Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Valuation
- Analyst Ratings
Upturn AI SWOT - About
Hercules Capital Inc (HCXY)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
04/07/2025: HCXY (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -7.98% | Avg. Invested days 46 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/07/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.32B USD | Price to earnings Ratio 19.41 | 1Y Target Price - |
Price to earnings Ratio 19.41 | 1Y Target Price - | ||
Volume (30-day avg) 1175 | Beta - | 52 Weeks Range 23.01 - 25.57 | Updated Date 04/6/2025 |
52 Weeks Range 23.01 - 25.57 | Updated Date 04/6/2025 | ||
Dividends yield (FY) 4.91% | Basic EPS (TTM) - |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE 19.41 | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value - | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Hercules Capital Inc
Company Overview
History and Background
Hercules Capital, Inc. was founded in December 2003. It is a specialty finance company focused on providing financing to venture capital-backed companies in technology, life sciences, and sustainable and renewable technology sectors. It has evolved from a start-up lender to a publicly traded BDC.
Core Business Areas
- Venture Debt: Providing senior secured loans, often alongside equity investments from venture capital firms, to growing companies in technology and life sciences.
- Equity Investments: Making strategic equity investments in its portfolio companies, typically as part of the venture debt financing.
- Other Investments: Holding warrants and other equity-related securities.
Leadership and Structure
Hercules Capital is led by Scott Bluestein (CEO). It operates as a business development company (BDC), regulated under the Investment Company Act of 1940. The organizational structure includes various departments for origination, underwriting, portfolio management, and finance.
Top Products and Market Share
Key Offerings
- Venture Debt Financing: Hercules Capital's primary offering is venture debt, typically senior secured loans ranging from $5 million to $40 million. They focus on later stage venture backed companies. Market share data is not publicly available; however, Hercules Capital is considered a leading provider in this niche. Competitors include Silicon Valley Bank (now part of First Citizens BancShares), Western Technology Investment, and Bridge Bank.
- Equity Co-Investments: In addition to debt, Hercules Capital makes smaller equity investments alongside venture capital firms. Revenue from equity co-investments is smaller and more volatile. The strategic rationale is to increase yield and upside potential from its portfolio companies. Competitors are venture capital firms that may compete to make direct equity investment.
Market Dynamics
Industry Overview
The venture debt industry caters to venture-backed companies that require growth capital beyond equity financing. It is influenced by venture capital funding levels, interest rates, and the overall economic environment.
Positioning
Hercules Capital is a leader in the venture debt space, known for its expertise in technology and life sciences lending. Its competitive advantages include a strong origination network, deep understanding of the venture ecosystem, and ability to provide flexible financing solutions.
Total Addressable Market (TAM)
The TAM is estimated to be in the billions of dollars, dependent on venture capital activity. Hercules Capital is positioned well to capture a significant portion of the venture debt market, based on its leading brand and established relationships.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in the venture debt market
- Experienced management team with expertise in technology and life sciences
- Established relationships with venture capital firms
- Disciplined underwriting process
- Publicly traded BDC structure provides access to capital
Weaknesses
- Concentration in technology and life sciences sectors
- Reliance on venture capital funding environment
- Higher risk profile compared to traditional lenders
- Sensitivity to interest rate fluctuations
- Potentially subject to increased regulatory scrutiny.
Opportunities
- Expansion into new technology and life sciences sub-sectors
- Increased demand for venture debt as venture capital funding becomes more selective
- Strategic acquisitions of smaller venture debt providers
- Developing new financing products and services
- Expanding its presence to additional geographies.
Threats
- Economic downturn leading to decreased venture capital funding
- Increased competition from other venture debt providers
- Rising interest rates increasing borrowing costs
- Deterioration in credit quality of portfolio companies
- Changes in regulations affecting BDCs
Competitors and Market Share
Key Competitors
- SVB
- OXSQ
- TPVG
- PSEC
Competitive Landscape
Hercules Capital is a leading venture debt provider with a strong reputation and established relationships. Its competitive advantages include its expertise in technology and life sciences lending, disciplined underwriting process, and ability to provide flexible financing solutions. SVB's exit leaves a hole.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital has demonstrated growth in its loan portfolio and net investment income over the past years, driven by increasing demand for venture debt and its successful origination efforts.
Future Projections: Future growth is expected to be driven by continued demand for venture debt in the technology and life sciences sectors. Analyst estimates vary based on the economic environment and venture capital funding levels.
Recent Initiatives: Recent initiatives include expanding its lending platform, focusing on larger loan sizes, and diversifying its portfolio.
Summary
Hercules Capital is a prominent player in the venture debt market, capitalizing on the funding needs of innovative companies. Its established relationships and sector expertise fuel its success. The company's exposure to the technology and life sciences sectors presents both opportunity and risk. Navigating interest rate fluctuations and competition within the venture debt space are crucial for sustained growth.
Similar Companies
MAIN
Main Street Capital Corporation
MAIN
Main Street Capital Corporation
OXSQ
Oxford Square Capital Corp
OXSQ
Oxford Square Capital Corp
PSEC
Prospect Capital Corporation
PSEC
Prospect Capital Corporation
TPVG
Triplepoint Venture Growth BDC Corp
TPVG
Triplepoint Venture Growth BDC Corp
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share estimates are approximate and based on available data.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Hercules Capital Inc
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-09-27 | CEO - | ||
Sector Financials | Industry Investment Banking & Investment Services | Full time employees 67 | Website |
Full time employees 67 | Website | ||
Hercules Capital, Inc., formerly known as Hercules Technology Growth Capital, Inc., is a business development company specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; domestic and international corporate expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans or leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, seed, startups, early stage, emerging growth, mid venture, and late venture financing. The firm invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The firm generally seeks to invest in companies that have been operating for at least six to 12 months prior to
Upturn is now on iOS and Android!
Experience Upturn on your mobile. Install it now!
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.