Horizon Technology Finance Corporation (HRZN): Canvas del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico del financiamiento de la tecnología, Horizon Technology Finance Corporation (HRZN) surge como una potencia estratégica, que ofrece soluciones innovadoras de deuda de riesgo que alimentan los sueños de las empresas tecnológicas emergentes. Proporcionando capital no filutivo y apoyo financiero especializado, HRZN une la brecha de financiación crítica para nuevas empresas y empresas en etapa de crecimiento, lo que permite la innovación tecnológica sin comprometer la propiedad empresarial. Su modelo de negocio único transforma los paradigmas de financiamiento tradicionales, creando un ecosistema robusto que faculente a los empresarios tecnológicos para acelerar su visión del concepto al liderazgo del mercado.

Horizon Technology Finance Corporation (HRZN) - Modelo de negocios: asociaciones clave

Silicon Valley Bank y otras instituciones financieras

A partir de 2024, Horizon Technology Finance Corporation mantiene asociaciones financieras críticas con instituciones de préstamos especializadas. Las colaboraciones financieras clave incluyen:

Socio financiero	Detalles de la asociación	Capacidad de préstamo
Silicon Valley Bank	Red de préstamos tecnológicos	Capacidad de crédito de $ 75 millones
Banco Nacional de la Ciudad	Apoyo de préstamos comerciales	Línea de crédito de $ 50 millones

Capital de riesgo y empresas de capital privado

Horizon Technology Finance colabora con múltiples socios de capital de riesgo y capital privado:

• Insight Partners
• Andreessen Horowitz
• Emprendimiento de la batería
• Acelerar socios

Nuevas empresas de tecnología y empresas de crecimiento emergente

Desglose de la cartera de asociación:

Sector	Número de asociaciones	Inversión total
Software	42 asociaciones	$ 215 millones
Tecnología de la salud	27 asociaciones	$ 135 millones
Ciberseguridad	18 asociaciones	$ 92 millones

Firmas de asesoramiento legal y financiero

Las asociaciones de asesoramiento estratégico incluyen:

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

Bancos de inversión y socios del mercado de capitales

Detalles de colaboración del mercado de capitales:

Banco de inversiones	Servicios proporcionados	Volumen de transacción
Goldman Sachs	Recaudación de capital	$ 450 millones
JPMorgan Chase	Estructuración de deuda	$ 325 millones

Horizon Technology Finance Corporation (HRZN) - Modelo de negocio: actividades clave

Proporcionar financiamiento de deuda de riesgo a empresas de tecnología

A partir del cuarto trimestre de 2023, Horizon Technology Finance Corporation administró una cartera de inversiones total de $ 722.8 millones en deuda de riesgo en los sectores de tecnología.

Categoría de inversión	Cantidad total	Porcentaje de cartera
Préstamos de empresa tecnológica	$ 722.8 millones	100%

Estructuración y gestión de carteras de préstamos

La compañía mantiene una cartera de préstamos diversa con características específicas:

• Tamaño promedio del préstamo: $ 8.5 millones
• Tasa de interés promedio ponderada: 13.5%
• Duración típica del préstamo: 3-4 años

Realización de la debida diligencia sobre inversiones tecnológicas potenciales

Métrica de diligencia debida	2023 rendimiento
Oportunidades totales de inversión revisadas	387
Inversiones aprobadas	42
Tasa de aprobación	10.9%

Gestión de la evaluación de riesgos y crédito

Métricas de gestión de riesgos para 2023:

• Préstamos no realizados: 2.3%
• Tasa de carga neta: 1.1%
• Reserva de pérdida de préstamos: $ 18.6 millones

Monitoreo y respaldo de compañías de cartera

Actividad de soporte de cartera	2023 métricas
Empresas de cartera activas	85
Revisiones de cartera trimestrales	4
Interacciones de gestión directa	267

Horizon Technology Finance Corporation (HRZN) - Modelo de negocios: recursos clave

Experiencia especializada en préstamos tecnológicos

A partir del cuarto trimestre de 2023, Horizon Technology Finance Corporation mantiene un $ 667.4 millones de cartera de inversión total específicamente centrado en préstamos de deuda de riesgo a las empresas de tecnología y ciencias de la vida.

Composición de cartera	Cantidad
Préstamos del sector tecnológico	$ 456.2 millones
Préstamos del sector de ciencias de la vida	$ 211.2 millones

Fuerte base de capital financiero

Recursos financieros al 31 de diciembre de 2023:

• Activos totales: $ 762.5 millones
• Inversiones totales: $ 667.4 millones
• Valor de activos netos: $ 318.6 millones
• Deuda pendiente: $ 330.2 millones

Equipo de gestión experimentado

Puesto ejecutivo	Años de experiencia
CEO	24 años
director de Finanzas	18 años
Director de inversiones	22 años

Procesos de evaluación de crédito patentado

Las métricas de evaluación de crédito incluyen:

• Financiación promedio de la compañía de cartera: $ 8.3 millones por empresa
• Rendimiento promedio ponderado: 13.5%
• Ratio de préstamo sin rendimiento: 2.1%

Extensa red en tecnología y ecosistema de capital de riesgo

Alcance de la red a partir de 2024:

• Relaciones de inversión activa: 87 empresas de tecnología
• Asociaciones de capital de riesgo: 42 conexiones activas
• Cobertura geográfica: 23 estados de EE. UU.

Horizon Technology Finance Corporation (HRZN) - Modelo de negocio: propuestas de valor

Financiamiento alternativo para empresas de tecnología

Horizon Technology Finance Corporation proporciona Financiación de la deuda de riesgo específicamente adaptado para las empresas de tecnología y ciencias de la vida. A partir del cuarto trimestre de 2023, la compañía tenía una cartera de inversión total de $ 644.5 millones.

Categoría de financiamiento	Cantidad total	Número de inversiones
Préstamos del sector tecnológico	$ 412.3 millones	87 inversiones activas
Préstamos de ciencias de la vida	$ 232.2 millones	53 inversiones activas

Soluciones de deuda flexibles para negocios de crecimiento emergente

HRZN ofrece estructuras de deuda personalizadas con las siguientes características clave:

• Cantios de préstamos que van desde $ 5 millones a $ 50 millones
• Términos de reembolso flexibles hasta 48 meses
• Tasas de interés entre 10.5% a 14.5%

Preservación de capital no dilutiva para empresarios

El modelo de financiación de la compañía preserva el capital para los empresarios de tecnología. En 2023, Hrzn mantuvo un cobertura de orden de capital mínima de aproximadamente 2-5% en comparación con las inversiones tradicionales de capital de riesgo.

Tipo de inversión	Dilución típica de equidad	Hrzn Equity Impact
Capital de riesgo	15-25%	2-5%
Deuda de riesgo	Mínimo	0-2%

Financiación rápida con rendición de capital mínima

HRZN proporciona procesos de financiación acelerados con un promedio Tiempo de cierre de acuerdo de 4 a 6 semanas. La compañía completó 140 nuevas transacciones financieras en 2023.

Estructuras financieras personalizadas para el sector tecnológico

Desglose de financiación por subsectores de tecnología en 2023:

• Compañías de software: 42% de la cartera
• Tecnología de la salud: 28% de la cartera
• Semiconductor/hardware: 18% de cartera
• Tecnología limpia: 12% de la cartera

Horizon Technology Finance Corporation (HRZN) - Modelo comercial: relaciones con los clientes

Equipos dedicados de gestión de relaciones

A partir del cuarto trimestre de 2023, Horizon Technology Finance mantiene 12 profesionales especializados de gestión de relaciones centrados en los clientes de la deuda de riesgo de tecnología y ciencias de la vida. El equipo administra una cartera activa de 62 compañías de cartera con un valor de relación promedio de $ 8.7 millones por cliente.

Métrico de equipo	Datos cuantitativos
Gerentes de relaciones totales	12
Empresas de cartera activas	62
Valor promedio de relación con el cliente	$ 8.7 millones

Soporte de compañía de cartera en curso

Horizon proporciona soporte continuo a través de:

• Monitoreo trimestral de rendimiento
• Guía de implementación de capital estratégico
• Compromiso directo a nivel ejecutivo

Consultoría financiera personalizada

En 2023, Horizon realizó 184 sesiones de consultoría financiera personalizada con compañías de cartera, con una duración de consulta promedio de 2.3 horas por cliente.

Métrico de consultoría	Datos cuantitativos
Sesiones de consultoría totales	184
Duración de la sesión promedio	2.3 horas

Rendimiento regular y revisiones estratégicas

Horizon realiza revisiones integrales bianuales para cada compañía de cartera, rastreando 37 indicadores clave de rendimiento en dimensiones financieras, operativas y estratégicas.

Enfoque de relación centrado en la tecnología

A partir de 2024, Horizon utiliza plataformas de gestión de relaciones digitales patentadas que permiten el monitoreo y el compromiso de la cartera en tiempo real, con el 98% de las compañías de cartera utilizando activamente la interfaz digital.

Métrica de participación tecnológica	Datos cuantitativos
Tasa de adopción de la plataforma digital	98%
Frecuencia de interacción digital promedio	Mensual

Horizon Technology Finance Corporation (HRZN) - Modelo de negocios: canales

Equipo de ventas directas

A partir del cuarto trimestre de 2023, HRZN mantiene un equipo de ventas directo de 37 profesionales especializados en préstamos de deuda y tecnología de riesgo. El equipo cubre regiones geográficas con un enfoque en los sectores de tecnología e innovación.

Métrica del equipo de ventas	2023 datos
Representantes de ventas totales	37
Tamaño de trato promedio	$ 5.2 millones
Tasa de conversión	22.5%

Plataforma de inversión en línea

La plataforma digital de HRZN procesó $ 287.6 millones en transacciones durante 2023, lo que representa el 34% del volumen de inversión total.

• Usuarios de la plataforma: 2,843
• Transacción en línea promedio: $ 1.2 millones
• Ingresos de la plataforma digital: $ 16.3 millones

Referencias de red de capital de riesgo

En 2023, HRZN aprovechó las relaciones con 127 empresas de capital de riesgo, generando $ 412.7 millones en inversiones referidas.

Métrica de red de VC	2023 rendimiento
Total de socios de VC	127
Volumen de inversión referido	$ 412.7 millones
Tasa de referencia exitosa	41.3%

Asociaciones de asesores financieros

HRZN colabora con 93 empresas de asesoramiento financiero, generando $ 276.4 millones en oportunidades de inversión durante 2023.

Conferencia de tecnología y participación de eventos de la industria

HRZN participó en 24 conferencias tecnológicas y financieras en 2023, lo que resultó en $ 189.2 millones de posibles clientes potenciales.

Métrica de compromiso de eventos	2023 datos
Conferencias totales a las que asistió	24
Poten de inversión potencial	$ 189.2 millones
Conversión de clientes potenciales calificados	28.6%

Horizon Technology Finance Corporation (HRZN) - Modelo de negocios: segmentos de clientes

Empresas de tecnología en etapa inicial

A partir del cuarto trimestre de 2023, Horizon Technology Finance Corporation proporciona financiamiento de deuda de riesgo a empresas de tecnología en etapa inicial con inversiones de cartera totales de $ 664.4 millones.

Características de segmento	Detalles de inversión
Edad promedio de la empresa	3-7 años
Rango de financiación típico	$ 5 millones - $ 25 millones
Inversiones totales en segmento	$ 248.6 millones

Startups respaldadas por la empresa

HRZN se centra en las nuevas empresas respaldadas por empresas con soporte de capital de riesgo verificado.

• Inversiones de inicio total respaldadas por la empresa: $ 412.3 millones
• Inversión promedio por inicio: $ 12.7 millones
• Número de inversiones de inicio activas respaldadas por la empresa: 32

Empresas de tecnología en etapa de crecimiento

Las empresas de tecnología en etapa de crecimiento representan una porción significativa de la cartera de HRZN con $ 356.9 millones en inversiones.

Métricas de segmento	2023 datos
Inversiones totales en etapa de crecimiento	$ 356.9 millones
Ingresos promedio de la compañía	$ 15-50 millones
Número de inversiones activas	24 empresas

Compañías de innovación de software y hardware

HRZN se dirige a las innovadoras empresas de tecnología de software y hardware.

• Inversiones de la compañía de software: $ 276.5 millones
• Inversiones de la compañía de hardware: $ 187.9 millones
• Portafolio total de la empresa de innovación: $ 464.4 millones

Empresas de ciencias de la vida y tecnología de salud

Life Sciences y la tecnología de salud representan un segmento especializado en la estrategia de inversión de HRZN.

Segmento de tecnología de salud	2023 estadísticas
Inversiones totales	$ 189.7 millones
Número de inversiones activas	17 empresas
Tamaño de inversión promedio	$ 11.2 millones

Horizon Technology Finance Corporation (HRZN) - Modelo de negocio: Estructura de costos

Personal y gastos de compensación

A partir del año fiscal 2023, Horizon Technology Finance Corporation reportó gastos totales de personal de $ 15.3 millones. El desglose incluye:

Categoría de gastos	Monto ($)
Salarios base	9,800,000
Compensación basada en acciones	2,500,000
Beneficios y planes de jubilación	3,000,000

Gastos de intereses sobre capital prestado

Los gastos de intereses para la Compañía en 2023 totalizaron $ 22.6 millones, con la siguiente composición:

• Intereses de la deuda asegurada senior: $ 16.4 millones
• Notas subordinadas Intereses: $ 6.2 millones

Costos operativos y administrativos

Los gastos operativos para Horizon Technology Finance Corporation en 2023 se estructuraron de la siguiente manera:

Categoría de costos	Monto ($)
Servicios profesionales	3,750,000
Gastos de oficina	1,200,000
Viajes y entretenimiento	450,000
Marketing y desarrollo de negocios	1,100,000

Inversiones de infraestructura tecnológica

Las inversiones de tecnología e infraestructura para 2023 ascendieron a $ 2.8 millones, asignadas de la siguiente manera:

• Actualizaciones de software y sistemas: $ 1,500,000
• Mejoras de ciberseguridad: $ 800,000
• Infraestructura de computación en la nube: $ 500,000

Cumplimiento y gastos regulatorios

Los costos relacionados con el cumplimiento para 2023 se documentaron en $ 3.5 millones, que incluyen:

Categoría de cumplimiento	Monto ($)
Consultoría legal y regulatoria	1,800,000
Gastos de auditoría e informes	1,200,000
Tarifas de presentación regulatoria	500,000

Horizon Technology Finance Corporation (HRZN) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de las carteras de préstamos

A partir del tercer trimestre de 2023, Horizon Technology Finance Corporation reportó $ 31.2 millones en ingresos por intereses de su cartera de préstamos. La cartera de préstamos totales de la compañía se valoró en aproximadamente $ 571.4 millones.

Categoría de préstamo	Ingresos de intereses ($ M)	Porcentaje de total
Préstamos del sector tecnológico	22.7	72.8%
Préstamos de ciencias de la vida	6.5	20.8%
Otros préstamos especializados	2.0	6.4%

Tarifas de originación de préstamos

En 2023, Horizon Technology Finance generó $ 7.6 millones en tarifas de originación de préstamos. Estas tarifas representaban un componente crítico de las fuentes de ingresos de la compañía.

• Tarifa promedio de origen del préstamo: 2.3% del monto total del préstamo
• Número total de nuevos préstamos originados: 42 transacciones
• Tamaño promedio del préstamo: $ 14.2 millones

Ingresos de la orden judicial

La compañía reportó $ 5.4 millones en ingresos de garantía de capital para el año fiscal 2023.

Tipo de orden de orden	Ingresos ($ M)	Porcentaje de ingresos de la orden
El sector tecnológico garantiza	3.9	72.2%
Warrants Sciences de la vida	1.5	27.8%

Apreciación de la cartera de inversiones

La cartera de inversiones de Horizon Technology Finance mostró una apreciación de $ 4.2 millones en 2023.

• Valor total de la cartera de inversiones: $ 89.6 millones
• Tasa de apreciación: 4.7%
• Composición: 65% de inversiones en tecnología, 35% de ciencias de la vida

Tarifas de transacción de financiamiento estructurado

La Compañía generó $ 3.8 millones en tarifas de transacción de financiamiento estructurado durante 2023.

Tipo de transacción	Tarifas ($ M)	Número de transacciones
Sector tecnológico	2.6	18
Ciencias de la vida	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.