Horizon Technology Finance is a venture lending platform that provides structured debt products to life science and technology companies. Its team of investment and operations professionals has been providing debt capital to growing companies for nearly 20 years. Since its founding, Horizon has originated and invested more than $2.3 billion in venture loans (Source - August 2022).
About Horizon Technology Finance
Founded in 2004 and headquartered in Farmington, Connecticut, Horizon Technology Finance Corporation (NASDAQ: HRZN) is managed by its advisor, Horizon Technology Finance Management LLC, and has a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia (Source - August 2022).
Horizon Technology Finance primarily funds privately-held, development-stage technology companies that are backed by established venture capital firms. They often focus on companies in emerging technology, life sciences, healthcare information and services, and sustainability industries. Horizon also finances publicly traded technology and life science companies.
Eligibility & Products Offered
Horizon Technology Finance provides venture debt products to fund the growth of its portfolio companies with debt capital that can be used like equity capital. Horizon provides term, bridge, and special purpose loans up to $35 million with 3-5 year terms having an interest-only period.
Loans are typically used for:
- Cash runway extension
- Growth capital
- Acquisition
- Augment equity funding with less dilutive capital
To be eligible, companies must be in these sectors and industries:
Technology
Machine learning, cloud computing and storage, communications/wireless, cybersecurity, data analytics, internet and media, networking, software, and other related emerging technologies.
Portfolio companies in technology include Bolt, Lemongrass, Luxtera, Overture, and XTERA.
Life Science
Biotechnology, medical device, drug delivery, genetics, specialty pharmaceuticals, R&D instrumentation.
Portfolio companies in Life Science include Canary, Inotek Pharmaceuticals, MustangBio, Palatin Technologies, and Tryton Medical.
Healthcare Information & Services
Diagnostics, medical records, digital health, patient management software.
Portfolio companies in Healthcare Information & Services include Accumedics, Interleukin Genetics, Medsphere, Precision Therapeutics, and Recondo.
Sustainability
Alternative fuels, energy efficiency, green building materials, AgBio, foodtech, water technology, and other related sustainability technologies.
Portfolio companies in sustainability include Enphase Energy and Lehigh Technologies. (Source - August 2022)
How to Apply
To apply, interested companies should contact the corporate office in Farmington, Connecticut, or one of the two regional offices located in Pleasanton, CA, or Reston, VA. Contact information is listed on the corporate website (Source - August 2022).
Capchase vs. Horizon Technology Finance
In addition to financing using venture debt from Horizon Technology Finance, founders and startups can work with Capchase. When compared to Horizon Technology Finance, Capchase’s funding model is designed to remove excess fees that can save clients up to 50% when compared to traditional venture debt providers (Source – June 2022).
It can be helpful to see the differences between Capchase and Horizon Technology Finance side-by-side. This is especially true for key areas like speed to funding, flexibility, structure & fees, and value add.
Speed
Capchase
24 hours to underwrite (led by a tech-driven & highly responsive underwriting system)
Horizon Technology Finance
Often long diligence process
Flexibility
Capchase
Highly Flexible: No traditional financial covenants on amounts financed
Horizon Technology Finance
Fairly flexible: No minimum net worth, working capital, current ratio, quick asset ratio, liquidity ratio, or debt-to-equity ratio is required to apply
Structure & Fees
Capchase
Transparent & Simple: No prepayment fees, closing fees, warrants, or hidden fees
Horizon Technology Finance
Often include terms around prepayment, expensive closing process, warrants, admin fees
Value Add
Capchase
A prescriptive funding plan
Horizon Technology Finance
Discrete funding events
