Hercules Capital Receives Stockholder Approval to Reduce Its Asset Coverage Requirement to 150%

Received a “For” Recommendation from both Institutional Shareholders
Services Inc. (“ISS”) and Glass, Lewis & Co.

PALO ALTO, Calif.–(BUSINESS WIRE)–Hercules
Capital, Inc.
(NYSE: HTGC) (“Hercules” or the “Company”), the
leading specialty finance company to innovative, venture growth, pre-IPO
and M&A stage companies backed by leading venture capital firms, today
announced that its stockholders approved the proposal to reduce its
asset coverage requirement from 200% to 150% at the Company’s special
stockholders meeting (“Special Meeting”) held on December 6, 2018. This
reduction applies the modified asset coverage requirements as amended by
the Small Business Credit Availability Act (“SBCAA”), which was passed
into law on March 23, 2018.

At the Special Meeting, a quorum was reached with stockholder’s voting
91.5% in favor of the proposal.

“We appreciate the overwhelming support received from our institutional
and retail stockholders on reducing our asset coverage requirement to
150%,” stated Manuel A. Henriquez, chairman and CEO of Hercules. “The
reduced asset coverage requirement will benefit Hercules through access
to increased leverage and enhanced portfolio diversification. Together,
this will potentially help generate incremental annual increases in our
shareholder returns and maintain our industry-leading performance.”

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $8.2 billion to over
440 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.

Hercules’ common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol “HTGC.” In addition, Hercules has five
outstanding bond issuances of 6.25% Notes due 2024 (NYSE: HTGX), 4.375%
Convertible Notes due 2022, 4.625% Notes due 2022, 5.25% Notes due 2025
(NYSE: HCXZ) and 6.25% Notes due 2033 (NYSE: HCXY).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. You
should understand that under Section 27A(b)(2)(B) of the Securities Act
of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 do
not apply to forward-looking statements made in periodic reports we file
under the Exchange Act.

The information disclosed in this press release is made as of the date
hereof and reflects Hercules’ most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.

Contacts

Michael Hara
Investor Relations and Corporate Communications
Hercules
Capital, Inc.
(650) 433-5578
mhara@htgc.com