Hercules Capital
Venture debt of $5 million to $500 million (typically $25M to $100M) for VC-backed tech and life sciences firms. About 7% to 14% floating plus fees and warrants. NYSE: HTGC.
Rates & Cost
What the financing costs, normalized so lenders can be compared.
Repayment Terms
How and how fast you pay it back, and how flexible it is.
Eligibility & Access
Who qualifies and what you have to put on the line.
Speed & Service
How fast you get funded and how the lender treats you.
Company Verification
Who actually stands behind the lender: legal entity, registration, and how long the business and its website have existed. Checked against public registries.
Best for: Venture-backed technology and life sciences companies past the seed stage that need $25 million or more in non-dilutive growth capital and can carry a senior lien and warrants.
Not for: Bootstrapped or seed-stage startups, anyone needing under $5 million, or founders unwilling to pledge IP or grant warrants.
Lender List verdict: Hercules Capital calls itself the largest BDC focused on venture lending, with more than $28 billion committed and facilities up to $500 million. Expect interest of roughly 7% to 14% plus fees and warrants; our $25 million example costs about 13.5% APR before the warrant value.
Hercules Capital at a glance
Hercules Capital lends $5 million to $500 million to venture-backed companies, typically $25 million to $100 million.
| Hercules Capital | |
|---|---|
| Lender type | Direct venture lender; publicly traded business development company (BDC) |
| Founded | 2003 |
| HQ | San Mateo, CA |
| Parent/owner | Hercules Capital, Inc. (NYSE: HTGC), internally managed |
| Products | Venture and growth debt, asset-based lines, pre-IPO and public company financing |
| Amounts | $5 million to $500 million; typically $25 million to $100 million |
| Cost (headline) | Floating rates of about 7% to 14%, plus fees and warrants |
| Term | 2 to 5 years (average 3.5 years), often interest-only first |
| Funding speed | Lender does not publish; full diligence before a term sheet |
| Status | Active (2026-10-26); KBRA BBB+, Stable |
What is Hercules Capital?
Hercules Capital is a San Mateo, California venture debt lender, founded in 2003, that has committed more than $28 billion to over 700 companies. It went public in June 2005 and trades on the NYSE as HTGC.
The firm is an internally managed BDC with over 100 staff in seven offices and more than $6 billion under management, including private funds run by its subsidiary Hercules Adviser. It lends under a California Finance Lenders Law license; some subsidiaries hold SBIC licenses.
How Hercules Capital venture debt works
Hercules Capital venture debt is a senior secured term loan, usually 36 to 48 months, at a floating rate with a floor, paired with warrants and often starting interest-only.
- Uses: runway extension, acquisitions, clinical trials, working capital
- Structures: growth term loans, mezzanine debt, receivables and equipment lines, pre-IPO bridges
- Milestones: life sciences loans can release tranches as clinical or regulatory goals are hit
- Security: usually a first lien on all assets, or a negative pledge on intellectual property
Who qualifies for Hercules Capital
Hercules Capital lends to companies beyond the seed stage that have operated at least 6 to 12 months and have revenue, or a credible plan for it within 24 to 48 months.
Tech borrowers need product-market fit, growing recurring revenue and strong VC backing; Value Add VC reports seed-stage companies under about $1 million in ARR rarely clear underwriting. Life sciences borrowers should have several equity rounds, strong IP and a clear regulatory path.
Hercules Capital rates, fees and warrants: what it really costs
Hercules Capital loans carried rates of roughly 7% to 14% at the end of 2025, almost all floating over Prime or SOFR with a floor. Value Add VC puts typical pricing at SOFR plus 6% to 8%, about 11% all-in.
- Interest: floating with a floor; fixed rates are rare
- Fees: any of commitment, exit (end-of-term), success, balloon or prepayment fees; Hercules does not publish percentages
- Warrants: usually attached; Value Add VC reports 0.5% to 1.5% coverage
- Portfolio yield: 13.4% GAAP effective yield in Q2 2026
Worked example: a $25 million loan at 11% with a 1.5% origination fee ($375,000) and a 4.5% exit fee ($1,125,000), within the market norms Value Add VC reports (1% to 2% origination, 3% to 6% exit), plus 12 months interest-only and 24 months of amortization. You pay $229,167 a month in year one, then $1,165,196 a month. Interest totals $5.71 million, so total borrowing cost is about $7.21 million on $25 million, roughly 13.5% APR. A 1% warrant adds $250,000 of equity at your last round price.
Hercules Capital requirements
Hercules Capital publishes no credit score or revenue minimum.
| Requirement | Hercules Capital minimum |
|---|---|
| Personal credit score | Not used; company-level underwriting |
| Time in business | Generally 6 to 12 months of operations, beyond seed |
| Annual revenue | Revenue or a plan for it within 24 to 48 months (third-party: seed-stage firms under about $1 million ARR rarely qualify) |
| Bank account / integrations | Lender does not publish |
| Credit check | Company diligence, not a consumer pull |
| Collateral / guarantee | First lien on all assets or IP negative pledge; warrants |
Pros and cons
Hercules Capital's strengths are scale and sector depth; its drawbacks are deal minimums, warrants and fees.
Pros
- Facilities up to $500 million
- Deep life sciences practice with milestone-based tranches
- Interest-only periods preserve early runway
- Public BDC: pricing, yields and losses are reported quarterly
Cons
- Typical deals start around $25 million
- Warrants dilute founders, and fees add to the rate
- Senior lien on all assets, including IP
- Prepayment fees and financial covenants
- Full diligence process; Capchase, a rival lender, calls it extended
Hercules Capital vs. TriplePoint Capital vs. Lighter Capital
Hercules Capital lends up to $500 million, against $50 million at TriplePoint Capital and $4 million per plan at Lighter Capital.
| Hercules Capital | TriplePoint Capital | Lighter Capital | |
|---|---|---|---|
| Max amount | $500 million (typically $25 million to $100 million) | $3 million to $50 million | Up to $4 million per plan; $10 million total |
| Pricing | About 7% to 14% floating, plus fees and warrants | SOFR + 6% to 9%; warrants 0.75% to 2% | 1.3x to 1.5x repayment cap |
| Min FICO | Not used | Not published | Not published |
| Min time in business | 6 to 12 months, beyond seed | Not published | Not published |
| Min annual revenue | Revenue or a plan within 24 to 48 months | Not published | $200,000 ARR or $15,000 MRR |
| Repayment | Interest-only, then monthly amortization | Not published | % of monthly revenue or fixed monthly, up to 3 years |
| Early payoff | Prepayment fees may apply | Not published | Allowed; full cap still owed |
TriplePoint Capital figures are third-party (Value Add VC, July 2026); Lighter Capital figures are from its own site, checked 2026-10-26.
Choose Hercules Capital for $25 million or more with strong VC backing. Choose TriplePoint Capital if you are earlier stage. Choose Lighter Capital for smaller SaaS needs without warrants.
Hercules Capital alternatives on Lender List
The closest Hercules Capital alternative on Lender List is Lighter Capital, for smaller SaaS companies.
- Lighter Capital — revenue-based and term loans for SaaS without warrants
- Recurring revenue lending — loans sized to ARR
- Mezzanine debt — subordinated growth capital
- Browse all venture debt lenders on Lender List
Frequently asked questions about Hercules Capital
Is Hercules Capital Legit? Yes. Hercules Capital has lent since 2003, trades on the NYSE, files with the SEC as a BDC, and holds a California Finance Lenders Law license. KBRA affirmed its BBB+ rating in August 2026. Its founder stepped down in March 2019 after college-admissions charges unrelated to the firm's lending.
Is Hercules Capital the Same as Hercules Capital, Inc.? Yes. Hercules Capital, Inc. is the legal name of the same San Mateo lender, whose common stock trades on the NYSE as HTGC. Hercules Adviser LLC, a registered investment adviser launched in 2021, is a wholly owned subsidiary that manages institutional funds investing alongside the public company.
Is Hercules Capital a BDC? Yes. Hercules Capital is an internally managed business development company, so it must invest at least 70% of assets in qualifying companies and, as a regulated investment company, distribute at least 90% of its taxable investment income. As a public BDC it reports yields and non-accruals every quarter.
Where Is Hercules Capital Headquartered? Hercules Capital is headquartered at 1 N B Street, Suite 2000, in San Mateo, California. It runs seven offices in all, with Boston, New York, Denver, Westport, San Diego and London alongside the head office, and employs more than 100 professionals, including over 50 on its investment team.
What Does Hercules Capital Do? Hercules Capital lends $5 million to $500 million to venture-backed technology and life sciences companies through growth term loans, asset-based lines and pre-IPO financing, earning interest, fees and warrants. Its sectors include enterprise software, AI, cybersecurity, biotech and medical devices.
How Can I Apply for a Loan From Hercules Capital? You apply through the "Work with us" contact form on htgc.com, which routes to the technology or life sciences team. An investment professional follows up, and the firm underwrites your stage, investors, revenue plan and runway before any term sheet. There is no online application or instant quote.
Does Hercules Capital Take Warrants? Usually, yes. Hercules Capital typically attaches warrants to its structured debt, exercisable for 5 to 10 years, and often gets the right to invest in your next equity round. Value Add VC reports coverage of 0.5% to 1.5% of the loan.
When Did Hercules Capital IPO? Hercules Capital went public on June 9, 2005, at $13.00 a share, about 18 months after its December 2003 founding. Its common stock trades on the NYSE as HTGC, and its 6.25% notes due 2033 trade as HCXY. Investors should use investor.htgc.com; this page covers borrowing.
Last verified 2026-10-26. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.
Best for: Venture-backed technology and life sciences companies past the seed stage that need $25 million or more in non-dilutive growth capital and can carry a senior lien and warrants.
Not for: Bootstrapped or seed-stage startups, anyone needing under $5 million, or founders unwilling to pledge IP or grant warrants.
Lender List verdict: Hercules Capital calls itself the largest BDC focused on venture lending, with more than $28 billion committed and facilities up to $500 million. Expect interest of roughly 7% to 14% plus fees and warrants; our $25 million example costs about 13.5% APR before the warrant value.
Hercules Capital at a glance
Hercules Capital lends $5 million to $500 million to venture-backed companies, typically $25 million to $100 million.
| Hercules Capital | |
|---|---|
| Lender type | Direct venture lender; publicly traded business development company (BDC) |
| Founded | 2003 |
| HQ | San Mateo, CA |
| Parent/owner | Hercules Capital, Inc. (NYSE: HTGC), internally managed |
| Products | Venture and growth debt, asset-based lines, pre-IPO and public company financing |
| Amounts | $5 million to $500 million; typically $25 million to $100 million |
| Cost (headline) | Floating rates of about 7% to 14%, plus fees and warrants |
| Term | 2 to 5 years (average 3.5 years), often interest-only first |
| Funding speed | Lender does not publish; full diligence before a term sheet |
| Status | Active (2026-10-26); KBRA BBB+, Stable |
What is Hercules Capital?
Hercules Capital is a San Mateo, California venture debt lender, founded in 2003, that has committed more than $28 billion to over 700 companies. It went public in June 2005 and trades on the NYSE as HTGC.
The firm is an internally managed BDC with over 100 staff in seven offices and more than $6 billion under management, including private funds run by its subsidiary Hercules Adviser. It lends under a California Finance Lenders Law license; some subsidiaries hold SBIC licenses.
How Hercules Capital venture debt works
Hercules Capital venture debt is a senior secured term loan, usually 36 to 48 months, at a floating rate with a floor, paired with warrants and often starting interest-only.
- Uses: runway extension, acquisitions, clinical trials, working capital
- Structures: growth term loans, mezzanine debt, receivables and equipment lines, pre-IPO bridges
- Milestones: life sciences loans can release tranches as clinical or regulatory goals are hit
- Security: usually a first lien on all assets, or a negative pledge on intellectual property
Who qualifies for Hercules Capital
Hercules Capital lends to companies beyond the seed stage that have operated at least 6 to 12 months and have revenue, or a credible plan for it within 24 to 48 months.
Tech borrowers need product-market fit, growing recurring revenue and strong VC backing; Value Add VC reports seed-stage companies under about $1 million in ARR rarely clear underwriting. Life sciences borrowers should have several equity rounds, strong IP and a clear regulatory path.
Hercules Capital rates, fees and warrants: what it really costs
Hercules Capital loans carried rates of roughly 7% to 14% at the end of 2025, almost all floating over Prime or SOFR with a floor. Value Add VC puts typical pricing at SOFR plus 6% to 8%, about 11% all-in.
- Interest: floating with a floor; fixed rates are rare
- Fees: any of commitment, exit (end-of-term), success, balloon or prepayment fees; Hercules does not publish percentages
- Warrants: usually attached; Value Add VC reports 0.5% to 1.5% coverage
- Portfolio yield: 13.4% GAAP effective yield in Q2 2026
Worked example: a $25 million loan at 11% with a 1.5% origination fee ($375,000) and a 4.5% exit fee ($1,125,000), within the market norms Value Add VC reports (1% to 2% origination, 3% to 6% exit), plus 12 months interest-only and 24 months of amortization. You pay $229,167 a month in year one, then $1,165,196 a month. Interest totals $5.71 million, so total borrowing cost is about $7.21 million on $25 million, roughly 13.5% APR. A 1% warrant adds $250,000 of equity at your last round price.
Hercules Capital requirements
Hercules Capital publishes no credit score or revenue minimum.
| Requirement | Hercules Capital minimum |
|---|---|
| Personal credit score | Not used; company-level underwriting |
| Time in business | Generally 6 to 12 months of operations, beyond seed |
| Annual revenue | Revenue or a plan for it within 24 to 48 months (third-party: seed-stage firms under about $1 million ARR rarely qualify) |
| Bank account / integrations | Lender does not publish |
| Credit check | Company diligence, not a consumer pull |
| Collateral / guarantee | First lien on all assets or IP negative pledge; warrants |
Pros and cons
Hercules Capital's strengths are scale and sector depth; its drawbacks are deal minimums, warrants and fees.
Pros
- Facilities up to $500 million
- Deep life sciences practice with milestone-based tranches
- Interest-only periods preserve early runway
- Public BDC: pricing, yields and losses are reported quarterly
Cons
- Typical deals start around $25 million
- Warrants dilute founders, and fees add to the rate
- Senior lien on all assets, including IP
- Prepayment fees and financial covenants
- Full diligence process; Capchase, a rival lender, calls it extended
Hercules Capital vs. TriplePoint Capital vs. Lighter Capital
Hercules Capital lends up to $500 million, against $50 million at TriplePoint Capital and $4 million per plan at Lighter Capital.
| Hercules Capital | TriplePoint Capital | Lighter Capital | |
|---|---|---|---|
| Max amount | $500 million (typically $25 million to $100 million) | $3 million to $50 million | Up to $4 million per plan; $10 million total |
| Pricing | About 7% to 14% floating, plus fees and warrants | SOFR + 6% to 9%; warrants 0.75% to 2% | 1.3x to 1.5x repayment cap |
| Min FICO | Not used | Not published | Not published |
| Min time in business | 6 to 12 months, beyond seed | Not published | Not published |
| Min annual revenue | Revenue or a plan within 24 to 48 months | Not published | $200,000 ARR or $15,000 MRR |
| Repayment | Interest-only, then monthly amortization | Not published | % of monthly revenue or fixed monthly, up to 3 years |
| Early payoff | Prepayment fees may apply | Not published | Allowed; full cap still owed |
TriplePoint Capital figures are third-party (Value Add VC, July 2026); Lighter Capital figures are from its own site, checked 2026-10-26.
Choose Hercules Capital for $25 million or more with strong VC backing. Choose TriplePoint Capital if you are earlier stage. Choose Lighter Capital for smaller SaaS needs without warrants.
Hercules Capital alternatives on Lender List
The closest Hercules Capital alternative on Lender List is Lighter Capital, for smaller SaaS companies.
- Lighter Capital — revenue-based and term loans for SaaS without warrants
- Recurring revenue lending — loans sized to ARR
- Mezzanine debt — subordinated growth capital
- Browse all venture debt lenders on Lender List
Frequently asked questions about Hercules Capital
Is Hercules Capital Legit? Yes. Hercules Capital has lent since 2003, trades on the NYSE, files with the SEC as a BDC, and holds a California Finance Lenders Law license. KBRA affirmed its BBB+ rating in August 2026. Its founder stepped down in March 2019 after college-admissions charges unrelated to the firm's lending.
Is Hercules Capital the Same as Hercules Capital, Inc.? Yes. Hercules Capital, Inc. is the legal name of the same San Mateo lender, whose common stock trades on the NYSE as HTGC. Hercules Adviser LLC, a registered investment adviser launched in 2021, is a wholly owned subsidiary that manages institutional funds investing alongside the public company.
Is Hercules Capital a BDC? Yes. Hercules Capital is an internally managed business development company, so it must invest at least 70% of assets in qualifying companies and, as a regulated investment company, distribute at least 90% of its taxable investment income. As a public BDC it reports yields and non-accruals every quarter.
Where Is Hercules Capital Headquartered? Hercules Capital is headquartered at 1 N B Street, Suite 2000, in San Mateo, California. It runs seven offices in all, with Boston, New York, Denver, Westport, San Diego and London alongside the head office, and employs more than 100 professionals, including over 50 on its investment team.
What Does Hercules Capital Do? Hercules Capital lends $5 million to $500 million to venture-backed technology and life sciences companies through growth term loans, asset-based lines and pre-IPO financing, earning interest, fees and warrants. Its sectors include enterprise software, AI, cybersecurity, biotech and medical devices.
How Can I Apply for a Loan From Hercules Capital? You apply through the "Work with us" contact form on htgc.com, which routes to the technology or life sciences team. An investment professional follows up, and the firm underwrites your stage, investors, revenue plan and runway before any term sheet. There is no online application or instant quote.
Does Hercules Capital Take Warrants? Usually, yes. Hercules Capital typically attaches warrants to its structured debt, exercisable for 5 to 10 years, and often gets the right to invest in your next equity round. Value Add VC reports coverage of 0.5% to 1.5% of the loan.
When Did Hercules Capital IPO? Hercules Capital went public on June 9, 2005, at $13.00 a share, about 18 months after its December 2003 founding. Its common stock trades on the NYSE as HTGC, and its 6.25% notes due 2033 trade as HCXY. Investors should use investor.htgc.com; this page covers borrowing.
Last verified 2026-10-26. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.
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