Horizon Technology Finance Corporation (HRZN): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique du financement technologique, Horizon Technology Finance Corporation (HRZN) apparaît comme une puissance stratégique, offrant des solutions de dette de capital-risque innovantes qui alimentent les rêves des entreprises technologiques émergentes. En fournissant capital non dilutif et un soutien financier spécialisé, HRZN comble le lac de financement critique pour les startups et les entreprises au stade de croissance, permettant l'innovation technologique sans compromettre la propriété entrepreneuriale. Leur modèle commercial unique transforme les paradigmes de financement traditionnels, créant un écosystème robuste qui permet aux entrepreneurs technologiques d'accélérer leur vision du concept au leadership du marché.

Horizon Technology Finance Corporation (HRZN) - Modèle commercial: Partenariats clés

Silicon Valley Bank et autres institutions financières

En 2024, Horizon Technology Finance Corporation maintient des partenariats financiers critiques avec des institutions de prêt spécialisées. Les principales collaborations financières comprennent:

Partenaire financier	Détails du partenariat	Capacité de prêt
Silicon Valley Bank	Réseau de prêts technologiques	CONDITION DE CRÉDIT 75 millions de dollars
Banque nationale de la ville	Soutien aux prêts commerciaux	Ligne de crédit de 50 millions de dollars

Capitaux de capital-risque et sociétés de capital-investissement

Horizon Technology Finance collabore avec plusieurs partenaires de capital-risque et de capital-investissement:

• Insight Partners
• Andreessen Horowitz
• Ventures de batterie
• ACCEL PARTENERS

Startups technologiques et entreprises en croissance émergente

Répartition du portefeuille de partenariat:

Secteur	Nombre de partenariats	Investissement total
Logiciel	42 partenariats	215 millions de dollars
Technologie de santé	27 partenariats	135 millions de dollars
Cybersécurité	18 partenariats	92 millions de dollars

Sociétés de conseil juridique et financier

Les partenariats de conseil stratégique comprennent:

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

Banques d'investissement et partenaires du marché des capitaux

Détails de la collaboration du marché des capitaux:

Banque d'investissement	Services fournis	Volume de transaction
Goldman Sachs	Levage de capitaux	450 millions de dollars
JPMorgan Chase	Structuration de la dette	325 millions de dollars

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: Activités clés

Fournir un financement de la dette de capital-risque aux entreprises technologiques

Au quatrième trimestre 2023, Horizon Technology Finance Corporation a géré un portefeuille d'investissement total de 722,8 millions de dollars en dette de capital-risque entre les secteurs de la technologie.

Catégorie d'investissement	Montant total	Pourcentage de portefeuille
Promes de capital-risque technologique	722,8 millions de dollars	100%

Structuration et gestion des portefeuilles de prêts

La société maintient un portefeuille de prêts divers avec des caractéristiques spécifiques:

• Taille moyenne du prêt: 8,5 millions de dollars
• Taux d'intérêt moyen pondéré: 13,5%
• Durée du prêt typique: 3-4 ans

Effectuer une diligence raisonnable sur les investissements technologiques potentiels

Métrique de diligence raisonnable	Performance de 2023
Total des opportunités d'investissement examinées	387
Investissements approuvés	42
Taux d'approbation	10.9%

Gestion des risques et de l'évaluation du crédit

Mesures de gestion des risques pour 2023:

• Prêts non performants: 2,3%
• Taux de charge net: 1,1%
• Réserve de perte de prêt: 18,6 millions de dollars

Surveillance et soutien aux sociétés de portefeuille

Activité de support de portefeuille	2023 métriques
Sociétés de portefeuille actifs	85
Avis sur le portefeuille trimestriel	4
Interactions de gestion directe	267

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: Ressources clés

Expertise en technologie spécialisée

Depuis le quatrième trimestre 2023, Horizon Technology Finance Corporation maintient un Portefeuille total d'investissement de 667,4 millions de dollars spécifiquement axé sur les prêts de dette de capital-risque aux sociétés technologiques et de sciences de la vie.

Composition de portefeuille	Montant
Prêts du secteur technologique	456,2 millions de dollars
Prêts du secteur de la science de la vie	211,2 millions de dollars

Solide base de capital financier

Ressources financières au 31 décembre 2023:

• Actif total: 762,5 millions de dollars
• Investissements totaux: 667,4 millions de dollars
• Valeur de l'actif net: 318,6 millions de dollars
• Dette en circulation: 330,2 millions de dollars

Équipe de gestion expérimentée

Poste de direction	Années d'expérience
PDG	24 ans
Directeur financier	18 ans
Chef des investissements	22 ans

Processus d'évaluation du crédit propriétaire

Les mesures d'évaluation du crédit comprennent:

• Financement moyen de l'entreprise de portefeuille: 8,3 millions de dollars par entreprise
• Rendement moyen pondéré: 13,5%
• Ratio de prêt non performant: 2,1%

Écosystème étendu de réseau technologique et de capital-risque

Réalisation du réseau à partir de 2024:

• Relations d'investissement actives: 87 entreprises technologiques
• Partenariats en capital-risque: 42 Connexions actives
• Couverture géographique: 23 États américains

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: propositions de valeur

Financement alternatif pour les entreprises technologiques

Horizon Technology Finance Corporation fournit financement de la dette spécifiquement adapté aux sociétés technologiques et scientifiques de la vie. Au quatrième trimestre 2023, la société avait un portefeuille d'investissement total de 644,5 millions de dollars.

Catégorie de financement	Montant total	Nombre d'investissements
Prêts du secteur technologique	412,3 millions de dollars	87 investissements actifs
Prêts de science de la vie	232,2 millions de dollars	53 investissements actifs

Solutions de dette flexibles pour les entreprises de croissance émergentes

HRZN propose des structures de dette personnalisées avec les caractéristiques clés suivantes:

• Les montants de prêt allant de 5 millions de dollars à 50 millions de dollars
• Termères de remboursement flexibles jusqu'à 48 mois
• Taux d'intérêt entre 10,5% et 14,5%

Conservation des capitaux non dilutifs pour les entrepreneurs

Le modèle de financement de la société préserve les capitaux propres pour les entrepreneurs technologiques. En 2023, HRZN a maintenu un Couverture minimale du mandat de capitaux propres d'environ 2 à 5% par rapport aux investissements traditionnels en capital-risque.

Type d'investissement	Dilution typique des actions	Impact sur les actions HRZN
Capital-risque	15-25%	2-5%
Endettement	Minimal	0-2%

Financement rapide avec une reddition minimale des actions

HRZN fournit des processus de financement accélérés avec une moyenne Temps de fermeture de l'accord de 4 à 6 semaines. La société a effectué 140 nouvelles transactions de financement en 2023.

Structures financières personnalisées pour le secteur technologique

Répartition du financement par les sous-secteurs technologiques en 2023:

• Swoftware Companies: 42% du portefeuille
• Technologie des soins de santé: 28% du portefeuille
• Semi-conducteur / matériel: 18% du portefeuille
• Technologie propre: 12% du portefeuille

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: relations clients

Équipes de gestion des relations dédiées

Depuis le quatrième trimestre 2023, Horizon Technology Finance maintient 12 professionnels de la gestion des relations spécialisés axés sur les clients de la technologie de la technologie et des sciences de la vie. L'équipe gère un portefeuille actif de 62 sociétés de portefeuille avec une valeur de relation moyenne de 8,7 millions de dollars par client.

Métrique de l'équipe	Données quantitatives
Total des gestionnaires de relations	12
Sociétés de portefeuille actifs	62
Valeur de la relation client moyenne	8,7 millions de dollars

Support de la société de portefeuille en cours

Horizon fournit un soutien continu à travers:

• Surveillance trimestrielle des performances
• Conseils stratégiques de déploiement en capital
• Engagement de niveau exécutif direct

Conseil financier personnalisé

En 2023, Horizon a organisé 184 sessions de conseil financière personnalisées avec des sociétés de portefeuille, avec une durée moyenne de consultation de 2,3 heures par client.

Métrique de consultation	Données quantitatives
Sessions de consultation totales	184
Durée moyenne de la session	2,3 heures

Performance régulière et revues stratégiques

Horizon procède à des revues complètes bi-annuelles pour chaque société de portefeuille, en suivant 37 indicateurs de performance clés à travers les dimensions financières, opérationnelles et stratégiques.

Approche relationnelle axée sur la technologie

Depuis 2024, Horizon utilise plateformes de gestion des relations numériques propriétaires Cela permettent une surveillance et un engagement de portefeuille en temps réel, 98% des sociétés de portefeuille utilisant activement l'interface numérique.

Métrique de l'engagement technologique	Données quantitatives
Taux d'adoption de la plate-forme numérique	98%
Fréquence moyenne d'interaction numérique	Mensuel

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: canaux

Équipe de vente directe

Depuis le quatrième trimestre 2023, HRZN maintient une équipe de vente directe de 37 professionnels spécialisés dans la dette de capital-risque et les prêts technologiques. L'équipe couvre les régions géographiques en mettant l'accent sur les secteurs de la technologie et de l'innovation.

Métrique de l'équipe de vente	2023 données
Représentants des ventes totales	37
Taille moyenne de l'accord	5,2 millions de dollars
Taux de conversion	22.5%

Plateforme d'investissement en ligne

La plate-forme numérique de HRZN a traité 287,6 millions de dollars de transactions au cours de 2023, ce qui représente 34% du volume total des investissements.

• Utilisateurs de la plate-forme: 2 843
• Transaction en ligne moyenne: 1,2 million de dollars
• Revenus de plate-forme numérique: 16,3 millions de dollars

Références de réseaux de capital-risque

En 2023, HRZN a exploité des relations avec 127 sociétés de capital-risque, générant 412,7 millions de dollars en investissements référés.

Métrique du réseau VC	Performance de 2023
Partenaires totaux de VC	127
Volume d'investissement référé	412,7 millions de dollars
Taux de référence réussi	41.3%

Partenariats de conseillers financiers

HRZN collabore avec 93 cabinets de conseil financier, générant 276,4 millions de dollars de possibilités d'investissement en 2023.

Conférence technologique et engagement des événements de l'industrie

HRZN a participé à 24 conférences technologiques et financières en 2023, ce qui a entraîné 189,2 millions de dollars de prospects d'investissement potentiels.

Métrique de l'engagement des événements	2023 données
Les conférences totales ont assisté	24
Promètres d'investissement potentiel	189,2 millions de dollars
Conversion des pistes qualifiées	28.6%

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: segments de clientèle

Entreprises technologiques à un stade précoce

Au quatrième trimestre 2023, Horizon Technology Finance Corporation fournit un financement par dette de capital-risque aux sociétés technologiques à un stade précoce avec des investissements totaux de portefeuille de 664,4 millions de dollars.

Caractéristiques du segment	Détails de l'investissement
Âge de l'entreprise moyenne	3-7 ans
Gamme de financement typique	5 millions de dollars - 25 millions de dollars
Investissements totaux dans le segment	248,6 millions de dollars

Startups soutenues par une entreprise

HRZN se concentre sur les startups soutenues par une entreprise avec un soutien vérifié en capital-risque.

• Investissements en démarrage total soutenu par une entreprise: 412,3 millions de dollars
• Investissement moyen par startup: 12,7 millions de dollars
• Nombre d'investissements de démarrage actifs soutenus par une entreprise: 32

Entreprises technologiques au niveau de la croissance

Les sociétés technologiques au niveau de la croissance représentent une partie importante du portefeuille de HRZN avec 356,9 millions de dollars d'investissements.

Métriques du segment	2023 données
Investissements totaux au stade de croissance	356,9 millions de dollars
Revenus moyens de l'entreprise	15-50 millions de dollars
Nombre d'investissements actifs	24 entreprises

Sociétés d'innovation de logiciels et de matériel

HRZN cible les entreprises innovantes de technologies et de technologies matérielles.

• Investissements de sociétés de logiciels: 276,5 millions de dollars
• Investissements de la société de matériel: 187,9 millions de dollars
• Portfolio total des sociétés d'innovation: 464,4 millions de dollars

Sciences de la vie et technologies de la technologie de la santé

Les sciences de la vie et la technologie des soins de santé représentent un segment spécialisé dans la stratégie d'investissement de HRZN.

Segment de la technologie des soins de santé	2023 statistiques
Investissements totaux	189,7 millions de dollars
Nombre d'investissements actifs	17 entreprises
Taille moyenne de l'investissement	11,2 millions de dollars

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: Structure des coûts

Frais de personnel et d'indemnisation

Depuis l'exercice 2023, Horizon Technology Finance Corporation a déclaré des dépenses totales de personnel de 15,3 millions de dollars. La ventilation comprend:

Catégorie de dépenses	Montant ($)
Salaires de base	9,800,000
Compensation en stock	2,500,000
Plans d'avantages et de retraite	3,000,000

Dépenses d'intérêt sur le capital emprunté

Les frais d'intérêt pour la Société en 2023 ont totalisé 22,6 millions de dollars, avec la composition suivante:

• Intérêt de dette garantie de senior: 16,4 millions de dollars
• Notes subordonnées Intérêt: 6,2 millions de dollars

Coûts opérationnels et administratifs

Les dépenses opérationnelles pour Horizon Technology Finance Corporation en 2023 ont été structurées comme suit:

Catégorie de coûts	Montant ($)
Services professionnels	3,750,000
Dépenses de bureau	1,200,000
Voyage et divertissement	450,000
Marketing et développement commercial	1,100,000

Investissements infrastructures technologiques

Les investissements technologiques et infrastructures pour 2023 s'élevaient à 2,8 millions de dollars, alloués comme suit:

• Mises à niveau logicielles et systèmes: 1 500 000 $
• Améliorations de la cybersécurité: 800 000 $
• Infrastructure de cloud computing: 500 000 $

Compliance et dépenses réglementaires

Les frais liés à la conformité pour 2023 ont été documentés à 3,5 millions de dollars, notamment:

Catégorie de conformité	Montant ($)
Conseil juridique et réglementaire	1,800,000
Frais d'audit et de rapport	1,200,000
Frais de dépôt réglementaire	500,000

Horizon Technology Finance Corporation (HRZN) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des portefeuilles de prêts

Au troisième trimestre 2023, Horizon Technology Finance Corporation a déclaré 31,2 millions de dollars de revenus d'intérêts de son portefeuille de prêts. Le portefeuille de prêts totaux de la société était évalué à environ 571,4 millions de dollars.

Catégorie de prêt	Revenu des intérêts ($ m)	Pourcentage du total
Prêts du secteur technologique	22.7	72.8%
Prêts sur les sciences de la vie	6.5	20.8%
Autres prêts spécialisés	2.0	6.4%

Frais d'origine du prêt

En 2023, Horizon Technology Finance a généré 7,6 millions de dollars de frais de création de prêt. Ces frais représentaient un élément essentiel des sources de revenus de l'entreprise.

• Frais de création de prêt moyen: 2,3% du montant total du prêt
• Nombre total de nouveaux prêts à l'origine: 42 transactions
• Taille moyenne du prêt: 14,2 millions de dollars

Revenu du mandat de capitaux propres

La société a déclaré 5,4 millions de dollars de revenus de garantis de capitaux propres pour l'exercice 2023.

Type de mandat	Revenus ($ m)	Pourcentage du revenu du mandat
Warrants du secteur technologique	3.9	72.2%
Les sciences de la vie garantissent	1.5	27.8%

Appréciation du portefeuille d'investissement

Le portefeuille d'investissement d'Horizon Technology Finance a montré une appréciation de 4,2 millions de dollars en 2023.

• Valeur du portefeuille d'investissement total: 89,6 millions de dollars
• Taux d'appréciation: 4,7%
• Composition: 65% d'investissements technologiques, 35% des sciences de la vie

Frais de transaction de financement structuré

La société a généré 3,8 millions de dollars en frais de transaction de financement structurés au cours de 2023.

Type de transaction	Frais ($ m)	Nombre de transactions
Secteur technologique	2.6	18
Sciences de la vie	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.