Dan Trolio, CFO of Horizon Technology Finance, talks sustaining growth in venture capital debt investments

It’s a competitive world for technology entrepreneurs, especially ones in the life sciences, and healthcare information and services, and it can be fraught for venture capital lenders like Horizon Technology Finance, to support these ventures in their pre-profit phases.

A careful strategy of relying on experienced founders, a small group of tested partners, and working with banks seems to be working for Horizon Technology Finance, however.

The U.S. venture debt volume in this area of business reached $17.1 billion in the first six months of 2022, according to PitchBook Data, up 7.5% from the same period in 2021.

Since going public in 2010, Horizon has invested more than $2 billion in V.C.-backed companies.

Horizon reported $11.1 million in net investment income (NII) in 3Q 2022, and debt issuance portfolio yield of 15.9%, which supported a 10% increase in monthly earnings per share, and special distributions of $0.05 per share in December for the third consecutive year.

In November 2022, Horizon issued $100 million of A-rated Notes backed by $158 million of secured loans originated by Horizon on its lending platform, at an annual 7.56% fixed interest rate that mature on November 15, 2030, completing its final securitization for 2022. 

Heading into 2023, Daniel R. Trolio, EVP and chief financial officer of Horizon Technology Finance, based in Farmington, Conn., acknowledged the challenges and opportunities that await the lender.

“There are a lot of opportunities, but there…