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 the official launch of the Hercules Capital SaaS Finance
division, which will be dedicated exclusively to servicing the needs of
fast growing SaaS companies in this specialized and growing technology

Hercules Capital SaaS Finance aims to fill the void in the software and
technology lending markets by offering flexible solutions based on
monthly or annual recurring revenues (“MRR” and “ARR”), respectively.
Hercules SaaS lending solutions expects to provide growth capital to
rapidly growing SaaS companies between 2x to 7x MRR or 2x to 5x ARR, and
to be drawn upon as needed to support growth, while minimizing dilution.

Anticipated initial industry and sector focus to include:

  • Software
  • Application software
  • Healthcare IT
  • Data analytics “Big Data”
  • eCommerce
  • Tech-enabled services
  • Cyber security
  • Mobile
  • Digital media
  • Gaming

The new group, led by senior managing director Steve Kuo, Catherine
Jhung, and Thomas Harris, is expected to utilize the deep venture
lending expertise of Hercules’ seasoned investment team and leverage the
Company’s balance sheet strength to fill the void in the software and
technology lending markets. To contact the team and learn more, please

“Hercules Capital SaaS Finance is a natural extension of our market
leading venture lending platform and represents our commitment to
supporting the unique needs of entrepreneurs and managers of these
high-growth innovative businesses,” commented Manuel A. Henriquez,
founder, chairman and CEO of Hercules Capital. “Our team already
possesses a successful track record of working with multiple SaaS
companies having completed more than 28 transactions in this area since
2011. We felt that because of the continued growth in this market and
the specialized skills it takes to work with these companies, it only
made sense to formalize a business line focused exclusively on servicing
the needs of these unique SaaS companies.”

Hercules Capital SaaS Finance will offer SaaS loans ranging in size from
$1.0 million to $100.0 million as well as have the ability to provide
additional tranches of structured debt growth capital, including
asset-based lending (“ABL”), term loan financing solutions or
acquisition financing to support a company’s unique capital needs. With
nearly $1.7 billion in total assets, Hercules Capital has the scale and
capabilities to offer a wide range of growth capital financing
solutions, having originated over $7.6 billion to more than 420
companies since its inception in December 2003.

Steve Kuo, senior managing director and head of Hercules SAAS Finance,
added, “The universe of SaaS companies is rapidly growing and is defined
by a specific set of characteristics which differ from our other
industry lending groups. These traits include monthly recurring
revenues, a growing backlog of new customers and strong retention rates.
Historically, attractive candidates for our innovative financing
solutions are SaaS companies that have already completed their Series B
financing round.”

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 $7.6 billion to over
420 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
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). In addition, Hercules has one outstanding
bond issuance of 6.25% Unsecured Notes due July 2024 (NYSE: HTGX).

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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