Edgar Filing: HERCULES TECHNOLOGY GROWTH CAPITAL INC

Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2011

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00702

HERCULES TECHNOLOGY GROWTH

CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Maryland

743113410

(State or Jurisdiction of

Incorporation or Organization)

(IRS Employer

Identification No.)

400 Hamilton Ave., Suite 310

Palo Alto, California

94301

(Address of Principal Executive Offices)

(Zip Code)

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	¨	Accelerated Filer	x

Non-Accelerated Filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

On August 4, 2011, there were 43,856,062 shares outstanding of the Registrant’s common stock, $0.001 par value.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		3

Item 1.	Consolidated Financial Statements	3

	Consolidated Statement of Assets and Liabilities as of June 30, 2011 (unaudited) and December 31, 2010	3

	Consolidated Schedule of Investments as of June 30, 2011 (unaudited)	4

	Consolidated Schedule of Investments as of December 31, 2010	15

	Consolidated Statement of Operations for the three and six month period ended June 30, 2011 and 2010 (unaudited)	28

	Consolidated Statement of Changes in Net Assets for the six-month periods ended June 30, 2011 and 2010 (unaudited)	29

	Consolidated Statement of Cash Flows for the six-month periods ended June 30, 2011 and 2010 (unaudited)	30

	Notes to Consolidated Financial Statements (unaudited)	31

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	75

Item 4.	Controls and Procedures	76

PART II. OTHER INFORMATION		78

Item 1.	Legal Proceedings	78

Item 1A.	Risk Factors	78

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	83

Item 3.	Defaults Upon Senior Securities	83

Item 4.	Reserved	83

Item 5.	Other Information	83

Item 6.	Exhibits	84

SIGNATURES		85

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Technology Growth Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts unless the context otherwise requires.

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(unaudited)

(dollars in thousands, except per share data)


	June 30, 2011 (unaudited)			December 31, 2010
Assets
Investments:
Non-Control/Non-Affiliate investments (cost of $470,301 and $445,782, respectively)	$	472,103		$	428,782
Affiliate investments (cost of $3,236 and $2,880, respectively)		53			3,069
Control investments (cost of $11,678 and $31,743, respectively)		3,037			40,181

Total investments, at value (cost of $485,215 and $480,405, respectively)		475,193			472,032
Cash and cash equivalents		198,245			107,014
Interest receivable		4,153			4,520
Other assets		13,662			7,681

Total assets		691,253			591,247

Liabilities
Accounts payable and accrued liabilities		8,790			8,716
Long-term SBA Debentures		188,750			170,000
Long-term liabilities (Convertible Senior Notes)		69,812			—

Total liabilities		267,352			178,716
Net assets consist of:
Common stock, par value	$	43		$	43
Capital in excess of par value		484,982			477,549
Unrealized depreciation on investments		(10,092	)		(8,038	)
Accumulated realized losses on investments		(46,004	)		(51,033	)
Distributions in excess of investment income		(5,028	)		(5,990	)

Total net assets	$	423,901		$	412,531

Total liabilities and net assets	$	691,253		$	591,247

Shares of common stock outstanding ($0.001 par value, 100,000,000 authorized)		43,850			43,444
Net asset value per share	$	9.67		$	9.50

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Acceleron Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants			$	69	$	1,192
		Preferred Stock Warrants				35		233
		Preferred Stock Warrants				39		120
		Preferred Stock				1,341		2,794

Total Acceleron Pharmaceuticals, Inc.						1,484		4,339

Anthera Pharmaceuticals Inc.	Drug Discovery	Senior Debt Matures September 2014 Interest rate Prime + 7.3% or Floor rate of 10.55%	$	25,000		24,031		24,031
		Common Stock Warrants				541		847
Total Anthera Pharmaceuticals Inc.		Common Stock Warrants				444		692

						25,016		25,570

Aveo Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures September 2013 Interest rate Prime + 7.15% or Floor rate of 11.9%	$	25,000		26,370		27,028
		Preferred Stock Warrants				190		1,218
		Preferred Stock Warrants				104		292
		Preferred Stock Warrants				24		99
		Preferred Stock Warrants				288		1,188
		Preferred Stock Warrants				236		972

Total Aveo Pharmaceuticals, Inc.						27,212		30,797

Dicerna Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures January 2015 Interest rate Prime + 5.75% or Floor rate of 9.00%	$	7,000		7,077		7,077
		Preferred Stock Warrants				206		136
		Preferred Stock Warrants				31		34
		Preferred Stock Warrants				26		21
		Preferred Stock				503		503

Total Dicerna Pharmaceuticals, Inc.						7,843		7,771

EpiCept Corporation	Drug Discovery	Common Stock Warrants				4		31
		Common Stock Warrants				40		2

Total EpiCept Corporation						44		33

Horizon Therapeutics, Inc.	Drug Discovery	Preferred Stock Warrants				231		10

Total Horizon Therapeutics, Inc.						231		10

Inotek Pharmaceuticals Corp.	Drug Discovery	Preferred Stock				1,500		—

Total Inotek Pharmaceuticals Corp.						1,500		—

Merrimack Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				155		1,116
		Preferred Stock				2,000		3,826

Total Merrimack Pharmaceuticals, Inc.						2,155		4,942

Paratek Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				137		230
		Preferred Stock				1,000		1,060

Total Paratek Pharmaceuticals, Inc.						1,137		1,290

PolyMedix, Inc.	Drug Discovery	Senior Debt Matures September 2013 Interest rate Prime + 7.1% or Floor rate of 12.35%	$	8,430		8,159		8,327
		Preferred Stock Warrants				480		129

Total PolyMedix, Inc.						8,639		8,456

Portola Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				152		670

Total Portola Pharmaceuticals, Inc.						152		670

Total Drug Discovery (19.79%)						75,413		83,878


Affinity Videonet, Inc	Communications & Networking	Preferred Stock Warrants				102		141

Total Affinity Videonet, Inc.						102		141

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
E-band Communications, Corp.⁽⁶⁾	Communications & Networking	Convertible Senior Debt Matures May 2013 Interest rate Prime + 8.12% or Floor rate of 11.37%	$	356	$	356	$	53

		Preferred Stock				2,880		—

Total E-Band Communications, Corp.						3,236		53

IKANO Communications, Inc.	Communications & Networking	Preferred Stock Warrants				45		—
		Preferred Stock Warrants				72		—

Total IKANO Communications, Inc.						117		—

Intelepeer, Inc.	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 8.12% or Floor rate of 11.37%	$	7,524		7,353		7,483
		Preferred Stock Warrants				102		137

Total Intelepeer, Inc.						7,455		7,620

Neonova Holding Company	Communications & Networking	Preferred Stock Warrants				94		36
		Preferred Stock				250		228

Total Neonova Holding Company						344		264

Opsource, Inc.	Communications & Networking
		Preferred Stock Warrants				223		—

Total Opsource, Inc.						223		—

Pac-West Telecomm, Inc.	Communications & Networking	Senior Debt Matures October 2014 Interest rate Prime + 7.50% or Floor rate of 10.75%	$	4,369		4,108		4,239
		Preferred Stock Warrants				121		—

Total Pac-West Telecomm, Inc.						4,229		4,239

PeerApp, Inc.	Communications & Networking	Senior Debt Matures April 2013 Interest rate Prime + 7.5% or Floor rate of 11.50%	$	2,359		2,356		2,356
		Preferred Stock Warrants				61		20


Total PeerApp, Inc.						2,417		2,376

Peerless Network, Inc.	Communications & Networking	Preferred Stock Warrants				95		120
		Preferred Stock				1,000		1,280

Total Peerless Network, Inc.						1,095		1,400

Ping Identity Corporation	Communications & Networking	Preferred Stock Warrants				52		5

Total Ping Identity Corporation						52		5

PointOne, Inc.	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 7.0% or Floor rate of 10.25%	$	8,000		7,765		7,765

	Communications & Networking	Common Stock Warrants				131		138

Total PointOne, Inc.						7,896		7,903

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Purcell Systems, Inc.	Communications & Networking	Preferred Stock Warrants			$	123	$	145

Total Purcell Systems, Inc.						123		145

Seven Networks, Inc.	Communications & Networking	Preferred Stock Warrants				174		—

Total Seven Networks, Inc.						174		—

Stoke, Inc⁽⁴⁾	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 7.0% or Floor rate of 10.25%	$	3,464		3,389		3,424
		Preferred Stock Warrants				53		52
		Preferred Stock Warrants				65		45
		Preferred Stock				500		377

Total Stoke, Inc.						4,007		3,898

Tectura Corporation	Communications & Networking	Senior Debt Matures December 2012 Interest rate 11%	$	5,625		5,813		5,813
		Revolving Line of Credit Matures July 2011 Interest rate 11%	$	17,477		18,467		18,467
		Preferred Stock Warrants				50		99

Total Tectura Corporation						24,330		24,379

Total Communications & Networking (12.37%)						55,800		52,423


Atrenta, Inc.	Software	Preferred Stock Warrants				102		60
		Preferred Stock Warrants				34		20
		Preferred Stock Warrants				95		18
		Preferred Stock				250		169

Total Atrenta, Inc.						481		267

Blurb, Inc.	Software	Preferred Stock Warrants				25		476
		Preferred Stock Warrants				299		329

Total Blurb, Inc.						324		805

Braxton Technologies, LLC.	Software	Preferred Stock Warrants				188		—

Total Braxton Technologies, LLC.						188		—

Bullhorn, Inc.	Software	Preferred Stock Warrants				43		288

Total Bullhorn, Inc.						43		288

Central Desktop, Inc.	Software	Senior Debt Matures April 2014 Interest rate Prime + 6.75% or Floor rate of 10.00%	$	1,000		956		956
		Preferred Stock Warrants				108		100

Total Central Desktop, Inc.						1,064		1,056

Clickfox, Inc.	Software	Senior Debt Matures July 2013 Interest rate Prime + 6.00% or Floor rate of 11.25%	$	5,115		4,982		5,096
		Revolving Line of Credit Matures July 2011 Interest rate Prime + 5.00% or Floor rate of 12.00%	$	2,000		2,002		2,002
		Preferred Stock Warrants				177		518
		Preferred Stock Warrants				152		469

Total Clickfox, Inc.						7,313		8,085

Forescout Technologies, Inc.	Software	Preferred Stock Warrants				99		98

Total Forescout Technologies, Inc.						99		98

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
GameLogic, Inc.	Software	Preferred Stock Warrants			$	92	$	—

Total GameLogic, Inc.						92		—

HighJump Acquisition, LLC.	Software	Senior Debt Matures May 2013 Interest rate Libor + 9.25% or Floor rate of 12.50%	$	17,500		17,624		17,624

Total HighJump Acquisition, LLC.						17,624		17,624

HighRoads, Inc.	Software	Preferred Stock Warrants				44		77

Total HighRoads, Inc.						44		77

Kxen, Inc.	Software	Preferred Stock Warrants				24		24

Total Kxen, Inc.						24		24

RichRelevance, Inc.	Software	Senior Debt Matures January 2015 Interest rate Prime + 3.25% or Floor rate of 6.50%	$	5,000		4,834		4,834
		Preferred Stock Warrants				99		98

Total RichRelevance, Inc.						4,933		4,932

Rockyou, Inc.	Software	Preferred Stock Warrants				117		21

Total Rockyou, Inc.						117		21

Sportvision, Inc.	Software	Preferred Stock Warrants				39		—

Total Sportvision, Inc.						39		—

Unify Corporation	Software	Preferred Stock Warrants				1,434		258

Total Unify Corporation						1,434		258

White Sky, Inc.	Software	Senior Debt Matures June 2014 Interest rate Libor + 7.00% or Floor rate of 10.25%	$	1,000		959		959

	Software	Preferred Stock Warrants				54		51

Total White Sky, Inc.						1,013		1,010

WildTangent, Inc.	Software	Preferred Stock Warrants				238		10

Total WildTangent, Inc.						238		10

Total Software (8.15%)						35,070		34,555


Luminus Devices, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				183		—
		Preferred Stock Warrants				84		—
		Preferred Stock Warrants				334		—

Total Luminus Devices, Inc.						601		—

Maxvision Holding, LLC.⁽⁷⁾	Electronics & Computer Hardware	Senior Debt Matures October 2012 Interest rate Prime + 8.25% or Floor rate of 11.50%	$	4,412		4,132		1,745
		Senior Debt Matures April 2012 Interest rate Prime + 6.25% or Floor rate of 9.50%	$	2,705		2,956		282
		Revolving Line of Credit Matures April 2012 Interest rate Prime + 6.25% or Floor rate of 9.50%	$	931		1,010		1,010
		Common Stock				3,580		—

Total Maxvision Holding, LLC						11,678		3,037

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Shocking Technologies, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants			$	63	$	97

Total Shocking Technologies, Inc.						63		97

Spatial Photonics, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				130		—
		Preferred Stock				768		348

Total Spatial Photonics Inc.						898		348

VeriWave, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				54		396
		Preferred Stock Warrants				46		101

Total VeriWave, Inc.						100		497

Total Electronics & Computer Hardware (.94%)*						13,340		3,979


Aegerion Pharmaceuticals, Inc.	Specialty Pharmaceuticals	Senior Debt Matures September 2014 Interest rate Prime + 5.65% or Floor rate of 10.40%	$	10,000		10,057		10,057
		Preferred Stock Warrants				69		1,042
		Common Stock				1,092		2,269

Total Aegerion Pharmaceuticals, Inc.						11,218		13,368

Althea Technologies, Inc.	Specialty Pharmaceuticals	Senior Debt Matures October 2013 Interest rate Prime + 7.70% or Floor rate of 10.95%	$	11,601		11,345		11,273
		Preferred Stock Warrants				309		298

Total Althea Technologies, Inc.						11,654		11,571

Chroma Therapeutics, Ltd.⁽⁵⁾	Specialty Pharmaceuticals	Senior Debt Matures September 2013 Interest rate Prime + 7.75% or Floor rate of 12.00%	$	9,422		9,477		9,671
		Preferred Stock Warrants				490		387

Total Chroma Therapeutics, Ltd.						9,967		10,058

Pacira Pharmaceuticals, Inc.	Specialty Pharmaceuticals	Senior Debt Matures May 2014 Interest rate Prime + 6.25% or Floor rate of 10.25%	$	11,250		11,204		10,833
		Senior Debt Matures May 2014 Interest rate Prime + 8.65% or Floor rate of 12.65%	$	15,000		14,127		14,315
		Preferred Stock Warrants				1,086		870

Total Pacira Pharmaceuticals, Inc.						26,417		26,018

Quatrx Pharmaceuticals Company	Specialty Pharmaceuticals	Convertible Senior Debt Matures March 2012	$	1,888		1,888		1,888
		Preferred Stock Warrants				220		4
		Preferred Stock Warrants				307		4
		Preferred Stock				751		254

Total Quatrx Pharmaceuticals Company						3,166		2,150

Total Specialty Pharmaceuticals (14.90%)*						62,422		63,165

Annie’s, Inc.	Consumer & Business Products	Preferred Stock Warrants				321		115

Total Annie’s, Inc.						321		115

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
IPA Holdings, LLC	Consumer & Business Products	Preferred Stock Warrants			$	275	$	—
		Common Stock				500		—

Total IPA Holding, LLC						775		—
Market Force Information, Inc.	Consumer & Business Products	Preferred Stock Warrants				24		126
		Preferred Stock				500		492

Total Market Force Information, Inc.						524		618

Wageworks, Inc.	Consumer & Business Products	Preferred Stock Warrants				252		2,525
		Preferred Stock				250		391

Total Wageworks, Inc.						502		2,916

Total Consumer & Business Products (0.86%)*						2,122		3,649


Enpirion, Inc.	Semiconductors	Preferred Stock Warrants				157		—


Total Enpirion, Inc.						157		—
iWatt, Inc.	Semiconductors	Preferred Stock Warrants				46		8
		Preferred Stock Warrants				51		52
		Preferred Stock Warrants				73		62
		Preferred Stock Warrants				458		314
		Preferred Stock				490		951

Total iWatt, Inc.						1,118		1,387

NEXX Systems, Inc.	Semiconductors	Preferred Stock Warrants				297		1,061
		Preferred Stock				277		700

Total NEXX Systems, Inc.						574		1,761
Quartics, Inc.	Semiconductors	Preferred Stock Warrants				53		—

Total Quartics, Inc.						53		—

Solarflare Communications, Inc.	Semiconductors	Preferred Stock Warrants				83		—
		Common Stock				642		—

Total Solarflare Communications, Inc.						725		—

Total Semiconductors (0.74%)*						2,627		3,148


AcelRX Pharmaceuticals, Inc.	Drug Delivery	Senior Debt Matures December 2014 Interest rate Prime + 3.25% or Floor rate of 6.50%	$	5,000		4,863		4,863
		Senior Debt Matures December 2014 Interest rate Prime + 3.25% or Floor rate of 6.50%	$	5,000		4,863		4,863
		Preferred Stock Warrants				179		183
		Preferred Stock Warrants				179		183

Total AcelRX Pharmaceuticals, Inc.						10,084		10,092

Alexza Pharmaceuticals, Inc.⁽⁴⁾	Drug Delivery	Senior Debt Matures October 2013 Interest rate Prime + 6.5% or Floor rate of 10.75%	$	13,005		12,811		13,051
		Preferred Stock Warrants				645		279

Total Alexza Pharmaceuticals, Inc.						13,456		13,330

BIND Biosciences, Inc.	Drug Delivery	Senior Debt Matures October 2013 Interest rate Prime + 6.5% or Floor rate of 10.75%	$	5,000		4,587		4,587
		Preferred Stock Warrants				52		71
		Preferred Stock Warrants				50		72
		Preferred Stock Warrants				187		295

Total BIND Biosciences, Inc.						4,876		5,025

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Labopharm USA, Inc.⁽⁵⁾	Drug Delivery	Senior Debt Matures December 2012 Interest rate 10.95%	$	15,414	$	15,456	$	15,456
		Common Stock Warrants				635		—

Total Labopharm USA, Inc.						16,091		15,456

Merrion Pharmaceuticals, Inc.⁽⁵⁾	Drug Delivery	Senior Debt Matures January 2015 Interest rate Prime + 9.20% or Floor rate of 12.45%	$	5,000		4,706		4,706
		Common Stock Warrants				214		165

Total Merrion Pharmaceuticals, Inc.						4,920		4,871

Transcept Pharmaceuticals, Inc.	Drug Delivery	Common Stock Warrants				36		120
		Common Stock Warrants				51		180
		Common Stock				500		455

Total Transcept Pharmaceuticals, Inc.						587		755

Total Drug Delivery (11.68%)^*						50,014		49,529


BARRX Medical, Inc.		Senior Debt Mature December 2011 Interest rate 11.00%	$	1,499		2,009		2,009
		Preferred Stock Warrants				76		58
		Preferred Stock				1,500		1,571

Total BARRX Medical, Inc.						3,585		3,638

EKOS Corporation	Therapeutic	Preferred Stock Warrants				175		—
		Preferred Stock Warrants				152		—

Total EKOS Corporation						327		—

Gelesis, Inc.⁽⁸⁾	Therapeutic	Senior Debt Matures April 2013 Interest rate Prime + 7.5% or Floor rate of 10.75%	$	2,771		2,813		—

Total Gelesis, Inc.						2,813		—

Gynesonics, Inc.	Therapeutic	Senior Debt Mature October 2013 Interest rate Prime + 8.25% or Floor rate of 11.50%	$	6,339		6,219		6,157
		Preferred Stock Warrants				228		244
		Preferred Stock				533		450

Total Gynesonics, Inc.						6,980		6,851

Light Science Oncology, Inc.	Therapeutic	Preferred Stock Warrants				99		181

Total Light Science Oncology, Inc.						99		181

Novasys Medical, Inc.	Therapeutic	Preferred Stock Warrants				71		—
		Preferred Stock Warrants				54		1
		Preferred Stock				1,000		988

Total Novasys Medical, Inc.						1,125		989

Pacific Child & Family Associates, LLC	Therapeutic	Senior Debt Matures January 2015 Interest rate LIBOR + 8.0% or Floor rate of 10.50%	$	5,970		5,883		5,442
		Senior Debt Matures January 2015 Interest rate LIBOR + 10.50% or Floor rate of 13.0%	$	5,900		6,142		6,260

Total Pacific Child & Family Associates, LLC						12,025		11,702

Total Therapeutic (5.51%)^*						26,954		23,361

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Cozi Group, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants			$	147	$	—
		Preferred Stock				178		122

Total Cozi Group, Inc.						325		122

Invoke Solutions, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants				56		—
		Preferred Stock Warrants				26		—

Total Invoke Solutions, Inc.						82		—

InXpo, Inc.	Internet Consumer & Business Services	Senior Debt Matures March 2014 Interest rate Prime + 7.5% or Floor rate of 10.75%	$	2,075		2,013		2,013
		Preferred Stock Warrants				97		87

Total InXpo, Inc.						2,110		2,100

Prism Education Group, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants				43		125

Total Prism Education Group, Inc.						43		125

RazorGator Interactive Group, Inc.	Internet Consumer & Business Services	Preferred Stock Warrants				13		—
		Preferred Stock Warrants				28		—
		Preferred Stock Warrants				1,183		—
		Preferred Stock				1,000		—

Total RazorGator Interactive Group, Inc.						2,224		—

Reply! Inc.⁽⁴⁾	Internet Consumer & Business Services	Senior Debt Matures June 2015 Interest rate Prime + 6.87% or Floor rate of 10.12%	$	13,000		12,846		12,846
		Preferred Stock Warrants				320		427

Total Reply! Inc.						13,166		13,273

ScriptSave (Medical Security Card Company, LLC)	Internet Consumer & Business Services	Senior Debt Matures February 2016 Interest rate Prime + 8.75% or Floor rate of 11.25%	$	20,500		20,094		20,094

Total ScriptSave						20,094		20,094

Total Internet Consumer & Business Services (8.43%)						38,044		35,714


Lilliputian Systems, Inc.	Energy	Preferred Stock Warrants				106		—
		Common Stock Warrants				48		—

Total Lilliputian Systems, Inc.						154		—

Total Energy (0.00%)*						154		—


Box.net, Inc.	Information Services	Senior Debt Matures September 2011 Interest rate Prime + 0.50% or Floor rate of 3.75%	$	44		63		63
		Senior Debt Matures July 2014 Interest rate Prime + 5.25% or Floor rate of 8.50%	$	1,590		1,583		1,583
		Preferred Stock Warrants				73		1,949
		Preferred Stock Warrants				117		1,308
		Preferred Stock				500		3,066
		Preferred Stock				500		1,242

Total Box.net, Inc.						2,836		9,211

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Buzznet, Inc.	Information Services	Preferred Stock Warrants			$	9	$	—
		Preferred Stock				250		61

Total Buzznet, Inc.						259		61

XL Education Corp.	Information Services	Common Stock				880		880

Total XL Education Corp.						880		880

hi5 Networks, Inc.	Information Services	Preferred Stock Warrants				213		3
		Preferred Stock				250		461

Total hi5 Networks, Inc.						463		464

Jab Wireless, Inc.	Information Services	Preferred Stock Warrants				265		158

Total Jab Wireless, Inc.						265		158

Solutionary, Inc.	Information Services	Preferred Stock Warrants				94		—
		Preferred Stock Warrants				2		—
		Preferred Stock				250		91

Total Solutionary, Inc.						346		91

Intelligent Beauty, Inc.	Information Services	Preferred Stock Warrants				230		88

Total Intelligent Beauty, Inc.						230		88

Good Technologies, Inc.	Information Services	Common Stock				603		110

Total Good Technologies, Inc.						603		110

Coveroo, Inc.	Information Services	Preferred Stock Warrants				7		—

Total Coveroo, Inc.						7		—

Zeta Interactive Corporation	Information Services	Preferred Stock Warrants				172		252
		Preferred Stock				500		651

Total Zeta Interactive Corporation						672		903

Total Information Services (2.82%)						6,561		11,966


Novadaq Technologies, Inc.⁽⁵⁾	Diagnostic	Common Stock				1,416		816

Total Novadaq Technologies, Inc.						1,416		816

Optiscan Biomedical, Corp.	Diagnostic	Senior Debt Matures December 2013 Interest rate 10.25%	$	10,750		10,679		10,584
		Preferred Stock Warrants				1,069		614
		Preferred Stock				3,655		2,072

Total Optiscan Biomedical, Corp.						15,403		13,270


Total Diagnostic (3.32%)*						16,819		14,086


Kamada, LTD.⁽⁵⁾	Biotechnology Tools	Common Stock				427		546

Total Kamada, LTD.						427		546

Labcyte, Inc.	Biotechnology Tools	Senior Debt Matures May 2013 Interest rate Prime + 8.6% or Floor rate of 11.85%	$	3,172		3,107		3,158
		Common Stock Warrants				192		165
		Common Stock Warrants				5		5

Total Labcyte, Inc.						3,304		3,328

NuGEN Technologies, Inc.	Biotechnology Tools	Preferred Stock Warrants				45		243
		Preferred Stock Warrants				33		18
		Preferred Stock				500		570

Total NuGEN Technologies, Inc.						578		831

Total Biotechnology Tools (1.11%)*						4,309		4,705

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Crux Biomedical, Inc.	Surgical Devices	Preferred Stock Warrants			$	37	$	—
		Preferred Stock				250		—

Total Crux Biomedical, Inc.						287		—

Transmedics, Inc.⁽⁴⁾	Surgical Devices	Senior Debt Matures February 2014 Interest rate Prime + 9.70% or Floor rate of 12.95%	$	8,375		9,070		4,687
		Preferred Stock Warrants				225		—
		Preferred Stock				1,100		—

Total Transmedics, Inc.						10,395		4,687

Total Surgical Devices (1.11%)*						10,682		4,687


Glam Media, Inc.	Media/Content/Info	Preferred Stock Warrants				482		487

Total Glam Media, Inc.						482		487

Everyday Health, Inc. (Waterfront Media, Inc.)	Media/Content/Info	Preferred Stock Warrants				60		633
		Preferred Stock				1,000		1,310

Total Everyday Health, Inc.						1,060		1,943

Women’s Marketing, Inc.	Media/Content/Info	Senior Debt Matures November 2015 Interest rate Libor + 9.50% or Floor rate of 9.77%	$	10,000		9,775		9,775
		Senior Debt Matures November 2015 Interest rate Libor + 7.50% or Floor rate of 7.77%	$	9,875		9,627		9,627
		Senior Debt Matures November 2015 Interest rate Libor + 7.50% or Floor rate of 7.77%	$	10,125		9,871		9,871

Total Women’s Marketing, Inc.						29,273		29,273

Total Media/Content/Info (7.48%)*						30,815		31,703


BrightSource Energy, Inc. ⁽⁴⁾	Clean Tech	Senior Debt Matures December 2011 Interest rate Prime + 7.75% or Floor rate of 11.0%	$	11,250		11,231		11,231
		Senior Debt Matures June 2012 Interest rate Prime + 9.55% or Floor rate of 12.80%	$	13,750		13,455		13,455
		Preferred Stock Warrants				676		562

Total BrightSource Energy, Inc.						25,362		25,248

Calera, Inc.	Clean Tech	Preferred Stock Warrants				513		898

Total Calera, Inc.						513		898

EcoMotors, Inc.	Clean Tech	Senior Debt Matures February 2014 Interest rate Prime + 6.1% or Floor rate of 9.35%	$	5,898		5,648		5,647
		Preferred Stock Warrants				154		570
		Common Stock Warrants				154		256

Total EcoMotors, Inc.						5,956		6,473

Enphase Energy, Inc.	Clean Tech	Senior Debt Matures June 2014 Interest rate Prime + 7.7% or Floor rate of 9.0%	$	3,635		3,525		3,525
		Preferred Stock Warrants				102		93

Total Enphase Energy, Inc.						3,627		3,618

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2011

(unaudited)

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
GreatPoint Energy, Inc.	Clean Tech	Senior Debt Matures October 2013 Interest rate Prime + 8.2% or Floor rate of 11.45%	$	5,000	$	4,613	$	4,613
		Preferred Stock Warrants				548		448

Total GreatPoint Energy, Inc.						5,161		5,061

Propel Biofuels, Inc.	Clean Tech	Senior Debt Matures September 2013 Interest rate 11.0%	$	1,733		1,675		1,641
		Preferred Stock Warrants				210		54

Total Propel Biofuels, Inc.						1,885		1,695

Solexel, Inc.	Clean Tech	Senior Debt Matures June 2013 Interest rate Prime + 8.25% or Floor rate of 11.50%	$	1,153		1,175		1,209
		Senior Debt Matures June 2013 Interest rate Prime + 7.25% or Floor rate of 10.50%	$	9,972		9,635		9,934
		Preferred Stock Warrants				335		236
		Preferred Stock Warrants				258		181

Total Solexel, Inc.						11,403		11,560

Trilliant, Inc.	Clean Tech	Preferred Stock Warrants				89		50
		Preferred Stock Warrants				73		42

Total Trilliant, Inc.						162		92

Total Clean Tech (12.89%)*						54,069		54,645

Total Investments						485,215		475,193

*	Value as a percent of net assets

(1)	Preferred and common stock, warrants, and equity interests are generally non-income producing.

(2)	Gross unrealized appreciation, gross unrealized depreciation, and net depreciation for federal income tax purposes totaled $28,071, $39,764 and $11,693 respectively. The tax cost of investments is $486,360.

(3)

Except for warrants in twelve publicly traded companies and common stock in four publicly traded companies, all investments are restricted at June 30, 2011. No unrestricted securities of the same issuer are outstanding. The Company uses the Standard Industrial Code for classifying the industry grouping of its portfolio companies.

(4)	Debt investments of this portfolio company have been pledged as collateral under the Wells Facility.

(5)	Non-U.S. company or the company’s principal place of business is outside the United States.

(6)	Affiliate investment that is defined under the Investment Company Act of 1940 as companies in which HTGC owns at least 5% but not more than 25% of the voting securities of the company.

(7)	Control investment that is defined under the Investment Company Act of 1940 as companies in which HTGC owns at least 25% of the voting securities of the company, or has greater than 50% representation on its board.

(8)	Debt is on non-accrual status at June 30, 2011, and is therefore considered non-income producing.

See notes to Consolidated Financial Statements (unaudited)

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Acceleron Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants			$	69	$	922
		Preferred Stock Warrants				35		189
		Preferred Stock Warrants				39		99
		Preferred Stock				1,341		2,316

Total Acceleron Pharmaceuticals, Inc.						1,484		3,526

Aveo Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures September 2013 Interest rate Prime + 7.15% or Floor rate of 11.9%	$	25,000		26,108		26,108
		Preferred Stock Warrants				190		686
		Preferred Stock Warrants				104		165
		Preferred Stock Warrants				24		58
		Preferred Stock Warrants				288		770
		Preferred Stock Warrants				236		630

Total Aveo Pharmaceuticals, Inc.						26,950		28,417

Dicerna Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures July 2012 Interest rate Prime + 9.20% or Floor rate of 12.95%	$	4,699		4,678		4,706
		Preferred Stock Warrants				205		182
		Preferred Stock Warrants				30		33
		Preferred Stock Warrants				28		25
		Preferred Stock				503		503

Total Dicerna Pharmaceuticals, Inc.						5,444		5,449

EpiCept Corporation	Drug Discovery	Common Stock Warrants				4		112
		Common Stock Warrants				40		10

Total EpiCept Corporation						44		122

Horizon Therapeutics, Inc.	Drug Discovery	Preferred Stock Warrants				231		—

Total Horizon Therapeutics, Inc.						231		—

Inotek Pharmaceuticals Corp.	Drug Discovery	Preferred Stock				1,500		—

Total Inotek Pharmaceuticals Corp.						1,500		—

Merrimack Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				155		170
		Preferred Stock				2,000		1,547

Total Merrimack Pharmaceuticals, Inc.						2,155		1,717

Paratek Pharmaceuticals, Inc.	Drug Discovery	Preferred Stock Warrants				137		155
		Preferred Stock				1,000		999

Total Paratek Pharmaceuticals, Inc.						1,137		1,154

PolyMedix, Inc.	Drug Discovery	Senior Debt Matures September 2013 Interest rate Prime + 7.1% or Floor rate of 12.35%	$	10,000		9,605		9,605
		Preferred Stock Warrants				480		248

Total PolyMedix, Inc.						10,085		9,853

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Portola Pharmaceuticals, Inc.	Drug Discovery	Senior Debt Matures April 2011 Interest rate Prime + 2.16%	$	1,666	$	2,033	$	2,033
		Preferred Stock Warrants				152		506

Total Portola Pharmaceuticals, Inc.						2,185		2,539


Total Drug Discovery (12.79%)*						51,215		52,777


Affinity Videonet, Inc.	Communications & Networking	Preferred Stock Warrants				102		180

Total Affinity Videonet, Inc.						102		180

E-band Communications, Corp.⁽⁶⁾	Communications & Networking	Preferred Stock				2,880		3,069

Total E-Band Communications, Corp.						2,880		3,069

IKANO Communications, Inc.	Communications & Networking	Senior Debt Matures August 2011 Interest rate 12.00%	$	1,654		1,953		1,953
		Preferred Stock Warrants				45
		Preferred Stock Warrants				72

Total IKANO Communications, Inc.						2,070		1,953

Intelepeer, Inc.	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 8.125%	$	7,624		7,468		7,459
		Preferred Stock Warrants				102		111

Total Intelepeer, Inc.						7,570		7,570

Neonova Holding Company	Communications & Networking	Preferred Stock Warrants				94		12
		Preferred Stock				250		140

Total Neonova Holding Company						344		152

Opsource, Inc.(⁴)	Communications & Networking	Senior Debt Matures June 2013 Interest rate Prime + 7.75% or Floor rate of 11.00%	$	5,000		4,888		4,888
		Senior Debt Matures October 2013 Interest rate Prime + 7.25% or Floor rate of 10.50%	$	2,000		1,944		1,905
		Revolving Line of Credit Matures June 2011 Interest rate Prime + 5.25% or Floor rate of 8.50%	$	1,500		1,458		1,458
		Preferred Stock Warrants				223		105

Total Opsource, Inc.						8,513		8,356

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Pac-West Telecomm, Inc.	Communications & Networking	Senior Debt Matures April 2014 Interest rate Prime + 7.5% or Floor rate of 12.0%	$	10,000	$	9,634	$	9,634
		Preferred Stock Warrants				121		147

Total Pac-West Telecomm, Inc.						9,755		9,781

PeerApp, Inc.	Communications & Networking	Senior Debt Matures April 2013 Interest rate Prime + 7.5% or Floor rate of 11.50%	$	2,911		2,855		2,792
		Preferred Stock Warrants				61		65

Total PeerApp, Inc.						2,916		2,857

Peerless Network, Inc.	Communications & Networking	Preferred Stock Warrants				95		138
		Preferred Stock				1,000		1,930

Total Peerless Network, Inc.						1,095		2,068

Ping Identity Corporation	Communications & Networking	Preferred Stock Warrants				52		6

Total Ping Identity Corporation						52		6

Purcell Systems, Inc.	Communications & Networking	Preferred Stock Warrants				123		330

Total Purcell Systems, Inc.						123		330

Seven Networks, Inc.	Communications & Networking	Preferred Stock Warrants				174		40

Total Seven Networks, Inc.						174		40

Stoke, Inc.⁽⁴⁾	Communications & Networking	Senior Debt Matures May 2013 Interest rate Prime + 7.0% or Floor rate of 10.25%	$	4,000		3,883		3,883
		Preferred Stock Warrants				53		210
		Preferred Stock Warrants				65		133
		Preferred Stock				500		500

Total Stoke, Inc.						4,501		4,726

Tectura Corporation	Communications & Networking	Senior Debt Matures December 2012 Interest rate 11%	$	5,625		5,512		5,512
		Revolving Line of Credit Matures July 2011 Interest rate 11%	$	17,477		18,488		18,488
		Preferred Stock Warrants				50		10

Total Tectura Corporation						24,050		24,010

Total Communications & Networking (15.78%)*						64,145		65,098

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Atrenta, Inc.	Software	Preferred Stock Warrants			$	102	$	46
		Preferred Stock Warrants				34		15
		Preferred Stock Warrants				95		22
		Preferred Stock				250		143

Total Atrenta, Inc.						481		226

Blurb, Inc.	Software	Senior Debt Matures June 2011 Interest rate Prime + 3.50% or Floor rate of 8.5%	$	1,162		1,392		1,392
		Preferred Stock Warrants				25		349
		Preferred Stock Warrants				299		228

Total Blurb, Inc.						1,716		1,969

Braxton Technologies, LLC.	Software	Preferred Stock Warrants				188

Total Braxton Technologies, LLC.						188

Bullhorn, Inc.	Software	Preferred Stock Warrants				43		234

Total Bullhorn, Inc.						43		234

Clickfox, Inc.	Software	Senior Debt Matures July 2013 Interest rate Prime + 6.00% or Floor rate of 11.25%	$	6,000		5,801		5,801
		Revolving Line of Credit Matures July 2011 Interest rate Prime + 5.00% or Floor rate of 12.00%	$	2,000		1,997		1,996
		Preferred Stock Warrants				177		643
		Preferred Stock Warrants				152		643

Total Clickfox, Inc.						8,127		9,083

Forescout Technologies, Inc.	Software	Preferred Stock Warrants				99		14

Total Forescout Technologies, Inc.						99		14

GameLogic, Inc.	Software	Preferred Stock Warrants				92

Total GameLogic, Inc.						92

HighJump Acquisition, LLC.	Software	Senior Debt Matures May 2013 Interest rate Libor + 9.25% or Floor rate of 12.50%	$	17,500		17,386		17,386

Total HighJump Acquisition, LLC.						17,386		17,386

HighRoads, Inc.	Software	Preferred Stock Warrants				44		65

Total HighRoads, Inc.						44		65

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Infologix, Inc.⁽⁷⁾	Software	Senior Debt Matures November 2013 Interest rate 18.00%	$	5,500	$	5,162	$	5,162
		Convertible Senior Debt Matures November 2014 Interest rate 12.00%				1,111		1,127
		Revolving Line of Credit Matures May 2011 Interest rate 12.00%	$	12,317		12,317		12,317
		Senior Debt Matures December 2010 Interest rate 18.00%	$	2,178		2,178		2,178
		Senior Debt Matures April 2013 Interest rate 8.00%	$	1,350		1,350		1,350
		Senior Debt Matures September 2011 Interest rate 10.00%	$	500		509		509
		Preferred Stock Warrants				725		1,394
		Common Stock				5,000		9,620
		Common Stock				36		69
		Common Stock				3,355		6,455

Total Infologix, Inc.						31,743		40,181

PSS Systems, Inc.	Software	Preferred Stock Warrants				51		17

Total PSS Systems, Inc.						51		17

Rockyou, Inc.	Software	Preferred Stock Warrants				117		186

Total Rockyou, Inc.						117		186

Sportvision, Inc.	Software	Preferred Stock Warrants				39

Total Sportvision, Inc.						39

Unify Corporation	Software	Senior Debt Matures June 2015 Interest rate Libor + 8.50% or Floor rate of 10.50%	$	24,000		22,248		22,968
		Revolving Line of Credit Matures June 2015 Interest rate Libor + 7.50% or Floor rate of 9.50%	$	3,750		3,731		3,476
		Preferred Stock Warrants				1,434		693


Total Unify Corporation						27,413		27,137

WildTangent, Inc.	Software	Preferred Stock Warrants				238		10

Total WildTangent, Inc.						238		10


Total Software (23.39%)*						87,777		96,508


Luminus Devices, Inc.	Electronics & Computer Hardware	Senior Debt Matures December 2011 Interest rate 11.875%	$	540		540		540
		Preferred Stock Warrants				183
		Preferred Stock Warrants				84
		Preferred Stock Warrants				334

Total Luminus Devices, Inc.						1,141		540

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾		Value⁽³⁾
Maxvision Holding, LLC.	Electronics & Computer Hardware	Senior Debt Matures October 2012 Interest rate Prime + 7.25% or Floor rate of 10.75%	$	5,000	$	5,377	$	377
		Senior Debt Matures April 2012 Interest rate Prime + 5.0% or Floor rate of 8.5%	$	3,409		3,382		3,382
		Revolving Line of Credit Matures April 2012 Interest rate Prime + 5.0% or Floor rate of 8.5%	$	3,100		3,163		3,163
		Common Stock				81

Total Maxvision Holding, LLC.						12,003		6,922

Shocking Technologies, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				63		90

Total Shocking Technologies, Inc.						63		90

Spatial Photonics, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				129		—
		Preferred Stock				767		267

Total Spatial Photonics, Inc.						896		267

VeriWave, Inc.	Electronics & Computer Hardware	Preferred Stock Warrants				54
		Preferred Stock Warrants				46

Total VeriWave, Inc.						100


Total Electronics & Computer Hardware (1.90%)*						14,203		7,819


Aegerion Pharmaceuticals, Inc.	Specialty Pharmaceuticals	Preferred Stock Warrants				69		761
		Preferred Stock				1,475		2,206

Total Aegerion Pharmaceuticals, Inc.						1,544		2,967

Althea Technologies, Inc.	Specialty Pharmaceuticals	Senior Debt Matures October 2013 Interest rate Prime + 7.70% or Floor rate of 10.95%	$	12,000		11,661		11,661
		Preferred Stock Warrants				309		276

Total Althea Technologies, Inc.						11,970		11,937

Chroma Therapeutics, Ltd.⁽⁵⁾	Specialty Pharmaceuticals	Senior Debt Matures September 2013 Interest rate Prime + 7.75% or Floor rate of 12.00%	$	10,000		9,797		10,021
		Preferred Stock Warrants				490		632

Total Chroma Therapeutics, Ltd.						10,287		10,653

See notes to consolidated financial statements.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS—(Continued)

December 31, 2010

(dollars in thousands)


Portfolio Company	Industry	Type of Investment⁽¹⁾	Principal Amount		Cost⁽²⁾			Value⁽³⁾
Pacira Pharmaceuticals, Inc.⁽⁴⁾	Specialty Pharmaceuticals	Senior Debt Matures May 2014 Interest rate Prime + 6.25% or Floor rate of 10.25%	$	11,250	$	11,105		$	11,105
		Senior Debt Matures May 2014 Interest rate Prime + 8.65% or Floor rate of 12.65%	$	15,000		13,749			13,749
		Preferred Stock Warrants				1,086			1,255

Total Pacira Pharmaceuticals, Inc.						25,940			26,109

QuatRx Pharmaceuticals Company	Specialty Pharmaceuticals	Senior Debt Matures October 2011 Interest rate Prime + 8.90% or Floor rate of 12.15%	$	9,306		9,474			9,474
		Convertible Senior Debt Interest Rate of 8.0% Matures March 2012	$	1,888		1,888			2,467
		Preferred Stock Warrants				220
		Preferred Stock Warrants				307
		Preferred Stock				751

Total QuatRx Pharmaceuticals Company						12,640			11,941


Total Specialty Pharmaceuticals (15.42%)*						62,381			63,607


Annie’s, Inc.	Consumer & Business Products	Preferred Stock Warrants				321			75

Total Annie’s, Inc.						321			75

IPA Holdings, LLC.⁽⁴⁾	Consumer & Business Products	Senior Debt Matures November 2012 Interest rate Prime + 6.75% or Floor rate of 11.0%	$	8,250		8,505			8,160
		Senior Debt Matures May 2013 Interest rate Prime + 9.75% or Floor rate of 14.0%	$	6,500		7,019			6,995
		Revolving Line of Credit Matures November 2012 Interest rate Prime + 6.25% or Floor rate of 10.50%	$	856		761			761
		Preferred Stock Warrants				275
		Common Stock				500

Total IPA Holdings, LLC.						17,060			15,916

Market Force Information, Inc.	Consumer & Business Products	Preferred Stock Warrants				24			60
		Preferred Stock				500			439

Total Market Force Information, Inc.						524			499

Trading Machines, Inc.⁽⁸⁾	Consumer & Business Products	Senior Debt Matures January 2014 Interest rate Prime + 10.25% or Floor rate of 13.50%	$	9,812		8,644			4,000
		Preferred Stock Warrants				878
		Preferred Stock				50
							&n

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