements existing equity capital.
History and Founders
- Founded: December 2003
- By Whom: No information is available
Key People
- Key People: No information is available
Headquarters
- Headquarters: 1 North B Street, Suite 2000, San Mateo, CA 94401
Employees
- Number of Employees: No information is available
Financials
- Revenue of the Company:
- Record Q3 2024 Total Investment Income: $125.2 Million
- Q3 2024 Net Investment Income: $83.2 Million
Notoriety
- What is the company known for: Hercules Capital is known as the largest non-bank source of venture lending and financing in the market. It is recognized for its expertise in providing creative financial solutions to growth companies across life sciences, technology, SaaS finance, sustainable and renewable, and special situations.
Products
Products Offered
- Venture Growth Loans: Hercules capital specializes in providing senior secured venture growth loans to high-growth, venture capital-backed companies.
High-Level Description
- Venture Capital Financing: Provides flexible and less regulated growth capital for emerging growth companies, including pre-IPO and M&A companies.
- Asset Management Services: Through its wholly owned subsidiary, Hercules Adviser LLC, providing investment management for external parties.
Key Features of Products
- Transaction Size: Ranges from $5 to $200 million.
- Growth Capital Financing: Includes runway extension, asset acquisition financing, management buy-outs, revenue acceleration, and more.
- Asset-Based Financing, including: Working capital revolving lines of credit and equipment loans.
- IPO and M&A Financing: Includes bridge financing and cash flow management solutions to protect share price volatility.
Recent Developments
Recent Financial Performance
- Q3 2024 Financial Highlights:
- Total Gross New Debt and Equity Commitments: $430.7 Million
- Total Gross Fundings: $272.0 Million
- Assets Under Management: Approximately $4.6 Billion, indicating a 10.9% increase year-over-year.
New Partnerships and Initiatives
- Partnerships/Investments: Hercules Capital continues to support over 660 innovative ventures through capital investments, engaging in industries such as life sciences, technology, and sustainable sectors.
New Products or Features
- No information is available
New Partnerships
- Recent Recognition: Received a Baa3 Investment Grade Rating with a revised outlook to Positive from Moody’s Investors Service and a BBB+ Reaffirmed Investment Grade Corporate Rating from Kroll Bond Rating Agency, Inc.
Conclusion
Hercules Capital is strategically positioned as a leader in specialty finance, providing essential, flexible financial solutions that empower growth-oriented companies. Its robust performance is evidenced by the consistent financial metrics and its proactive engagement across evolving market needs through strategic investments and partnerships.
