Horizon Technology Finance (ticker: HRZN) is a business development company (BDC) that makes secured loans to VC- and PE-backed startup and development-stage companies in technology, life sciences, healthcare IT, and sustainability. These "Venture Loans" are typically first-lien term loans secured against all of a borrower's assets. Borrowers are companies that have already raised at least one round of VC or PE funding and need capital to extend their runway between equity rounds, hit milestones, or fund growth. Horizon originates loans directly through a network of VC and PE relationships, law firms, and investment banks. Horizon earns interest income on its floating-rate loan portfolio, with coupon rates on new originations generally in the 7%–13% range and an overall portfolio yield historically in the 14%–16% range. Horizon also earns origination fees, end-of-term payments, and prepayment fees. In addition, Horizon routinely receives warrants to purchase equity in borrowers as additional loan consideration, providing episodic upside from IPOs or M&A exits. Horizon is externally managed by a Monroe Capital affiliate, which earns a base management fee and a 20% incentive fee above a 7% hurdle rate. Horizon uses leverage targeting roughly 1.2–1.3x net debt-to-equity. In August 2025, Horizon announced a merger with Monroe Capital Corporation, another Monroe-affiliated BDC, in a NAV-for-NAV share exchange expected to add roughly $165M in net equity capital and generate approximately $2.5M in annualized G&A savings.