HTGC
Financial ServicesHercules Capital, Inc. · Asset Management · $3B
What is Hercules Capital, Inc.?
Hercules Capital is a business development company focused on venture lending to privately held, venture-backed businesses across all growth stages. Headquartered in Palo Alto, it occupies a distinctive niche at the intersection of private credit and the innovation economy.
Hercules Capital generates revenue by deploying debt capital — primarily senior secured loans and venture debt — to startups, expansion-stage companies, and established businesses that need non-dilutive growth financing. Borrowers span technology, life sciences, and other venture-backed sectors. The company earns interest income on its loan portfolio and may also receive equity warrants, giving it upside participation alongside its lending returns. As a regulated BDC, it distributes the majority of its income to shareholders.
Hercules Capital was founded in 2005 and is headquartered in Palo Alto, California.
- Venture debt and senior secured loans to VC-backed companies
- Growth capital for expansion, acquisitions, and recapitalizations
- Bridge financing ahead of IPOs or M&A transactions
- Asset-based financing including equipment loans and working capital lines
- Convertible, subordinated, and mezzanine loan structures
Is HTGC a Good Stock to Buy?
UQS Score rates HTGC as Good overall, reflecting a balanced profile across the five pillars.
The Quality and Valuation pillars both register as Good, suggesting the company generates reasonably dependable income relative to what investors are currently paying. As a BDC focused on venture lending, Hercules benefits from a well-established origination network built over nearly two decades.
The Moat, Growth, and Risk pillars each land at Neutral — indicating that competitive differentiation, portfolio expansion, and credit risk management are areas worth monitoring closely before committing capital.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does HTGC pay dividends?
Yes — Hercules Capital, Inc. pays a dividend.
Hercules Capital pays a regular dividend, which is a structural feature of the BDC model — regulations require distributing most taxable income to shareholders. The company has historically supplemented its base dividend with special distributions when portfolio income allows. Income-focused investors often screen for BDCs like HTGC specifically for this reason.
When does HTGC report earnings?
Hercules Capital reports earnings on a quarterly cadence, consistent with US-listed BDC requirements.
Quarterly results for BDCs like HTGC center on net investment income, portfolio fair value, and new loan originations. Shifts in interest rates and credit quality across the venture-backed borrower base tend to drive the most meaningful quarter-to-quarter variation.
For the most recent quarter's results and management commentary, visit Hercules Capital's investor relations page directly.
HTGC Price History
+57.0% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Hercules Capital, Inc.?
Based on Hercules Capital, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
HTGC Long-term Outlook
With Growth and Risk both rated Neutral, the near-term trajectory for HTGC appears stable rather than accelerating. The venture lending market remains sensitive to interest rate cycles and the pace of VC-backed dealmaking — tailwinds when rates are favorable and origination volumes are healthy, headwinds when credit conditions tighten. The Good Valuation rating suggests the market is not pricing in dramatic upside, which may appeal to investors prioritizing income stability over capital appreciation.
Growth drivers
- Sustained demand for non-dilutive venture debt among VC-backed companies
- Interest rate environment that supports BDC net investment income
- Expansion of the loan portfolio through new originations in technology and life sciences
Key risks
- Credit deterioration in the venture-backed borrower base during economic downturns
- Compression of net investment income if interest rates decline sharply
- Competitive pressure from banks and other BDCs entering the venture lending space
HTGC vs Peers
Hercules Capital operates alongside several other specialty finance and credit-focused companies that investors often evaluate side by side.
Eagle Point focuses primarily on collateralized loan obligation equity tranches rather than direct venture lending, giving it a different risk and income profile than HTGC.
Maase operates in specialty finance with a distinct borrower focus, making it a useful reference point when comparing BDC business models and portfolio construction approaches.
Beacon Financial serves as a broader financial services comparison, relevant for investors assessing HTGC's positioning within the wider lending and credit landscape.
Frequently Asked Questions
What does Hercules Capital do?
Hercules Capital is a business development company that provides venture debt and senior secured loans to privately held, venture capital-backed businesses. It serves companies from the startup stage through to established growth businesses, primarily in technology and life sciences. Revenue comes largely from interest income on its loan portfolio, supplemented by equity warrant positions.
Does HTGC pay dividends?
Yes, Hercules Capital pays a regular dividend. As a BDC, it is required by regulation to distribute the majority of its taxable income to shareholders. The company has also paid special dividends in periods of strong portfolio income, making it a common holding for income-oriented investors.
When does HTGC report earnings?
HTGC reports on a quarterly cadence, as required for US-listed companies. Key metrics to watch include net investment income, new loan originations, and portfolio fair value. For exact release dates and management commentary, check Hercules Capital's investor relations page.
Is HTGC a good stock to buy?
UQS Score rates HTGC as Good overall. The Quality and Valuation pillars are both rated Good, while Moat, Growth, and Risk each sit at Neutral. Whether that profile fits your portfolio depends on your income goals and risk tolerance. The full pillar breakdown is available to UQS Pro members.
Is HTGC overvalued?
The UQS Valuation pillar for HTGC is rated Good, suggesting the stock is not trading at a significant premium relative to its fundamentals within the financial services sector. That said, BDC valuations are sensitive to interest rate expectations and credit quality — factors that can shift quickly. View the complete valuation metrics with a Pro account.
How does HTGC compare to its competitors?
Hercules Capital distinguishes itself through its deep focus on venture-backed borrowers, particularly in technology and life sciences — a narrower niche than many BDC peers. Competitors like Eagle Point Credit take different approaches, such as investing in CLO equity. The UQS platform lets you compare pillar-level scores across these names side by side.
What is HTGC's market cap bracket?
Hercules Capital is classified as a mid-cap company. Within the BDC universe, it is one of the larger and more established players, which can translate to greater liquidity and a longer track record compared to smaller specialty lenders in the same space.
Who founded Hercules Capital?
Hercules Capital was founded in 2005. The company's founding history and leadership background are publicly available through its investor relations materials and SEC filings, which provide the most accurate and complete account of its origins.
Is HTGC a long-term quality investment?
As a long-term quality indicator, HTGC's Good overall UQS Score reflects stable fundamentals but Neutral readings on Moat and Growth suggest limited structural advantages that compound over time. Long-term investors in BDCs typically prioritize consistent dividend income over capital appreciation. The full five-pillar analysis is available to Pro members.
What is the main competitive advantage of Hercules Capital?
Hercules Capital's primary edge lies in its established relationships within the venture capital ecosystem, built over nearly two decades of lending to VC-backed companies. This origination network and sector expertise in technology and life sciences create barriers that newer entrants find difficult to replicate quickly. The UQS Moat pillar rates this advantage as Neutral at present.
What sector does HTGC belong to?
HTGC belongs to the Financial Services sector, specifically operating as a Business Development Company under the Investment Company Act. BDCs are a regulated structure that allows public investors to access private credit markets — an asset class that was historically available only to institutional investors.
Is HTGC a growth stock or value stock?
Based on its UQS pillar profile, HTGC leans toward the income and value end of the spectrum. The Growth pillar is rated Neutral, while Valuation is rated Good — suggesting the market prices it more as a yield vehicle than a high-growth compounder. Investors typically hold BDCs like HTGC for dividend income rather than price appreciation.
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Pro Analysis
HTGC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 11, 2026 | 59.8 | 68.9 | 42.0 | 57.7 | 60.1 | 76.8 | +0.1 |
| May 9, 2026 | 59.7 | 68.9 | 42.0 | 57.7 | 60.1 | 75.9 | +3.3 |
| May 3, 2026 | 56.4 | 69.9 | 42.0 | 55.9 | 40.0 | 75.1 | -0.1 |
| Apr 28, 2026 | 56.5 | 69.9 | 42.0 | 55.9 | 40.0 | 75.8 | +0.1 |
| Apr 26, 2026 | 56.4 | 69.9 | 42.0 | 55.3 | 40.0 | 75.8 | +0.1 |
| Apr 25, 2026 | 56.3 | 69.9 | 42.0 | 55.3 | 40.0 | 75.5 | -0.4 |
| Apr 23, 2026 | 56.7 | 69.9 | 42.0 | 55.3 | 40.0 | 77.9 | 0.0 |
| Apr 21, 2026 | 56.7 | 69.9 | 42.0 | 55.3 | 40.0 | 77.7 | +0.1 |
| Apr 19, 2026 | 56.6 | 69.9 | 42.0 | 55.3 | 40.0 | 77.4 | +0.1 |
| Apr 18, 2026 | 56.5 | 69.9 | 42.0 | 55.0 | 40.0 | 77.0 | -1.7 |
HTGC — Pillar Breakdown
Quality
— 68.9/100 (25%)Hercules Capital, Inc. shows solid profitability with healthy returns on capital and reasonable margins.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 57.7/100 (20%)Hercules Capital, Inc. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 29.5/100 (15%)Hercules Capital, Inc. presents elevated risk with concerns around leverage or financial stability.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 75.6/100 (15%)Hercules Capital, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 42/100 (25%)Hercules Capital, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for HTGC.
Score Composition
Financial Data
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How is the HTGC UQS Score Calculated?
The UQS (Unified Quality Score) for Hercules Capital, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Hercules Capital, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Hercules Capital, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.