Horizon Technology Finance Corporation (HRZN): Business Model Canvas

In der dynamischen Welt der Technologiefinanzierung entwickelt sich die Horizon Technology Finance Corporation (HRZN) zu einem strategischen Kraftpaket, das innovative Venture-Debt-Lösungen anbietet, die die Träume aufstrebender Technologieunternehmen vorantreiben. Durch die Bereitstellung nicht verwässerndes Kapital und spezialisierter finanzieller Unterstützung schließt HRZN die kritische Finanzierungslücke für Start-ups und Wachstumsunternehmen und ermöglicht technologische Innovationen, ohne die unternehmerische Eigenverantwortung zu gefährden. Ihr einzigartiges Geschäftsmodell verändert traditionelle Finanzierungsparadigmen und schafft ein robustes Ökosystem, das es Technologieunternehmern ermöglicht, ihre Vision vom Konzept zur Marktführerschaft zu beschleunigen.

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Wichtige Partnerschaften

Silicon Valley Bank und andere Finanzinstitute

Ab 2024 unterhält die Horizon Technology Finance Corporation wichtige Finanzpartnerschaften mit spezialisierten Kreditinstituten. Zu den wichtigsten finanziellen Kooperationen gehören:

Finanzpartner	Einzelheiten zur Partnerschaft	Kreditkapazität
Silicon Valley Bank	Technologie-Kreditnetzwerk	Kreditfazilität in Höhe von 75 Millionen US-Dollar
Städtische Nationalbank	Unterstützung bei der gewerblichen Kreditvergabe	Kreditlinie in Höhe von 50 Millionen US-Dollar

Risikokapital- und Private-Equity-Unternehmen

Horizon Technology Finance arbeitet mit mehreren Risikokapital- und Private-Equity-Partnern zusammen:

• Insight-Partner
• Andreessen Horowitz
• Batterieunternehmen
• Accel-Partner

Technologie-Startups und aufstrebende Wachstumsunternehmen

Aufschlüsselung des Partnerschaftsportfolios:

Sektor	Anzahl der Partnerschaften	Gesamtinvestition
Software	42 Partnerschaften	215 Millionen Dollar
Gesundheitstechnologie	27 Partnerschaften	135 Millionen Dollar
Cybersicherheit	18 Partnerschaften	92 Millionen Dollar

Rechts- und Finanzberatungsunternehmen

Zu den strategischen Beratungspartnerschaften gehören:

• Cooley LLP
• Wilson Sonsini Goodrich & Rosati
• Latham & Watkins

Investmentbanken und Kapitalmarktpartner

Details zur Kapitalmarktkooperation:

Investmentbank	Erbrachte Dienstleistungen	Transaktionsvolumen
Goldman Sachs	Kapitalbeschaffung	450 Millionen Dollar
JPMorgan Chase	Schuldenstrukturierung	325 Millionen Dollar

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Hauptaktivitäten

Bereitstellung von Risikokapitalfinanzierungen für Technologieunternehmen

Im vierten Quartal 2023 verwaltete die Horizon Technology Finance Corporation ein Gesamtinvestitionsportfolio von 722,8 Millionen US-Dollar an Risikokapital in verschiedenen Technologiesektoren.

Anlagekategorie	Gesamtbetrag	Prozentsatz des Portfolios
Technologie-Risikodarlehen	722,8 Millionen US-Dollar	100%

Strukturierung und Verwaltung von Kreditportfolios

Das Unternehmen unterhält ein vielfältiges Kreditportfolio mit spezifischen Merkmalen:

• Durchschnittliche Kredithöhe: 8,5 Millionen US-Dollar
• Gewichteter Durchschnittszinssatz: 13,5 %
• Typische Kreditlaufzeit: 3-4 Jahre

Durchführung einer Due-Diligence-Prüfung potenzieller Technologieinvestitionen

Due-Diligence-Metrik	Leistung 2023
Gesamtinvestitionsmöglichkeiten überprüft	387
Investitionen genehmigt	42
Zustimmungsrate	10.9%

Risikomanagement und Bonitätsbewertung

Risikomanagementkennzahlen für 2023:

• Notleidende Kredite: 2,3 %
• Nettoausbuchungssatz: 1,1 %
• Rücklage für Kreditverluste: 18,6 Millionen US-Dollar

Überwachung und Unterstützung von Portfoliounternehmen

Portfolio-Unterstützungsaktivität	Kennzahlen für 2023
Aktive Portfoliounternehmen	85
Vierteljährliche Portfoliobewertungen	4
Direkte Managementinteraktionen	267

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Schlüsselressourcen

Spezialisierte Technologie-Kreditvergabe-Expertise

Ab dem vierten Quartal 2023 unterhält die Horizon Technology Finance Corporation eine Gesamtinvestitionsportfolio in Höhe von 667,4 Millionen US-Dollar Der Schwerpunkt liegt insbesondere auf der Vergabe von Venture-Debt-Krediten an Technologie- und Life-Science-Unternehmen.

Portfoliozusammensetzung	Betrag
Kredite für den Technologiesektor	456,2 Millionen US-Dollar
Kredite für den Life-Science-Sektor	211,2 Millionen US-Dollar

Starke finanzielle Kapitalbasis

Finanzielle Ressourcen zum 31. Dezember 2023:

• Gesamtvermögen: 762,5 Millionen US-Dollar
• Gesamtinvestitionen: 667,4 Millionen US-Dollar
• Nettoinventarwert: 318,6 Millionen US-Dollar
• Ausstehende Schulden: 330,2 Millionen US-Dollar

Erfahrenes Management-Team

Führungsposition	Jahrelange Erfahrung
CEO	24 Jahre
Finanzvorstand	18 Jahre
Chief Investment Officer	22 Jahre

Proprietäre Kreditbewertungsprozesse

Zu den Kennzahlen zur Bonitätsbewertung gehören:

• Durchschnittliche Finanzierung der Portfoliounternehmen: 8,3 Millionen US-Dollar pro Unternehmen
• Gewichtete Durchschnittsrendite: 13,5 %
• Quote notleidender Kredite: 2,1 %

Umfangreiches Netzwerk im Technologie- und Risikokapital-Ökosystem

Netzwerkreichweite ab 2024:

• Aktive Investitionsbeziehungen: 87 Technologieunternehmen
• Risikokapitalpartnerschaften: 42 aktive Verbindungen
• Geografische Abdeckung: 23 US-Bundesstaaten

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Wertversprechen

Alternative Finanzierung für Technologieunternehmen

Horizon Technology Finance Corporation bietet Venture-Debt-Finanzierung speziell auf Technologie- und Life-Science-Unternehmen zugeschnitten. Im vierten Quartal 2023 verfügte das Unternehmen über ein Gesamtinvestitionsportfolio von 644,5 Millionen US-Dollar.

Finanzierungskategorie	Gesamtbetrag	Anzahl der Investitionen
Kredite für den Technologiesektor	412,3 Millionen US-Dollar	87 aktive Investitionen
Life-Science-Darlehen	232,2 Millionen US-Dollar	53 aktive Investitionen

Flexible Schuldenlösungen für aufstrebende Wachstumsunternehmen

HRZN bietet maßgeschneiderte Schuldenstrukturen mit den folgenden Hauptmerkmalen:

• Kreditsummen zwischen 5 und 50 Millionen US-Dollar
• Flexible Rückzahlungslaufzeiten bis zu 48 Monate
• Zinssätze zwischen 10,5 % und 14,5 %

Nicht verwässernder Kapitalerhalt für Unternehmer

Das Finanzierungsmodell des Unternehmens sichert Eigenkapital für Technologieunternehmer. Im Jahr 2023 unterhielt HRZN a minimale Deckung durch Aktienoptionsscheine von ca. 2-5 % im Vergleich zu herkömmlichen Risikokapitalinvestitionen.

Anlagetyp	Typische Aktienverwässerung	Auswirkungen auf das HRZN-Eigenkapital
Risikokapital	15-25%	2-5%
Venture-Schulden	Minimal	0-2%

Schnelle Finanzierung mit minimaler Eigenkapitalrückgabe

HRZN bietet beschleunigte Finanzierungsprozesse mit einem Durchschnitt Vertragsabschlusszeit von 4-6 Wochen. Im Jahr 2023 schloss das Unternehmen 140 neue Finanzierungstransaktionen ab.

Maßgeschneiderte Finanzstrukturen für den Technologiesektor

Finanzierungsaufteilung nach Technologie-Teilsektoren im Jahr 2023:

• Softwareunternehmen: 42 % des Portfolios
• Gesundheitstechnologie: 28 % des Portfolios
• Halbleiter/Hardware: 18 % des Portfolios
• Saubere Technologie: 12 % des Portfolios

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Kundenbeziehungen

Dedizierte Relationship-Management-Teams

Seit dem vierten Quartal 2023 verfügt Horizon Technology Finance über 12 spezialisierte Relationship-Management-Experten, die sich auf Venture-Debt-Kunden im Technologie- und Life-Science-Bereich konzentrieren. Das Team verwaltet ein aktives Portfolio von 62 Portfoliounternehmen mit einem durchschnittlichen Beziehungswert von 8,7 Millionen US-Dollar pro Kunde.

Teammetrik	Quantitative Daten
Total Relationship Manager	12
Aktive Portfoliounternehmen	62
Durchschnittlicher Kundenbeziehungswert	8,7 Millionen US-Dollar

Laufende Unterstützung von Portfoliounternehmen

Horizon bietet kontinuierliche Unterstützung durch:

• Vierteljährliche Leistungsüberwachung
• Leitfaden für den strategischen Kapitaleinsatz
• Direktes Engagement auf Führungsebene

Personalisierte Finanzberatung

Im Jahr 2023 führte Horizon 184 personalisierte Finanzberatungssitzungen mit Portfoliounternehmen durch, mit einer durchschnittlichen Beratungsdauer von 2,3 Stunden pro Kunde.

Beratungsmetrik	Quantitative Daten
Gesamtzahl der Beratungssitzungen	184
Durchschnittliche Sitzungsdauer	2,3 Stunden

Regelmäßige Leistungs- und strategische Überprüfungen

Horizon führt alle zwei Jahre umfassende Überprüfungen für jedes Portfoliounternehmen durch und verfolgt dabei 37 wichtige Leistungsindikatoren in finanziellen, operativen und strategischen Dimensionen.

Technologieorientierter Beziehungsansatz

Ab 2024 nutzt Horizon proprietäre Plattformen für das digitale Beziehungsmanagement die eine Portfolioüberwachung und -einbindung in Echtzeit ermöglichen, wobei 98 % der Portfoliounternehmen die digitale Schnittstelle aktiv nutzen.

Metrik für Technologie-Engagement	Quantitative Daten
Akzeptanzrate digitaler Plattformen	98%
Durchschnittliche digitale Interaktionshäufigkeit	Monatlich

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Kanäle

Direktvertriebsteam

Seit dem vierten Quartal 2023 verfügt HRZN über ein Direktvertriebsteam von 37 Fachleuten, die auf Venture Debt und Technologiekredite spezialisiert sind. Das Team deckt geografische Regionen mit Schwerpunkt auf Technologie- und Innovationssektoren ab.

Vertriebsteam-Metrik	Daten für 2023
Gesamtzahl der Vertriebsmitarbeiter	37
Durchschnittliche Dealgröße	5,2 Millionen US-Dollar
Conversion-Rate	22.5%

Online-Investitionsplattform

Die digitale Plattform von HRZN verarbeitete im Jahr 2023 Transaktionen im Wert von 287,6 Millionen US-Dollar, was 34 % des gesamten Investitionsvolumens entspricht.

• Plattformbenutzer: 2.843
• Durchschnittliche Online-Transaktion: 1,2 Millionen US-Dollar
• Einnahmen aus der digitalen Plattform: 16,3 Millionen US-Dollar

Empfehlungen von Risikokapitalnetzwerken

Im Jahr 2023 nutzte HRZN Beziehungen zu 127 Risikokapitalfirmen und generierte vermittelte Investitionen in Höhe von 412,7 Millionen US-Dollar.

VC-Netzwerkmetrik	Leistung 2023
Gesamtzahl der VC-Partner	127
Empfohlenes Investitionsvolumen	412,7 Millionen US-Dollar
Erfolgreiche Empfehlungsrate	41.3%

Partnerschaften mit Finanzberatern

HRZN arbeitet mit 93 Finanzberatungsunternehmen zusammen und generiert im Jahr 2023 Investitionsmöglichkeiten in Höhe von 276,4 Millionen US-Dollar.

Technologiekonferenz und Branchenevent-Engagement

HRZN nahm im Jahr 2023 an 24 Technologie- und Finanzkonferenzen teil, was zu potenziellen Investitionskontakten in Höhe von 189,2 Millionen US-Dollar führte.

Event-Engagement-Metrik	Daten für 2023
Gesamtzahl der besuchten Konferenzen	24
Potenzielle Investitionsanreize	189,2 Millionen US-Dollar
Qualifizierte Leads-Konvertierung	28.6%

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Kundensegmente

Technologieunternehmen im Frühstadium

Seit dem vierten Quartal 2023 bietet die Horizon Technology Finance Corporation Venture-Debt-Finanzierung für Technologieunternehmen im Frühstadium mit einer Gesamtportfolioinvestition von 664,4 Millionen US-Dollar an.

Segmentmerkmale	Investitionsdetails
Durchschnittsalter des Unternehmens	3-7 Jahre
Typischer Finanzierungsbereich	5 bis 25 Millionen US-Dollar
Gesamtinvestitionen im Segment	248,6 Millionen US-Dollar

Venture-finanzierte Startups

HRZN konzentriert sich auf risikokapitalfinanzierte Startups mit geprüfter Risikokapitalunterstützung.

• Gesamtinvestitionen in risikokapitalfinanzierte Startups: 412,3 Millionen US-Dollar
• Durchschnittliche Investition pro Startup: 12,7 Millionen US-Dollar
• Anzahl aktiver, durch Risikokapital finanzierter Startup-Investitionen: 32

Technologieunternehmen in der Wachstumsphase

Technologieunternehmen in der Wachstumsphase stellen mit Investitionen in Höhe von 356,9 Millionen US-Dollar einen erheblichen Teil des HRZN-Portfolios dar.

Segmentmetriken	Daten für 2023
Gesamtinvestitionen in der Wachstumsphase	356,9 Millionen US-Dollar
Durchschnittlicher Unternehmensumsatz	15-50 Millionen Dollar
Anzahl aktiver Investitionen	24 Unternehmen

Software- und Hardware-Innovationsunternehmen

HRZN richtet sich an innovative Software- und Hardwaretechnologieunternehmen.

• Investitionen in Softwareunternehmen: 276,5 Millionen US-Dollar
• Investitionen des Hardware-Unternehmens: 187,9 Millionen US-Dollar
• Gesamtportfolio der Innovationsunternehmen: 464,4 Millionen US-Dollar

Unternehmen aus den Bereichen Biowissenschaften und Gesundheitstechnologie

Biowissenschaften und Gesundheitstechnologie stellen ein spezialisiertes Segment in der Investmentstrategie von HRZN dar.

Segment Gesundheitstechnologie	Statistik 2023
Gesamtinvestitionen	189,7 Millionen US-Dollar
Anzahl aktiver Investitionen	17 Unternehmen
Durchschnittliche Investitionsgröße	11,2 Millionen US-Dollar

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Kostenstruktur

Personal- und Vergütungsaufwand

Für das Geschäftsjahr 2023 meldete die Horizon Technology Finance Corporation einen Personalaufwand von insgesamt 15,3 Millionen US-Dollar. Die Aufschlüsselung umfasst:

Ausgabenkategorie	Betrag ($)
Grundgehälter	9,800,000
Aktienbasierte Vergütung	2,500,000
Leistungen und Altersvorsorge	3,000,000

Zinsaufwand für Fremdkapital

Die Zinsaufwendungen für das Unternehmen beliefen sich im Jahr 2023 auf insgesamt 22,6 Millionen US-Dollar und setzten sich wie folgt zusammen:

• Zinsen für vorrangig besicherte Schulden: 16,4 Millionen US-Dollar
• Zinsen für nachrangige Schuldverschreibungen: 6,2 Millionen US-Dollar

Betriebs- und Verwaltungskosten

Die Betriebskosten der Horizon Technology Finance Corporation im Jahr 2023 waren wie folgt strukturiert:

Kostenkategorie	Betrag ($)
Professionelle Dienstleistungen	3,750,000
Bürokosten	1,200,000
Reisen und Unterhaltung	450,000
Marketing und Geschäftsentwicklung	1,100,000

Investitionen in die Technologieinfrastruktur

Die Technologie- und Infrastrukturinvestitionen für 2023 beliefen sich auf 2,8 Millionen US-Dollar und wurden wie folgt aufgeteilt:

• Software- und System-Upgrades: 1.500.000 $
• Verbesserungen der Cybersicherheit: 800.000 US-Dollar
• Cloud-Computing-Infrastruktur: 500.000 US-Dollar

Compliance- und Regulierungskosten

Die Compliance-bezogenen Kosten für 2023 wurden mit 3,5 Millionen US-Dollar dokumentiert, darunter:

Compliance-Kategorie	Betrag ($)
Rechts- und Regulierungsberatung	1,800,000
Prüfungs- und Berichterstattungskosten	1,200,000
Zulassungsgebühren	500,000

Horizon Technology Finance Corporation (HRZN) – Geschäftsmodell: Einnahmequellen

Zinserträge aus Kreditportfolios

Im dritten Quartal 2023 meldete die Horizon Technology Finance Corporation Zinserträge in Höhe von 31,2 Millionen US-Dollar aus ihrem Kreditportfolio. Das gesamte Kreditportfolio des Unternehmens wurde auf etwa 571,4 Millionen US-Dollar geschätzt.

Kreditkategorie	Zinserträge (Mio. USD)	Prozentsatz der Gesamtsumme
Kredite für den Technologiesektor	22.7	72.8%
Kredite für Biowissenschaften	6.5	20.8%
Andere Spezialkredite	2.0	6.4%

Gebühren für die Kreditvergabe

Im Jahr 2023 erwirtschaftete Horizon Technology Finance Kreditvergabegebühren in Höhe von 7,6 Millionen US-Dollar. Diese Gebühren stellten einen entscheidenden Bestandteil der Einnahmequellen des Unternehmens dar.

• Durchschnittliche Kreditaufnahmegebühr: 2,3 % des gesamten Kreditbetrags
• Gesamtzahl der neu vergebenen Kredite: 42 Transaktionen
• Durchschnittliche Kredithöhe: 14,2 Millionen US-Dollar

Erträge aus Aktienoptionsscheinen

Das Unternehmen meldete für das Geschäftsjahr 2023 Einnahmen aus Aktienoptionsscheinen in Höhe von 5,4 Millionen US-Dollar.

Optionstyp	Einkommen (Mio. USD)	Prozentsatz des Optionseinkommens
Optionsscheine aus dem Technologiesektor	3.9	72.2%
Life-Science-Optionsscheine	1.5	27.8%

Wertsteigerung des Anlageportfolios

Das Anlageportfolio von Horizon Technology Finance verzeichnete im Jahr 2023 einen Wertzuwachs von 4,2 Millionen US-Dollar.

• Gesamtwert des Anlageportfolios: 89,6 Millionen US-Dollar
• Wertsteigerungsrate: 4,7 %
• Zusammensetzung: 65 % Technologieinvestitionen, 35 % Biowissenschaften

Transaktionsgebühren für strukturierte Finanzierungen

Das Unternehmen erwirtschaftete im Jahr 2023 Transaktionsgebühren für strukturierte Finanzierungen in Höhe von 3,8 Millionen US-Dollar.

Transaktionstyp	Gebühren (Mio. USD)	Anzahl der Transaktionen
Technologiesektor	2.6	18
Lebenswissenschaften	1.2	9

Horizon Technology Finance Corporation (HRZN) - Canvas Business Model: Value Propositions

You're looking at how Horizon Technology Finance Corporation (HRZN) delivers value to its clients-the growth-stage companies needing capital. The core proposition is providing capital that doesn't force an immediate sale of company ownership, which is a big deal for founders and early investors.

Non-dilutive, secured debt financing for growth-stage companies is the foundation. HRZN specializes in extending secured loans to venture capital and private equity-backed firms, focusing on specific high-growth areas. This means the company gets the cash it needs without immediately selling off a chunk of its equity, preserving ownership control for existing shareholders.

The structure is inherently designed for a higher return profile than standard lending. It's high-yield debt with upside potential via warrants/equity. You get the regular income from the loan, plus a kicker. Here's a look at the yield performance as of the third quarter of 2025:

Metric	Value (as of September 30, 2025)
Annualized Portfolio Yield on Debt Investments (Q3 2025)	18.6%
Total Investment Portfolio (Principal Balance)	$603.5 million
Warrant and Equity Positions Held	95 companies
Undistributed Spillover Income	$0.93 per share

This structure helps maximize the total return profile. Also, the company held $130.9 million in cash and had $329.0 million in credit facility capacity as of September 30, 2025, giving it dry powder to deploy.

HRZN targets specific, high-growth markets where they claim niche expertise. This focus is key to underwriting risk and demanding higher returns. This is the capital for specific high-growth sectors (Tech, Life Science, Sustainability) proposition:

• Life Science: around 42% of the portfolio.
• Technology: around 33% of the portfolio.
• Healthcare Information and Services: around 15% of the portfolio.
• Sustainability: around 10% of the portfolio.

The financing itself offers flexible financing structures tailored to venture-backed firms. HRZN provides senior secured loans, which are typically the most secure form of debt in a venture capital stack. The total investment portfolio stood at $603.5 million at the end of Q3 2025.

Finally, a major planned value enhancement comes from the pending combination with Monroe Capital Corporation (MRCC). This is the increased scale and capital base post-MRCC merger proposition. The transaction, expected to close by the end of 2025, is set to significantly boost the firm's capacity to originate larger deals.

Here's the quick math on the expected scale increase based on June 30, 2025 figures:

• Expected net cash proceeds to HRZN: approximately $165 million.
• Projected pro forma Net Asset Value (NAV) of the combined entity: approximately $446 million.
• Expected annualized G&A expense savings: $2.5 million (a 30% reduction).

This combination is intended to create a larger, more sophisticated, and diversified portfolio, which should help in securing future financing on better terms. Finance: draft the post-merger capital deployment strategy by next Wednesday.

Horizon Technology Finance Corporation (HRZN) - Canvas Business Model: Customer Relationships

You're running a high-growth tech or life science company, and you need capital that understands your runway isn't a straight line. Horizon Technology Finance Corporation (HRZN) builds its customer relationships on being a specialized, hands-on partner, not just a lender. This high-touch service is delivered by their experienced team of investment and operations professionals.

This team has deep roots in the space; collectively, they've originated and invested more than $5 billion in venture loans to thousands of companies over the years. Since 2004, HRZN has directly originated and invested $3.8 billion across more than 360 growing companies. They pride themselves on being a value-added and user-friendly partner to management and sponsors. Honestly, their goal isn't just to close a deal; it's to structure a financing solution that genuinely propels the portfolio company forward.

The relationship focus is definitely long-term. Like their portfolio companies, Horizon Technology Finance is forward-looking, taking the long view to bridge the financial gap until the company reaches its next major milestone. This patient approach is key for companies that need capital to fund growth while maximizing equity returns through lower-cost, less dilutive debt capital.

Proactive portfolio monitoring is where the rubber meets the road. They don't just fund and forget; they use their industry knowledge and financial rigor to stay close to the companies. This is critical for managing credit risk in volatile tech sectors. Here's a quick look at the portfolio health as of late 2025:

Metric	Value as of September 30, 2025	Context
Total Investment Portfolio (Fair Value)	$603.5 million	Total debt investment portfolio size
Portfolio Companies (Warrants/Equity Held)	95 companies	Number of companies in the portfolio
Annualized Portfolio Yield on Debt Investments	18.6%	Yield for Q3 2025
Debt Investments with Internal Credit Rating of 1	4 investments	Lowest internal credit rating category
Cost of Rating 1 Investments	$61.3 million	Aggregate cost of the four Rating 1 debt investments

That internal credit rating system is your early warning radar. For instance, as of September 30, 2025, they had four debt investments with an internal credit rating of 1, representing an aggregate cost of $61.3 million. Still, they manage downside situations, as evidenced by achieving positive outcomes on two stressed investments during Q3 2025. They use their experience to work with portfolio companies to find positive solutions when things get tough. Their annualized portfolio yield on debt investments for the third quarter of 2025 was 18.6%, showing strong returns despite credit challenges.

Direct communication is supported by a physical footprint. Horizon Technology Finance Corporation is headquartered in Farmington, Connecticut, which anchors their East Coast operations. Plus, they maintain a regional office in Pleasanton, California, placing investment professionals directly in key technology hubs across the U.S. This structure helps them maintain close, responsive relationships with their venture-backed clients, no matter where they are located.

• Headquarters Location: Farmington, Connecticut
• Regional Office Location: Pleasanton, California
• Investment Professionals: Located throughout the U.S.

Finance: draft the Q4 2025 portfolio stress-test scenario by next Tuesday.

Horizon Technology Finance Corporation (HRZN) - Canvas Business Model: Channels

You're looking at how Horizon Technology Finance Corporation gets its deals-the lifeblood of any specialty finance BDC. The channels they use are a mix of internal muscle, strategic partnerships, and physical presence in key tech hubs.

Direct origination by internal investment team remains a core channel. This is where the internal team sources, vets, and closes the secured loans. For the third quarter ended September 30, 2025, Horizon Technology Finance Corporation funded $15.0 Million of new loans. This direct effort is supported by a substantial pipeline; as of September 30, 2025, the Committed Backlog stood at $119 Million across 16 companies.

The relationship with Monroe Capital is a significant channel multiplier. Horizon Technology Finance Corporation is an affiliate of Monroe Capital, and management has emphasized a renewed focus on leveraging Monroe Capital's broader capabilities to source additional investments. This relationship is set to deepen with the announced merger with Monroe Capital Corporation (MRCC), which is expected to provide HRZN with significant incremental leverageable capital and a larger shareholder base to execute its strategy. Post-merger, the plan is to leverage Monroe Capital's support to originate larger venture loans.

The physical footprint supports deal sourcing and relationship management. You see the corporate office in Farmington, CT, and a key regional office in Pleasanton, CA. To be fair, the geographic reach is wider, as another regional office is mentioned at Monroe Capital in Chicago, IL, and other investment professionals are located throughout the U.S.. The company maintains a broad geographic footprint supporting deal sourcing across innovation hubs.

Industry conferences and venture capital network connections are critical for finding the target market of venture capital and private equity-backed companies in technology, life science, healthcare information and services, and sustainability. The company's strategy involves tapping into these networks to maintain a robust deal flow, which is evidenced by the fact that as of September 30, 2025, HRZN held a portfolio of warrant and equity positions in 95 companies.

Here's a look at the scale and reach tied to these channels as of late 2025:

Channel Component	Metric/Location	Latest Reported Data (2025)
Direct Origination Volume (Q3)	Loans Funded (Q3 2025)	$15.0 Million
Direct Origination Volume (Q2)	Loans Funded (Q2 2025)	$59.7 Million
Pipeline Strength (Q3 End)	Committed Backlog	$119 Million
Pipeline Strength (Q3 End)	Number of Companies in Backlog	16 companies
Network Reach	Portfolio Companies with Equity/Warrants	95 companies (as of September 30, 2025)
Physical Presence	Headquarters Location	Farmington, CT
Physical Presence	Primary Regional Office	Pleasanton, CA
Physical Presence	Other Mentioned Office Location	Chicago, IL (at Monroe Capital)
Portfolio Size	Total Investment Portfolio (Q3 End)	$603.5 Million

The immediate post-Q3 activity shows the channels are still active. In October 2025, the company had already funded one $10 million venture loan and was awarded 3 new venture loan transactions totaling $50 million in commitments.

You can see the reliance on the network through the recent acquisition activity. Horizon Technology Finance purchased the remaining assets of a co-lender for a purchase price of $22.5 Million in August 2025, which included debt investments on accrual status with a principal balance of $34.9 Million. This is a direct way to ingest deals sourced by another originator.

The company's overall lending capacity, which feeds these channels, is substantial:

• Cash and credit facility capacity as of September 30, 2025: Cash of $130.9 Million and credit facility capacity of $329.0 Million.
• Net debt to equity leverage ratio as of September 30, 2025: 94%.
• The Key Facility allows for an increase in total loan commitment up to an aggregate commitment of $300.0 Million.

Finance: review the Q4 pipeline conversion rate against the Q3 closing rate of $66.2 Million in new commitments.

Horizon Technology Finance Corporation (HRZN) - Canvas Business Model: Customer Segments

You're looking at the core of Horizon Technology Finance Corporation (HRZN)'s business-who they lend money to. Horizon Technology Finance Corporation (HRZN) focuses its capital, delivered primarily as secured loans, on growth-stage companies that have backing from established financial sponsors or are publicly traded.

The customer base is segmented by industry focus, which is a critical lens for understanding where Horizon Technology Finance Corporation (HRZN) deploys its capital. As of the third quarter ending September 30, 2025, the portfolio allocation by industry was quite concentrated in the top two sectors.

Here is the breakdown of the portfolio by industry focus as of late 2025:

Customer Segment Focus Area	Approximate Portfolio Percentage (as of Q3 2025)
Life Sciences	42%
Technology	33%
Healthcare-IT	15%
Sustainability	10%

The types of companies receiving this capital are defined by their funding structure, which is a key qualifier for Horizon Technology Finance Corporation (HRZN) investments.

• Venture capital-backed technology companies: These are firms that have secured funding from venture capital firms and are often in high-growth, pre-profitability stages.
• Life science and healthcare information/services companies: This group includes firms developing novel therapies, medical devices, or providing critical healthcare technology services. For example, as of June 30, 2025, Horizon Technology Finance Corporation (HRZN) funded a developer of innovative medical devices and therapies.
• Private equity-backed and small-cap publicly traded companies: Horizon Technology Finance Corporation (HRZN) provides capital to companies backed by private equity firms and also extends secured loans to smaller, publicly listed entities. Following the announced merger with MRCC, the ability to serve small-cap public market companies became an explicit, renewed focus.
• Companies focused on the sustainability industry: This segment includes firms working on environmental or resource-efficiency solutions. An example from Q1 2025 involved an investment in an operator of conservation memorial forests.

To support these lending activities, Horizon Technology Finance Corporation (HRZN) maintains a significant number of equity and warrant positions, which offer potential for capital appreciation alongside the debt income. As of September 30, 2025, Horizon Technology Finance Corporation (HRZN) held portfolio of warrant and equity positions in 95 companies. To be fair, 86 of those were private companies. Finance: draft 13-week cash view by Friday.

Horizon Technology Finance Corporation (HRZN) - Canvas Business Model: Cost Structure

You're looking at the core costs Horizon Technology Finance Corporation (HRZN) incurs to run its specialty finance operation, which is heavily influenced by its debt structure and its relationship with its external adviser, Horizon Technology Finance Management LLC (HTFM).

The cost structure is dominated by the expense of funding its investment portfolio and the fees paid to HTFM for managing those assets. Here's a breakdown based on the latest available 2025 figures, primarily from the third quarter ending September 30, 2025.

Interest Expense on Debt

Funding the investment portfolio requires significant debt, which translates directly into interest expense. This is a variable cost tied to the outstanding borrowings and prevailing interest rates.

As of the third quarter of 2025, Horizon Technology Finance Corporation had specific debt instruments contributing to this cost:

• Outstanding principal balance under the senior secured credit facility: \$90.0 million.
• Interest rate on that facility: 7.21%.
• The 2022 Asset-Backed Notes bore a fixed interest rate of 7.56% per annum.

For context on the quarterly impact, total expenses for the quarter ended September 30, 2025, were \$12.0 million, compared to \$12.4 million for the same period in 2024. The increase in interest expense in Q1 2025 was noted as \$0.5 million over Q1 2024.

Base Management and Incentive Fees to the External Adviser

The external adviser, HTFM, is compensated through a base management fee and a performance-based incentive fee. These fees are a direct cost of operations, calculated based on the size of the asset base.

Here are the fee figures for the three months ended September 30, 2025:

Fee Type	Q3 2025 Amount (in thousands USD)	Q3 2025 Amount (in millions USD)
Base management fee	2,748	2.748
Performance based incentive fee	-	0

Looking at the cumulative nine months ending September 30, 2025, the base management fee totaled \$8,887 thousand (or \$8.887 million). The base management fee for Q3 2025 actually saw a slight decrease of \$0.2 million compared to Q3 2024, attributed to a lower average weighted size of the portfolio in the quarter.

Operating Expenses

Beyond the direct financing and advisory costs, Horizon Technology Finance Corporation incurs general operating expenses, which include administrative and professional fees. These are often grouped as General and Administrative (G&A) expenses.

Total expenses for recent quarters in 2025 were:

• For the three months ended March 31, 2025: \$13.4 million.
• For the three months ended June 30, 2025: \$12.7 million.
• For the three months ended September 30, 2025: \$12.0 million.

The announced merger with Monroe Capital Corporation (MRCC) is expected to create efficiencies here. The combined entity anticipates annualized G&A expense savings of \$2.5 million, which represents a 30% reduction in expenses, specifically targeting professional fees and administrative fees.

Potential Fee Waivers Post-Merger

To support the transaction and shareholders, the external adviser, HTFM, has committed to a temporary reduction in its fees following the expected closing in the fourth quarter of 2025.

The terms of this cost reduction are specific:

• Aggregate fee waiver amount: Up to \$4 million.
• Duration: Over the first four full fiscal quarters following the closing of the Merger.
• Quarterly cap: The waiver will be implemented at a rate of up to \$1 million per quarter.

It's important to note that the fee waiver for any given quarter will not exceed the total amount of base management and incentive fees earned by HTFM during that specific fiscal quarter.

Finance: draft 13-week cash view by Friday.

Horizon Technology Finance Corporation (HRZN) - Canvas Business Model: Revenue Streams

The revenue streams for Horizon Technology Finance Corporation (HRZN) are fundamentally driven by its investment portfolio, which primarily consists of debt and equity positions in technology, life science, healthcare IT, and sustainability companies. You're looking at a model where the core income is the interest earned on senior secured loans, supplemented by fees and equity upside.

The Total Investment Income for the full Fiscal Year 2025 is projected at approximately $115.0 million. This is supported by a strong current yield environment; for instance, the dollar-weighted annualized yield on average debt investments in the third quarter of 2025 reached 18.6%.

The primary revenue component is Interest income from secured debt investments. This is the engine of Horizon Technology Finance Corporation's earnings. For the third quarter of 2025, the Total Investment Income was $26.3 million, which the company noted was driven primarily by higher fee and interest income on investments from the debt portfolio.

The secondary, but significant, component is Fee income, which includes end-of-term, prepayment, and commitment fees. These fees enhance the overall yield Horizon Technology Finance Corporation captures from its loan coupons. For example, in September 2025, a portfolio company repaid its loan, which included an end-of-term payment and prepayment fee alongside the principal and interest. Similarly, in the second quarter of 2025, a loan repayment included an end-of-term payment and prepayment fee on a $17.5 million principal balance. The company aims to maximize its total yield by engaging in these fees, topping the typical industry average Internal Rate of Return (IRR) of around 10% from loan coupons.

The third stream involves Gains/proceeds from the sale or exercise of warrants and equity. These represent the upside potential from the equity components attached to the debt investments. Horizon Technology Finance Corporation held portfolio of warrant and equity positions in 95 companies as of September 30, 2025. Specific liquidity events in Q3 2025 included the sale of an equity investment for gross proceeds of $0.6 million. In the prior quarter (Q2 2025), proceeds totaling $0.6 million were received from the redemption of warrants in Fictiv.

You can see the quarterly flow of Total Investment Income below, which is the sum of interest and fee income, before considering gains from warrants:

Metric	Q1 2025	Q2 2025	Q3 2025
Total Investment Income	$24.5 million	$24.5 million	$26.3 million
Annualized Yield on Debt Investments	15.0%	15.8%	18.6%
Net Investment Income (NII) per Share	$0.27	$0.28	$0.32

The projected Net Investment Income per share for the full FY2025 stands at $1.12 per share.

The sources contributing to the overall investment income are concentrated in specific sectors:

• Life Sciences: around 42% of the portfolio.
• Technology: around 33% of the portfolio.
• Healthcare-IT: around 15% of the portfolio.
• Sustainability: around 10% of the portfolio.

The company also benefits from a committed backlog, which provides a pipeline for future interest and fee income. This backlog stood at $119 million at the end of Q3 2025.

For your reference, here are the key liquidity events that feed into the fee and equity income streams:

• Q3 2025 Liquidity Events: Eight portfolio companies.
• Q2 2025 Liquidity Events: Seven portfolio companies.
• Q3 2025 Equity Proceeds: Sale of investment for $0.6 million.

Finance: draft 13-week cash view by Friday.