Horizon Technology Finance Corp

Horizon Technology Finance Corp is a specialty finance company that lends to and invests in development-stage companies within the technology, life science, healthcare information and services, and sustainability industries. The company's investment objective is to maximize its investment portfolio's total return by generating current income from debt investments and capital appreciation from warrants received with these debt investments. Horizon Technology Finance Corp focuses on making secured debt investments, called "Venture Loans," to venture capital and private equity-backed companies, as well as publicly traded companies, in its target industries. This activity is referred to as "Venture Lending." The debt investments are typically secured by first liens or first liens behind a secured revolving line of credit, collectively known as "Senior Term Loans." Some debt investments may also be subordinated to term debt provided by third parties. Venture Lending involves making a secured debt investment after a venture capital or equity investment has been made in the portfolio company, which provides cash to fund the portfolio company's debt service obligations. The Venture Loan has senior priority, requiring repayment before equity investors realize a return on their capital, and is amortized. The lender also receives warrants or other success fees when making the Venture Loan. Horizon Technology Finance Corp is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended. For U.S. federal income tax purposes, the company has elected to be treated as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended. As a BDC, the company must comply with regulatory requirements, including limitations on its use of debt.