Hercules Capital’s New SaaS Finance Division Has Successfully Originated More Than $305.0 Million in New Debt Commitments Y...
September 04 2018 - 5:00AM
Business Wire
Hercules 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 that its recently
formed Hercules Capital SaaS Finance division has surpassed $305.0
million, year-to-date 2018, in new commitments to some of the most
innovative Software-as-a-Service (“SaaS”) companies since its
formation in June 2018. Hercules Capital SaaS Finance division has
provided venture debt growth capital to notable SaaS companies,
such as Evernote, Fuze, OneLogin, Wrike, and ZocDoc, among
others.
Since officially and publicly unveiling the division in June
2018, the Hercules Capital SaaS Finance team continues to drive
strong loan growth in the Company’s technology portfolio and
currently represents more than 30 percent, and growing, of the
total debt investment portfolio, at cost, as of June 30, 2018.
Hercules SaaS Finance division offers many advantages over
traditional regulated commercial bank financing alternatives,
including the ability to highly customize a flexible financing
solution that meets a company’s specific capital requirements and
fills the void left by traditional commercial lenders.
With nearly $1.8 billion in total assets as of June 30, 2018,
Hercules has the depth, scale, ability and capabilities to offer a
wide range of growth capital financing solutions to these emerging
disruptive innovative SaaS companies.
“With more than $305.0 million in SaaS debt commitments thus far
in 2018, our newly formed Hercules Capital SaaS Finance division
has achieved strong initial market reception in just a few months
and remains a strong growth catalyst for our industry-leading
venture lending originations platform,” stated Manuel A. Henriquez,
founder, chairman and CEO of Hercules. “This new highly specialized
lending division leverages the successful knowledge and track
record Hercules Capital has established over the past 14 plus years
of providing over $8 billion in capital commitments to more than
430 of these highly innovative and disruptive companies, including
our growing focus on SaaS companies.”
Henriquez continued, “As technology continues to evolve from
hardware-based solutions to superior software-based advanced
solutions, enterprise software companies, and specifically
SaaS-based company models, are growing in popularity as many new
advancements in telecommunications, data and network security, are
helping to drive this new cloud-based computing paradigm, as one of
the most important trends emerging in the software industry. This
growing trend and demand is evidenced by our own successful launch
of our SaaS finance division and reflects the continued corporate
adoption of these technologies and seeing broad investor support in
both the public and private markets. As the Hercules SaaS Finance
division continues to originate new loans, we will provide our
investors with more meaningful exposure to this attractive segment
of the technology market.”
According to the Bessemer Cloud Index, publicly traded SaaS
companies’ share prices have appreciated approximately 40 percent
through August 15, 2018 and in some cases achieved Enterprise Value
to Revenue multiples in excess of 10x. This index tracks 50 pure
play public cloud and SaaS-based companies
(https://www.bvp.com/resource/bvp-cloud-index).
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 $8.0
billion to over 430 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 info@htgc.com, 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).
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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version on businesswire.com: https://www.businesswire.com/news/home/20180904005281/en/
Hercules Capital, Inc.Michael Hara, 650-433-5578Investor
Relations and Corporate Communicationsmhara@htgc.com
Hercules Capital (NYSE:HTGC)
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