Financing the Growth of Tomorrow's Companies Today Q3 2023 INVESTOR PRESENTATION November 2, 2023 This presentation 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-Q _________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 ___________________________________ ...

Financial Performance - The company generated record total investment income of $116.2 million, up 61% year-over-year, and record net investment income of $75.7 million, up over 88% year-over-year, equating to $0.53 per share [6][41] - The return on equity reached over 20% for the first time in the company's history [6][41] - The net asset value per share increased to $10.96, representing a 1.3% quarter-over-quarter increase [22][38] Business Line Performance - The company funded debt capital to 19 different companies in Q2, with six being new borrower relationships [7] - Approximately 30% of fundings in the quarter were from unfunded commitments, while 70% came from new commitments, indicating healthy new deal volume [58] - The weighted average internal credit rating improved to 2.24 from 2.26 in Q1, with Grade 1 and 2 credits remaining stable at 59.4% [97] Market Data - Capital raising across the portfolio was strong, with 21 companies raising nearly $1.9 billion in Q2, up over 100% from Q1 [9] - The venture capital ecosystem saw $40 billion in investments in Q2, slightly lower than Q1's $46 billion, but still on track to meet or exceed pre-pandemic levels for 2023 [98] Company Strategy and Industry Competition - The company emphasized diversification in its asset base, managing approximately 50% in technology and 50% in life sciences [29] - The company is optimistic about capturing market share due to the absence of Silicon Valley Bank, which was a dominant player in the market [75][76] - The focus for the second half of 2023 will remain on prudent underwriting and maintaining liquidity [13] Management Commentary on Operating Environment and Future Outlook - Management noted that the venture capital ecosystem remains healthy despite being more selective, with a significant decrease in the number of individual investments [69] - The company expects prepayment activity to remain healthy but decrease to $175 million to $250 million in Q3 [37] - Management expressed confidence in the quality of the loan portfolio, which has led to higher prepayments compared to peers [86] Other Important Information - The company ended Q2 with strong liquidity of over $670 million, which supports both existing portfolio companies and new opportunities [46] - The company raised $65 million through the ATM market, resulting in a $0.07 per share accretion to NAV [25] Q&A Session Summary Question: What is the company's strategy regarding diversification? - The company is managing its asset base at roughly 50% in technology and 50% in life sciences, with plans to adjust based on macro conditions [29] Question: Are there advantages in terms and conditions due to market position? - The company believes it can negotiate better quality deals rather than focusing on tougher deals, maintaining a strong pipeline [10] Question: How is the company responding to changes in the venture capital landscape? - Management noted that while the VC ecosystem is volatile, it remains robust, with significant capital still being deployed [69] Question: What is the outlook for prepayment activity? - The company expects prepayment activity to remain healthy but to decrease in Q3, reflecting the quality of its loan portfolio [37] Question: How does the company view the competitive landscape post-SVB? - Management believes the absence of SVB has created opportunities for market share gains and expects this trend to continue [75][76]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization) 400 ...

Financial Data and Key Metrics Changes - Hercules Capital reported record total investment income of $105.1 million and record net investment income of $65.5 million, or $0.48 per share, providing 123% coverage of the base distribution of $0.39 per share [13][43] - The company's net realized gains were $8 million, with a strong liquidity position of over $553 million, totaling approximately $1 billion when including private funds [17][46] - The NAV per share increased by 2.8% quarter-over-quarter to $10.82 per share [44] Business Line Data and Key Metrics Changes - In Q1, Hercules achieved gross fundings of over $476 million, leading to a net debt investment portfolio growth of over $153 million, marking the fifth consecutive quarter of exceeding $100 million in growth [8][12] - The company funded debt capital to 31 different companies, with nine being new borrower relationships, indicating a balanced approach between new and existing borrowers [30][113] Market Data and Key Metrics Changes - The venture capital ecosystem experienced a significant funding gap, with late-stage capital demand to supply ratio reaching a decade high of 3.2x in Q1 2023 [86] - Despite the overall decline in venture funding activity, the company noted that the capital available for late-stage companies remains substantial, with $37 billion in venture funding in Q1 [88] Company Strategy and Development Direction - Hercules Capital aims to leverage the opportunities created by the exit of SVB from the market, positioning itself to fill the void left by competitors [51][79] - The company has established a new private credit fund vehicle to enhance liquidity and capitalize on market dislocation [29][89] - The strategic focus remains on maintaining a strong balance sheet, selective underwriting, and investing in team and systems [40][93] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market volatility and capitalize on emerging opportunities [28][117] - The company anticipates continued strong M&A activity across its portfolio, validating its selective underwriting approach [33][67] - Management expects prepayment activity to increase in Q2, driven by M&A, with guidance set between $225 million and $320 million [12][75] Other Important Information - The weighted average internal credit rating of the debt investment portfolio was 2.26, indicating stable credit quality [14] - Approximately 82% of the debt investment portfolio is in senior secured first lien positions, reflecting a conservative risk profile [37] Q&A Session Summary Question: Impact of SVB's situation on the ecosystem - Management clarified that the SVB situation does not reflect the health of the venture ecosystem and presents a significant opportunity for Hercules [50][51] Question: Current market conditions and deal quality - Management noted that while many deals are being evaluated, the focus remains on maintaining high credit quality and avoiding marginal deals [56][83] Question: Recovery expectations for portfolio companies - Management expressed confidence in the recovery of portfolio companies, emphasizing strong cash positions and ongoing support [58][102] Question: Trends in capital availability for late-stage companies - Management indicated that significant capital remains available for late-stage companies, with expectations of a gradual return to normalcy in valuations [60][87] Question: Opportunities from the recent market turmoil - Management highlighted the potential for increased market share and stronger incumbency positions due to the exit of SVB and other competitors [91][112]

Q1 2023 INVESTOR PRESENTATION Important Notice: This presentation 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 i ...

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements and notes, detailing assets, operations, cash flows, and investments for Q1 2023 and FY2022 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities%20as%20of%20March%2031,%202023%20(unaudited)%20and%20December%2031,%202022) This section presents the unaudited consolidated statements of assets and liabilities as of March 31, 2023, and December 31, 2022 | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Total assets | $3,251,819 | $3,028,855 | | Total investments, at fair value | $3,130,178 | $2,963,955 | | Cash and cash equivalents | $71,129 | $15,797 | | Total liabilities | $1,752,813 | $1,627,396 | | Total net assets | $1,499,006 | $1,401,459 | | Net asset value per share | $10.82 | $10.53 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022%20(unaudited)) This section presents the unaudited consolidated statements of operations for the three months ended March 31, 2023, and 2022 | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :--------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total investment income | $105,090 | $65,157 | | Total net operating expenses | $39,591 | $29,370 | | Net investment income | $65,499 | $35,787 | | Net realized gain (loss) | $7,960 | $(2,381) | | Net change in unrealized appreciation (depreciation) | $21,105 | $(36,742) | | Net increase (decrease) in net assets from operations | $94,564 | $(3,336) | | Net investment income before gains and losses per common share (Basic) | $0.48 | $0.30 | | Change in net assets from operations per common share (Basic) | $0.69 | $(0.03) | [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022%20(unaudited)) This section presents the unaudited consolidated statements of changes in net assets for the three months ended March 31, 2023, and 2022 | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | | Balance as of period start | $1,401,459 | $1,308,547 | | Net increase (decrease) in net assets from operations | $94,564 | $(3,336) | | Public offering, net of offering expenses | $65,342 | $85,249 | | Distributions | $(64,774) | $(57,882) | | Balance as of period end | $1,499,006 | $1,333,448 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022%20(unaudited)) This section presents the unaudited consolidated statements of cash flows for the three months ended March 31, 2023, and 2022 | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :--------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by (used in) operating activities | $(80,874) | $(188,622) | | Net cash provided by (used in) investing activities | $(94) | $(50) | | Net cash provided by (used in) financing activities | $134,040 | $114,864 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $53,072 | $(73,808) | | Cash, cash equivalents, and restricted cash at end of period | $78,948 | $62,457 | - Operating activities used less cash in Q1 2023 compared to Q1 2022, primarily due to a **$111.2 million increase** in principal and fee repayments received on debt investments and a **$6.2 million increase** in proceeds from equity sales[330](index=330&type=chunk) [Consolidated Schedule of Investments as of March 31, 2023](index=7&type=section&id=Consolidated%20Schedule%20of%20Investments%20as%20of%20March%2031,%202023%20(unaudited)) This section presents the unaudited consolidated schedule of investments as of March 31, 2023 | Investment Type | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Senior Secured Debt | $2,910,526 | 93.0% | | Unsecured Debt | $58,125 | 1.9% | | Preferred Stock | $40,345 | 1.3% | | Common Stock | $84,072 | 2.7% | | Warrants | $33,210 | 1.0% | | Investment Funds & Vehicles | $3,900 | 0.1% | | **Total** | **$3,130,178** | **100.0%** | Top 3 Industry Sectors by Fair Value (March 31, 2023) | Industry Sector | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Drug Discovery & Development | $1,220,057 | 39.0% | | Software | $828,712 | 26.5% | | Consumer & Business Services | $474,883 | 15.2% | - The PRIME interest rate was **8.00%** as of March 31, 2023, with gross unrealized appreciation for federal income tax purposes totaling **$87.9 million** and gross unrealized depreciation at **$106.6 million**[46](index=46&type=chunk) [Consolidated Schedule of Investments as of December 31, 2022](index=18&type=section&id=Consolidated%20Schedule%20of%20Investments%20as%20of%20December%2031,%202022) This section presents the consolidated schedule of investments as of December 31, 2022 | Investment Type | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Senior Secured Debt | $2,741,388 | 92.5% | | Unsecured Debt | $54,056 | 1.8% | | Preferred Stock | $41,488 | 1.4% | | Common Stock | $92,484 | 3.1% | | Warrants | $30,646 | 1.1% | | Investment Funds & Vehicles | $3,893 | 0.1% | | **Total** | **$2,963,955** | **100.0%** | Top 3 Industry Sectors by Fair Value (December 31, 2022) | Industry Sector | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Drug Discovery & Development | $1,150,707 | 38.8% | | Software | $798,264 | 26.9% | | Consumer & Business Services | $439,384 | 14.8% | - The PRIME interest rate was **7.50%** as of December 31, 2022, with gross unrealized appreciation for federal income tax purposes totaling **$72.2 million** and gross unrealized depreciation at **$112.0 million**[71](index=71&type=chunk) [Notes to Consolidated Financial Statements](index=29&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides comprehensive notes to the unaudited consolidated financial statements [Note 1. Description of Business](index=30&type=section&id=1.%20Description%20of%20Business) Hercules Capital, Inc. is a specialty finance BDC providing senior secured loans to high-growth, venture-backed

Hercules Capital, Inc. (NYSE:HTGC) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Michael Hara - MD, IR & Corporate Communications Scott Bluestein - CEO, CIO, President & Director Seth Meyer - CFO & CAO Conference Call Participants Crispin Love - Piper Sandler & Co. Kevin Fultz - JMP Securities Christopher Nolan - Ladenburg Thalmann & Co. Casey Alexander - Compass Point John Hecht - Jefferies Ryan Lynch - KBW Operator Good day, and thank you for standing by. Welcome to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 814-00702 HERCULES CAPITAL, INC. (Exact name of Registrant as specified in its charter) Maryland 74-3113410 (State or other jurisdiction of in ...

Hercules Capital, Inc. (NYSE:HTGC) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET Company Participants Michael Hara – Managing Director-Investor Relations Scott Bluestein – Chief Executive Officer​ and Chief Investment Officer Seth Meyer – Chief Financial Officer Conference Call Participants Crispin Love – Piper Sandler Kevin Fultz – JMP Securities Ken Lee – RBC Capital Markets Ryan Lynch – KBW Christopher Nolan – Ladenburg Thalmann Operator Good day, and thank you for standing by. Welcome to ...