Hercules Capital: A High-Yield Play On Technology And Biopharmaceuticals (NYSE:HTGC)

Investment Thesis

Hercules Capital (HTGC), strategically headquartered in Silicon Valley, is a business development company (“BDC”) that plays a vital role at the forefront of American innovation. It is a debt and equity investment company that provides crucial capital for cutting-edge businesses in their venture or early expansion phases of growth. The venture capital firm specializes in a select handful of innovative industries that are actively inventing the technologies of the future.

Currently, HTGC is trading at 1.13x its Q2 2020 net asset value, which is on the lower end of its historical range. With a dividend yield of 11.2%, the stock is an attractive high-yield play on the American innovation machine.

Source: Hercules Capital Q2 Presentation

Mid-Pandemic Business Overview

HTGC provides high-yielding, floating rate (with interest rate floors), primarily first lien senior secured loans to technology, life sciences, and sustainable/renewable tech companies. Over the years, the

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