Market Overview

Hercules Capital's New SaaS Finance Division Has Successfully Originated More Than $305.0 Million in New Debt Commitments YTD 2018

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Hercules
Capital, Inc.
(NYSE:HTGC) ("Hercules" or the "Company"), the
leading specialty finance company to innovative, venture growth, pre-IPO
and M&A stage companies backed by leading venture capital firms, today
announced that its recently formed Hercules Capital SaaS Finance
division has surpassed $305.0 million, year-to-date 2018, in new
commitments to some of the most innovative Software-as-a-Service
("SaaS") companies since its formation in June 2018. Hercules Capital
SaaS Finance division has provided venture debt growth capital to
notable SaaS companies, such as Evernote, Fuze, OneLogin, Wrike, and
ZocDoc, among others.

Since officially and publicly unveiling the division in June 2018, the
Hercules Capital SaaS Finance team continues to drive strong loan growth
in the Company's technology portfolio and currently represents more than
30 percent, and growing, of the total debt investment portfolio, at
cost, as of June 30, 2018. Hercules SaaS Finance division offers many
advantages over traditional regulated commercial bank financing
alternatives, including the ability to highly customize a flexible
financing solution that meets a company's specific capital requirements
and fills the void left by traditional commercial lenders.

With nearly $1.8 billion in total assets as of June 30, 2018, Hercules
has the depth, scale, ability and capabilities to offer a wide range of
growth capital financing solutions to these emerging disruptive
innovative SaaS companies.

"With more than $305.0 million in SaaS debt commitments thus far in
2018, our newly formed Hercules Capital SaaS Finance division has
achieved strong initial market reception in just a few months and
remains a strong growth catalyst for our industry-leading venture
lending originations platform," stated Manuel A. Henriquez, founder,
chairman and CEO of Hercules. "This new highly specialized lending
division leverages the successful knowledge and track record Hercules
Capital has established over the past 14 plus years of providing over $8
billion in capital commitments to more than 430 of these highly
innovative and disruptive companies, including our growing focus on SaaS
companies."

Henriquez continued, "As technology continues to evolve from
hardware-based solutions to superior software-based advanced solutions,
enterprise software companies, and specifically SaaS-based company
models, are growing in popularity as many new advancements in
telecommunications, data and network security, are helping to drive this
new cloud-based computing paradigm, as one of the most important trends
emerging in the software industry. This growing trend and demand is
evidenced by our own successful launch of our SaaS finance division and
reflects the continued corporate adoption of these technologies and
seeing broad investor support in both the public and private markets. As
the Hercules SaaS Finance division continues to originate new loans, we
will provide our investors with more meaningful exposure to this
attractive segment of the technology market."

According to the Bessemer Cloud Index, publicly traded SaaS companies'
share prices have appreciated approximately 40 percent through August
15, 2018 and in some cases achieved Enterprise Value to Revenue
multiples in excess of 10x. This index tracks 50 pure play public cloud
and SaaS-based companies (https://www.bvp.com/resource/bvp-cloud-index).

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE:HTGC) ("Hercules") is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $8.0 billion to over
430 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.

Hercules' common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC." In addition, Hercules has four
outstanding bond issuances of 6.25% Notes due 2024 (NYSE:HTGX), 4.375%
Convertible Notes due 2022, 4.625% Notes due October 2022 and 5.25%
Notes due 2025 (NYSE:HCXZ).

Forward-Looking Statements

This press release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 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 press release is made as of the date
hereof and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.

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