Exhibit 99.1

Hercules Capital Reports Second Quarter 2021 Financial Results

Record Year-to-Date Total Debt and Equity Commitments of $971.7 Million

Record Year-to-Date Total Fundings of $634.0 Million

Surpassed $12.0 Billion in Cumulative Total Debt Commitments since Inception

Q2 2021 Net Asset Value per Share Increased 3.1% to $11.71 from Q1 2021

Record Undistributed Earnings Spillover of $160.2 Million, or $1.38⁽¹⁾ per Ending Shares Outstanding

Q2 2021 Financial Achievements and Highlights

Year-to-date ending June 30, 2021 Financial Highlights

Footnotes:

PALO ALTO, Calif., July 29, 2021 - Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced its financial results for the second quarter ended June 30, 2021.

“During Q2 2021, Hercules generated 100% coverage of our base dividend distribution with NII, delivered solid NAV accretion and maintained our strong liquidity position to fund our disciplined and controlled growth strategy,” stated Scott Bluestein, chief executive officer and chief investment officer of Hercules. “As a result, the Company was able to offset elevated repayment activities, deliver net debt portfolio growth of nearly $57 million and achieve the highest internal credit rating in our history. This strong operating performance extended the momentum from Q1, which led to record levels of new debt and equity commitments and total fundings of nearly $972 million and $634 million, respectively, for the first half of 2021.”

Bluestein added, “With the public and private equity markets performing exceptionally well, our technology and life sciences portfolio companies are benefitting from multiple ways to raise new capital or achieve liquidity events. Our equity and warrant portfolio has continued to march in parallel with the public markets, with 26 of our portfolio companies announcing or completing exit events year-to-date, of which 10 have completed initial public offerings. This has generated record undistributed earnings spillover of over $160 million, giving us additional flexibility to continue to invest in our team and platform for the long term while also delivering strong shareholder returns.”

Q2 2021 Review and Operating Results

Debt Investment Portfolio

Hercules delivered new debt and equity commitments totaling $440.8 million and fundings totaling $278.7 million.

During the second quarter, Hercules realized early loan repayments of $167.9 million, which along with normal scheduled amortization of $19.6 million, resulted in total debt repayments of $187.5 million.

The new debt investment origination and funding activities lead to a net debt investment portfolio increase of $56.8 million during the second quarter, on a cost basis.

The Company’s total investment portfolio, (at cost and fair value) by category, quarter-over-quarter is highlighted below:

Total Investment Portfolio: Q2 2021 to Q1 2021

Debt Investment Portfolio Balances by Quarter

Debt Investment Portfolio Composition by Quarter

Effective Portfolio Yield and Core Portfolio Yield (“Core Yield”)

The effective yield on Hercules’ debt investment portfolio was 12.7% during Q2 2021, as compared to 13.2% for Q1 2021. The Company realized $167.9 million of early loan repayments in Q2 2021 compared to $191.5 million in Q1 2021, or a decrease of 12.3%. Effective yields generally include the effects of fees and income accelerations attributed to early loan repayments, and other one-time events. Effective yields are materially impacted by the elevated or reduced levels of early loan repayments and derived by dividing total investment income by the weighted average earning investment portfolio assets outstanding during the quarter, which excludes non-interest earning assets such as warrants and equity investments.

Core yield, a non-GAAP measure, was 11.5% during Q2 2021, within the Company’s expected range of 11.0% to 12.0%, and decreased slightly compared to 11.6% in Q1 2021. Hercules defines core yield as yields that generally exclude any benefit from income related to early repayments attributed to the acceleration of unamortized income and prepayment fees and includes income from expired commitments.

Income Statement

Total investment income increased to $69.6 million for Q2 2021, compared to $68.0 million in Q2 2020. The increase is primarily attributable to an increase in total fee income between periods.

Non-interest and fee expenses were $17.1 million in Q2 2021 versus $15.6 million for Q2 2020. The increase was due to higher employee compensation and stock-based compensation expenses.

Interest expense and fees were $16.7 million in Q2 2021, compared to $16.7 million in Q2 2020.

The Company had a weighted average cost of borrowings comprised of interest and fees, of 5.4% in Q2 2021, as compared to 5.0% for Q2 2020. The increase is primarily due to the acceleration of fee recognition for the partial paydown of the SBA debentures and securitizations, due to the reinvestment period ending.

NII – Net Investment Income

NII for Q2 2021 was $37.0 million, or $0.32 per share, based on 114.7 million basic weighted average shares outstanding, compared to $35.7 million, or $0.32 per share, based on 111.6 million basic weighted average shares outstanding in Q2 2020. The increase is primarily attributable to an increase in the total fee income between periods.

Continued Credit Discipline and Strong Credit Performance

Hercules’ net cumulative realized gain/(loss) position, since its first origination activities in October 2004 through June 30, 2021, (including net loan, warrant and equity activity) on investments, totaled ($86.2) million, on a GAAP basis, spanning over 16 years of investment activities.

When compared to total new debt investment commitments during the same period of over $12.0 billion, the total realized gain/(loss) since inception of ($86.2) million represents approximately 72 basis points “bps,” or 0.72%, of cumulative debt commitments, or an effective annualized loss rate of 4.0 bps, or 0.04%.

Realized Gains/(Losses)

During Q2 2021, Hercules had net realized losses of ($14.3) million comprised of gross realized gains of $47.8 million due to the sale of equity and warrant investments, offset by ($62.1) million of gross realized losses primarily due to the write-off of one legacy equity investment that had a fair value of $0.

Unrealized Appreciation/(Depreciation)

During Q2 2021, Hercules recorded $60.0 million of net unrealized appreciation, primarily from net unrealized appreciation from our debt, equity and warrant investments.

Portfolio Asset Quality

As of June 30, 2021, the weighted average grade of the debt investment portfolio, at fair value, improved to 1.93, compared to 2.01 as of March 31, 2021, based on a scale of 1 to 5, with 1 being the highest quality. Hercules’ policy is to generally adjust the credit grading down on its portfolio companies as they approach their expected need for additional growth equity capital to fund their respective operations for the next 9-14 months. Various companies in the Company’s portfolio will require additional rounds of funding from time to time to maintain their operations.

Additionally, Hercules may selectively downgrade portfolio companies, from time to time, if they are not meeting the Company’s financing criteria, or underperforming relative to their respective business plans.

As of June 30, 2021, grading of the debt investment portfolio at fair value, excluding warrants and equity investments, was as follows:

Non-Accruals

Non-accruals decreased slightly as a percentage of the overall investment portfolio in the second quarter of 2021. As of June 30, 2021, the Company had three (3) debt investments on non-accrual with an investment cost and fair value of approximately $23.0 million and $7.7 million, respectively, or 1.0% and 0.3% as a percentage of the Company’s total investment portfolio at cost and value, respectively.

Compared to March 31, 2021, the Company had four (4) debt investments on non-accrual with an investment cost and fair value of approximately $24.1 million and $8.0 million, respectively, or 1.0% and 0.3% as a percentage of the total investment portfolio at cost and value, respectively.

Liquidity and Capital Resources

The Company ended Q2 2021 with $610.0 million in available liquidity, including $18.4 million in unrestricted cash and cash equivalents, and $591.6 million in available credit facilities and SBA Debentures, subject to existing terms and advance rates and regulatory and covenant requirements.

Bank Facilities

As of June 30, 2021, there were $1.7 million outstanding borrowings under the Hercules’ $400.0 million committed credit facility with Union Bank as Agent and no outstanding borrowings under the Hercules’ $75.0 million committed credit facility with Wells Fargo Capital Finance.

Leverage

As of June 30, 2021, Hercules’ GAAP leverage ratio, including its Small Business Administration “SBA” debentures, was 87.7%. Hercules’ regulatory leverage, or debt-to-equity ratio, excluding its SBA debentures, was 83.8% and net regulatory leverage, a non-GAAP measure (excluding cash of approximately $18.5 million), was 82.4%. Hercules’ net leverage ratio, including its SBA debentures, was 86.4%.

Available Unfunded Commitments – Representing 12.7% of Total Assets

The Company’s unfunded commitments and contingencies consist primarily of unused commitments to extend credit in the form of loans to select portfolio companies. A portion of these unfunded contractual commitments are dependent upon the portfolio company reaching certain milestones in order to gain access to additional funding. Furthermore, the Company’s credit agreements contain customary lending provisions that allow us relief from funding obligations for previously made commitments. In addition, since a portion of these commitments may also expire without being drawn, unfunded contractual commitments do not necessarily represent future cash requirements.

As of June 30, 2021, the Company had $327.3 million of available unfunded commitments at the request of the portfolio company and unencumbered by any milestones, including undrawn revolving facilities, representing 12.7% of Hercules’ total assets. This increased from the previous quarter of $257.9 million of available unfunded commitments or 10.0% of Hercules’ total assets.

Existing Pipeline and Signed Term Sheets

After closing $440.8 million in new debt and equity commitments in Q2 2021, Hercules has pending commitments of $402.5 million in signed non-binding term sheets outstanding as of July 26, 2021. Since the close of Q2 2021 and as of July 26, 2021, Hercules has closed new debt and equity commitments of $27.0 million and funded $23.4 million.

Signed non-binding term sheets are subject to satisfactory completion of Hercules’ due diligence and final investment committee approval process as well as negotiations of definitive documentation with the prospective portfolio companies. These non-binding term sheets generally convert to contractual commitments in approximately 90 days from signing and some portion may be assigned or allocated to private funds managed by Hercules Adviser prior to or after closing. It is important to note that not all signed non-binding term sheets are expected to close and do not necessarily represent future cash requirements or investments.

Net Asset Value

As of June 30, 2021, the Company’s net assets were $1.36 billion, compared to $1.32 billion at the end of Q1 2021. NAV per share increased 3.1% to $11.71 on 115.9 million outstanding shares of common stock as of June 30, 2021, compared to $11.36 on 115.8 million outstanding shares of common stock as of March 31, 2021. The increase in NAV per share was primarily attributed to the net change in unrealized appreciation and a decrease in liabilities between periods.

Interest Rate Sensitivity

Hercules has an asset sensitive debt investment portfolio with 96.8% of its debt investment portfolio being priced at floating interest rates as of June 30, 2021, with a Prime or LIBOR-based interest rate floor, combined with 99.9% of its outstanding debt borrowings bearing fixed interest rates, leading to higher net investment income sensitivity.

Based on Hercules’ Consolidated Statement of Assets and Liabilities as of June 30, 2021, the following table shows the approximate annualized increase/(decrease) in components of net income resulting from operations of hypothetical base rate changes in interest rates, such as Prime Rate, assuming no changes in Hercules’ debt investments and borrowings. These estimates are subject to change due to the impact from active participation in the Company’s equity ATM program and any future equity offerings.

Existing Equity and Warrant Portfolio

Equity Portfolio

Hercules held equity positions in 67 portfolio companies with a fair value of $229.9 million and a cost basis of $133.8 million as of June 30, 2021. On a fair value basis, 62.6% or $143.9 million is related to existing public equity positions.

Warrant Portfolio

Hercules held warrant positions in 93 portfolio companies with a fair value of $46.7 million and a cost basis of $25.1 million as of June 30, 2021. On a fair value basis, 31.4% or $14.7 million is related to existing public warrant positions.

Portfolio Company IPO and M&A Activity in Q2 2021 and YTD Q3 2021

IPO Activity

As of July 26, 2021, Hercules held debt, warrant or equity positions in 10 portfolio companies that have completed their IPOs and eight (8) companies that have registered for their IPOs or have entered into definitive agreements to go public via a merger or special purpose acquisition company “SPAC,” including:

Completed:

In Registration or SPAC:

There can be no assurances that companies that have yet to complete their IPOs will do so.

M&A Activity

Subsequent Events

The table below summarizes the Company’s year-to-date closed and pending commitments as follows:

Notes:

Conference Call

Hercules has scheduled its second quarter 2021 financial results conference call for July 29, 2021 at 2:00 p.m. PT (5:00 p.m. ET). To listen to the call, please dial (877) 304-8957 (or (408) 427-3709 internationally) and reference Conference ID: 1598912 if asked, approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately three hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial (855) 859-2056 or (404) 537-3406 and enter the passcode 1598912.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) 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 $12.0 billion to over 530 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 one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).

Category: Earnings

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.

Contact:

Michael Hara

Investor Relations and Corporate Communications

Hercules Capital, Inc.

650-433-5578         

mhara@htgc.com