Hercules Capital is a Business Development Company (BDC) that provides venture debt — primarily senior secured floating-rate loans — to VC- and PE-backed companies in technology and life sciences. As the largest publicly traded specialty finance company in this niche, Hercules originates loans to growth-stage companies that want non-dilutive capital to extend runway or fund milestones without selling equity. Hercules sources deals primarily through relationships with VC and PE firms, who direct portfolio companies to Hercules when those companies need debt. The loan portfolio exceeded $5B at year-end 2025, spread across 127 companies roughly split between life sciences and technology. Hercules earns interest income on its floating-rate loans, supplemented by upfront fees, end-of-term fees, and prepayment income. In roughly 80% of loans, Hercules also receives warrants or equity rights, providing upside when portfolio companies are acquired or go public. Hercules borrows at roughly 5% and deploys at a core yield of ~12.5%, using ~1:1 debt-to-equity leverage to amplify returns. Alongside the BDC, Hercules manages a growing private credit fund platform through its wholly owned adviser subsidiary, which had nearly $2B in committed capital as of early 2026 and generated ~$23M in net investment income for HTGC in 2025. As a BDC and RIC, Hercules distributes at least 90% of taxable income to shareholders. Hercules is internally managed, which keeps operating costs lower than many BDC peers.