Horizon Technology Finance

Horizon Technology Finance (NASDAQ: HRZN) is a leading specialty finance company and a publicly traded Business Development Company (BDC) based in Farmington, Connecticut. The firm primarily provides secured debt financing to venture capital-backed companies across various high-growth sectors, including technology, life science, healthcare information and services, and sustainability. Unlike traditional venture capital firms that take equity stakes, Horizon offers non-dilutive capital solutions, typically in the form of secured loans, to support the growth and operational needs of its portfolio companies.

Horizon's investment strategy focuses on providing flexible debt facilities that complement equity rounds raised by their portfolio companies. This approach allows companies to extend their cash runway, fund product development, or scale operations without further diluting existing shareholders. The loans are typically secured by the assets of the borrower, providing a layer of protection for their investments. This makes them a crucial partner for companies seeking to optimize their capital structure and achieve milestones between equity financing rounds.

Since its inception, Horizon Technology Finance has demonstrated significant scale, having originated over $3.0 billion in loans to a diverse range of innovative companies. As of March 31, 2024, their total committed portfolio stood at approximately $776.2 million, underscoring their substantial presence in the venture debt market. The company's typical loan sizes range from $5 million to $25 million, though they possess the capacity to fund larger transactions when opportunities arise. This range positions them to support companies from early growth stages through to more mature pre-IPO phases, providing crucial capital that bridges the gap between equity financing rounds.