UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

OR

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

For the transition period from _______ to _______

Commission File Number 814-01253

VENTURE LENDING & LEASING IX, INC.

(Exact name of registrant as specified in its charter)

Maryland	82-2040715
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

104 La Mesa Drive, Suite 102, Portola Valley, CA 94028

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:  (650) 234-4300

Securities registered pursuant to Section 12(b) of the Act: None

Securities Registered Pursuant to Section 12(g) of the Act: Common stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (i) 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 period that the registrant was required to file such reports), and (ii) 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 every Interactive Data File required to be submitted 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 such files). Yes [X] No [ ]

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

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [x] Smaller reporting company [ ] Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. [ ]

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. [ ]

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based

compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). [ ]

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes [ ] No [X]

As the registrant’s shares are not publicly-traded, the aggregate market value of the voting stock held by non-affiliates of the registrant cannot be determined.

The number of shares outstanding of each of the issuer’s classes of common stock, as of March 15, 2023, was 100,000.

Document Incorporated by Reference

Document Description		10-K Part
Specifically Identified Portions of the Registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held	May 17, 2023	III

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PART I.

ITEM 1.    BUSINESS

Introduction.

Venture Lending & Leasing IX, Inc. (the “Fund”) was incorporated in Maryland on June 28, 2017 as a non-diversified, closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) and is managed by Westech Investment Advisors LLC (the “Manager” or “Management”). All of the issued and outstanding membership interests of the Manager were acquired by P10 Intermediate Holdings LLC, a Delaware limited liability company whose ultimate parent is P10, Inc., a Delaware corporation (together, “P10”) on October 13, 2022 (the “Transaction”). The management of day-to-day operations of the Manager remains substantially unchanged and continues to be directed by the Manager’s personnel following the closing of the Transaction. The Fund’s investment objective is to achieve superior risk-adjusted investment returns. The Fund will primarily provide debt financing to carefully selected companies that have received equity funding from traditional sources of venture capital equity funding (i.e. a professionally managed venture capital firm), as well as non-traditional sources of venture capital equity funding (e.g., angel investors, strategic investors, family offices, crowdfunding investment platforms, etc.) (collectively, “Venture-Backed Companies”), generally in the form of secured loans. Secondarily, the Fund may provide debt financing to public and later-stage private companies. In most cases, the Fund will receive warrants for equity securities of the companies in connection with these loans. The Fund may make debt investments that are atypical in that, for example, the companies to which the financing is provided may be public companies, may not have venture backing, or may not offer senior securities (“Special Situation Financings”), including bridge financings and subordinated debt. The Fund may also make direct equity investments in Venture-Backed Companies. Prior to commencing its operations on May 2, 2018, the Fund had no operations other than accruing organizational expenses and the sale of 100,000 shares of common stock, $0.001 par value to the Company for $25,000 in June 2017. The Fund has elected to be treated for federal income tax purposes, as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986 (the “Code”).

The Fund’s shares of common stock, $0.001 par value (“Shares”) are held entirely by the Company. As capital is required to finance the acquisition of loans, additional capital is provided by the Company.

Investment Program.

General. The Fund’s primary investment strategy is to provide debt financing, in the form of secured loans, to carefully selected Venture-Backed Companies. In most cases, the Fund will receive warrants to acquire equity securities in connection with its venture loans. The Fund’s investment objective is to achieve superior risk-adjusted investment returns. The Fund may invest up to 20% of the aggregate cost of all investments of the Fund, determined cumulatively over the life of the Fund, in Special Situation Financings. In some instances, the Fund’s Special Situation Financing investments may be in companies that have been bootstrapped (i.e. funded solely by the personal assets of their founders or other individuals), without substantial equity investment from investors or participation of venture capital investors. The Fund does not intend to invest in any company to secure control of its securities primarily for the purpose of making a profit in the sale of the controlled company’s securities, and, for the avoidance of doubt, any such investment would not constitute a Special Situation Financing. The Fund may also invest up to 10% of the aggregate amount of all investments of the Fund (determined cumulatively over the life of the Fund) in direct equity investment opportunities such as convertible debt, secondary common stock purchases or other equity instruments issued by companies of diverse capitalization and creditworthiness, including, without limitation, early-stage private companies, public and later-stage private companies, and companies undergoing restructuring or recapitalization of their existing debt or equity financing (provided, however, that any amounts paid by the Fund to acquire equity securities pursuant to the receipt or exercise of warrants or stock received in connection with the Fund’s venture loans shall not be taken into account in determining whether such 10% threshold has been met). Such direct investments generally will be in equity securities of borrowers in the Fund’s portfolio, although equity securities of other companies could also be purchased. This aggregate investment strategy involves a high degree of risk, including: illiquidity of portfolio investments; risk of default by borrowers, many of whom have no or little operating profit or cash flow as of the commencement of a financing transaction; interest rate risk; litigation risk; the speculative nature of investments in warrants for stock or directly in stock; and the risks involved in investing in privately-held and emerging companies. The Fund will make available significant managerial assistance through its officers to certain companies whose securities are held in the Fund’s portfolio, as described herein under the caption “Regulation.”

The Fund intends to use a buy-and-hold strategy where debt investments are held to maturity. All securities are evaluated on a regular basis to determine whether there should be any change to this strategy. Some debt investments are restructured, which may result in the extension of the original maturity date or other change in the instrument, including but not limited to, conversion of all or part of the instrument to equity. The Fund does not intend to purchase publicly-held securities; however, some publicly-held securities may be acquired through warrant exercises, mergers, acquisitions, and IPOs of the companies in which investments are made. Additionally, in some cases, publicly-traded securities may be issued in conjunction with loans made to public companies. When a company’s securities become publicly-traded, the Fund may hold these securities and sell them or may choose to distribute the securities directly to the Company. If held, publicly-traded securities are monitored on an on-going basis, and a variety of factors regarding the issuing company (e.g., trend in stock price, underlying business fundamentals and potential for growth, information regarding the lock-up, etc.) are used to determine when to sell these securities.

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As a BDC, the Fund must invest at least 70% of its total assets in qualifying assets (“Qualifying Assets”) consisting of (a) interests in Eligible Portfolio Companies and (b) certain other assets including cash and cash equivalents. An “Eligible Portfolio Company” is a United States company that is not an investment company as defined or excluded from the definition of an investment company in Section 3 of the 1940 Act, and that either: (i) does not have a class of securities listed on a national securities exchange, or does have a class of securities listed on a national securities exchange, but has an aggregate market value of outstanding voting and non-voting common equity of less than $250.0 million; or (ii) is actively controlled by a BDC and has an affiliate of a BDC on the Eligible Portfolio Company’s Board of Directors; or (iii) has total assets of not more than $4.0 million and capital and surplus of not less than $2.0 million; or (iv) meets such other criteria as may be established by the Securities and Exchange Commission (“SEC”). Control under the 1940 Act is presumed to exist where a BDC owns more than 25% of the outstanding voting securities of the Eligible Portfolio Company. Also included in Qualifying Assets are follow-on investments in a company that met the definition of Eligible Portfolio Company at the time of the Fund’s initial investment, but subsequently does not meet such definition because it has a class of securities listed on a national securities exchange, if, at the time of the follow-on investment, the Fund (a) owns at least 50% of (i) the greatest number of equity securities of such company, including securities convertible into or exchangeable for such securities, and (ii) the greatest amount of certain debt securities of such company held by the Fund at any time during the period when such company was an Eligible Portfolio Company, and (b) is one of the twenty largest holders of record of the company’s outstanding voting securities. The Fund may invest up to 30% of its total assets in non-Qualifying Assets, including interests in companies that are not Eligible Portfolio Companies (for example, because the company’s securities are quoted on the NASDAQ Global Market (“NASDAQ”)) and Eligible Portfolio Companies as to which the Fund does not offer to make available significant managerial assistance. As a BDC, the Fund is generally prohibited under the 1940 Act from investing in securities issued by broker/dealers, investment advisers, and underwriters unless certain conditions are met. As of December 31, 2022, the percentage of non-qualifying investments in the Fund was 14.8%.

BDCs cannot acquire any assets other than those Qualifying Assets described in subparagraphs (1) through (8) below unless, at the time of the acquisition, the assets described in subparagraphs (1) through (8) below represent at least 70% of the value of the BDC’s total assets (the “70% basket”). Below is a general summary of Qualifying Assets in which the Fund may invest.

1. Securities issued in transactions not involving a public offering from issuers which are Eligible Portfolio Companies (including affiliated persons or persons that have been affiliated persons within the preceding 13 months) or from any other person, subject to such rules and regulations as the SEC may prescribe;

2. Securities purchased in transactions not involving any public offering from an issuer, or from any person who is an officer or employee of the issuer, if the issuer is a U.S. company that is not an investment company, but the issuer is not an Eligible Portfolio Company because it has issued a class of margin securities that is eligible for margin loans, and at the time of purchase the BDC owns at least 50% of (i) the greatest number of equity securities (on a fully diluted basis) of the issuer and (ii) the greatest amount of such issuer’s debt securities held by the BDC at any point in time during the period when such issuer was an Eligible Portfolio Company, and, (iii) the BDC is one of the 20 largest holders of the issuer’s outstanding voting securities;

3. Securities of any Eligible Portfolio Company that is controlled by the BDC (either alone or as part of a group acting together) and the BDC exercises a controlling influence over the management or policies, and has an affiliated person who is a director of, the Eligible Portfolio Company;

4. Securities issued in transactions not involving a public offering from U.S. non-investment company issuers subject to bankruptcy, reorganization, insolvency or similar proceeding or otherwise unable to meet their obligations without assistance (purchase may be made from affiliated persons or persons that have been affiliated persons within the preceding 13 months or in limited circumstances other persons);

5. Securities of an Eligible Portfolio Company purchased from any person in transactions not involving a public offering when no public market for the securities exists and the BDC owned at least 60% of the outstanding equity (on a fully diluted basis) of the issuer immediately prior to the purchase;

6. Securities received in exchange for or distributed with respect to the foregoing securities (including securities obtained pursuant to the exercise of options, warrants or rights relating to such securities);

7. Cash, cash items, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment; and

8. Office furniture and equipment, interests in real estate, deferred organization and operating expenses, and other non-investment assets necessary and appropriate to the BDC’s operations.

“Making available significant managerial assistance” is defined under the 1940 Act, in relevant part, as (i) an arrangement whereby the BDC, through its officers, directors, employees or general partners, offers to provide and, if accepted, does provide, significant guidance and counsel concerning the management, operations or business objectives of a portfolio company; or (ii) the exercise by a BDC of a controlling influence over the management or polices of the portfolio company by the BDC acting individually or as part of a group acting together which controls the portfolio company. The officers of the Fund offer to provide managerial assistance, including advice on equipment acquisition and financing, cash flow and expense management, general financing opportunities, acquisition opportunities and opportunities to access the public securities markets, to the great majority of companies to whom the Fund provides venture loans. In some instances, directors of the Fund might serve on the Board of Directors or as officers of borrowers.

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Venture Loans. Venture loans generally are made pursuant to a negotiated loan agreement, and are evidenced by promissory notes secured by specific equipment or other assets of the borrower financed with the proceeds of such loans, or secured by a broader lien on substantially all of the borrower’s assets where the purpose of the loan is to provide growth or general working capital to the borrower. The loans are typically secured by a first-position lien on such assets. The Fund generally receives periodic payments (usually monthly) and may receive a final payment equal to a percentage of the original loan amount, payable at maturity of the loan (whether as stated or accelerated). The interest rate and amortization terms of venture loans and all other transaction terms are individually negotiated between the Fund and each borrower.

The documentation for venture loans includes representations, warranties, covenants and events of default intended to protect the Fund and which are customary for commercial transactions of this type and size. Typical material terms include restrictions on additional debt, covenants to maintain the loan collateral and keep it adequately insured and free of liens, prohibitions against sale or other disposition of the assets except under specified conditions, and acceleration provisions making the remaining outstanding amounts under the loan immediately due and payable and giving rise to a right to take possession of the collateral upon certain events of default, including failure to make required payments, insolvency, and failure to comply with covenants. There can be no assurance that the value of the collateral at the time of default will be at least equal to the outstanding amount due under the loan.

Typically, loans are structured as non-revolving commitments by the Fund to provide financing, in one or more advances over a specified period of availability, determined as part of the underwriting process. The commitments of the Fund to finance future asset acquisitions or growth capital needs is typically subject to the absence of any default under the loan and compliance by the borrower with requirements relating to, among other things, the type of assets to be acquired, and if applicable, the borrower’s achievement of performance-based milestones. Although the Fund’s commitments generally provide that the Fund is not required to continue to fund additional asset purchases or growth capital if there has been a material adverse change in the borrower’s financial condition, a borrower’s financial condition may not be as strong at the time a loan is funded as it was when the related commitments were made.

Warrants. The Fund generally acquires warrants to purchase equity securities of the borrower in connection with financings. It is anticipated that such warrants, generally, will be distributed by the Fund to the Company simultaneously with, or shortly following, their acquisition. The terms of the warrants, including the expiration date, exercise price, and terms of the equity security for which the warrant may be exercised, are negotiated individually with each borrower, and are likely to be affected by the price and terms of securities issued by the company to its venture capitalists and other holders in equity financings close in time to the Fund’s making of the loan commitment. Based upon the Manager’s past experience, it is anticipated that most warrants will have a contractual term of five to fifteen years, and will have an exercise price based upon the price at which the borrower most recently issued equity securities or, if a new equity offering is anticipated, the future price of such equity securities (and sometimes a “blended price”). In certain transactions, it is anticipated that warrants will be issued with an exercise price that is waived in connection with a liquidity event such as an initial public offering or acquisition. The equity securities for which the warrant will be exercised generally will be convertible preferred stock (of which there may be one or more classes) or common stock. Substantially all the warrants and underlying equity securities will be restricted securities under the Securities Act of 1933 (the “1933 Act”) at the time of issuance; the Fund generally negotiates registration rights with the borrower that may provide “piggyback” and S-3 registration rights, which permit the owner of the warrant under certain circumstances to include some or all of the securities that will be acquired upon exercise of the warrant in a registration statement filed by the borrower. The Fund generally will negotiate “net issuance” provisions in the warrants, which allow the owner of the warrant to exercise the warrant without payment of any cash, and thereby receive a net number of shares determined by the increase in the value of the issuer’s stock (at the time of exercise) above the exercise price stated in the warrant.

Equity Securities. The Fund may make direct investments in equity securities (including convertible notes) having an aggregate cost of up to 10% of the aggregate cost of all investments of the Fund determined cumulatively over the life of the Fund (provided, however, that any amounts paid by the Fund to acquire equity securities pursuant to the receipt or exercise of warrants or stock received in connection with the Fund’s venture loans shall not be taken into account in determining whether such 10% threshold has been met). For example, the Fund may invest equity in a follow-on round of financing to maintain or increase its ownership stake. In some cases, equity investments may be made in companies where the Fund does not have an existing loan. Additionally, the Fund anticipates selectively pursuing opportunistic equity purchases, which may take the form of primary or secondary stock purchases. The Manager expects that the equity securities generally will be convertible preferred stock, though it is possible the Fund would invest directly in common stock of Venture-Backed Companies or convertible notes which convert into common or preferred stock of Venture-Backed Companies. It is likely that, as in the case of warrants, direct equity investments, if made by the Fund, generally will be distributed to the Company simultaneously with, or shortly following, their acquisition. However, although, the Code and 1940 Act requirements could, in certain circumstances, compel the Fund to hold such securities for a longer period of time prior to their distribution to the Company.

Investment Policies. For purposes of the investment policies (other than the diversification standards below), references to the percentage of the Fund’s total assets “invested” in securities of a company will be deemed to refer, in the case of debt financings, to the total amount of financings that the Fund has committed to provide, and in the case of equity investments, to the cost basis of such equity investments; the Fund will not be required to divest securities in its portfolio or decline to fund an existing commitment because of a subsequent change in the value of securities the Fund has previously acquired or committed to purchase.

Diversification Standards. The Fund is classified as a “non-diversified,” closed-end investment company under the 1940 Act. However, the Fund seeks to continue to qualify as a RIC and therefore, must meet diversification standards under the Code.

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To qualify as a RIC and obtain the special pass-through status available to RICs under the Code, the Fund must meet the issuer diversification standards under the Code that generally require that, at the close of each quarter of the Fund’s taxable year, (i) not more than 25% of the value of its total assets is invested in the securities of a single issuer, and (ii) at least 50% of the value of its total assets is represented by cash, cash items, government securities, securities of other RICs and other securities (counting each investment in such other securities only if the value of such securities does not exceed 5% of the value of the Fund’s total assets and the Fund does not own more than 10% of the outstanding voting securities of the issuer of such securities). For purposes of the diversification requirements under the Code, the percentage of the Fund’s total assets “invested” in securities of a company will be deemed to refer, in the case of financings in which the Fund commits to provide financing prior to funding the commitment, to the amount of the Fund’s total assets represented by the value of the securities issued by the borrower to the Fund at the time each portion of the commitment is funded.

If the Fund meets the initial requirements of a RIC, the Fund shall not lose its status as a RIC because of a discrepancy during a subsequent quarter between the value of its various investments unless the discrepancy exists immediately after the acquisition of any security and is wholly or partly the result of such acquisition. This is called the “fluctuation in value” exception. This exception also applies if distributions of cash cause the RIC to be out of compliance with either the 25% or 5%/50% tests.

Investment Guidelines. In selecting investments for the Fund’s portfolio, the Manager will endeavor to meet the investment guidelines established and approved by the Fund’s Board of Directors. The Fund may, however, make investments that do not conform to one or more of these guidelines when deemed appropriate by the Manager. Such investments might be made if the Manager believes that a failure to conform in one area is offset by exceptional strength in another or is compensated for by a higher yield, favorable warrant issuance or other attractive transaction terms or features.  

Industry Segment Diversification. The Fund generally seeks to invest no more than 30% of its total assets in securities of companies in any single industry. Diversification is carefully considered at the inception of each loan, but percentages may vary from the guideline at any particular point in time. The broad industry categories in which the Fund anticipates that most of its investments will fall (and within each of which there may be several “industries” for purposes of the industry diversification policy) include computers and storage, semiconductor and equipment, internet, medical devices, software, and several other categories.

Stage of Development Guidelines. The Manager seeks to diversify the Fund’s portfolio based on the development stage of the companies in which it invests. Generally, Venture-Backed Companies fall into several lifecycle stages, including the following:  

•Early or seed stage companies represent the initial stages of a start-up company’s development. These companies have raised varying amounts of equity capital to prove a concept and qualify for larger sums of start-up capital. Their activities generally are limited to product development, scientific and market research, recruiting a management team and proving early business traction. These companies generally have investor syndicates that include early stage investors such as high net worth angel investors, venture capitalists, incubators, and crowd funding platforms.

•Emerging growth stage companies have a proven early product/market fit and have initiated or are about to initiate full-scale operations and sales but may not be showing a profit.

•Mezzanine stage companies are approaching or have attained break-even or profitability and are continuing to expand.

The Manager refers to its investments in seed and start-up companies as “Early Stage” and investments in emerging growth companies and mezzanine companies as “Expansion Stage.” The Manager seeks to diversify its investments across stages. The classification of companies by stages of development involves a subjective judgment by the Manager, and it is possible that other investors or market analysts would classify the same companies differently than the classifications used by the Fund.

    Quality Guidelines. The Manager seeks to invest the majority of the Fund’s aggregate investments (determined cumulatively over the life of the Fund) in investments that meet many of the following guidelines:

Company Guidelines.

•The company has a minimum capitalization of at least $1.0 million.

•The company has at least six months’ worth of available cash to fund its operations or indications from its equity investors that they will make investments necessary to provide such cash.

•The company’s equity investors have indicated a current intention to make additional equity financing available to the company, or the company has a forecasted positive cash flow.

•The company’s business plan contemplates sales of at least $25.0 million within five years.

•The company has previously closed equity financing or will close equity financing prior to the funding of the loan.

Transaction Guidelines for Loans.

•The term of the loan does not exceed 60 months and does not extend beyond December 31, 2028.

•Debt service requirements of the loan are, in the opinion of the Manager, not likely to become an impediment to the company raising additional capital.

•The loan is secured by all or substantially all of the borrower’s assets.

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Equity Venture Capital Support Guidelines.

•The company’s equity investors have (i) in the opinion of the Manager, significant venture capital and/or industry experience, and (ii) follow-on capital to support the company.

Special Situation Financings. The Manager may invest up to 20% of the Fund’s aggregate investments determined cumulatively over the life of the Fund in Special Situation Financings. Such Special Situation Financings could include investments targeted towards late-stage or public companies seeking additional growth capital to expand product offerings, increase market penetration or fund strategic acquisitions of other companies or technology. In these situations, the Fund would only consider investing in this Special Situation Financings if it determined it to be of equivalent or better quality as compared to a senior secured loan made to the Fund’s more typical portfolio companies. Further, the Fund may also choose to subordinate existing outstanding debt as part of a restructuring or work-out arrangement in order to allow the company to successfully complete a transaction such as an acquisition or round of financing. There can be no assurance that the subordination will work to the benefit of the Fund. The Manager will target companies whose cash flow from operations and cash reserves are expected to service the Fund’s investment on a current basis. Investments may be structured as senior debt, convertible debt, or other debt/equity structures. In addition, Special Situation Financings could include investments in a “troubled” company undergoing a restructuring or recapitalization of its existing debt or equity, and making investments in subordinated debt, providing bridge financing to a company which is in the process of raising additional private equity, planning an initial public offering or is seeking to enter into a business combination through which it would be acquired. In some instances, these companies will have been bootstrapped (i.e. funded solely by the personal assets of their founders or other individuals), without any substantial investment from venture capital or other investors. As of December 31, 2022, the Fund made Special Situation Financings of about 1.4% of total commitments.

International Investments. As a BDC, the Fund may invest in companies which are not Qualifying Assets, as long as at the time of such investment, at least 70% of the value of the Fund’s total assets are invested in Qualifying Assets. An Eligible Portfolio Company must be organized under the laws of, and have its principal place of business in, the United States. Therefore, the Fund could invest up to 30% of its total assets in foreign-based companies. If reasonably practicable, investments in foreign-based companies would be secured by foreign-based assets in addition to being secured by any assets located in the United States.

Leverage. The Fund borrowed money and intends to continue borrowing from and could enter into secured contracts, which instruments may be considered debt securities, with banks, insurance companies and other lenders to obtain additional funds to originate loans (and possibly for Special Situation Financings), if such borrowings are available on terms that are acceptable to the Manager and Board of Directors of the Fund. It is possible, due to potential future tightening of the credit markets, that the Fund may not be able to secure such borrowings on acceptable terms. Any borrowings of the Fund will be subject to the asset coverage requirements under the 1940 Act, including borrowings in excess of 5% of total assets for temporary purposes, and all borrowings for emergency purposes that are not “temporary.” In April 2019, the Fund’s sole shareholder approved the Fund to apply the reduced asset coverage requirements in Section 61(a)(2) of the 1940 Act, which permits the Fund to double the maximum amount of leverage that it may incur by reducing the asset coverage requirement applicable to the Fund from 200% to 150%.

Temporary Investments. Pending investment, and until distributions to the stockholders are made, the Fund will invest excess cash in: (i) time deposits, certificates of deposit and similar instruments of highly-rated banks; (ii) securities issued or guaranteed by the U.S. government, its agencies or instrumentalities; (iii) repurchase agreements that are: (a) issued by highly-rated banks or securities dealers; and (b) fully collateralized by U.S. government securities; (iv) short-term high-quality debt instruments of U.S. corporations; and (v) money market funds and other pooled investment funds whose investments are restricted to those described above. The average maturity of such investments, weighted by their par value, will not exceed 90 days.

Other Investment Policies. The Fund will not sell securities short (except to the extent the Fund has a warrant for, or owns, shares equal to the number of shares which is the subject of the proposed short sale), purchase securities on margin (except to the extent the Fund’s permitted borrowings are deemed to constitute margin purchases), purchase or sell commodities or commodity contracts (except interest rate hedging transactions in connection with the Fund’s permitted borrowings), or purchase or sell real estate. The Fund may, however, write puts and calls, and acquire options, as a hedge for equity investments or to increase return through a covered call. The Fund will not underwrite the securities of other companies, except to the extent they may be deemed underwriters upon the disposition of restricted securities acquired in the ordinary course of their business. The Fund may, however, use borrowed funds for its lending activities. See the discussion herein under the caption “Risk Factors - General - Leverage.”

The Fund’s investment objectives, investment policies and investment guidelines (other than its intended status as a BDC) are not fundamental policies and may be changed by the Fund’s Board of Directors at any time.

Regulation. As a BDC, the Fund is required to invest in Eligible Portfolio Companies and (with certain exceptions) make available to them significant managerial assistance. Eligible Portfolio Companies, and the regulations governing assets a BDC can acquire, are described under the heading “Investment Program” above.  

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The Fund, as a BDC, may sell its securities at a price that is below its net asset value per share, provided that a majority of the Fund’s disinterested directors, or not interested parties of the Fund under Section 2(a)(19) of the 1940 Act (i.e., independent director), has determined that such sale would be in the best interests of the Fund and its shareholder and upon the approval by the holders of a majority of its outstanding voting securities, including a majority of the voting securities held by non-affiliated persons, of such policy or practice within one year of such sale. A majority of the disinterested directors also must determine in good faith, in consultation with the underwriters of the offering if the offering is underwritten, that the price of the securities being sold is not less than a price which closely approximates market value of the securities, less any distribution discounts or commissions. As defined in the 1940 Act, the term “majority of the outstanding voting securities” of the Fund means the vote of (i) 67% or more of the Fund’s Shares present at a meeting, if the holders of more than 50% of the outstanding Shares are present or represented by proxy, or (ii) more than 50% of the Fund’s outstanding Shares, whichever is less.

Many of the transactions involving a company and its affiliates (as well as affiliates of those affiliates) which were prohibited without the prior approval of the SEC under the 1940 Act prior to its amendment by the 1980 provisions are permissible for BDCs, including the Fund, upon the prior approval of a majority of the Fund’s disinterested directors and a majority of the directors having no financial interest in the transactions. However, certain transactions involving certain persons related to the Fund, including its directors, officers, and the Manager, may still require the prior approval of the SEC. In general, (i) any person who owns, controls, or holds power to vote, more than 5% of the Fund’s outstanding Shares; (ii) any director, executive officer, or general partner of that person; and (iii) any person who directly or indirectly controls, is controlled by, or is under common control with, that person, must obtain the prior approval of a majority of the Fund’s disinterested directors, and, in some situations, the prior approval of the SEC, before engaging in certain transactions involving the person or any company controlled by the Fund. The 1940 Act generally does not restrict transactions between the Fund and its eligible portfolio companies. While a BDC may change the nature of its business so as to cease being a BDC (and in connection therewith withdraw its election to be treated as a BDC) only if authorized to do so by a majority vote (as defined by the 1940 Act) of its outstanding voting securities, shareholder approval of changes in other fundamental investment policies of a BDC is not required (in contrast to the general 1940 Act requirement, which requires shareholder approval for a change in any fundamental investment policy).

Dividends and Distributions. The Fund intends to distribute to its shareholder all equity securities received from portfolio companies simultaneously, or shortly following, their acquisition and substantially all of its net investment income and net realized capital gains, if any, as determined for income tax purposes less appropriate reserves. Applicable law, including provisions of the 1940 Act, may limit the amount of dividends and other distributions payable by the Fund. Income dividends will generally be paid quarterly to shareholders of record on the last day of each preceding calendar quarter end. Substantially all of the Fund’s net capital gain (the excess of net long-term capital gain over net short-term capital loss) and net short-term capital gain, if any, will be distributed annually, or on a more frequent basis as determined by the Manager.

The Manager exercised, and the Board of Directors ratified, its discretion to extend the Fund’s investment period for two additional quarters after June 30, 2022, thereby allowing the Fund to make new commitments through December 31, 2022 and to fund commitments through December 31, 2022, the end of the Fund’s investment period. Following the end of the commitment period, the Fund will begin to distribute to investors all proceeds received from principal payments and sales of investments, net of reserves and expenses, principal repayments on the Fund’s borrowings, amounts required to fund financing commitments entered into before such date, and any amounts paid on exercise of warrants. Distributions of such amounts are likely to cause annual distributions to exceed the earnings and profits of the Fund available for distribution, in which case such excess will be considered a tax-free return of capital to a shareholder to the extent of the shareholder’s adjusted basis in its shares and then as capital gain. The Fund may borrow money to fund shareholder distributions, to the extent consistent with the 1940 Act and a prudent capital structure.

Competition. Other entities and individuals compete for investments similar to those proposed to be made by the Fund, some of whom may have greater resources than the Fund. Furthermore, the Fund’s need to comply with provisions of the 1940 Act pertaining to BDCs and provisions of the Code pertaining to RICs might restrict the Fund’s flexibility as compared with its competitors.  The need to compete for investment opportunities may make it necessary for the Fund to offer borrowers more attractive transaction terms than otherwise might be the case.

Executive Officers. The following are the executive officers of the Fund. All officers serve at the pleasure of the Fund’s Board of Directors.

Name and Position with Fund	Age	Occupation During Past Five Years
Maurice C. Werdegar, Chairman and Director	58	Chairman of the Fund since 2022. Mr. Werdegar has held the position of Chairman of Westech Investment Advisors since 2022. Mr. Werdegar served as President and Chief Executive Officer of Westech Investment Advisors from 2015 to 2021, served as Chief Operating Officer and Vice President of Westech Investment Advisors from 2011 to 2015 and served in various other positions with Westech Investment Advisors since 2001. Mr. Werdegar has served as a Director of the Fund since 2017 and is also a member of the Board of Directors, and Chairman, of Venture Lending & Leasing VIII, Inc. (“Fund VIII”). Mr. Werdegar is Chairman of WTI Fund X, Inc. (“Fund X”).
David R. Wanek, President and Chief Executive Officer	50	Chief Executive Officer of the Fund since 2022. Mr. Wanek has held the position of President of the Fund since 2019. Mr. Wanek has held the position of Chief Executive Officer and President of Westech Investment Advisors since 2022 and held other positions with Westech Investment Advisors since 2001. Mr. Wanek is the President and CEO of Fund VIII and Fund X. Mr. Wanek is also a member of the Board of Directors of Fund X.

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Name and Position with Fund	Age	Occupation During Past Five Years
Jared S. Thear, Vice President, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary	45	Vice President, Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary for the Fund since 2021. Mr. Thear has held the same positions with Westech Investment Advisors since 2021. Prior to joining Westech Investment Advisors, he worked at Deloitte & Touche for 20 years and held various leadership roles. From 2014 to 2021, he led Deloitte's Northwest region Asset Management practice for the audit function.
Rodolfo Ruano, Vice President and Assistant Secretary	55	Vice President and Assistant Secretary for the Fund since 2021. Mr. Ruano has held the position of Vice President of Westech Investment Advisors since 2021. Investment Partner for Westech Investment Advisors since 2011.

Employees. The Fund has no employees; all of its officers are officers and/or employees of the Manager, and all of its required services are performed by officers and employees of the Manager.

Available Information. The Fund’s office is located at 104 La Mesa Drive, Suite 102, Portola Valley, CA 94028, and the phone number is (650) 234-4300. The Manager maintains a website at https://westerntech.com/.

The SEC maintains a website, www.sec.gov, that contains reports, proxies and information statements filed by the Fund.

ITEM 1A.      RISK FACTORS

GENERAL

Reliance on Management. The Fund will be wholly dependent for the selection, structuring, closing and monitoring of its investments on the diligence and skill of the Manager, acting under the supervision of the Fund’s Board of Directors. Although the operating principals of the Manager have a long history of combined experience in investing in venture lending transactions and equity investments, there can be no assurance that the Fund will attain its investment objective. Furthermore, the Manager does not have substantial experience investing in Special Situation Financings such as convertible and subordinated debt of public and late-stage private companies. The officers of the Manager will have primary responsibility for the selection of the companies in which the Fund will invest, the negotiation of the terms of such investments and the monitoring and servicing of such investments after they are made. Although the officers of the Manager intend to devote such time as is necessary to the affairs of the Fund, they are not required to devote full time to the management of the Fund. Furthermore, there can be no assurance that any officer will remain associated with the Manager or that, if an officer ceased to be associated with the Manager, the Manager would be able to find a qualified person or persons to fill the position.

Illiquid and Long-Term Investment. After December 31, 2022, the Fund ceased making any new equity investments as well as investments in venture loans (except pursuant to commitments made before the fourth anniversary, or if applicable, the extended commitment date (up to 2 calendar quarters)), and will distribute to its shareholder all proceeds received from principal payments and sales net of: (i) reserves and expenses; (ii) principal repayments on the Fund’s borrowings; (iii) amounts required to fund financing commitments entered into before such fourth anniversary, or if applicable, the extended commitment date; and (iv) any amounts paid on exercise of warrants or otherwise paid to protect the value of existing investments (including, for example, pay-to-play provisions and purchases of equity securities in “down rounds” to avoid dilution). The Fund’s Amended and Restated Articles of Incorporation provide that, on December 31, 2028, the Fund automatically will be dissolved without any action by its shareholder. From and after such dissolution, the Fund’s activities will be limited to the winding-up of its affairs, the liquidation of its remaining assets and the distribution of the net proceeds thereof to its shareholder. Although the Fund generally would not make any loan with a stated maturity date later than December 31, 2028, it is possible that, due to a default by a borrower or a transaction restructuring due to a borrower’s financial difficulties, such a loan may remain outstanding in whole or in part beyond its original maturity date. Furthermore, the Fund may not be able to sell warrants it receives from borrowers, or the equity securities (including those received upon exercise of warrants or conversion of debt instruments or in connection with restructuring of a troubled loan), to the extent those investments were retained by the Fund and not distributed earlier to its shareholder, for a significant period of time due to legal or contractual restrictions on resale or the absence of a liquid secondary market. As a result, the liquidation process might not be completed for a significant period after the Fund’s dissolution. In addition, it is possible that, if certain of the Fund’s assets are not liquidated within a reasonable time after the Fund’s dissolution, the Fund may elect to make a distribution in kind of all or part of such assets to its shareholders. In such case, the shareholders would bear any expenses attendant to the liquidation of such assets.

Although shares of the Fund have been registered under the Securities Exchange Act of 1934 (the “Exchange Act”), there will be no trading market for shares in the Fund (which are all owned by the Company), and thus shares of the Fund should be considered illiquid.

Competition. Other entities and individuals compete for investments similar to those made by the Fund, some of whom, with respect to investments in the form of loans, and many of whom, with respect to the equity investments and convertible and subordinated debt, have greater resources than the Fund. Furthermore, competition could increase given the low barriers to entry in the industry. Additionally, the Fund’s need to comply with provisions of the 1940 Act pertaining to BDCs and provisions of the Code pertaining to RICs, might restrict the Fund’s flexibility as compared with its competitors. The need to compete for investment opportunities may make it necessary for the Fund to offer borrowers or companies in which it makes equity investments more attractive terms than otherwise might be the case. If the Fund encounters increased competition from other entities or individuals or is hindered by the provisions of the BDC’s or RIC’s, the Fund may not fund new investments, which would impact the operations of the Fund.

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Convertible Debt. Convertible debt instruments issued by public and late-stage private companies may comprise some of the Special Situation Financings in which the Fund may invest. Convertible debt generally offers lower interest yields than non-convertible debt of similar quality. The market value of debt tends to decline as interest rates increase and, conversely, to increase as interest rates decline. The market value of convertible debt, however, often reflects the market price of common stock of the issuing company when that stock price is greater than the conversion price of the convertible debt. The conversion price is the predetermined price at which the debt instrument could be exchanged for the associated stock. As the market price of the underlying common stock declines, the price of the convertible debt tends to be influenced more by the yield of the debt instrument. Thus, it may not decline in price to the same extent as the underlying common stock.

Subordinated Debt. Some of the Special Situation Financings in which the Fund may invest may consist of subordinated debt instruments, which tend to be predominantly high-yield non-convertible debt securities. Investments in high-yield securities involve substantial risk of loss. Sub-investment grade non-convertible debt securities, or comparable unrated securities, are commonly referred to as “junk debt” and are considered speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic or business developments. The market values for high-yield securities tend to be very volatile, and these securities are less liquid than investment grade debt securities.

Leverage. The Fund currently borrows money and intends to continue borrowing and could enter into secured contracts, which instruments may be considered debt securities, with banks, insurance companies, and other lenders to obtain additional funds to originate loans (and possibly Special Situation Financings), if such borrowings are available on terms that are acceptable to the Manager and Board of Directors of the Fund. It is possible, due to potential future tightening of the credit markets, that the Fund may not be able to secure such borrowings on acceptable terms. Any borrowings of the Fund will be subject to the asset coverage requirements under the 1940 Act, including borrowings in excess of 5% of total assets for temporary purposes, and all borrowings for emergency purposes that are not “temporary.” Under the 1940 Act, the Fund may not incur borrowings unless, immediately after the borrowing is incurred, such borrowings would have “Asset Coverage” of at least 200%, generally, and of at least 150% if certain conditions are met. “Asset Coverage” means the ratio which the value of the Fund’s total assets, less all liabilities not represented by (i) the borrowings and (ii) any other liabilities constituting “senior securities” under the 1940 Act, bears to the aggregate amount of such borrowings and senior securities. The practical effect of this limitation is to limit the Fund’s borrowings and other senior securities to 50% of its total assets less its liabilities other than the borrowings and other senior securities. The 1940 Act also requires that, if the Fund borrows money, provisions be made to prohibit the declaration of any dividend or other distribution on the shares (other than a dividend payable in shares), or the repurchase by the Fund of shares, if, after payment of such dividend or repurchase of shares, the Asset Coverage of such borrowings would be below 200% (or 150%, as applicable). In April 2019, the Fund’s sole shareholder approved the Fund to apply the reduced asset coverage requirements in Section 61(a)(2) of the 1940 Act, which permits the Fund to double the maximum amount of leverage that it may incur by reducing the asset coverage requirement applicable to the Fund from 200% to 150%. If the Fund is unable to pay dividends or distributions in the amounts required under the Code, it might not be able to qualify for the pass-through status as a RIC or, if qualified, to continue to so qualify.

The Fund has a secured, syndicated loan facility with a borrowing availability of $400.0 million and the outstanding balance under the facility as of December 31, 2022 was $244.5 million.

The use of leverage increases investment risk. The Fund’s use of leverage is premised upon the expectation that the Fund’s all-in borrowing costs would be lower than the return the Fund achieves on its investments. To the extent the income or capital gains derived from investments purchased with borrowed funds exceeds the cost of borrowing, the Fund’s overall return will be greater than if leverage had not been used. Conversely, if the income or capital gain from the investments purchased with borrowed funds is not sufficient to cover the cost of borrowing, or if the Fund incurs capital losses, the return to the Fund will be less than if leverage had not been used, and therefore the amount available for distribution will be reduced or potentially eliminated.

Lenders have required that the Fund pledge all assets as collateral for borrowings and have required that the Company provide guarantees or other credit enhancements. The Company, however, will not pledge its assets to secure such borrowings as this could result in unrelated business taxable income to its tax-exempt members. If the Fund is unable to service the borrowings, the Fund may risk the loss of such pledged assets.

Lenders required that the Fund agree to loan covenants limiting the Fund’s ability to incur additional debt or otherwise limiting the Fund’s flexibility, and loan agreements may provide for acceleration of the maturity of the indebtedness if certain financial tests are not met. To minimize risks associated with borrowing money at floating rates and lending money at fixed rates, the Fund may enter into interest rate hedging transactions with respect to all or any portion of the Fund’s borrowings. There can be no assurance that such interest rate hedging transactions will be available in forms acceptable to the Fund. In addition, entering into interest rate hedging transactions increases costs to the Fund. Finally, it is possible that the Fund could incur losses from being “over-hedged,” which would result if the debt that was hedged is repaid faster than expected.

Regulation. The Fund has elected to be treated as a BDC under the Small Business Incentive Act of 1980, which modified the 1940 Act. Although BDCs are not required to register under the 1940 Act and are relieved from compliance with a number of the provisions of the 1940 Act, there are now greater restrictions in some respects on permitted types of investments for BDCs. Moreover, the applicable provisions of the 1940 Act continue to impose numerous restrictions on the activities of the Fund, including restrictions on leverage and on the nature of its investments. While the Fund is not aware of any judicial rulings under, and is aware of only a few administrative interpretations of, the Small Business Incentive Act of 1980, there can be no assurance that such Act will be interpreted or administratively implemented in a manner consistent with the Fund’s objectives or manner of operation.

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Litigation.  The Fund could be subject to litigation by borrowers, based on theories of breach of contract to lend, “lender liability,” or otherwise in connection with its loan and investment transactions. The defense of such a lawsuit, even if ultimately determined to be without merit, could be costly and time-consuming to the Fund. The Fund may become party to certain lawsuits from time to time in the normal course of business. While the outcome of any legal proceedings cannot now be predicted with certainty, the Fund does not expect any such proceedings will have a material effect upon the Fund’s financial condition or results of operation. Management is not aware of any material pending legal proceedings involving the Fund.

Tax Status. The Fund must meet a number of requirements, including those described herein under the caption “Diversification Standards” and in Note 9 to the financial statements included in this filing, to qualify for the pass-through status as a RIC and, if qualified, to continue to so qualify. For example, the Fund must meet specified asset diversification standards under the Code which might prove difficult if certain borrowers with larger commitments drew on their committed financing at a rate faster than other borrowers to whom smaller commitments were made, particularly during the early periods of the Fund’s operations. If the Fund experiences difficulty in meeting the diversification requirement for any fiscal quarter of its taxable year, it might accelerate capital calls or, if available, borrowings in order to increase the portion of the Fund’s total assets represented by cash, cash items, and U.S. government securities as of the close of the following fiscal quarter and thus attempt to meet the diversification requirement. The Fund, however, would incur additional interest and other expenses in connection with any such accelerated borrowings, and increased investments by the Fund in cash, cash items, and U.S. government securities (whether the funds to make such investments are derived from called equity capital or from accelerated borrowings) are likely to reduce the Fund’s return. Furthermore, there can be no assurance that the Fund would be able to meet the diversification requirements through such actions. Failure to qualify as a RIC would deny the Fund pass-through status and, in a year in which the Fund has taxable income, would have a significant adverse effect on the return of the Fund. Tax laws are dynamic and tax laws either in the U.S. or in foreign jurisdictions could change causing a different than expected outcome.

The Fund has received an opinion that, assuming the Fund’s election to be a BDC under Sections 6(f) and 54 of the 1940 Act will be valid and will remain in effect and that the Fund otherwise meets the qualification requirements set forth in Section 851(b) and the distribution requirements in Section 852(a) of the Code, if the Fund’s status as a RIC is challenged by the Internal Revenue Service (the “IRS”) in court and properly litigated, a court of competent jurisdiction will respect that status for federal income tax purposes. If the SEC were to disallow the Fund’s election to be treated as a BDC, then the Fund would not be eligible to be treated as a RIC and, therefore, would be subject to federal corporate tax on its income and gains. The opinion referred to above is based on the Code, regulations thereunder, IRS rulings, procedures and pronouncements, court decisions and other applicable law as of the date hereof, and certain representations that the Fund has made to its legal counsel. Legal opinions, however, are not binding on the IRS or the courts, and no ruling has been or will be requested from the IRS. No assurance can be given that the IRS will concur with such opinion.

Allocation of Expenses. If the Fund is not deemed to be engaged in a trade or business, individuals and certain other persons who are members of the Company will be required to include in their gross income an amount of certain Fund expenses relating to the production of gross income that are allocable to the Company. These members, therefore, will be deemed to receive gross income from the Fund in excess of the distributions they actually receive. Such allocated expenses were deductible by an individual member as a miscellaneous itemized deduction, for 2017, subject to the limitation on miscellaneous itemized deductions not exceeding 2.0% of adjusted gross income to the extent the Fund is not engaged in a trade or business. However, for the years 2018 through 2025, no deduction for such expense would be allowed. For the tax years 2026 and beyond, the provision will expire and the expenses would be deductible under the pre-2018 law as currently written.

Calculation of Management Fee. As compensation for its services to the Fund, the Manager will receive an investment management fee from the Fund (the “Management Fee”), commencing when capital is first called from the members of the Company. The aggregate annual amount of Management Fee for each annual period (which will be comprised of four whole fiscal quarters and which, in the case of the first year, will commence on the first day of the first fiscal quarter commencing on or following the first capital commitment) will be calculated as a percentage of committed capital, as follows:

	Management Fee
Year 1	1.575%
Year 2	1.600%
Year 3	1.575%
Year 4	1.500%
Year 5	1.250%
Year 6	0.900%
Year 7	0.600%
Year 8	0.350%
Year 9	0.150%

There will be no Management Fee payable after the ninth-year anniversary of the first capital contribution date.

The calculation of the Management Fee could result in fees being disproportionately large relative to the value of the Fund’s portfolio if the total assets of the Fund are low compared to the committed capital. This could occur, for example, if the Fund does not originate as many loans as anticipated, or if the loans in the Fund’s portfolio are repaid at a rapid rate during such period.

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Risks Related to Cybersecurity. Increased reliance on technology by the Fund and its service providers and portfolio companies has increased the risks posed to their respective information systems. The Fund and its service providers and portfolio companies are susceptible to operational and information security risks that include, among other things: human error and negligence; theft; the unauthorized monitoring, release, misuse, loss, destruction or corruption of confidential and highly restricted data; denial of service attacks; unauthorized access to relevant systems; compromises to networks or devices that the Fund and its service providers use to service the Fund’s operations; and operational disruption or failures of physical infrastructure or operating systems.

Cyber-attacks against or security breakdowns of the Fund or its service providers or portfolio companies may adversely impact the Fund and its shareholders, potentially resulting in, among other things: financial losses; the inability of Fund shareholders to transact business and the Fund to process transactions; exposure of personal information belonging to the Fund and its shareholders and violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement or other compensation costs; and/or additional compliance costs. The Fund may incur additional costs for cybersecurity risk management and remediation purposes. In addition, cybersecurity and privacy risks may also impact the Fund’s transactional counterparties, governmental and other regulatory authorities, exchange and other financial market operators, banks, brokers, dealers, insurance companies and other financial institutions, which could cause the Fund to suffer losses.

In general, cybersecurity attacks and breaches include, but are not limited to, efforts by bad actors to gain unauthorized access to systems, networks, devices or other digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cyber-attacks also may be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (i.e., efforts to make services unavailable to intended users) or using a phishing scheme to impersonate an executive or vendor to cause an unauthorized transfer of funds. There can be no assurance that the Fund or its service providers or portfolio companies will not suffer losses relating to cyber-attacks or other information security breaches in the future.

While information risk management systems and business continuity plans have been developed which are designed to reduce the risks associated with cybersecurity, there are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified and that cyber-attacks may be highly sophisticated. There can be no assurance that the programs, plans and systems in place will prevent a cyber-attack or otherwise prevent cyber losses.

In addition, federal, state and foreign governments and agencies have adopted and could in the future adopt regulations covering issues such as user privacy. If the Fund’s and/or its services providers’ or portfolio companies’ privacy or data security measures fail to comply with current or future laws and regulations, they may be subject to additional litigation, regulatory investigations or other liabilities that could result in financial loss, litigation, regulatory investigations and penalties, and other liabilities that could damage their reputation and adversely impact the Fund’s and/or its service providers’ or portfolio companies’ performance and financial condition.

Brexit Risk. The risk of investing in portfolio companies based out of or related to Europe may be heightened due to the United Kingdom (“UK”) formally leaving the European Union (“EU”) on January 31, 2020, an event commonly referred to as “Brexit.”

The UK and the EU have entered into a trade and cooperation agreement (the “Trade Agreement”) governing certain aspects of their relationship. The agreement addresses trade, economic arrangements, law enforcement, judicial cooperation and a governance framework including procedures for dispute resolution, among other things. However, significant political and economic uncertainty remains about how the precise terms of the relationship between the parties will differ from the terms before Brexit.

Brexit has created legal and tax uncertainty, which may last for years to come, and could lead to potentially divergent national laws and regulations. While it is not possible to determine the precise impact that Brexit, including the implementation of the Trade Agreement or any future agreement between UK and the EU, may have on the Fund at this time and beyond, the impact on the UK and European economies and the broader global economy could be significant, including increased volatility and illiquidity, and potentially lower economic growth, on markets in the UK, Europe and globally, thereby adversely affecting the value of the Fund’s investments. In addition, if other countries were to exit the EU or abandon the use of the euro as a currency, the value of investments tied to those countries or the euro could decline significantly and unpredictably.

Climate Change, Natural Disaster and Public Health Crises Risk. Climate change and related legislation, regulation, and accords, both domestic and international, intended to control the impact of climate change may produce direct or indirect adverse consequences to the Fund’s investments, significantly affecting their value. Extreme weather patterns or natural disasters, such as hurricanes, floods and earthquakes, or the threat thereof, could also adversely impact Fund portfolio companies’ facilities, operations, and services, as well as certain industries, or group of industries, and regions related to the Fund’s investments. Additionally, public health crises, such as the COVID-19 pandemic, could result in travel restrictions and shipping and labor disruptions, which may adversely affect Fund portfolio companies’ facilities, operations, and services.

Coronavirus ("COVID-19"). The COVID-19 pandemic has caused significant disruption in the international and U.S. economies and financial markets. The spread of COVID-19 has caused reduction in business activity, financial transactions, labor shortages, supply chain interruptions and overall economic and financial instability. The ongoing effects of COVID-19 remain challenging to predict due to multiple uncertainties, including, but not limited to the duration and resurgences of the outbreak, the application and effectiveness of health and safety measures that are voluntarily adopted by the public or required by government or public health authorities, including vaccines and treatments and the speed and strength of an economic recovery.

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The full extent of the impact of the COVID-19 pandemic on the Fund’s portfolio companies’ business operations and results of operations is unknown at this time and will depend on many factors outside of the Fund’s control, including, without limitations, the timing, extent, trajectory and duration of the pandemic.

INVESTMENT RISKS

International Investments. The Fund could invest up to, but not more than, 30% of its total assets in foreign based companies. Foreign investments are subject to most of the same risks as domestic investments, as well as the political, economic and other uncertainties associated with foreign activities, including war and political unrest, political conflict (including between the U.S. and China), the impact of laws and policies of foreign governments and the United States affecting foreign investment, and the possibility of being subject to the jurisdiction of foreign courts in connection with legal disputes or the inability to subject foreign persons to the jurisdiction of courts in the United States. Furthermore, there may be practical and local law impediments to cost-effective recovery against collateral located in a foreign country. Moreover, it is possible that taxes may be required to be withheld by the foreign company on dividend and interest payments received by the Fund with respect to such foreign investments. Although capital gains derived by the Fund with respect to such investments in such foreign company may often be exempt from non-U.S. income or withholding taxes, the treatment of capital gains varies among jurisdictions. If the income from such foreign investments is subject to non-U.S. income or withholding taxes, the Fund will attempt to negotiate offsetting gross-up payments from the foreign-based company. No assurances, however, can be given that the Fund would be able to negotiate such offsetting payments. Following Russia’s invasion of Ukraine in February 2022, the U.S., the European Union (“E.U.”) and its member states, and other countries announced and implemented major sanctions against Russia. The U.S., E.U. nations and other countries could impose wider sanctions and take other actions as the conflict continues. It is difficult to anticipate the long-term impact on the Fund of war in Ukraine, sanctions, and any retaliatory measures by Russia in response. However, any or all of these may cause significant turmoil in the global markets, including domestic and global credit markets and market liquidity, impact the domestic and global economy, further disrupt supply chains, increase the risk of inflation, limit the ability of the Fund to invest in companies impacted by the sanctions, or negatively impact the operations of portfolio companies, which could in turn have a material adverse impact on the Fund.

Foreign Currency and Exchange Rate Risks. Fund assets and income may be denominated in various currencies. Contributions and distributions, however, will be denominated in U.S. dollars. As a result, the return of the Fund on any investment may be adversely affected by fluctuations in currency exchange rates, any future imposed devaluations of local currencies, inflationary pressures, and the success of the investment itself. In addition, the Fund may incur costs related to conversions between various currencies. As of December 31, 2022, all Fund assets and income, as well as contributions and distributions, are denominated in U.S. dollars.

Accounting and Disclosure Standards. Accounting, auditing, financial, and other reporting standards, practices, and disclosure requirements in countries in which the Fund may invest are not necessarily equivalent to those required under United States Generally Accepted Accounting Principles (“U.S. GAAP”). Accordingly, less information may be available to investors.

Credit Risks. Most of the companies with which the Fund will enter into financing transactions will not have achieved profitability, may experience substantial fluctuations in their operating results or, in many cases, will not have significant operating revenues. The ability of any borrower to meet its obligations to the Fund, therefore, will depend to a significant extent on the willingness of such borrower’s venture capital equity investors or outside investors to provide additional equity financing, which in turn will depend on the borrower’s success in meeting its business plan, the market climate for venture capital investments generally, among other factors. Additionally, these Companies typically retain their cash for operations within one or more bank accounts. These accounts may hold cash in excess of the Federal Deposit Insurance Corporation’s (“FDIC”) limit of $250,000. As a result, they are subject to concentration risk and liquidity risk associated with the underlying custodial banks with whom their deposits of cash and cash equivalents in excess of the FDIC limits are held. If access to these accounts is delayed or suspended indefinitely, it could have a material adverse impact on the company’s ability to meet its financial obligations required for operations. This could affect the Fund’s ability to be paid back on its outstanding commitments and result in a reduction to capital available to borrow within the Fund's underlying credit facilities. The companies to which the Fund will provide financing will frequently be engaged in the development of new products or technologies, and the success of these efforts, or the ability of the companies to successfully manufacture or market products or technologies developed, cannot be assured. These companies frequently face intense competition, including competition from companies with greater resources, and may face risks of product or technological obsolescence, non-acceptance in the market, or rapidly changing regulatory environments, any of which could adversely affect their prospects. The success of such companies often depends on the management talents and efforts of one person or a small group of persons whose death, disability, resignation or other form of departure would adversely affect the company.

Remedies Upon Default. In the event of a default on a portfolio loan, the available remedies to the Fund would include legal action against the borrower and foreclosure or repossession of collateral given by the borrower. However, the Fund could experience significant delays in exercising its rights as a secured lender and might incur substantial costs in taking possession of and liquidating its collateral and in taking other steps to protect its investment. The Fund generally will require that it have a first priority security interest in any equipment of a borrower financed with the proceeds of the Fund’s loans, although that security interest may extend to the borrower’s other assets in which another lender might have a senior or parity security interest. It is anticipated that the Fund will make loans to a borrower that has one or more other secured lenders. In such circumstances, the Fund may share all or a portion of its collateral with the other lender(s) and will enter into intercreditor agreements governing the respective rights of the Fund and such other lender(s), which could limit the Fund’s flexibility in pursuing its remedies as a secured creditor, and reduce the proceeds realized from foreclosing or taking possession of the collateral. In the case of growth capital or working capital loans (where the loan proceeds can be used by the company for general corporate purposes), the Fund will typically receive either a broader lien on substantially all of the borrower’s assets, including its intellectual property, or a lien on substantially all of the borrower’s assets, excluding intellectual property, and a negative pledge on such intellectual property.

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As noted above, the Fund may utilize certain of its funds in investments that involve the financing of equipment assets. Equipment assets are often subject to rapid depreciation or obsolescence such that it is likely that the value of the assets underlying a loan to finance such assets will depreciate during the term of the loan transaction below the amount of the borrower’s obligations. In addition, although borrowers will be required under the transaction documents to provide customary insurance for the assets underlying a loan and will be prohibited from disposing of the assets without the Fund’s consent, compliance with these covenants cannot be assured and, in the event of non‑compliance, the assets could become unavailable to the Fund due to destruction, theft, sale or other circumstances. Realization of value from intellectual property collateral can also be time consuming and present special challenges, given the often-unique nature and limited market for such assets. The Fund’s ability to obtain payment beyond the collateral underlying the loan from the borrower might be limited by bankruptcy or similar laws affecting creditors’ rights. In limited instances where the Fund takes security interests in a borrower’s assets located in a foreign country, there may be practical and local law impediments to cost-effective recovery against such collateral. Therefore, there can be no assurance that the Fund would ultimately collect the full amount owed on a defaulted loan.

Emerging Company Risks. The possibility that the companies in which the Fund invests will not be able to commercialize their technology or product concept presents significant risk. Additionally, although some of such companies may already have a commercially successful product or product line at the time of investment, technology products and services often have a more limited market or life span than products in other industries. Thus, the ultimate success of these companies may depend on their ability to continually innovate in increasingly competitive markets. Most of the companies in which the Fund invests will require substantial additional equity financing to satisfy their continuing growth and working capital requirements. Each round of venture financing is typically intended to provide a company with enough capital to reach the next stage of development. The circumstances or market conditions under which such companies will seek additional capital is unpredictable. It is possible that certain companies will not be able to raise additional financing or may be able to do so only at a price or on terms which are unfavorable to the Fund.

Privately-Held Company Risks. The Fund invests primarily in privately-held companies. Generally, very little public information exists about these companies and the Fund is required to rely on the ability of the Manager to obtain adequate information to evaluate the potential returns from investing in these companies. Moreover, these companies typically depend upon the management talents and efforts of a small group of individuals and the loss of one or more of these individuals could have a significant impact on the investment returns from a particular company. Also, these companies frequently have less diverse product lines and smaller market presence than larger companies. They are thus generally more vulnerable to economic downturns and may experience substantial variations in operating results.

Due Diligence Risks. Before making investments, the Manager conducts a limited amount of due diligence that it deems reasonable and appropriate based on the facts and circumstances applicable to each investment. When conducting due diligence and making an assessment regarding an investment, the Manager will be required to rely on resources available to it, including information provided by the target of the investment and, in some circumstances, third party investigations. The due diligence process may at times be subjective with respect to newly organized companies for which only limited information is available. Accordingly, there can be no assurance that the due diligence investigation that the Manager will carry out with respect to any investment opportunity will reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. Further, there can be no assurance that such an investigation will result in an investment being successful.

Financial Market Risk. The ability of the Fund to provide an acceptable return may be adversely affected by economic factors to which the market place is subject. Additionally, market turmoil could have a deleterious effect on the Company’s investors which could impede the ability to provide capital to the Fund. This could impair the Fund’s ability to honor commitments to lend, pay expenses of the Fund, or repay the Fund’s loans. The volatility in the global financial markets, which reached unprecedented levels during 2008 and 2009, and continued for some period thereafter (albeit to a lesser extent), may recur in the future. This and other types of market turmoil could have a material adverse effect on the Fund’s business and operations. The tightening of the credit markets could impair the Fund’s ability to either acquire or utilize leverage to maximize the return it achieves on investments. The Fund’s predecessors (Venture Lending & Leasing I, Inc., Venture Lending & Leasing II, Inc., Venture Lending & Leasing III, Inc., Venture Lending & Leasing IV, Inc., Venture Lending & Leasing VI, Inc., Venture Lending & Leasing VII, Inc., Venture Lending & Leasing VIII, Inc., and to a lesser extent, Venture Lending & Leasing V, Inc.), utilized leverage to increase returns to investors. If the Fund is unable to utilize leverage to the same extent as its predecessors, or unable to utilize leverage at all, there could be a material difference in the Fund’s return as compared to these funds.

It is possible that market conditions could decrease the demand for venture loans, especially where the U.S. and global economic conditions deteriorated and remained weak for an extended period of time. Furthermore, market conditions could also adversely impact either or both the ability of the Fund’s borrowers to meet their obligations to the Fund and the value of the Fund’s direct investments in companies. Most of the companies in which the Fund will invest will not have achieved profitability and will require substantial equity financing to satisfy their continuing growth and working capital requirements. An economic downturn could decrease the demand for such borrower’s products and technology, thereby impairing such borrower’s financial condition and its ability to raise additional equity financing from outside investors. Should these events occur, there could be an increase in borrower defaults under their obligations to the Fund, or a decrease in the value of the Fund’s direct equity investments.

Additionally, the Federal Reserve raised the Federal Funds Rate in 2022 and has signaled an intent to continue raising rates in 2023. These developments, along with the United States government’s credit and deficit concerns, global economic uncertainties and market volatility and the impacts of COVID-19, could cause interest rates to be volatile, which may negatively impact the Fund's ability to access the debt markets and capital markets on favorable terms.

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Other U.S. and Global Economic Risks. In addition to the crisis in the financial markets discussed above, the ability of the Fund to provide an acceptable return may be adversely affected by other economic and business factors to which the U.S. market place is subject. These factors, which generally are beyond the control of the Manager, include: general economic conditions, such as inflation and fluctuations in general business conditions; the impact of terrorist attacks within or against the United States or other countries where investments are made; the effects of strikes, labor disputes and domestic and foreign political unrest; and uncertainty in the U.S. economy.

Inflation. Certain of the Fund’s portfolio companies are in industries that may be impacted by inflation. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on the Fund’s loans, particularly in light of Federal Reserve actions in response to inflation In addition, any projected future decreases in the Fund’s portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of the Fund’s investments could result in future realized or unrealized losses and therefore reduce the Fund’s net assets resulting from operations.    

Changes to U.S. Trade Policy May Have a Negative Effect on the Global Economy and/or the Fund’s Portfolio Companies and, in Turn, Harm the Fund. Significant changes to U.S. trade policy, including changes to current legislation and trade agreements and the imposition of tariffs have been discussed by the current U.S. presidential administration and certain members of Congress. Recently, the administration has imposed tariffs on a range of goods imported into the U.S., and a few countries have retaliated with tariffs against the United States. These retaliatory actions could trigger extended “trade wars” between the U.S. and its trading partners, resulting in additional barriers to the international market, inclusive of customers, vendors, and potential investors. Under these circumstances, the cost of goods for some portfolio companies could increase, resulting in lower consumer demand for their goods and reduced cash flows. While it is unknown whether and to what extent new legislation will be enacted into law, the enactment or amendment of trade legislation and/or renegotiation of trade agreements may impose additional compliance costs on portfolio companies, restrict their ability to participate in international markets and otherwise disrupt their current operations.

Special Risk Considerations Relating to China. The Fund may invest in portfolio companies that are based in China, have significant operations in China or are otherwise connected to China. Markets in China can be volatile due to uncertain social, economic, regulatory and political factors, in addition to the effects of public health crises, such as the response to the outbreak of coronavirus emanating from China. See the discussion herein under the caption “Climate Change, Natural Disaster and Public Health Crises Risk.” The severity and duration of any adverse economic conditions may be driven by governmental or quasi-governmental policies; in particular geopolitical risk and the imposition of sanctions by outside governments could severely disrupt the Chinese economy and the value of securities tied to it.

Speculative Nature of Warrants and Equity Investments. The value of the warrants that the Fund generally will receive and distribute to its shareholder in connection with its financing investments is dependent on the value of the equity securities for which the warrants can be exercised. The value of such warrants, direct equity investments, and equities received upon conversion of debt instruments is dependent primarily on the success of the company’s business strategy and the growth of its earnings, but also depends on general economic and equity market conditions. The prospects for achieving consistent profitability, in the case of many companies in which the Fund invests, are speculative. The warrants, equity securities for which the warrants can be exercised, direct equity investments, and equities received upon conversion of debt instruments generally will be restricted securities that cannot readily be sold for some period of time. If the value of the equity securities underlying a warrant does not increase above the exercise price during the life of the warrant, the Fund may permit the warrant to expire unexercised and the warrant would then have no value.

Illiquidity of Investments. Substantially all of the Fund’s portfolio investments (other than short-term investments) will consist of securities that, at the time of acquisition, are subject to restrictions on sale and for which no ready market will exist. Restricted securities cannot be sold publicly without prior agreement with the issuer to register the securities under the 1933 Act, or by selling such securities under Rule 144 or other provisions of the 1933 Act which permit only limited sales under specified conditions. Venture loans and equity investments are privately negotiated transactions, and there is no established trading market in which such loans and equity investments can be sold. Special Situation Financings may also be privately negotiated transactions. In the case of warrants or equity securities, the Fund generally will realize the value of such securities only if the issuer is able to make an initial public offering of its shares or enters into a business combination with another company which purchases the Fund’s warrants or equity securities or exchanges them for publicly-traded securities of the acquirer. The feasibility of such transactions depends upon the entity’s financial results as well as general economic and equity market conditions. In the past, crises in the financial markets have dramatically reduced the volume of initial public offerings and mergers and acquisitions in the market place. If such a crisis recurs, the Fund’s ability to realize liquidity through its investments would likely be impaired. Furthermore, even if the restricted warrants or equity securities owned become publicly-traded, the Fund’s ability to sell such securities may be limited by the lack (or limited nature) of a trading market for such securities. If the Fund holds material nonpublic information regarding the issuer of the securities, the Fund’s ability to sell such securities may also be limited by insider trading laws. When restricted securities are sold to the public, the Fund, under certain circumstances, may be deemed an “underwriter” or a controlling person with respect thereto for the purposes of the 1933 Act, and be subject to liabilities as such under that Act.

Because of the illiquidity of the Fund’s investments, most of its assets will be carried at fair value as determined by the Manager in accordance with the Fund’s policy, as approved by the Fund’s Board of Directors. This value will not necessarily reflect the amount ultimately realized upon a sale of the assets.

Non-Diversified Status. The Fund is classified as a “non-diversified” investment company under the 1940 Act, but the Fund may, from time to time, act as a diversified investment company within the meaning of Section 5(b)(1) of the 1940 Act. The Fund elected to be treated as a RIC under the Code and operates in a manner to qualify for the tax treatment applicable to RICs, including the diversification requirement. Nevertheless, the Fund’s assets may be subject to a greater risk of loss than if its investments were more widely diversified.

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Foreign Investment Review. Pursuant to Section 721 of the Defense Production Act of 1950, as amended (the “DPA”), the U.S. Government has the authority to restrict and prevent foreign acquisitions of and investments in U.S. companies (collectively, “Foreign Investments”) on national security grounds, actions that could adversely affect the Company’s and the Fund’s investment activities. The Committee on Foreign Investment in the United States (“CFIUS”), a U.S. Government interagency committee, conducts national security reviews of Foreign Investments and, in the interest of national security, may impose mitigation (i.e., restrictions) on such investments. CFIUS-imposed mitigation can take a variety of forms, including (i) restrictions on the foreign investor’s access to the U.S. company’s technology or facilities, (ii) restrictions on the foreign investor’s role in the governance or decision making of the U.S. company, (iii) mandatory divestiture of a foreign investor’s capital contribution and termination of its participation in the Company, (iv) mandatory U.S. Government approvals of changes to the U.S. company’s suppliers or the locations of its source code repositories, and (v) the appointment of a U.S. Government-approved monitor to verify the transaction parties’ compliance with the mitigation. The President of the United States (the “President”) may block a Foreign Investment that threatens to impair U.S. national security or order a foreign investor to divest of its Foreign Investment.

If the Fund has foreign investors, its investments are potentially subject to CFIUS review. In addition, foreign investors’ indirect investments in portfolio companies could subject such companies to CFIUS review. Finally, subsequent proposed financings, investments, acquisitions, or mergers or other transactions related to portfolio companies involving foreign persons also could be subject to CFIUS review.

Parties to transactions within CFIUS’s jurisdiction, potentially including the Company, the Fund and portfolio companies, may choose to submit a voluntary declaration or notice to CFIUS for its review. Rules implementing the Foreign Investment Risk Review Modernization Act (“FIRRMA”) of 2018 revised the CFIUS process to (i) expand CFIUS’s jurisdiction—notably to certain non-controlling investments in U.S. companies that are involved in critical technologies or critical infrastructure or that hold sensitive personal data of U.S. citizens—and (ii) mandate filings in certain instances. Specifically, mandatory filings may be required when a foreign investor acquires certain rights with respect to a U.S. business that deals in critical technology, or when a foreign government has a substantial interest in the foreign investor. Some of the Company’s and the Fund’s investments could fall within this expanded jurisdiction.

Due to these CFIUS considerations, the Company, the Fund and portfolio companies could incur increased costs, including legal fees, related to (i) evaluating whether a particular portfolio investment or other transaction related to a portfolio company requires the submission of a filing to CFIUS, (ii) evaluating whether the submission of a declaration or notice to CFIUS is warranted, (iii) drafting a filing and submitting it to CFIUS, (iv) undergoing a CFIUS review or investigation, (v) negotiating and implementing CFIUS-imposed mitigation, and (vi) complying with any Presidential order. Submission of a filing to CFIUS in connection with an investment or other transaction related to a portfolio company also could result in significant delays, as the CFIUS review and investigation process can last several months. CFIUS could condition its clearance of a Foreign Investment on adjustments to the terms of such Foreign Investment or other mitigation (including, if applicable, exclusion of a foreign investor of the Company from a Foreign Investment), and these conditions could adversely affect one or more portfolio companies and decrease the Company’s and the Fund’s return on its investment in any such portfolio company. In rare cases, the President could block a Foreign Investment or order the Company and the Fund to divest of a Foreign Investment. Finally, the Company and the Fund may choose not to make certain investments, or a portfolio company may choose not to solicit or pursue certain subsequent investments or other transactions, that are otherwise attractive based on an evaluation of the associated CFIUS risks.

CONFLICTS OF INTEREST

Transactions with Venture Lending & Leasing VIII, Inc. (“Fund VIII”). The Manager also serves as the investment manager for Fund VIII.  The Fund’s Board of Directors determined that so long as Fund VIII has capital available to invest in loan transactions with final maturities earlier than December 31, 2025 (the date on which Fund VIII will be dissolved), the Fund may invest in each portfolio company in which Fund VIII invests.  Generally, the amount of each investment will be allocated 50% to the Fund and 50% to Fund VIII, or such other allocations as may be determined by the respective fund boards, so long as the Fund has capital available to invest. Effective March 31, 2020, Fund VIII was no longer permitted to enter new commitments to borrowers; however, Fund VIII was permitted to fund existing commitments in which the Fund might also be invested. Fund VIII's last commitment expired on September 30, 2021. The ability of the Fund to co-invest with Fund VIII, and other clients advised by the Manager, is subject to the conditions (“Conditions”) with which the Funds are currently complying while seeking certain exemptive relief from the Securities and Exchange Commission (“SEC”) from the provisions of Sections 17(d) and 57 of the 1940 Act and Rule 17d-1 thereunder. The Manager has exercised, and the Board of Directors ratified, its discretion to extend the Fund’s investment period for two additional quarters, thereby allowing the Fund to make new commitments through December 31, 2022 and to fund commitments through December 31, 2023, the end of the Fund’s investment period. To the extent that clients, other than Fund VIII, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Transactions with WTI Fund X, Inc. (“Fund X”). The Manager also serves as the investment manager for Fund X. The Fund’s Board of Directors determined that so long as Fund X has capital available to invest in loan transactions with final maturities earlier than December 31, 2031 (the date on which Fund X will be dissolved), the Fund may invest in each portfolio company in which Fund X invests. Generally, the amount of each investment will be allocated 50% to the Fund and 50% to Fund X, or such other allocations as may be determined by the respective fund boards, so long as the Fund has capital available to invest. The ability of the Fund to co-invest with Fund X, and other clients advised by the Manager, is subject to the Conditions described above. The Manager has exercised, and the Board of Directors ratified, its discretion to extend the Fund’s investment period for two additional quarters, thereby allowing the Fund to make new commitments through December 31, 2022 and to fund commitments through December 31, 2023, the end of the Fund’s investment period.

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To the extent that clients, other than Fund X, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Intercreditor Agreements. In all transactions in which the Fund and other funds managed by the Manager invest or those in which another lender(s) has either invested or may later invest (or in the event a successor fund is raised, in which the Fund and the successor fund invest), it is expected that the Fund and, other funds managed by the Manager (or the successor fund as the case may be), and/or the other lender(s) will enter into an intercreditor agreement pursuant to which the Fund and, other funds managed by the Manager (or the successor fund), and/or the other lender(s), along with any predecessor funds which still have a balance outstanding, will cooperate in pursuing their remedies following a default by the common borrower. Generally, under such intercreditor agreements, each party would agree that its security interest would be treated in parity with the security interest of the other party, regardless of which security interest would have priority under applicable law. Accordingly, proceeds realized from the sale of any collateral or the exercise of any other creditor’s rights will be allocated between the Fund and, other funds managed by the Manager, and any predecessor funds as described above, pro rata in accordance with the amounts of their respective investments. An exception to the foregoing arrangement would occur in situations where, for example, one of the lenders financed specific items of equipment collateral; in that case, usually the lender who financed the specific assets will have a senior lien on that asset, and the other lenders will have a junior priority lien (even though they may ratably share liens of equal priority on other assets of the common borrower). As a result of such intercreditor agreements, the Fund may have less flexibility in pursuing its remedies following a default than it would have had had there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and other funds managed by the Manager (or the successor fund) invest at the same time in the same borrower, such borrower would be required to service two loans rather than one. Any additional administrative costs or burdens resulting therefrom may make the Fund a less attractive lender and may make it more difficult for the Fund to acquire such loans.

Valuation. The Manager is responsible for valuing the Fund’s assets and liabilities, subject to oversight by the Fund’s Board of Directors, and has an inherent conflict in performing this function such that it has an incentive to increase the value of the assets for its performance record. In accordance with Rule 2a-5 under the 1940 Act, the Manager has been designated as the valuation designee within the meaning of the rule. The rule requires the Manager to periodically assess any material risks associated with the determination of the fair value of the Fund’s assets (“valuation risks”), including material conflicts of interest, and managing those identified valuation risks. The Fund does not intend to engage an independent valuation agent to value its assets and therefore is entirely reliant upon the Manager and its delegates for valuing the assets.

Indemnification and Exculpation. The organizational documents of the Fund provide for indemnification of directors, officers, employees, advisory board members and agents (including the Manager) of the Fund, generally to the full extent permitted by applicable state law and the 1940 Act, including the advance of expenses and reasonable counsel fees. The charter of the Fund also contains a provision eliminating personal liability of a Fund director or officer to the Fund or its stockholder for money damages, subject to specified exceptions. In addition, the Fund has entered into an indemnification with its directors and officers. A successful claim for such indemnification, including payment of any expenses and counsel fees, would reduce the Fund’s assets by the amounts paid. Furthermore, Fund assets are used to obtain insurance policies that generally protect the Fund’s directors and officers from personal liability of actions taken in their roles as the Fund’s directors and officers.

Disinterested Directors and Advisory Board Members. The members of the Fund’s Board of Directors will overlap with the members of the Company’s advisory board, and the members of the Company’s advisory board are generally the same as, or a subset of, the disinterested directors of the Fund. Although the Manager expects that, given the Company’s 100% ownership of the Fund, the interests of the two entities will not diverge, it is conceivable that a conflict of interest could exist between the Fund and the Company. In addition, as compensation for services, the disinterested directors will receive an annual fee of $30,000 (plus $1,000 per meeting attended in person and an additional $10,000 for the chair of the Audit Committee). Any future changes to the compensation to be paid to the disinterested directors will be determined by the Nominating Committee of the Fund’s Board of Directors. Upon the liquidation of the Fund, the disinterested advisory board members will receive an annual fee in an amount determined by the Member (it is currently anticipated that such annual amount shall be $15,000). The disinterested directors and advisory board members will also be reimbursed for certain expenses. While courts have generally held that the receipt of reasonable and customary directors’ fees and benefits does not alter the status of a director as disinterested, the payment of such fees may impact the objectivity of the disinterested directors and the advisory board members on behalf of the members.

Personal Trading. The Manager has a code of ethics that contains personal securities trading procedures that apply to its “access persons.” Access persons are required to report if they have an investment in a company in which the Fund is considering making an investment. Pre-approval is required before an access person may buy or sell securities in an initial public offering, private placement, or any security listed on a “restricted list” maintained by the Manager.

Interests in Potential Portfolio Companies. The Manager may recommend that the Fund invest in companies in which a principal or employee has a prior personal investment or for which a principal or employee may serve as a director or advisor. The Manager also may recommend that the Fund invest in companies in which venture capital funds, private equity funds or other institutional investors (“Unaffiliated Funds”) also have made investments, where one or more principals or employees of the Manager may have made an investment in, or served as an advisor to, an investing Unaffiliated Fund. Such a relationship presents potential conflicts of interest by providing the principal or employee with an incentive to influence the Manager’s decision to recommend an investment in the company in question. There is also a potential conflict of interest in that such principal or employee could use information acquired through association with the Manager to influence or benefit Unaffiliated Funds’ investment decisions. The Manager addresses these potential conflicts through its policies and procedures that are designed to insulate its investment decision-making process and its research from these incentives. For

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example, the policies require that principals with a prior direct investment in a company be recused from the investment decision-making process with respect to that company.

Principals that serve as advisors to Unaffiliated Funds may make investment recommendations to these Unaffiliated Funds, which may be the same investment that the Fund has made or may make. The Manager’s policies and procedures require such principals to arrange for any such investment opportunity to be first offered to the Fund (or a predecessor fund) and for such investment opportunity to only subsequently be offered to an Unaffiliated Fund once declined by the Fund (or a predecessor fund).

ITEM 1B.      UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2.    PROPERTIES

All of the Fund’s office space is provided by the Manager. The executive offices are located at 104 La Mesa Drive, Suite 102, Portola Valley, CA 94028.

ITEM 3.    LEGAL PROCEEDINGS

The Fund may become party to certain lawsuits from time to time in the normal course of business. While the outcome of any legal proceedings cannot now be predicted with certainty, the Fund does not expect any such proceedings will have a material effect upon the Fund's financial condition or results of operation. Management is not aware of any pending legal proceedings involving the Fund. The Fund is not a party to any material legal proceedings.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

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PART II.

ITEM 5.        MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER

        PURCHASES OF EQUITY SECURITIES

The Fund’s common stock is not listed on any securities exchange, and all holders of the Fund’s common stock are subject to agreements significantly restricting the transferability of their shares.

The number of holders of record of the Fund’s common stock at March 15, 2023 was 1.

The Fund has a policy of distributing securities as acquired. The Fund values these securities at fair value at the time of acquisition in accordance with the Fund’s policy on valuation detailed in Note 2 to the financial statements included in this filing. In addition, some expenses of the Company may be paid by the Fund and will be deemed as distributions to the Company. The Fund has established a policy of declaring dividends on a quarterly basis to the extent that taxable income of the Fund, less applicable reserves, exceeds warrant distributions and deemed distributions. As of December 31, 2022, the Fund had distributed $290.9 million to date to its sole shareholder, of which $200 million was in cash.

ITEM 6.        [RESERVED]

ITEM 7.         MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following discussion should be read in connection with our Financial Statements and the notes thereto included elsewhere in this Annual Report on Form 10-K.

In addition to the historical information contained herein, the information in this Annual Report on Form 10-K contains certain “forward-looking statements” within the meaning of the securities laws. These forward-looking statements reflect the current view of the Fund with respect to future events and financial performance and are subject to several risks and uncertainties, many of which are beyond the Fund’s control. All statements, other than statements of historical facts included in this Annual Report, regarding the strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of the Fund are forward-looking statements. For example, statements in this Form 10-K regarding the potential future impact of the COVID-19 pandemic on the Fund’s business and results of operations are forward-looking statements. When used in this report, the words “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements speak only as of the date of this report. The Fund does not undertake any obligation to update or revise publicly any forward-looking statements, whether resulting from new information, future events or otherwise, except as required by law.

    The reader of this Annual Report should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Fund’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, loan losses, expenses, rates charged on loans and earned on securities investments, competition and macro-economic changes including inflation, interest rate expectations, among other factors including those set forth in Item 1A - “Risk Factors” in this Annual Report on Form 10-K. This entire Annual Report should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Fund’s business.

Overview

The Fund is 100% owned by the Company. The Fund’s shares of common stock, at $0.001 par value, were sold to its sole shareholder, the Company, under a stock purchase agreement. The Fund has issued 100,000 of the Fund’s 10,000,000 authorized shares. The Company may make additional capital contributions to the Fund.

The Fund provides financing and advisory services to a variety of carefully selected Venture-Backed Companies primarily throughout the United States, with a focus on growth-oriented companies. The Fund’s portfolio consists of companies in the communications, information services, media, technology (including software and technology-enabled business services), biotechnology, and medical devices industry sectors, among others. The Fund’s capital is generally used by its portfolio companies to finance acquisitions of fixed assets and working capital. On May 1, 2018, the Company called and received its first capital from investors. On May 2, 2018, the Fund made its first investment and became a non-diversified, closed-end investment company under the 1940 Act. While the Fund intends to operate as a non-diversified investment company within the meaning of Section 5(b)(2) of the 1940 Act, from time to time, the Fund may act as a diversified investment company within the meaning of Section 5(b)(1) of the 1940 Act.

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The Fund elected to be treated as a RIC under the Code for federal income tax purposes. Pursuant to this election, the Fund generally will not have to pay corporate-level taxes on any income distributed to its shareholder as dividends, allowing the Company to substantially reduce or eliminate its corporate-level tax liability.

The Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a RIC under the Code. If the Fund fails to meet these requirements, it will be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to the members of the Company) and all distributions out of its earnings and profits will be taxable to the members of the Company as ordinary income; thus, such income will be subject to a double layer of tax. There is no assurance that the Fund will meet the ongoing requirements to qualify as a RIC for tax purposes.

The Fund’s investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies, most of which are private. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt, or soon thereafter. The Fund also has guidelines for the percentages of total assets that are invested in different types of assets.

The portfolio investments of the Fund primarily consist of debt financing to Venture-Backed Companies in the technology sector. The borrower’s ability to repay its loans may be adversely impacted by several factors, and as a result, the loan may not be fully repaid. Furthermore, the Fund’s security interest in any collateral over the borrower’s assets may be insufficient to make up any shortfall in payments. Some of our portfolio companies may be impacted by rising inflation, which could have a material impact on their results of operations, specifically cost and revenues. As such, rising inflation may have an adverse impact on the portfolio borrowers’ ability to maintain their good credit standing, as well as their ability to pay their interest and principal obligations to the Fund. In addition, any projected future decreases in our portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future unrealized losses and therefore reduce our net assets resulting from operations.

The Fund’s investment income is also expected to decline following the end of the Fund's commitment period which has been extended by two calendar quarters through December 31, 2022. After the commitment period, the Fund may no longer make loan commitments to reinvest the proceeds of matured investments in new loans. Any proceeds will be distributed to the Company.

COVID-19, the Ukraine War and the Impact of Worldwide Inflation on Results of Operations and Liquidity & Capital Resources

The effects of the COVID-19 pandemic and the related actions by governments around the world to attempt to contain the spread of the virus had an impact on a number of the Fund’s portfolio companies’ business and operations. Uncertainty remains regarding the full extent of the long-term economic impact on the Fund’s business operations, results of operations, and access to liquidity and capital resources. The impact on the Fund will depend on many factors beyond the Fund’s control, including, without limitations, (i) the timing, extent, trajectory, and duration of the pandemic (ii) the restrictions and advisories put in place to combat the pandemic, (iii) the effects of the pandemic and measures to combat the pandemic on the financial markets, and (iv) the impact on the economy overall, all of which are highly uncertain and cannot be predicted. In addition, the impact on local economies is uncertain and the speed of economic recovery may vary across different industries both domestically and globally.

Global and domestic financial markets have experienced an increase in volatility as concerns about the impact of higher inflation, rising interest rates, a potential recession and the current conflict in Ukraine have weighed on market participants. These factors have created disruptions in supply chains and economic activity and have had a particularly adverse impact on certain industries. These uncertainties can ultimately impact the overall supply and demand of the market through changing spreads, deal terms and structures. The Fund is unable to predict the full impact of these macroeconomic events to the Fund's liquidity and capital resources.

The Fund is continuing to maintain close communications with its loan portfolio companies to proactively assess and manage potential risks. In addition, Management is continuing to maintain oversight analysis of credits across the Fund's loan investment portfolio in an attempt to manage the potential credit risk and improve loan performance. Certain loans may have inherent increased credit risk due to the underlying business and its ability to maintain operations in the current economic environment.

Management is also monitoring the Fund’s continued access to capital resources through periodic and timely communication with the bank syndicate and the Company’s members. The Fund believes its existing cash balance, scheduled monthly payments from borrowers, and access to capital from its debt facility and the Company’s members will be sufficient to satisfy its working capital needs, debt repayments, and other liquidity requirements associated with its existing operations.

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Critical Accounting Policies, Practices and Estimates

Critical Accounting Policies and Practices are those accounting policies and practices that are both the most important to the portrayal of the Fund’s net assets and results of operations and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Critical accounting estimates are accounting estimates where the nature of the estimates is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and the impact of the estimates on net assets or operating performance is material.

In evaluating the most critical accounting policies and estimates, the Manager has identified the estimation of fair value of the Fund’s loan investments along with the completeness of loans exhibiting indicators of potential credit deterioration as the most critical of the accounting policies and accounting estimates applied to the Fund’s reporting of net assets or operating performance. In accordance with U.S. GAAP, the Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale. There is no readily available market price or secondary market for the loans made by the Fund to borrowers, hence the Manager determines fair value based on a hypothetical market and the estimates are subject to high levels of judgment and uncertainty. The Fund’s loan investments are considered Level 3 fair value measurements in the fair value hierarchy due to the lack of observability over many of the important inputs used in determining fair value. In particular, the Manager has identified the fair value of the Fund’s loan investments that exhibit indicators of the potential for credit deterioration and the completeness of those loan investments, as a critical accounting matter that may involve significant and material estimates and inputs from the Manager in determining the fair value of those loan investments.

Critical judgments and inputs in determining the fair value of a loan include the estimated timing and amount of future cash flows and probability of future payments, based on the assessment of payment history, available cash and “burn rate,” revenues, net income or loss, operating results, financial strength of borrower, prospects for the borrower’s raising future equity rounds, likelihood of sale or acquisition of the borrower, length of expected holding period of the loan, collateral position, the timing and amount of liquidation of collateral for loans that are experiencing significant credit deterioration and, as a result, collection becomes collateral-dependent, as well as an evaluation of the general interest rate environment. Management has evaluated these factors and has concluded that the effect of a deterioration in the quality of the underlying collateral, increase in the size of the loan, increase in the estimated time to recovery, and increase in the hypothetical market coupon rate would have the effect of decreasing the fair value of loan investments. The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and the loan. Such changes result in the fair value being adjusted from par value of the individual loan. Where the risk profile is consistent with the original underwriting, the par value of the loan often approximates fair value.

The actual value of the loans may differ from Management’s estimates, which would affect net change in net assets resulting from operations as well as assets.

Results of Operations – For the Years Ended December 31, 2022, 2021 and 2020

For the most recent discussion on the results of operations for the year ending December 31, 2020, refer to the management discussion and analysis on the prior period annual report, Form 10-K, filed on March 14, 2022.

Analysis of Interest Income

Total investment income for the years ended December 31, 2022, and 2021 was $84.0 million and $86.0 million, respectively, which primarily consisted of interest on venture loans outstanding and early payoffs. The remaining income consisted of interest and dividends on the temporary investment of cash. Decrease in interest income on venture loans outstanding is a reflection of the decreased weighted-average interest rate on the loans.

Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs, volatility of values ascribed to warrants and new loans funded during the year.

The following table shows the average outstanding balance, interest income and weighted average interest rate for the cash and non-cash portion of interest income for the years ended December 31, 2022 and 2021.

	For the Year Ended December 31, 2022								For the Year Ended December 31, 2021
	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion		Weighted Average Interest Rate - Non-Cash Portion		Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion		Weighted Average Interest Rate - Non-Cash Portion
Performing Loans	$	478,831,623	$	80,313,480	13.21	%	3.57	%	$	393,012,888	$	84,965,060	15.76	%	5.86	%
All Loans	$	490,007,676	$	82,096,477	13.27	%	3.48	%	$	403,313,700	$	85,555,014	15.50	%	5.71	%

Interest income for performing and all loans decreased by $4.7 million and $3.5 million, or 5.5% and 4.0%, respectively, for the year ended December 31, 2022 compared to the same period in 2021. The decrease is primarily due to the lower weighted average interest rate.

21

The average outstanding balance for performing and all loans increased by $85.8 million and $86.7 million, or 21.8% and 21.5%, respectively, for the year ended December 31, 2022 compared to the same period in 2021.

Analysis of Interest Expense

Interest expense was comprised of amounts related to interest on debt amounts drawn down, unused credit line fees, and amounts amortized from deferred fees incurred in conjunction with the debt facility.

The following table shows the average balance, interest expense, and weighted average interest rate for the year ended December 31, 2022 and 2021.

	For the Year Ended December 31, 2022						For the Year Ended December 31, 2021
	Average Balance		Interest Expense		Weighted Average Interest Expense Rate		Average Balance		Interest Expense		Weighted Average Interest Expense Rate
Bank Facility	$	264,153,846	$	12,449,209	4.71	%	$	206,569,231	$	6,333,348	3.07	%

Interest expense increased by $6.1 million, or 96.6%, for the year ended December 31, 2022 compared to the same period in 2021. The increase is primarily due to higher average debt outstanding and higher weighted average interest rate.

Analysis of Operating Expense

The following table shows the components of operating expense for the year ended December 31, 2022 and 2021.

Operating Expense	For the Year Ended December 31, 2022		For the Year Ended December 31, 2021		Change ($)
Management fees	$	6,325,000	$	7,072,500	$	(747,500)
Banking and professional fees	$	605,195	$	1,395,114	$	(789,919)
Other operating expenses	$	189,809	$	214,396	$	(24,587)
Total Operating Expense	$	7,120,004	$	8,682,010	$	(1,562,006)

For the period from January 1, 2021 through June 30, 2021, management fees were calculated at 1.575% of the Company's committed capital. For the period from July 1, 2021 through December 31, 2021, management fees were calculated at 1.500% of the Company's committed capital. Management fees were calculated at 1.500% of the Company's committed capital from January 1, 2022 through June 30, 2022. For the period from July 1, 2022 through December 31, 2022, management fees were calculated at 1.250% of the Company's committed capital.

Banking and professional fees were comprised of legal, audit, banking and other professional fees. The decrease of $0.8 million or 56.6% was primarily due to decreased legal fees associated with non-performing loans.

Other operating expense included director fees, custody fees, tax fees and other expenses related to the operations of the Fund.

Non-recurring fees

The Fund may receive non-recurring fees in connection with the origination and servicing of portfolio loans. Transactions in this category may include forfeited commitment fees and unamortized warrants, that become recognized as other income after the loan commitment period expires. Other non-recurring fees include pre-payment fees which are recognized as other income in the period received. Legal fee reimbursements for deal due diligence and drafting of documents are recognized as offsets against legal expenses. Non-recurring fees for the year ended December 31, 2022 and 2021 totaled $2.8 million and $1.9 million, respectively.

Net investment income for the years ended December 31, 2022 and 2021 was $64.4 million and $71.0 million, respectively.

Realized and Change in Unrealized Gains (Losses)    

Net realized loss from loans for the years ended December 31, 2022 and 2021 was $3.4 million and $0.1 million, respectively. This is due to losses incurred from written-off loans.

Net realized gain (loss) from derivative instruments for the years ended December 31, 2022 and 2021 was $1.9 million and $(1.3) million, respectively. The reason for the gain during the year ended December 31, 2022 was due to the termination of an interest collar contract with MUFG Union Bank N.A. and interest received on the derivative instruments when the cap rates of the interest rate collars were lower than the floating rate. Realized losses were the result of interest being paid by the Fund on the derivative instruments when the floor rates of the interest rate collars or fixed rates of the interest rate swaps (and floor agreements) were higher than the floating rate.

22

Net change in unrealized loss from loans for the years ended December 31, 2022 and 2021 was $14.4 million and $5.4 million, respectively. The net change in unrealized loss from loans consisted of fair value adjustments to loans and the reversal of fair value adjustments previously taken against loans paid off and written off.

Net change in unrealized gain from derivative instruments for the years ended December 31, 2022 and 2021 was $9.8 million and $2.1 million, respectively. The net change in unrealized gain from derivative instruments consisted of fair market value adjustments to the derivative instruments and is a reflection of the market’s outlook on the economy and the future of interest rate changes, as well as realization of prior unrealized gains and losses.

Net increase in net assets resulting from operations for the years ended December 31, 2022 and 2021 was $58.4 million and $66.2 million, respectively. On a per share basis, the net increase in net assets resulting from operations for the same periods was $583.68 and $661.96, respectively.

Liquidity and Capital Resources -- December 31, 2022 and 2021

For the most recent discussion on the liquidity and capital resources for the year ending December 31, 2020, refer to the management discussion and analysis on the annual report, Form 10-K, filed on March 14, 2022.

The Fund is owned entirely by the Company. The Company is expected, but not required, to make further contributions to the capital of the Fund to the extent of the Company’s members’ capital commitment to the Company and excess cash balances of the Company. Total capital contributed to the Fund was $407.1 million and $345.6 million as of December 31, 2022 and 2021, respectively. As of both December 31, 2022 and 2021, the Company had subscriptions for capital in the amount of $460.0 million, of which $460.0 million and $388.7 million had been called and received, as of December 31, 2022 and 2021, respectively. The Company has made $137.8 million in recallable distributions to its investors, as permitted under its operating agreement between the Company’s managing member and members of the Company.

The change in cash held by the Fund for the years ended December 31, 2022 and 2021 was as follows:

	For the Year Ended December 31, 2022		For the Year Ended December 31, 2021
Net cash provided by (used in) operating activities	$	18,120,417	$	(141,592,182)
Net cash provided by (used in) financing activities	(17,984,886)		136,034,065
Net increase (decrease) in cash and cash equivalents	$	135,531	$	(5,558,117)

As of December 31, 2022 and 2021, 2.64% and 3.01%, respectively, of the Fund’s net assets consisted of cash and cash equivalents.

On December 20, 2018, the Fund entered into a syndicated loan agreement led by MUFG Union Bank, N.A., Wells Fargo Securities, LLC and ING Capital LLC, with participation from Zions Bancorporation, N.A., doing business as California Bank & Trust, Bank Leumi USA, Umpqua Bank, HSBC Bank USA, N.A., and First Bank, that established a secured revolving loan facility in an initial amount of up to $200.0 million with the option to request that borrowing availability be increased up to $400.0 million, subject to further negotiation and credit approval. On March 18, 2021, the Fund entered into an Amendment to the Loan and Security Agreement with MUFG Union Bank, N.A., Wells Fargo Securities, LLC, Wells Fargo Bank, N.A. and ING Capital, LLC, with participating from TIAA, FSB, Bank Leumi USA, HSBC Bank USA, N.A., Umpqua Bank, Zions Bancorporation, N.A., doing business as California Bank & Trust, Hitachi Capital America Corp, First Bank, and Bank of Hope, that increased the size of the facility to $350.0 million and extended the term of the facility (the “Amended and Restated Loan and Security Agreement”). On May 17, 2022, the Fund, entered into a First Amendment to the Amended and Restated Loan and Security Agreement (the “First Amendment”) with lenders named therein. The First Amendment provides for, among other modifications (i) an increase in the size of the facility to $400,000,000, (ii) replacement of the interest rate benchmark from LIBOR to Secured Overnight Financing Rate (“SOFR”), and (iii) conversion of an existing LIBOR Market Index Rate Loan to a Daily Simple SOFR Rate Loan.

Borrowings of the Fund are collateralized by all of the assets of the Fund and the Manager's right to receive management fees from the Fund. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan or a SOFR Rate Loan (calculated at Daily Simple SOFR or another applicable Term SOFR Reference Rate). The Fund pays interest on its borrowings and also pays a fee on the unused portion of the facility. The facility terminates on March 18, 2024, but can be accelerated in the event of default, such as the failure by the Fund to make timely interest or principal payments. As of December 31, 2022, $244.5 million was outstanding under the facility.

For the year ended December 31, 2022 and since the start of its investment operations in May 2018, the Fund invested its assets in venture loans. Amounts disbursed under the Fund’s loan commitments were $236.1 million and $358.8 million for the years ended December 31, 2022 and 2021, respectively. Net loan amounts outstanding after amortization and valuation adjustments increased by $5.7 million for the year ended December 31, 2022 compared to the same period in 2021. Unexpired unfunded commitments totaled $68.1 million and $97.9 million as of December 31, 2022 and 2021, respectively.

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As of	Cumulative Amount Disbursed	Principal Reductions and Fair Market Adjustments	Balance Outstanding - Fair Value	Unexpired Unfunded Commitments
December 31, 2022	$1,058.3 million	$568.6 million	$489.7 million	$68.1 million
December 31, 2021	$822.2 million	$338.2 million	$484.0 million	$97.9 million

The unexpired unfunded commitments by portfolio company as of December 31, 2022 and 2021 are detailed in Note 10 to the financial statements included in this filing.

Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is the Management’s experience that not all unexpired unfunded commitments will be used by borrowers. Many credit agreements contain provisions that are milestone dependent and not all borrowers will achieve these milestones. Additionally, the Fund’s credit agreements contain provisions that give relief from funding obligations in the event the borrower has a materially adverse change in its financial condition. Therefore, the unexpired unfunded commitments do not necessarily reflect future cash requirements or future investments for the Fund.

The Fund seeks to maintain the requirements to qualify for the special pass-through status available to RICs under the Code, and thus to be relieved of federal income tax on that part of its net investment income and realized capital gains that it distributes to its shareholder. To qualify as a RIC, the Fund must distribute to its shareholder for each taxable year at least 90% of its investment company taxable income (consisting generally of net investment income and net short-term capital gain) (the “Distribution Requirement”). To the extent that the terms of the Fund’s venture loans provide for the receipt by the Fund of additional interest at the end of the loan term or provide for the receipt by the Fund of a purchase price for the asset at the end of the loan term (“residual income”), the Fund would be required to accrue such residual income over the life of the loan, and to include such accrued undistributed income in its gross income for each taxable year even if it receives no portion of such residual income in that year. Thus, in order to meet the Distribution Requirement and avoid payment of income taxes or an excise tax on undistributed income, the Fund may be required in a particular year to distribute as a dividend an amount in excess of the total amount of income it actually receives. Those distributions will be made from the Fund’s cash assets, from amounts received through amortization of loans or from borrowed funds.

As of December 31, 2022, the Fund had a cash balance of $7.1 million and approximately $239.5 million in scheduled loan receivable payments over the next year. Additionally, the Fund has access to recallable capital of $137.8 million as a liquidity source, and a borrowing base that grows as it funds additional commitments. These amounts are sufficient to meet the current commitment backlog and operational expenses of the Fund over the next year. The Fund regularly evaluates potential future liquidity resources and demands before making additional future commitments.

On April 24, 2019, the Fund's sole shareholder, the Company, approved a reduced asset coverage ratio of 150% for the Fund as permitted in Section 61(a)(2) of the 1940 Act. Accordingly, the Fund is permitted to borrow in any amount so long as its asset coverage ratio, as defined in the 1940 Act, is at least 150% after giving effect to such borrowings. As of December 31, 2022 and 2021, the Fund's asset coverage ratio was 209% and 187%, respectively.

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Fund’s business activities contain various elements of risk, of which Management considers interest rate and credit risk to be the principal types of risks. Because the Fund considers the management of risk essential to conducting its business and to maintaining profitability, the Fund’s risk management procedures are designed to identify and analyze the Fund’s risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.  

The Fund manages its market risk by maintaining a portfolio that is diverse by industry, size of investment, stage of development, and borrower. The Fund has limited exposure to public market price fluctuations as the Fund primarily invests in private business enterprises and distributes all equity investments upon receipt to the Company.

The Fund’s investments are subject to market risk based on several factors, including, but not limited to, the borrower’s credit history, available cash, support of the borrower’s underlying investors, available liquidity, “burn rate,” revenue income, security interest, secondary markets for collateral, the size of the loan, term of the loan and the ability to exit via initial public offering or merger and acquisition.

The Fund’s exposure to interest rate sensitivity is regularly monitored and analyzed by measuring the characteristics of assets and liabilities. The Fund utilizes various methods to assess interest rate risk in terms of the potential effect on interest income net of interest expense, the value of net assets and the value at risk in an effort to ensure that the Fund is insulated from any significant adverse effects from changes in interest rates. At December 31, 2022, the outstanding debt balance was $244.5 million at a floating interest rate based on a Daily Simple SOFR Rate of 4.3%, for which the Fund had derivative instruments in place with a weighted-average ceiling of 1.47% on $227.0 million with an interest rate collar, leaving the Fund with exposure to interest rate changes on the un-hedged portion of the loan.

Because all of the Fund’s loans impose a fixed interest rate upon funding, changes in short-term interest rates will not directly affect interest income associated with the loan portfolio as of December 31, 2022. However, those changes could have the potential to change the Fund’s ability to originate loan commitments, acquire and renew bank facilities, and engage in other investment activities. Further, changes in short-term interest rates could also affect interest rate expense, realized gain from investments and interest on the Fund’s short-term investments.

24

Based on the Fund’s Statements of Assets and Liabilities as of December 31, 2022, the following table shows the approximate annualized increase (decrease) in components of net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in investments, borrowings, cash balances and derivative instruments.

Effect of Interest Rate Change By	Increase (Decrease) Other Interest and Other Income		Gain (Loss) from Interest Rate Collar		(Increase) Decrease Interest Expense		Increase (Decrease) in Total Income
(0.50)%	$	(35,373)	$	(1,135,000)	$	1,222,500	$	52,127
1%	$	70,747	$	2,270,000	$	(2,445,000)	$	(104,253)
2%	$	141,493	$	4,540,000	$	(4,890,000)	$	(208,507)
3%	$	212,240	$	6,810,000	$	(7,335,000)	$	(312,760)
4%	$	282,986	$	9,080,000	$	(9,780,000)	$	(417,014)
5%	$	353,733	$	11,350,000	$	(12,225,000)	$	(521,267)

Additionally, a change in the interest rate may affect the fair value of the derivative instruments and affect net change in unrealized gain or loss from derivative instruments. The amount of any such effect will be contingent upon market expectations for future interest rate changes. Any increases in expected future rates will increase the fair value of the derivative instruments while any rate decreases will decrease the fair value.

Although Management believes that the foregoing analysis is indicative of the Fund’s sensitivity to interest rate changes, it does not take into consideration potential changes in the credit market, credit quality, size and composition of the assets in the portfolio. It also does not assume any new fundings to borrowers, repayments from borrowers or defaults on borrowings. Accordingly, no assurances can be given that actual results would not differ materially from the table above.

Because the Fund currently borrows, its net investment income is highly dependent upon the difference between the rate at which it borrows and the rate at which it invests the amounts borrowed. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on the Fund’s investment activities and net investment income. The Fund’s exposure to movement in short-term interest rates stems from the Fund borrowing at a floating interest rate but then making loans with a fixed rate at the time the loans are extended. The Fund, therefore, attempts to limit its interest rate risk by acquiring derivative instruments to hedge its interest rate exposure.

The Fund is not sensitive to changes in foreign currency exchange rates, commodity prices and other market rates or prices.

ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The Fund’s financial statements, together with the Report of Independent Registered Public Accounting Firm issued by Deloitte and Touche LLP (PCAOB ID No. 34), are included elsewhere in this Annual Report on Form 10-K.

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 9A.         CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At the end of the period covered by this report, the Fund carried out an evaluation under the supervision and with the participation of its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Fund’s disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Exchange Act. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Fund’s disclosure controls and procedures were effective as of the end of the period in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and in providing reasonable assurance that information required to be disclosed by the Fund in such reports is accumulated and communicated to the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

25

Management’s Annual Report on Internal Control over Financial Reporting

Pursuant to Rules 13a-15d and 15d-15(d) of the Exchange Act, the Fund’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision of and with the participation of the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, the Fund conducted an evaluation of the effectiveness of its internal control over financial reporting based on the Committee of Sponsoring Organizations of the Treadway Commission 2013 (“COSO 2013”) updated Internal Control - Integrated Framework. Based on its evaluation under the COSO 2013 Internal Control - Integrated Framework, the Fund’s management concluded that its internal control over financial reporting was effective as of December 31, 2022.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements and even when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

This report of management on internal control over financial reporting shall not be deemed to be filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section.

Changes in Internal Controls

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the Fund’s quarter ended December 31, 2022 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

ITEM 9B.     OTHER INFORMATION

Effective October 13, 2022, the Board of Directors of the Fund accepted the resignation of David Wanek to comply with the requirements of Rule 15(f) under the 1940 Act, following the closing of the acquisition by P10 Intermediate Holdings, LLC of all of the issued and outstanding equity interests in the Manager. Mr. Wanek’s decision to resign from the Board of Directors of the Fund was not a result of any dispute or disagreement with the Fund on any matter relating to its operations, policies or practices.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

None.

26

PART III.

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The list of executive officers and biographical information appears in Part I, Item 1 of this Form 10-K.

The information required by this item concerning the directors of the Fund, the structure of its Board of Directors and Section 16(a) compliance will be contained in the Fund’s Proxy Statement filed in connection with the Annual Meeting of Shareholders to be held on May 17, 2023 (“Proxy Statement”) under the captions “Proposal 1 -- To Elect Four Directors of the Fund” and “Delinquent Section 16(a) Reports” and is incorporated herein by reference.

The Fund has adopted a Code of Ethics that is applicable to all of its officers. A free copy of the Code of Ethics may be requested by contacting the Chief Financial Officer of the Fund at 104 La Mesa Drive, Suite 102, Portola Valley, CA 94028.  

ITEM 11.    EXECUTIVE COMPENSATION

The information required by this item will be contained in the Fund’s Proxy Statement under the caption “Proposal 1 -- To Elect Five Directors of the Fund” and is incorporated herein by reference.

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item will be contained in the Fund’s Proxy Statement under the caption “Annex A -- Beneficial Ownership of Fund Shares” and is incorporated herein by reference.

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

    The information required by this item will be contained in the Fund’s Proxy Statement under the captions: “Other Information -- Managers” and is incorporated herein by reference.

ITEM 14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information about aggregate fees billed to us by our principal accountant, Deloitte & Touche LLP (PCAOB ID No. 34) will be contained in the Fund's Proxy Statement under the caption: “Other Information - Independent Registered Public Accounting Firm.”

27

PART IV.

ITEM 15.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES

1.     Index to Financial Statements and Financial Statement Schedules

Report of Independent Registered Public Accounting Firm    

Statements of Assets and Liabilities as of December 31, 2022 and 2021

Statements of Operations for the years ended December 31, 2022, 2021 and 2020

Statements of Changes in Net Assets for the years ended December 31, 2022, 2021 and 2020

Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020

Schedules of Investments as of December 31, 2022 and 2021

Schedules of Derivative Instruments as of December 31, 2022 and 2021

Notes to Financial Statements 

No schedules are required because the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the required information is included in the financial statements and the notes thereto.

2.    Exhibits

Exhibit	Exhibit Title
3.1	Amended and Restated Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on September 25, 2017, incorporated by reference to Exhibit 3.1 to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
3.2	Amended and Restated Bylaws of the Fund, incorporated by reference to Exhibit 3.2 to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
4.1	Purchase Agreement, dated June 28, 2017, between the Fund and the Company, incorporated by reference to Exhibit 4.1 to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
4.2	Description of the Registrant’s securities registered pursuant to Section 12(G) of the Securities and Exchange Act of 1934, incorporated by reference to Exhibit 4.2 to the Fund’s Form 10-K filed with the Securities and Exchange Commission on March 15, 2021.
10.1	Investment Management Agreement, dated October 13, 2022, by and between the Fund and Westech Investment Advisors LLC, incorporated by reference to Exhibit 10.1 to the Fund’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 18, 2022.
10.2	Global Custody Agreement dated July 27, 2015, between the Fund and MUFG Union Bank, N.A., as supplemented by Schedule I attached thereto, dated April 26, 2021, incorporated by reference to Exhibit 10.1 to the Fund’s 10-K filed with the Securities and Exchange Commission on March 14, 2022.
10.3	Custody Agreement between the Fund and Wells Fargo Bank, National Association effective December 11, 2019, incorporated by reference to Exhibit 10.3 to the Fund’s Form 10-K filed with the Securities and Exchange Commission on March 16, 2020.
10.4	Letter, dated August 15, 2021, from U.S. Bank National Association (“US Bank”), acknowledging assumption of custodial duties and transfer of custody agreements from MUFG Union Bank, N.A. (Exhibit 10.1 to this 10-K) to US Bank by operation of law pursuant to Depository Corporation Sale, Merger, and Conversion Law, CA Fin Code § 4800 (2016), effective March 15, 2021, incorporated by reference to Exhibit 10.4 to the Fund’s 10-Q filed with the Securities and Exchange Commission on November 12, 2021.
31.1	Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification)
31.2	Chief Financial Officer certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification).
32.1	Chief Executive Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).
32.2	Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).

28

ITEM 16.    FORM 10-K SUMMARY

None.

29

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VENTURE LENDING & LEASING IX, INC.

(Registrant)

By:	/S/David R. Wanek		By:	/S/Jared S. Thear
	David R. Wanek			Jared S. Thear
	President and Chief Executive Officer			Chief Financial Officer
	(Principal Executive Officer)			(Principal Financial Officer)
	Date:	March 15, 2023		Date:	March 15, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	NAME	TITLE	DATE
By:	/S/ Maurice C. Werdegar	Chairman & Director	March 15, 2023
	Maurice C. Werdegar
By:	/S/ Robert Hutter	Director	March 15, 2023
	Robert Hutter
By:	/S/ Roger V. Smith	Director	March 15, 2023
	Roger V. Smith
By:	/S/ Scott Taylor	Director	March 15, 2023
	Scott Taylor

30

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Venture Lending & Leasing IX, Inc.

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of Venture Lending & Leasing IX, Inc. (the "Fund"), including the schedules of investments, as of December 31, 2022 and 2021, the related statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2022, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022 and 2021, and the results of its operations, changes in net assets, and cash flows for each of the three years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of loans owned as of December 31, 2022, by correspondence with the borrowers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Fair Value — Level 3 Investments — Refer to Note 2 and Note 3 to the financial statements

Critical Audit Matter Description

As of December 31, 2022, the Fund has nonmarketable investments in loans of $489.7 million. There is no readily available market price or secondary market for the loans made by the Fund to its borrowers; hence the Fund determines fair value based on a hypothetical market and the estimates are subject to a higher degree of judgment and uncertainty. The Fund’s loan investments are considered Level 3 fair value measurements in the fair value hierarchy due to the lack of observability over certain significant inputs used in determining fair value.

Certain nonmarketable investments in loans held by the Fund have exhibited indicators of credit deterioration subsequent to the initial funding date. The valuation of these loans had an elevated risk profile because the estimates of fair value involve a higher degree of management judgment and uncertainty associated with the expectation of timing and amount of future cash flows under various cash flow scenarios. The valuation of these loans required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists who possess significant valuation expertise, to evaluate the appropriateness of the model and methodology.

We identified the completeness of loans exhibiting indicators of potential credit deterioration and the valuation of loans exhibiting credit deterioration as a critical audit matter.

31

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the completeness of loans exhibiting indicators of potential credit deterioration and the unobservable inputs used by management to estimate the fair value of the loans with credit deterioration included the following, among others:

•We tested loan payments throughout the year and subsequent to year end to identify inconsistent payments or missed payments which could indicate a potential credit risk.

•With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation techniques used by management to estimate fair value.

•We tested and evaluated the appropriateness of the unobservable inputs by comparing them to external sources, including financial information provided by the borrower, and those used by management in the prior year.

/s/ Deloitte & Touche LLP

March 15, 2023

San Francisco, California

We have served as the auditor of one or more Venture Lending & Leasing investment companies since 2001.

32

VENTURE LENDING & LEASING IX, INC.

Statements of Assets and Liabilities

As of December 31, 2022 and 2021

	December 31, 2022		December 31, 2021
ASSETS:
Loans, at estimated fair value
(cost of $521,905,950 and $501,909,222)	$	489,691,665	$	484,047,644
Derivative assets	10,644,351		962,602
Cash and cash equivalents	7,074,657		6,939,126
Dividend and interest receivables	6,374,578		6,872,798
Other assets	3,411,846		2,110,405
Total assets	517,197,097		500,932,575
LIABILITIES:
Borrowings under debt facility	244,500,000		263,000,000
Accrued management fees	1,437,500		1,725,000
Derivative liability	—		130,697
Accounts payable and other accrued liabilities	3,047,302		5,883,327
Total liabilities	248,984,802		270,739,024
NET ASSETS:	$	268,212,295	$	230,193,551
Analysis of Net Assets:
Capital paid in on shares of capital stock	$	407,125,000	$	345,625,000
Cumulative return of capital distributions	(116,194,481)		(97,253,486)
Total distributable losses	(22,718,224)		(18,177,963)
Net assets (equivalent to $2,682.12 and $2,301.94 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)	$	268,212,295	$	230,193,551
Commitments & Contingent Liabilities:
Unexpired unfunded commitments (See Note 10)	$	68,075,000	$	97,948,732

See notes to financial statements.

33

VENTURE LENDING & LEASING IX, INC.

Statements of Operations

For the Years Ended December 31, 2022, 2021 and 2020

	For the Year Ended		For the Year Ended		For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
INVESTMENT INCOME:
Interest on loans	$	82,096,477	$	85,555,014	$	45,711,386
Other interest and other income	1,876,106		410,493		514,174
Total investment income	83,972,583		85,965,507		46,225,560
EXPENSES:
Management fees	6,325,000		7,072,500		7,302,500
Interest expense	12,449,209		6,333,348		4,233,746
Banking and professional fees	605,195		1,395,114		600,593
Other operating expenses	189,809		214,396		175,284
Total expenses	19,569,213		15,015,358		12,312,123
Net investment income	64,403,370		70,950,149		33,913,437
Net realized loss from loans	(3,387,060)		(119,127)		(27,819)
Net realized gain (loss) from derivative instruments	1,891,885		(1,348,685)		(960,747)
Net change in unrealized loss from loans	(14,352,707)		(5,372,700)		(11,584,945)
Net change in unrealized gain (loss) from derivative instruments	9,812,446		2,086,119		(428,640)
Net realized and change in unrealized loss from loans and derivative instruments	(6,035,436)		(4,754,393)		(13,002,151)
Net increase in net assets resulting from operations	$	58,367,934	$	66,195,756	$	20,911,286
Amounts per common share:
Net increase in net assets resulting from operations    per share	$	583.68	$	661.96	$	209.11
Weighted average shares outstanding	100,000		100,000		100,000

See notes to financial statements.

34

VENTURE LENDING & LEASING IX, INC.

Statements of Changes in Net Assets

For the Years Ended December 31, 2022, 2021 and 2020

	Common Stock
	Shares	Par Value		Additional Paid-in Capital		Return of Capital Distributions		Total Distributable Losses		Net Assets
Balance at December 31, 2019	100,000	$	100	$	148,124,900	$	(31,414,828)	$	(2,877,799)	$	113,832,373
Net increase in net assets resulting from operations	—	—		—		—		20,911,286		20,911,286
Distributions of income to shareholder	—	—		—		—		(32,924,870)		(32,924,870)
Return of capital to shareholder	—	—		—		(13,491,954)		—		(13,491,954)
Contributions from shareholder	—	—		95,000,000		—		—		95,000,000
Balance at December 31, 2020	100,000	$	100	$	243,124,900	$	(44,906,782)	$	(14,891,383)	$	183,326,835
Net increase in net assets resulting from operations	—	—		—		—		66,195,756		66,195,756
Distributions of income to shareholder	—	—		—		—		(69,482,336)		(69,482,336)
Return of capital to shareholder	—	—		—		(52,346,704)		—		(52,346,704)
Contributions from shareholder	—	—		102,500,000		—		—		102,500,000
Balance at December 31, 2021	100,000	$	100	$	345,624,900	$	(97,253,486)	$	(18,177,963)	$	230,193,551
Net increase in net assets resulting from operations	—	—		—		—		58,367,934		58,367,934
Distributions of income to shareholder	—	—		—				(62,908,195)		(62,908,195)
Return of capital to shareholder	—	—		—		(18,940,995)		—		(18,940,995)
Contributions from shareholder	—	—		61,500,000		—		—		61,500,000
Balance at December 31, 2022	100,000	$	100	$	407,124,900	$	(116,194,481)	$	(22,718,224)	$	268,212,295

See notes to financial statements.

35

VENTURE LENDING & LEASING IX, INC.

Statements of Cash Flows

For the Years Ended December 31, 2022, 2021 and 2020

	For the Year Ended		For the Year Ended		For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	58,367,934	$	66,195,756	$	20,911,286
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized loss from loans	3,387,060		119,127		27,819
Net realized (gain) loss from derivative instruments	(1,891,885)		1,348,685		960,747
Net change in unrealized loss from loans	14,352,707		5,372,700		11,584,945
Net change in unrealized (gain) loss from derivative instruments	(9,812,446)		(2,086,119)		428,640
Amortization of deferred costs related to borrowing facility	998,440		794,264		428,638
Origination of loans	(236,094,146)		(358,801,269)		(215,650,000)
Principal payments on loans, net of accretion	206,727,836		179,332,130		95,832,764
Proceeds from sale of loans	1,800,000		—		—
Acquisition of equity securities	(15,166,668)		(35,577,222)		(14,623,255)
Change in operating assets and liabilities:
Net (increase) decrease in dividend and interest receivables	498,220		(3,016,200)		(1,154,885)
Net (increase) decrease in other assets	(1,923,110)		98,387		(174,729)
Net increase (decrease) in accounts payable, other accrued liabilities and accrued management fees and due to manager	(3,123,525)		4,627,579		(68,739)
Net cash provided by (used in) operating activities	18,120,417		(141,592,182)		(101,496,769)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to shareholder	(62,500,000)		(85,800,000)		(30,800,000)
Contributions from shareholder	61,500,000		102,500,000		95,000,000
Borrowings under debt facility	109,500,000		251,200,000		137,500,000
Repayments of borrowings under debt facility	(128,000,000)		(128,200,000)		(97,500,000)
Payments made for derivative instruments	(202,417)		(1,348,685)		(960,747)
Payments received from derivative instruments	2,094,302		—		—
Payments of bank facility fees and costs	(376,771)		(2,317,250)		—
Net cash provided by (used in) financing activities	(17,984,886)		136,034,065		103,239,253
Net increase (decrease) in cash and cash equivalents	135,531		(5,558,117)		1,742,484
CASH AND CASH EQUIVALENTS:
Beginning of year	6,939,126		12,497,243		10,754,759
End of year	$	7,074,657	$	6,939,126	$	12,497,243
SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE YEAR:
Interest - Debt facility	$	10,557,659	$	4,992,998	$	3,648,316
NON-CASH OPERATING AND FINANCING ACTIVITIES:
Distributions of equity securities to shareholder	$	19,349,190	$	36,029,040	$	15,616,824
Receipt of equity securities as repayment of loans	$	4,182,522	$	451,817	$	993,568

See notes to financial statements.

36

VENTURE LENDING & LEASING IX, INC.

Schedule of Investments

As of December 31, 2022

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
Biotechnology
	Calysta, Inc.		Senior Secured	11.8%		$	6,356,409	$	6,061,521	$	6,061,521	6/1/2025
	Driver Bioengineering, Inc.		Senior Secured	11.0%		55,584		54,428		54,428		4/1/2023
	Driver Bioengineering, Inc.		Senior Secured	11.0%		192,798		191,887		191,887		6/1/2023
	Driver Bioengineering, Inc. Subtotal					248,382		246,315		246,315
	Genomic Prediction, Inc.		Senior Secured	11.0%		843,236		804,598		804,598		1/1/2025
	GLO Pharma, Inc.		Senior Secured	10.5%		1,625,228		1,582,163		1,582,163		12/1/2024
	GLO Pharma, Inc.		Senior Secured	10.5%		2,436,610		2,397,362		2,397,362		12/1/2024
	GLO Pharma, Inc. Subtotal					4,061,838		3,979,525		3,979,525
	Quartzy, Inc.		Senior Secured	12.0%		202,740		196,508		196,508		8/1/2023
	Quartzy, Inc.		Senior Secured	12.0%		618,402		612,373		612,373		5/1/2024
	Quartzy, Inc.		Senior Secured	12.0%		684,617		677,177		677,177		7/1/2024
	Quartzy, Inc.		Senior Secured	11.0%		1,237,478		895,384		895,384		2/1/2026
	Quartzy, Inc.		Senior Secured	11.0%		1,237,779		1,166,087		1,166,087		5/1/2026
	Quartzy, Inc.		Senior Secured	11.0%		1,238,126		1,175,663		1,175,663		8/1/2026
	Quartzy, Inc.		Senior Secured	11.0%		1,238,420		1,171,479		1,171,479		10/1/2026
	Quartzy, Inc. Subtotal					6,457,562		5,894,671		5,894,671
	Ukko Inc. ** ^		Senior Secured	11.5%		3,500,000		3,255,446		3,255,446		5/1/2026
Biotechnology Total		7.6%				$	21,467,427	$	20,242,076	$	20,242,076
Computers & Storage
	Canary Connect, Inc.		Senior Secured	12.0%		$	4,250,186	$	4,154,761	$	4,154,761	3/1/2024
	Canary Connect, Inc.		Senior Secured	11.8%		14,831,521		14,240,717		14,240,717		3/1/2026
	Canary Connect, Inc.		Senior Secured	12.8%		283,712		282,621		282,621		3/1/2023
	Canary Connect, Inc.		Senior Secured	12.0%		1,062,957		1,051,985		1,051,985		3/1/2024
	Canary Connect, Inc. Subtotal					20,428,376		19,730,084		19,730,084
	Proto, Inc.		Senior Secured	12.5%		1,375,000		1,273,897		1,273,897		10/1/2025
	Proto, Inc.		Senior Secured	12.8%		1,375,000		1,374,999		1,374,999		10/1/2025
	Proto, Inc. Subtotal					2,750,000		2,648,896		2,648,896
Computers & Storage Total		8.3%				$	23,178,376	$	22,378,980	$	22,378,980
Enterprise Networking
	Diamanti, Inc.		Senior Secured	11.0%		$	5,932,984	$	4,584,616	$	3,549,308	*
Enterprise Networking Total		1.3%				$	5,932,984	$	4,584,616	$	3,549,308
Internet
	10club Pte Ltd. ** ^		Senior Secured	12.0%		$	1,343,394	$	1,015,257	$	1,015,257	8/1/2025
	10club Pte Ltd. ** ^		Senior Secured	12.0%		4,346,160		4,253,288		4,253,288		11/1/2025
	10club Pte Ltd. Subtotal ** ^					5,689,554		5,268,545		5,268,545
	Ainsly, Inc. ** ^		Senior Secured	12.5%		300,000		196,815		196,815		7/1/2025
	Ainsly, Inc. ** ^		Senior Secured	12.5%		82,401		79,368		79,368		9/1/2023
	Ainsly, Inc. ** ^		Senior Secured	12.5%		200,000		199,989		199,989		7/1/2025
	Ainsly, Inc. Subtotal ** ^					582,401		476,172		476,172
	D2C Store, Inc.		Senior Secured	10.0%		2,500,000		2,227,117		2,227,117		*
	Good Counsel, LLC		Senior Secured	12.3%		2,967,909		2,846,304		2,846,304		10/1/2025
	iZENEtech, Inc. ** ^		Senior Secured	12.3%		3,135,994		3,045,707		3,045,707		9/1/2024
	Kings Mountain I LLC		Senior Secured	11.5%		150,000		148,754		127,141		*

37

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Mantra Health, Inc.		Senior Secured	12.0%		314,382		299,761		299,761		6/1/2024
	Merchbar, Inc.		Senior Secured	11.8%		56,203		55,817		55,817		3/1/2023
	Miami Labs, Inc.		Senior Secured	13.3%		7,500,000		6,976,522		6,976,522		5/1/2026
	OneLocal, Inc. ** ^		Senior Secured	12.0%		494,724		494,724		494,724		6/1/2025
	OneLocal, Inc. ** ^		Senior Secured	12.3%		465,894		458,470		458,470		3/1/2023
	OneLocal, Inc. ** ^		Senior Secured	12.0%		494,512		472,195		472,195		6/1/2025
	OneLocal, Inc. Subtotal ** ^					1,455,130		1,425,389		1,425,389
	Osix Corporation		Senior Secured	12.0%		3,459,398		3,348,354		3,348,354		8/1/2024
	Pixalate, Inc.		Senior Secured	12.5%		5,587,212		5,267,012		5,267,012		4/1/2025
	Quantcast Corp.		Senior Secured	12.0%		12,500,000		11,234,828		11,234,828		7/1/2026
	RenoFi, Inc.		Senior Secured	11.5%		1,484,485		1,458,080		1,458,080		9/1/2025
	RenoFi, Inc.		Senior Secured	12.0%		55,533		54,685		54,685		6/1/2023
	RenoFi, Inc.		Senior Secured	12.0%		431,434		425,024		425,024		12/1/2023
	RenoFi, Inc.		Senior Secured	12.0%		55,563		55,291		55,291		6/1/2023
	RenoFi, Inc.		Senior Secured	11.5%		1,484,187		1,345,616		1,345,616		7/1/2025
	RenoFi, Inc. Subtotal					3,511,202		3,338,696		3,338,696
	Residently USA, LLC ** ^		Senior Secured	12.0%		431,102		400,185		320,718		9/1/2024
	RetailerX, Inc.		Senior Secured	11.0%		1,979,965		1,873,685		1,873,685		11/1/2025
	RetailerX, Inc.		Senior Secured	11.0%		990,089		971,291		971,291		1/1/2026
	RetailerX, Inc.		Senior Secured	12.0%		1,745,995		1,697,891		1,697,891		2/1/2025
	RetailerX, Inc.		Senior Secured	12.0%		596,200		582,061		582,061		5/1/2024
	RetailerX, Inc.		Senior Secured	11.0%		990,481		968,946		968,946		4/1/2026
	RetailerX, Inc. Subtotal					6,302,730		6,093,874		6,093,874
	Serface Care, Inc.		Senior Secured	12.3%		597,411		349,785		14,176		*
	Starface World, Inc.		Senior Secured	11.3%		752,395		743,774		743,774		10/1/2024
	Starface World, Inc.		Senior Secured	11.3%		1,879,804		1,826,099		1,826,099		10/1/2024
	Starface World, Inc.		Senior Secured	12.0%		397,328		389,068		389,068		11/1/2023
	Starface World, Inc.		Senior Secured	12.0%		232,528		230,457		230,457		1/1/2024
	Starface World, Inc.		Senior Secured	11.3%		752,562		743,229		743,229		10/1/2024
	Starface World, Inc. Subtotal					4,014,617		3,932,627		3,932,627
	Stay Alfred, Inc.		Senior Secured	18.0%		4,921,822		3,408,326		193,603		*
	Usual Beverage Co.		Senior Secured	12.0%		1,666,208		1,610,419		533,065		5/1/2025
	Verishop, Inc.		Senior Secured	12.6%		1,931,034		1,910,712		1,910,712		12/1/2024
Internet Total		22.0%				$	69,274,309	$	63,664,906	$	58,936,140
Medical Devices
	3D Bio Holdings, Inc.		Senior Secured	11.5%		$	1,060,911	$	1,021,648	$	1,021,648	3/1/2024
	Ablacon, Inc.		Senior Secured	11.0%		279,146		278,538		278,538		3/1/2023
	Ablacon, Inc.		Senior Secured	11.0%		279,043		277,395		277,395		3/1/2023
	Ablacon, Inc. Subtotal					558,189		555,933		555,933
	Anutra Medical, Inc.		Senior Secured	12.0%		429,296		415,980		415,980		7/1/2024
	CytoVale, Inc.		Senior Secured	12.0%		2,476,222		2,426,487		2,426,487		11/1/2024
	Medrobotics Corporation, Inc.		Senior Secured	18.0%		10,000,000		8,895,103		—		*
	Norbert Health, Inc.		Senior Secured	12.3%		629,233		594,039		594,039		6/1/2024
	Serpex Medical Inc.		Senior Secured	11.0%		750,000		721,020		721,020		11/1/2025
	Siren Care, Inc.		Senior Secured	12.5%		728,293		717,693		717,693		10/1/2023
	Siren Care, Inc.		Senior Secured	12.5%		364,237		362,009		362,009		10/1/2023
	Siren Care, Inc. Subtotal					1,092,530		1,079,702		1,079,702
Medical Devices Total		2.5%				$	16,996,381	$	15,709,912	$	6,814,809
Other Healthcare
	Alchera Incorporated		Senior Secured	12.0%		$	1,397,573	$	1,362,332	$	1,362,332	4/1/2025
	Alchera Incorporated		Senior Secured	12.0%		990,359		923,380		923,380		7/1/2024
	Alchera Incorporated Subtotal					2,387,932		2,285,712		2,285,712
	Elysium Health, Inc.		Senior Secured	12.0%		5,616,843		5,251,563		5,251,563		2/1/2025

38

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	GoForward, Inc.		Senior Secured	11.5%		1,959,766		1,938,067		1,938,067		6/1/2024
	GoForward, Inc.		Senior Secured	11.5%		2,042,690		1,999,322		1,999,322		9/1/2023
	GoForward, Inc. Subtotal					4,002,456		3,937,389		3,937,389
	Grayce, Inc.		Senior Secured	11.8%		722,542		696,273		696,273		9/1/2024
	Grayce, Inc.		Senior Secured	14.0%		750,000		690,595		690,595		2/1/2026
	Grayce, Inc.		Senior Secured	11.8%		407,104		401,285		401,285		12/1/2024
	Grayce, Inc. Subtotal					1,879,646		1,788,153		1,788,153
	Hello Heart Inc.		Senior Secured	11.0%		1,252,118		1,207,571		1,207,571		6/1/2024
	Hello Heart Inc.		Senior Secured	11.0%		185,184		183,753		183,753		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		296,095		294,518		294,518		11/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		148,189		147,825		147,825		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		1,977,263		1,957,180		1,957,180		6/1/2025
	Hello Heart Inc. Subtotal					3,858,849		3,790,847		3,790,847
	Honeybee Health, Inc.		Senior Secured	11.0%		2,051,029		1,911,036		1,911,036		9/1/2025
	HumanAPI, Inc.		Senior Secured	11.8%		1,382,323		1,337,820		1,337,820		8/1/2024
	HumanAPI, Inc.		Senior Secured	11.8%		352,506		349,409		349,409		7/1/2023
	HumanAPI, Inc.		Senior Secured	11.8%		873,565		858,329		858,329		2/1/2025
	HumanAPI, Inc.		Senior Secured	11.8%		2,500,000		2,342,812		2,342,812		8/1/2025
	HumanAPI, Inc. Subtotal					5,108,394		4,888,370		4,888,370
	Julie Products Inc.		Senior Secured	13.0%		1,000,000		919,339		919,339		9/1/2025
	KBS, Inc.		Senior Secured	14.0%		250,000		218,018		218,018		6/1/2026
	Minded, Inc.		Senior Secured	10.5%		1,500,000		1,428,639		1,428,639		12/1/2025
	Minded, Inc.		Senior Secured	12.0%		1,627,909		1,570,511		1,570,511		12/1/2024
	Minded, Inc. Subtotal					3,127,909		2,999,150		2,999,150
	Open Inc.		Senior Secured	13.5%		500,000		462,685		462,685		3/1/2026
	Oula Health, Inc.		Senior Secured	12.0%		373,847		363,475		363,475		2/1/2024
	Oula Health, Inc.		Senior Secured	12.0%		231,128		228,587		228,587		7/1/2024
	Oula Health, Inc. Subtotal					604,975		592,062		592,062
	PrecisionOS Technology Inc. ** ^		Senior Secured	12.0%		1,000,000		942,838		942,838		7/1/2025
	Therapydia, Inc.		Senior Secured	12.0%		494,595		484,962		484,962		4/1/2026
	Therapydia, Inc.		Senior Secured	12.0%		399,320		365,747		365,747		4/1/2025
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	14,158		14,030		14,030		3/1/2023
	Therapydia, Inc.		Senior Secured	12.0%		471,346		462,125		462,125		10/1/2025
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	25,788		25,788		25,788		6/1/2023
	Therapydia, Inc.		Senior Secured	12.0%		494,407		486,012		486,012		1/1/2026
	Therapydia, Inc. Subtotal					1,899,614		1,838,664		1,838,664
	Tia, Inc.		Senior Secured	11.8%		1,805,010		1,786,559		1,786,559		9/1/2024
	Tia, Inc.		Senior Secured	11.8%		1,191,146		1,126,396		1,126,396		5/1/2024
	Tia, Inc. Subtotal					2,996,156		2,912,955		2,912,955
	Vessel Health, Inc.		Senior Secured	12.0%		748,525		660,408		660,408		12/1/2024
	Yes Health, Inc.		Senior Secured	12.0%		1,773,262		1,705,392		251,280		*
	Yuva Biosciences, Inc.		Senior Secured	13.3%		250,000		213,070		213,070		5/1/2026
Other Healthcare Total		13.4%				$	39,055,590	$	37,317,651	$	35,863,539
Other Technology
	8i Corporation		Senior Secured	12.0%		$	647,228	$	632,901	$	632,901	12/1/2023
	Aclima, Inc.		Senior Secured	12.0%		726,279		697,474		697,474		10/1/2023
	Airspeed, Inc.		Senior Secured	11.0%		625,000		573,721		573,721		1/1/2026
	Antitoxin Technologies Inc. ** ^		Senior Secured	11.5%		954,388		739,934		696,648		*
	ATeam Army, Inc.		Senior Secured	12.0%		186,965		185,327		185,327		4/1/2023
	Azumo, Inc.		Senior Secured	12.8%		1,500,000		1,351,813		1,351,813		1/1/2026
	Bankroll Club, LLC		Senior Secured	12.0%		1,397,393		1,267,617		1,267,617		4/1/2025
	Bankroll Club, LLC		Senior Secured	12.0%		1,397,850		1,397,850		1,397,850		4/1/2025
	Bankroll Club, LLC		Senior Secured	13.3%		1,000,000		849,655		849,655		1/1/2026

39

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Bankroll Club, LLC Subtotal					3,795,243	3,515,122	3,515,122
	Beautiful Beanfields, Inc.		Senior Secured	6.0%		275,000	263,574	263,574	*
	BloomTech Inc.		Senior Secured	11.3%		1,281,243	1,264,684	1,264,684	7/1/2023
	BloomTech Inc.		Senior Secured	11.3%		728,813	728,813	728,813	8/1/2023
	BloomTech Inc. Subtotal					2,010,056	1,993,497	1,993,497
	Brave Care Technologies, Inc.		Senior Secured	12.0%		1,625,970	1,558,480	1,558,480	9/1/2024
	Brightside Benefit, Inc.		Senior Secured	12.4%		97,039	96,855	96,855	3/1/2023
	Bryte, Inc.		Senior Secured	10.0%		2,330,512	2,225,943	2,225,943	4/1/2025
	BW Industries, Inc.		Senior Secured	11.8%		408,466	406,837	406,837	6/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		342,089	336,699	336,699	5/1/2023
	BW Industries, Inc. Subtotal					750,555	743,536	743,536
	Candy Club Holdings, Inc. **		Senior Secured	12.0%		2,400,760	2,400,760	2,400,760	5/1/2025
	Candy Club Holdings, Inc. **		Senior Secured	12.0%		3,765,977	3,272,705	2,123,781	10/1/2024
	Candy Club Holdings, Inc. Subtotal **					6,166,737	5,673,465	4,524,541
	Ceres Imaging, Inc.		Senior Secured	12.0%		1,732,319	1,683,957	1,683,957	4/1/2026
	Ceres Imaging, Inc.		Senior Secured	12.0%		1,863,377	1,757,413	1,757,413	4/1/2025
	Ceres Imaging, Inc. Subtotal					3,595,696	3,441,370	3,441,370
	Content Adjacent, Inc.		Senior Secured	12.0%		314,393	314,393	314,393	6/1/2024
	Content Adjacent, Inc.		Senior Secured	12.0%		1,256,277	1,233,403	1,233,403	6/1/2024
	Content Adjacent, Inc. Subtotal					1,570,670	1,547,796	1,547,796
	Copia Global Inc. ** ^		Senior Secured	12.0%		3,750,000	3,562,948	3,562,948	1/1/2026
	Copia Global Inc. ** ^		Senior Secured	12.0%		3,750,000	3,668,490	3,668,490	7/1/2026
	Copia Global Inc. Subtotal ** ^					7,500,000	7,231,438	7,231,438
	CornerUp, Inc.		Senior Secured	15.0%		250,000	242,058	242,058	4/1/2026
	CornerUp, Inc.		Senior Secured	15.0%		250,000	195,438	195,438	3/1/2026
	CornerUp, Inc. Subtotal					500,000	437,496	437,496
	Creoate Limited ** ^		Senior Secured	14.0%		250,000	243,708	243,708	3/1/2026
	Creoate Limited ** ^		Senior Secured	11.8%		750,000	700,244	700,244	12/1/2025
	Creoate Limited Subtotal ** ^					1,000,000	943,952	943,952
	Daybase, Inc.		Senior Secured	11.0%		2,003,671	1,872,449	860,527	*
	EasyKnock, Inc.		Senior Secured	11.5%		2,500,000	2,401,465	2,401,465	5/1/2026
	EasyKnock, Inc.		Senior Secured	11.5%		2,500,000	2,208,354	2,208,354	10/1/2025
	EasyKnock, Inc.		Senior Secured	11.5%		2,500,000	2,419,705	2,419,705	12/1/2025
	EasyKnock, Inc. Subtotal					7,500,000	7,029,524	7,029,524
	Eguana Technologies, Inc. ** ^		Senior Secured	12.0%		2,330,427	2,138,280	2,138,280	4/1/2025
	Eguana Technologies, Inc. ** ^		Senior Secured	12.0%		2,474,224	2,398,209	2,398,209	8/1/2025
	Eguana Technologies, Inc. Subtotal ** ^					4,804,651	4,536,489	4,536,489
	Fakespot, Inc.		Senior Secured	12.0%		345,688	324,881	146,499	8/1/2024
	Fakespot, Inc.		Senior Secured	12.0%		691,732	684,215	308,534	8/1/2024
	Fakespot, Inc. Subtotal					1,037,420	1,009,096	455,033
	Fanimal, Inc.		Senior Secured	11.8%		375,000	364,471	364,471	7/1/2026
	Fanimal, Inc.		Senior Secured	11.8%		250,000	212,293	212,293	2/1/2026
	Fanimal, Inc. Subtotal					625,000	576,764	576,764
	Fitplan, Inc. ** ^		Senior Secured	12.5%		505,434	455,724	455,724	11/1/2023
	Flo Water, Inc.		Senior Secured	11.8%		737,971	724,862	724,862	12/1/2023
	Hadrian Automation, Inc.		Senior Secured	11.5%		2,401,342	2,326,013	2,326,013	2/1/2025
	Heading Health Inc.		Senior Secured	13.5%		750,000	646,431	394,851	2/1/2026
	Heading Health Inc.		Senior Secured	12.5%		407,644	374,703	228,875	12/1/2024
	Heading Health Inc. Subtotal					1,157,644	1,021,134	623,726

40

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Higher Ground Education, Inc.		Senior Secured	12.5%		86,147	85,879	85,879	5/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		5,936,721	5,758,016	5,758,016	6/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		207,813	207,283	207,283	4/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		135,718	135,102	135,102	8/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		3,748,206	3,644,473	3,644,473	2/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		87,938	87,636	87,636	1/1/2023
	Higher Ground Education, Inc. Subtotal					10,202,543	9,918,389	9,918,389
	Hint, Inc.		Senior Secured	12.0%		7,416,998	6,314,514	6,314,514	5/1/2025
	Hint, Inc.		Senior Secured	12.0%		1,216,016	1,187,962	1,187,962	6/1/2023
	Hint, Inc. Subtotal					8,633,014	7,502,476	7,502,476
	Holo, Inc.		Senior Secured	13.5%		1,000,000	890,813	890,813	12/1/2025
	Hyphen Technologies, Inc.		Senior Secured	11.5%		3,000,000	2,832,916	2,832,916	3/1/2026
	Hyphen Technologies, Inc.		Senior Secured	12.0%		1,651,089	1,590,761	1,590,761	7/1/2024
	Hyphen Technologies, Inc. Subtotal					4,651,089	4,423,677	4,423,677
	Intergalactic Foods Corporation		Senior Secured	12.0%		421,944	405,826	405,826	1/1/2025
	Intuition Robotics, Inc. ** ^		Senior Secured	12.0%		2,500,000	2,386,311	2,386,311	11/1/2025
	Invert Robotics Group, Ltd. ** ^		Senior Secured	13.0%		1,689,662	1,578,314	1,578,314	1/1/2025
	Jiko Group, Inc.		Senior Secured	12.0%		777,818	769,951	769,951	6/1/2023
	Joy Memories, Inc		Senior Secured	12.0%		1,500,000	1,351,073	1,351,073	12/1/2025
	Kinoo, Inc.		Senior Secured	11.5%		843,595	807,624	807,624	1/1/2025
	Lacuna Technologies, Inc.		Senior Secured	12.0%		2,473,956	2,422,050	2,422,050	1/1/2026
	Lacuna Technologies, Inc.		Senior Secured	12.0%		1,440,513	1,358,490	1,358,490	5/1/2025
	Lacuna Technologies, Inc. Subtotal					3,914,469	3,780,540	3,780,540
	LendTable Inc.		Senior Secured	13.5%		2,000,000	1,863,125	1,863,125	3/1/2026
	Level Home, Inc.		Senior Secured	11.8%		8,732,857	8,645,023	8,645,023	2/1/2025
	Level Home, Inc.		Senior Secured	11.8%		9,599,111	9,226,924	9,226,924	5/1/2025
	Level Home, Inc. Subtotal					18,331,968	17,871,947	17,871,947
	Literati, Inc.		Senior Secured	11.3%		2,475,323	2,430,878	2,430,878	9/1/2025
	Literati, Inc.		Senior Secured	11.3%		4,949,071	4,677,972	4,677,972	9/1/2025
	Literati, Inc. Subtotal					7,424,394	7,108,850	7,108,850
	Logistech Solutions Pte. Ltd. ** ^		Senior Secured	11.5%		500,000	397,719	397,719	12/1/2025
	MASC Inc.		Senior Secured	12.0%		361,462	329,755	329,755	9/1/2024
	Mavenform, Inc.		Senior Secured	11.0%		1,484,926	1,434,700	1,434,700	7/1/2025
	Mavenform, Inc.		Senior Secured	11.5%		494,366	488,175	488,175	6/1/2025
	Mavenform, Inc.		Senior Secured	11.0%		495,110	486,960	486,960	10/1/2025
	Mavenform, Inc.		Senior Secured	11.5%		627,169	610,526	610,526	6/1/2024
	Mavenform, Inc. Subtotal					3,101,571	3,020,361	3,020,361
	Merlin Labs, Inc.		Senior Secured	11.0%		2,540,327	2,448,186	2,448,186	6/1/2025
	Merlin Labs, Inc.		Senior Secured	11.0%		9,392	9,381	9,381	1/1/2023
	Merlin Labs, Inc. Subtotal					2,549,719	2,457,567	2,457,567
	MinoMonsters, Inc. ** ^		Senior Secured	11.5%		1,881,787	1,840,806	1,840,806	10/1/2024
	Momentus, Inc. **		Senior Secured	12.0%		15,132,503	14,878,285	14,878,285	2/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		6,271,270	5,946,356	5,946,356	3/1/2025
	NewGlobe Education, Inc. ** ^		Senior Secured	12.5%		3,193,223	3,153,211	3,153,211	12/1/2023
	Noteleaf, Inc.		Senior Secured	18.0%		2,277,124	1,861,011	—	*
	Nue Life Health, Inc.		Senior Secured	11.5%		1,500,000	1,377,534	1,377,534	9/1/2025
	Ocho Holdings Co.		Senior Secured	11.3%		406,735	388,544	388,544	12/1/2024

41

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Ocho Holdings Co.		Senior Secured	11.3%		406,912	400,736	400,736	12/1/2024
	Ocho Holdings Co. Subtotal					813,647	789,280	789,280
	OnePointOne, Inc.		Senior Secured	12.0%		997,248	986,678	986,678	2/1/2024
	OnePointOne, Inc.		Senior Secured	12.0%		996,718	965,040	965,040	2/1/2024
	OnePointOne, Inc. Subtotal					1,993,966	1,951,718	1,951,718
	Opya, Inc.		Senior Secured	12.0%		243,427	239,713	239,713	11/1/2023
	Percepto, Inc.		Senior Secured	12.2%		80,187	79,373	79,373	4/1/2023
	Phase Four, Inc.		Senior Secured	11.5%		1,220,518	1,171,490	1,171,490	12/1/2024
	Phase Four, Inc.		Senior Secured	11.5%		989,775	969,943	969,943	8/1/2025
	Phase Four, Inc. Subtotal					2,210,293	2,141,433	2,141,433
	Plant Prefab, Inc.		Senior Secured	12.4%		1,500,000	1,378,411	1,378,411	12/1/2025
	Plant Prefab, Inc.		Senior Secured	11.0%		2,069,449	1,988,919	1,988,919	8/1/2024
	Plant Prefab, Inc.		Senior Secured	11.0%		1,565,882	1,542,993	1,542,993	11/1/2024
	Plant Prefab, Inc. Subtotal					5,135,331	4,910,323	4,910,323
	PlantBaby, inc.		Senior Secured	12.0%		125,000	121,177	121,177	10/1/2025
	PlantBaby, inc.		Senior Secured	12.0%		242,794	222,830	222,830	5/1/2025
	PlantBaby, inc.		Senior Secured	13.8%		125,000	104,878	104,878	1/1/2026
	PlantBaby, inc.		Senior Secured	12.0%		125,000	121,698	121,698	7/1/2025
	PlantBaby, inc. Subtotal					617,794	570,583	570,583
	Platform Science, Inc.		Senior Secured	11.5%		1,447,334	1,425,026	1,425,026	10/1/2023
	Platform Science, Inc.		Senior Secured	12.5%		5,000,000	4,559,118	4,559,118	2/1/2026
	Platform Science, Inc.		Senior Secured	12.5%		5,000,000	4,891,547	4,891,547	3/1/2026
	Platform Science, Inc. Subtotal					11,447,334	10,875,691	10,875,691
	Privoro Holdings, Inc.		Senior Secured	12.0%		1,040,167	1,010,867	1,010,867	4/1/2024
	Reali Inc.		Senior Secured	12.5%		11,581,268	8,839,665	361,239	*
	Rise Gardens, Inc.		Senior Secured	11.8%		1,000,000	953,319	953,319	11/1/2025
	Romaine Empire, Inc.		Senior Secured	13.5%		2,955,000	2,880,629	2,880,629	12/1/2026
	Romaine Empire, Inc.		Senior Secured	12.3%		1,744,683	1,720,818	1,720,818	9/1/2023
	Romaine Empire, Inc.		Senior Secured	12.0%		2,969,338	2,685,839	2,685,839	12/1/2026
	Romaine Empire, Inc. Subtotal					7,669,021	7,287,286	7,287,286
	Saltbox, Inc.		Senior Secured	12.3%		95,429	94,606	94,606	6/1/2023
	Setex Technologies, Inc.		Senior Secured	12.3%		865,086	808,766	808,766	8/1/2024
	SISU Aesthetics Clinic, Inc. ** ^		Senior Secured	13.5%		1,000,000	943,143	943,143	4/1/2026
	SMS OPCO LLC		Senior Secured	8.0%		29,942	11,192	11,192	*
	Supplant, Inc. ** ^		Senior Secured	13.0%		2,000,000	1,869,114	1,869,114	7/1/2026
	Sustainable Living Partners, LLC		Senior Secured	12.5%		1,262,870	1,222,074	1,222,074	8/1/2023
	Sustainable Living Partners, LLC		Senior Secured	12.5%		2,472,784	2,472,784	2,472,784	7/1/2026
	Sustainable Living Partners, LLC		Senior Secured	12.5%		9,191,405	8,382,963	8,382,963	9/1/2025
	Sustainable Living Partners, LLC Subtotal					12,927,059	12,077,821	12,077,821
	The Farm Project, PBC.		Senior Secured	12.0%		3,679,645	3,546,677	3,546,677	1/1/2025
	The Safe and Fair Food Company LLC		Senior Secured	12.3%		1,667,276	1,544,749	1,544,749	9/1/2024
	TheSquareFoot, Inc.		Senior Secured	12.8%		250,000	138,378	39,862	12/1/2025
	TheSquareFoot, Inc.		Senior Secured	14.3%		300,000	244,797	70,517	2/1/2026
	TheSquareFoot, Inc. Subtotal					550,000	383,175	110,379
	Titan Health & Security Technologies, Inc.		Senior Secured	12.0%		1,500,000	1,430,281	1,430,281	8/1/2025
	TLNT Inc.		Senior Secured	14.8%		125,000	121,302	121,302	4/1/2026
	TLNT Inc.		Senior Secured	14.3%		375,000	324,556	324,556	4/1/2026
	TLNT Inc. Subtotal					500,000	445,858	445,858
	TomoCredit, Inc.		Senior Secured	12.5%		197,707	192,406	192,406	9/1/2023
	TomoCredit, Inc.		Senior Secured	12.5%		131,867	131,867	131,867	9/1/2023

42

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	TomoCredit, Inc. Subtotal					329,574		324,273		324,273
	Umbra Lab, Inc.		Senior Secured	13.5%		5,000,000		4,769,605		4,769,605		4/1/2026
	Umbra Lab, Inc.		Senior Secured	12.0%		3,143,048		3,076,889		3,076,889		6/1/2024
	Umbra Lab, Inc.		Senior Secured	12.0%		3,141,904		3,083,612		3,083,612		6/1/2024
	Umbra Lab, Inc. Subtotal					11,284,952		10,930,106		10,930,106
	Veev Group, Inc.		Senior Secured	12.5%		278,723		272,406		272,406		6/1/2023
	Veev Group, Inc.		Senior Secured	12.5%		16,287,975		15,866,472		15,866,472		12/1/2024
	Veev Group, Inc.		Senior Secured	12.5%		836,345		833,200		833,200		6/1/2023
	Veev Group, Inc. Subtotal					17,403,043		16,972,078		16,972,078
	Velo Holdings Limited		Senior Secured	12.0%		2,471,720		1,659,035		1,265,212		*
	Virtuix Holdings, Inc.		Senior Secured	12.3%		500,000		483,684		483,684		9/1/2025
	Wellth, Inc.		Senior Secured	12.0%		699,306		681,593		681,593		4/1/2025
	Wellth, Inc.		Senior Secured	12.0%		1,165,344		1,086,700		1,086,700		4/1/2025
	Wellth, Inc. Subtotal					1,864,650		1,768,293		1,768,293
	Wheels Labs, Inc.		Senior Secured	12.0%		1,000,000		920,675		920,675		*
	World Wrapps II, Inc.		Senior Secured	12.0%		314,154		271,958		271,958		6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		314,176		314,176		314,176		6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		314,543		314,543		314,543		6/1/2024
	World Wrapps II, Inc. Subtotal					942,873		900,677		900,677
	Zeno Technologies, Inc.		Senior Secured	10.0%		250,000		226,764		226,764		7/1/2025
	Zeno Technologies, Inc.		Senior Secured	10.0%		250,000		249,997		249,997		7/1/2025
	Zeno Technologies, Inc. Subtotal					500,000		476,761		476,761
	Zimeno Inc.		Senior Secured	11.5%		6,250,000		5,836,685		5,836,685		1/1/2026
Other Technology Total		88.8%				$	268,483,310	$	252,404,170	$	238,242,511
Security
	Axiado Corporation		Senior Secured	10.5%		$	2,000,000	$	1,992,417	$	1,992,417	10/1/2025
	Axiado Corporation		Senior Secured	10.5%		2,000,000		1,829,889		1,829,889		10/1/2025
	Axiado Corporation Subtotal					4,000,000		3,822,306		3,822,306
	Lassen Peak, Inc.		Senior Secured	11.0%		258,755		248,385		248,385		8/1/2024
	Popily, Inc.		Senior Secured	12.5%		1,998,517		1,559,439		1,107,863		*
Security Total		1.9%				$	6,257,272	$	5,630,130	$	5,178,554
Software
	Afero, Inc.		Senior Secured	12.3%		$	1,164,271	$	1,106,366	$	1,106,366	1/1/2024
	Amino, Inc.		Senior Secured	11.5%		1,978,917		1,954,128		1,954,128		6/1/2026
	Amino, Inc.		Senior Secured	11.5%		2,276,622		2,221,871		2,221,871		11/1/2025
	Amino, Inc.		Senior Secured	11.5%		1,978,855		1,958,430		1,958,430		7/1/2025
	Amino, Inc.		Senior Secured	11.5%		7,858,513		7,618,373		7,618,373		2/1/2025
	Amino, Inc. Subtotal					14,092,907		13,752,802		13,752,802
	BackboneAI Inc.		Senior Secured	12.3%		111,368		110,777		77,775		6/1/2023
	BackboneAI Inc.		Senior Secured	12.3%		298,612		295,145		207,218		5/1/2024
	BackboneAI Inc.		Senior Secured	12.3%		111,314		108,000		75,825		6/1/2023
	BackboneAI Inc. Subtotal					521,294		513,922		360,818
	Big Run Studios, Inc.		Senior Secured	11.5%		1,381,360		1,333,489		1,333,489		8/1/2024
	Big Run Studios, Inc.		Senior Secured	11.5%		813,707		802,879		802,879		12/1/2024
	Big Run Studios, Inc. Subtotal					2,195,067		2,136,368		2,136,368
	Bizly, Inc.		Senior Secured	11.5%		346,095		317,649		317,649		6/1/2025
	Bizly, Inc.		Senior Secured	11.5%		296,778		293,099		293,099		6/1/2025
	Bizly, Inc.		Senior Secured	11.5%		989,703		969,116		969,116		6/1/2025
	Bizly, Inc. Subtotal					1,632,576		1,579,864		1,579,864
	BlueCart, Inc.		Senior Secured	12.5%		1,500,000		1,385,567		1,385,567		2/1/2026
	Canopy Technology Corp.		Senior Secured	13.5%		1,500,000		1,389,140		1,389,140		11/1/2025

43

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Chowbus, Inc.		Senior Secured	12.0%		4,113,695	3,620,527	3,620,527	3/1/2025
	Clarified Inc.		Senior Secured	12.0%		728,381	672,611	672,611	5/1/2025
	Common Sun, Inc		Senior Secured	11.0%		1,500,000	1,401,177	1,401,177	7/1/2026
	Common Sun, Inc		Senior Secured	11.0%		500,000	498,014	498,014	1/1/2027
	Common Sun, Inc Subtotal					2,000,000	1,899,191	1,899,191
	Eskalera, Inc.		Senior Secured	10.5%		111,075	110,615	110,615	3/1/2023
	Eskalera, Inc.		Senior Secured	12.0%		1,484,374	1,390,192	1,390,192	2/1/2026
	Eskalera, Inc. Subtotal					1,595,449	1,500,807	1,500,807
	Form Remodel, Inc.		Senior Secured	11.0%		500,000	489,268	489,268	6/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		500,000	490,717	490,717	2/1/2026
	Form Remodel, Inc.		Senior Secured	11.0%		500,000	446,957	446,957	12/1/2025
	Form Remodel, Inc. Subtotal					1,500,000	1,426,942	1,426,942
	FutureProof Technologies, Inc.		Senior Secured	13.5%		1,000,000	909,297	909,297	6/1/2026
	Grokker, Inc.		Senior Secured	11.5%		772,968	750,197	750,197	3/1/2025
	Grokker, Inc.		Senior Secured	11.5%		500,000	481,822	481,822	4/1/2026
	Grokker, Inc. Subtotal					1,272,968	1,232,019	1,232,019
	HaystacksAI, Inc.		Senior Secured	11.0%		500,000	499,542	499,542	1/1/2026
	HaystacksAI, Inc.		Senior Secured	11.0%		500,000	458,276	458,276	1/1/2026
	HaystacksAI, Inc. Subtotal					1,000,000	957,818	957,818
	Hoken Holdings Inc.		Senior Secured	13.0%		625,000	541,825	541,825	5/1/2026
	ICX Media, Inc.		Senior Secured	18.0%		712,318	554,085	538,868	*
	Journey Builders, Inc.		Senior Secured	11.0%		500,000	499,992	499,992	1/1/2026
	Journey Builders, Inc.		Senior Secured	11.0%		500,000	460,087	460,087	1/1/2026
	Journey Builders, Inc. Subtotal					1,000,000	960,079	960,079
	Ketch Kloud, Inc.		Senior Secured	13.0%		7,000,000	6,613,376	6,613,376	10/1/2026
	Medable, Inc.		Senior Secured	12.0%		75,514	75,399	75,399	2/1/2023
	Medable, Inc.		Senior Secured	12.0%		151,008	150,084	150,084	2/1/2023
	Medable, Inc. Subtotal					226,522	225,483	225,483
	Ocurate, Inc.		Senior Secured	11.5%		500,000	490,615	490,615	10/1/2025
	Ocurate, Inc.		Senior Secured	11.5%		500,000	472,319	472,319	10/1/2025
	Ocurate, Inc. Subtotal					1,000,000	962,934	962,934
	Overalls, Inc.		Senior Secured	13.5%		500,000	450,282	450,282	4/1/2026
	Parkoursc, Inc.		Senior Secured	12.0%		405,476	398,511	398,511	8/1/2023
	Parkoursc, Inc.		Senior Secured	12.0%		499,608	495,497	495,497	9/1/2024
	Parkoursc, Inc. Subtotal					905,084	894,008	894,008
	Ratio Technologies, Inc.		Senior Secured	11.0%		200,000	153,702	153,702	1/1/2027
	Ratio Technologies, Inc.		Senior Secured	11.0%		1,322,000	1,295,466	1,295,466	1/1/2027
	Ratio Technologies, Inc.		Senior Secured	11.0%		478,000	468,276	468,276	1/1/2027
	Ratio Technologies, Inc. Subtotal					2,000,000	1,917,444	1,917,444
	Safe Securities Inc.		Senior Secured	11.5%		5,515,552	5,320,842	5,320,842	9/1/2025
	Safe Securities Inc.		Senior Secured	11.5%		989,678	972,066	972,066	4/1/2026
	Safe Securities Inc.		Senior Secured	12.0%		37,760	37,500	37,500	2/1/2023
	Safe Securities Inc. Subtotal					6,542,990	6,330,408	6,330,408
	SF Insuretech, Inc.		Senior Secured	11.8%		2,073,872	2,009,454	2,009,454	8/1/2024
	Sonatus, Inc		Senior Secured	12.5%		329,568	316,500	316,500	9/1/2023
	StayTuned Digital, Inc.		Senior Secured	12.0%		1,732,432	1,720,017	1,720,017	2/1/2026
	StayTuned Digital, Inc.		Senior Secured	12.0%		266,300	264,747	264,747	10/1/2025
	StayTuned Digital, Inc.		Senior Secured	12.0%		865,654	864,555	864,555	8/1/2025
	StayTuned Digital, Inc.		Senior Secured	12.0%		241,605	215,760	215,760	1/1/2025
	StayTuned Digital, Inc.		Senior Secured	12.0%		1,310,443	1,304,538	1,304,538	2/1/2025
	StayTuned Digital, Inc.		Senior Secured	12.0%		98,904	98,395	98,395	6/1/2025
	StayTuned Digital, Inc. Subtotal					4,515,338	4,468,012	4,468,012
	Swiftly Systems, Inc.		Senior Secured	11.5%		1,805,537	1,750,676	1,750,676	1/1/2025
	Swiftly Systems, Inc.		Senior Secured	11.5%		3,221,507	2,920,300	2,920,300	10/1/2024

44

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Swiftly Systems, Inc. Subtotal					5,027,044		4,670,976		4,670,976
	Terragon, Inc. ** ^		Senior Secured	12.0%		298,319		251,147		251,147		5/1/2024
	Traction Apps, Inc. ** ^		Senior Secured	12.0%		750,000		714,536		714,536		12/1/2025
	Truthset, Inc.		Senior Secured	10.5%		336,131		321,851		273,159		1/1/2024
	UCM Digital Health, Inc.		Senior Secured	12.0%		865,885		846,312		846,312		10/1/2025
	UCM Digital Health, Inc.		Senior Secured	12.0%		840,485		785,510		785,510		5/1/2025
	UCM Digital Health, Inc. Subtotal					1,706,370		1,631,822		1,631,822
	Vesta Housing, Inc.		Senior Secured	11.8%		1,375,000		1,334,142		1,334,142		6/1/2026
	Vesta Housing, Inc.		Senior Secured	11.8%		1,375,000		1,262,090		1,262,090		6/1/2026
	Vesta Housing, Inc. Subtotal					2,750,000		2,596,232		2,596,232
	WorkRails, Inc.		Senior Secured	12.0%		455,117		424,340		60,837		*
	Workspot, Inc.		Senior Secured	12.0%		1,192,381		1,169,628		1,169,628		11/1/2023
	Workspot, Inc.		Senior Secured	12.0%		531,573		517,946		517,946		3/1/2024
	Workspot, Inc. Subtotal					1,723,954		1,687,574		1,687,574
Software Total		26.9%				$	76,294,235	$	72,625,609	$	72,045,093
Technology Services
	iLearningEngines Inc.		Senior Secured	11.5%		$	5,020,622	$	4,746,723	$	4,746,723	6/1/2024
	iLearningEngines Inc.		Senior Secured	11.5%		1,882,439		872,280		872,280		10/1/2024
	iLearningEngines Inc.		Senior Secured	11.5%		2,475,333		2,401,673		2,401,673		8/1/2025
	iLearningEngines Inc.		Senior Secured	11.5%		1,686,955		1,631,596		1,631,596		1/1/2025
	iLearningEngines Inc.		Senior Secured	11.5%		2,330,963		2,203,387		2,203,387		4/1/2025
	iLearningEngines Inc. Subtotal					13,396,312		11,855,659		11,855,659
	Klar Holdings Limited ** ^		Senior Secured	12.0%	3.0%	1,772,503		1,750,934		1,750,934		8/1/2024
	Klar Holdings Limited ** ^		Senior Secured	11.8%		4,948,064		4,644,823		4,644,823		8/1/2025
	Klar Holdings Limited ** ^		Senior Secured	14.2%	4.0%	73,594		72,510		72,510		7/1/2023
	Klar Holdings Limited ** ^		Senior Secured	12.0%		1,571,468		1,512,748		1,512,748		6/1/2024
	Klar Holdings Limited Subtotal ** ^					8,365,629		7,981,015		7,981,015
	Loansnap Holdings Inc. **		Senior Secured	11.0%		313,240		261,551		197,068		6/1/2023
	Loansnap Holdings Inc. **		Senior Secured	10.3%		3,669,060		3,418,324		2,575,562		5/1/2025
	Loansnap Holdings Inc. Subtotal **					3,982,300		3,679,875		2,772,630
	Zanbato, Inc.		Senior Secured	11.0%		1,140,600		1,129,359		1,129,359		9/1/2023
Technology Services Total		8.9%				$	26,884,841	$	24,645,908	$	23,738,663
Wireless
	AirVine Scientific, Inc.		Senior Secured	10.8%		$	391,060	$	377,901	$	377,901	6/1/2024
	AirVine Scientific, Inc.		Senior Secured	10.8%		391,258		385,574		385,574		6/1/2024
	AirVine Scientific, Inc. Subtotal					782,318		763,475		763,475
	Juvo Mobile, Inc. **		Senior Secured	12.0%		1,500,000		1,398,672		1,398,672		7/1/2026
	MeshPlusPlus, Inc.		Senior Secured	12.5%		399,651		384,690		384,690		3/1/2024
	MeshPlusPlus, Inc.		Senior Secured	12.5%		157,465		155,155		155,155		6/1/2024
	MeshPlusPlus, Inc. Subtotal					557,116		539,845		539,845
Wireless Total		1.0%				$	2,839,434	$	2,701,992	$	2,701,992
Grand Total Loans		182.6%				$	556,664,159	$	521,905,950	$	489,691,665

45

Company	Percent of Net Assets	Cost		Fair Value
Cash Equivalents
First American Government Obligations	2.5%	$	6,754,823	$	6,754,823
Total Cash Equivalents	2.5%	$	6,754,823	$	6,754,823

*As of December 31, 2022, loans with a cost basis of $40.0 million and a fair value of $12.4 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets." As of December 31, 2022, 14.8% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an "eligible portfolio company," as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the fair value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

^ Entity is not domiciled in the United States and does not have its principal place of business in the United States.

(a) The percentage of net assets that each industry group represents is shown with the industry totals (the sum of the percentages does not equal 100% because the percentages are based on net assets as opposed to total loans).

(b) The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment.

(c) The end of term payments are contractually due on the maturity date and are in addition to the interest rate shown. End of term payments are the percentage of the final payment divided by the original loan amount and are amortized over the full term of the loan.

(d) There is no readily available market price or secondary market for the Fund’s loan investments, hence the Manager determines fair value of all loan investments presented in the Schedule of Investments based on a hypothetical market and the estimates may include the use of significant unobservable inputs.

    As of December 31, 2022, all loans were made to non-affiliates.

See notes to financial statements.

46

VENTURE LENDING & LEASING IX, INC.

Schedule of Investments

As of December 31, 2021

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
Biotechnology
	Calysta, Inc.		Senior Secured	11.8%		$	7,424,123	$	6,910,615	$	6,910,615	6/1/2025
	Driver Bioengineering, Inc.		Senior Secured	11.0%		210,665		196,509		196,509		4/1/2023
	Driver Bioengineering, Inc.		Senior Secured	11.0%		548,126		541,260		541,260		6/1/2023
	Driver Bioengineering, Inc. Subtotal					758,791		737,769		737,769
	Genomic Prediction, Inc.		Senior Secured	11.0%		990,625		916,753		916,753		1/1/2025
	GLO Pharma, Inc.		Senior Secured	10.5%		1,982,114		1,896,155		1,896,155		12/1/2024
	GLO Pharma, Inc.		Senior Secured	10.5%		2,971,746		2,893,124		2,893,124		12/1/2024
	GLO Pharma, Inc. Subtotal					4,953,860		4,789,279		4,789,279
	Quartzy, Inc.		Senior Secured	12.0%		1,054,875		1,036,987		1,036,987		7/1/2024
	Quartzy, Inc.		Senior Secured	12.0%		478,138		445,430		445,430		8/1/2023
	Quartzy, Inc.		Senior Secured	12.0%		996,046		980,260		980,260		5/1/2024
	Quartzy, Inc. Subtotal					2,529,059		2,462,677		2,462,677
Biotechnology Total		6.9%				$	16,656,458	$	15,817,093	$	15,817,093
Computers & Storage
	Canary Connect, Inc.		Senior Secured	12.0%		$	1,806,184	$	1,774,384	$	1,774,384	3/1/2024
	Canary Connect, Inc.		Senior Secured	12.0%		7,221,950		6,947,036		6,947,036		3/1/2024
	Canary Connect, Inc.		Senior Secured	12.8%		1,332,737		1,312,821		1,312,821		3/1/2023
	Canary Connect, Inc.		Senior Secured	11.8%		14,850,169		14,028,469		14,028,469		3/1/2026
	Canary Connect, Inc. Subtotal					25,211,040		24,062,710		24,062,710
Computers & Storage Total		10.5%				$	25,211,040	$	24,062,710	$	24,062,710
Enterprise Networking
	Diamanti, Inc.		Senior Secured	11.0%		$	5,972,984	$	5,055,959	$	4,311,087	*
Enterprise Networking Total		1.9%				$	5,972,984	$	5,055,959	$	4,311,087
Internet
	10club Pte Ltd. ** ^		Senior Secured	12.0%		$	4,454,692	$	4,309,407	$	4,309,407	11/1/2025
	10club Pte Ltd. ** ^		Senior Secured	12.0%		1,484,485		969,998		969,998		8/1/2025
	10club Pte Ltd. Subtotal ** ^					5,939,177		5,279,405		5,279,405
	Ainsly, Inc. ** ^		Senior Secured	12.5%		180,970		167,037		167,037		9/1/2023
	Ainsly, Inc. ** ^		Senior Secured	12.5%		220,835		215,380		215,380		8/1/2022
	Ainsly, Inc. ** ^		Senior Secured	12.5%		73,617		73,617		73,617		8/1/2022
	Ainsly, Inc. Subtotal ** ^					475,422		456,034		456,034
	iZENEtech, Inc. ** ^		Senior Secured	12.3%		4,649,564		4,449,109		4,449,109		9/1/2024
	Mantra Health, Inc.		Senior Secured	12.0%		494,777		458,710		458,710		6/1/2024
	Merchbar, Inc.		Senior Secured	11.8%		265,285		258,235		258,235		3/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		2,179,705		2,160,762		2,160,762		2/1/2024
	MyPizza Technologies, Inc.		Senior Secured	11.5%		4,061,477		3,981,527		3,981,527		12/1/2023
	MyPizza Technologies, Inc. Subtotal					6,241,182		6,142,289		6,142,289
	OneLocal, Inc. ** ^		Senior Secured	12.3%		844,634		794,936		794,936		3/1/2023
	Osix Corporation		Senior Secured	12.0%		4,948,467		4,694,637		4,694,637		8/1/2024
	Pixalate, Inc.		Senior Secured	12.5%		5,934,796		5,384,024		5,384,024		4/1/2025

47

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Proper Labs, Inc.		Senior Secured	11.5%		1,484,519		1,375,854		1,375,854		11/1/2024
	RenoFi, Inc.		Senior Secured	12.0%		157,216		155,178		155,178		6/1/2023
	RenoFi, Inc.		Senior Secured	12.0%		157,130		150,858		150,858		6/1/2023
	RenoFi, Inc.		Senior Secured	12.0%		814,310		791,720		791,720		12/1/2023
	RenoFi, Inc. Subtotal					1,128,656		1,097,756		1,097,756
	Residently USA, LLC ** ^		Senior Secured	12.0%		498,522		470,265		470,265		2/1/2023
	Residently USA, LLC ** ^		Senior Secured	12.0%		305,431		305,431		305,431		12/1/2023
	Residently USA, LLC Subtotal ** ^					803,953		775,696		775,696
	RetailerX, Inc.		Senior Secured	12.0%		1,978,517		1,889,440		1,889,440		2/1/2025
	RetailerX, Inc.		Senior Secured	12.0%		960,287		923,491		923,491		5/1/2024
	RetailerX, Inc. Subtotal					2,938,804		2,812,931		2,812,931
	Serface Care, Inc.		Senior Secured	12.3%		597,411		433,243		36,200		*
	Shadow, PBC		Senior Secured	18.0%		331,399		310,681		—		*
	Starface World, Inc.		Senior Secured	12.0%		783,946		752,446		752,446		11/1/2023
	Starface World, Inc.		Senior Secured	11.3%		990,265		971,780		971,780		10/1/2024
	Starface World, Inc.		Senior Secured	12.0%		422,046		415,242		415,242		1/1/2024
	Starface World, Inc.		Senior Secured	11.3%		2,474,163		2,359,716		2,359,716		10/1/2024
	Starface World, Inc.		Senior Secured	11.3%		990,476		970,472		970,472		10/1/2024
	Starface World, Inc. Subtotal					5,660,896		5,469,656		5,469,656
	Stay Alfred, Inc.		Senior Secured	18.0%		5,675,613		4,162,117		404,583		*
	Usual Beverage Co.		Senior Secured	12.0%		2,967,292		2,850,880		2,850,880		9/1/2024
	Verishop, Inc.		Senior Secured	12.0%		1,744,243		1,727,396		1,727,396		12/1/2023
	Verishop, Inc.		Senior Secured	12.0%		1,743,583		1,692,394		1,692,394		12/1/2023
	Verishop, Inc. Subtotal					3,487,826		3,419,790		3,419,790
Internet Total		20.1%				$	54,869,673	$	50,625,983	$	46,160,725
Medical Devices
	3D Bio Holdings, Inc.		Senior Secured	11.5%		$	1,806,873	$	1,694,218	$	1,694,218	3/1/2024
	Ablacon, Inc.		Senior Secured	11.0%		1,321,869		1,291,586		1,291,586		3/1/2023
	Ablacon, Inc.		Senior Secured	11.0%		1,322,356		1,311,100		1,311,100		3/1/2023
	Ablacon, Inc. Subtotal					2,644,225		2,602,686		2,602,686
	Anutra Medical, Inc.		Senior Secured	12.0%		90,784		89,282		89,282		10/1/2022
	Anutra Medical, Inc.		Senior Secured	12.0%		643,231		611,529		611,529		7/1/2024
	Anutra Medical, Inc. Subtotal					734,015		700,811		700,811
	CytoVale, Inc.		Senior Secured	12.0%		361,456		357,071		357,071		11/1/2023
	CytoVale, Inc.		Senior Secured	12.0%		1,977,671		1,897,985		1,897,985		9/1/2024
	CytoVale, Inc.		Senior Secured	12.0%		64,961		64,412		64,412		3/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		989,063		967,945		967,945		11/1/2024
	CytoVale, Inc.		Senior Secured	12.0%		347,288		335,948		335,948		10/1/2023
	CytoVale, Inc.		Senior Secured	12.0%		118,901		118,390		118,390		7/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		128,023		127,542		127,542		6/1/2022
	CytoVale, Inc. Subtotal					3,987,363		3,869,293		3,869,293
	eXo Imaging, Inc.		Senior Secured	11.8%		1,444,176		1,379,677		1,379,677		9/1/2023
	eXo Imaging, Inc.		Senior Secured	11.8%		1,445,467		1,425,130		1,425,130		9/1/2023
	eXo Imaging, Inc. Subtotal					2,889,643		2,804,807		2,804,807
	Medrobotics Corporation, Inc.		Senior Secured	18.0%		10,000,000		8,855,103		964,900		*
	Norbert Health, Inc.		Senior Secured	12.3%		989,165		902,830		902,830		6/1/2024
	Siren Care, Inc.		Senior Secured	12.5%		754,310		744,906		744,906		10/1/2023
	Siren Care, Inc.		Senior Secured	12.5%		1,508,243		1,463,777		1,463,777		10/1/2023
	Siren Care, Inc. Subtotal					2,262,553		2,208,683		2,208,683
	SVN Med, LLC		Senior Secured	15.0%		1,633,790		1,393,028		1,393,028		12/1/2023
	SVN Med, LLC		Senior Secured	15.0%		817,104		693,026		693,026		12/1/2023

48

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	SVN Med, LLC Subtotal					2,450,894		2,086,054		2,086,054
Medical Devices Total		7.7%				$	27,764,731	$	25,724,485	$	17,834,282
Other Healthcare
	Alchera Incorporated		Senior Secured	12.0%		$	1,483,900	$	1,326,776	$	1,326,776	7/1/2024
	Alchera Incorporated		Senior Secured	12.0%		1,470,500		1,409,173		1,409,173		4/1/2025
	Alchera Incorporated Subtotal					2,954,400		2,735,949		2,735,949
	Artisan Development Labs, Inc.		Senior Secured	12.3%		282,447		260,582		260,582		4/1/2023
	Elysium Health, Inc.		Senior Secured	12.0%		7,420,231		6,722,807		6,722,807		2/1/2025
	GoForward, Inc.		Senior Secured	11.5%		4,507,323		4,304,301		4,304,301		9/1/2023
	GoForward, Inc.		Senior Secured	11.5%		3,091,343		3,036,842		3,036,842		6/1/2024
	GoForward, Inc. Subtotal					7,598,666		7,341,143		7,341,143
	Grayce, Inc.		Senior Secured	11.8%		990,011		932,249		932,249		9/1/2024
	Grayce, Inc.		Senior Secured	11.8%		494,614		483,462		483,462		12/1/2024
	Grayce, Inc. Subtotal					1,484,625		1,415,711		1,415,711
	Hello Heart Inc.		Senior Secured	11.0%		1,979,629		1,946,247		1,946,247		6/1/2025
	Hello Heart Inc.		Senior Secured	11.0%		1,979,629		1,868,531		1,868,531		6/1/2024
	Hello Heart Inc.		Senior Secured	11.0%		586,952		580,837		580,837		11/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		561,643		557,061		557,061		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		701,855		683,970		683,970		4/1/2023
	Hello Heart Inc. Subtotal					5,809,708		5,636,646		5,636,646
	Honeybee Health, Inc.		Senior Secured	11.0%		990,031		898,914		898,914		6/1/2024
	Honeybee Health, Inc.		Senior Secured	11.0%		1,980,553		1,980,553		1,980,553		6/1/2024
	Honeybee Health, Inc. Subtotal					2,970,584		2,879,467		2,879,467
	HumanAPI, Inc.		Senior Secured	11.8%		1,175,103		1,145,778		1,145,778		7/1/2023
	HumanAPI, Inc.		Senior Secured	11.8%		1,979,202		1,877,319		1,877,319		8/1/2024
	HumanAPI, Inc.		Senior Secured	11.8%		990,180		961,832		961,832		2/1/2025
	HumanAPI, Inc. Subtotal					4,144,485		3,984,929		3,984,929
	Minded, Inc.		Senior Secured	12.0%		1,978,973		1,865,771		1,865,771		12/1/2024
	Oula Heath, Inc.		Senior Secured	12.0%		346,309		340,210		340,210		7/1/2024
	Oula Heath, Inc.		Senior Secured	12.0%		655,346		623,750		623,750		2/1/2024
	Oula Heath, Inc. Subtotal					1,001,655		963,960		963,960
	PeerWell, Inc.		Senior Secured	12.0%		902,629		860,003		860,003		3/1/2024
	SchoolCare, Inc.		Senior Secured	18.0%		395,761		388,046		82,551		*
	Therapydia, Inc.		Senior Secured	12.0%		494,637		434,026		434,026		4/1/2025
	Therapydia, Inc.		Senior Secured	12.0%		494,944		480,199		480,199		10/1/2025
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	58,588		56,636		56,636		3/1/2023
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	68,858		68,858		68,858		6/1/2023
	Therapydia, Inc. Subtotal					1,117,027		1,039,719		1,039,719
	Tia, Inc.		Senior Secured	11.8%		1,920,749		1,754,268		1,754,268		5/1/2024
	Tia, Inc.		Senior Secured	11.8%		2,473,240		2,432,270		2,432,270		9/1/2024
	Tia, Inc. Subtotal					4,393,989		4,186,538		4,186,538
	Vessel Health, Inc.		Senior Secured	12.0%		564,189		564,189		564,189		3/1/2024
	Vessel Health, Inc.		Senior Secured	12.0%		564,106		532,069		532,069		3/1/2024
	Vessel Health, Inc. Subtotal					1,128,295		1,096,258		1,096,258
	Yes Health, Inc.		Senior Secured	12.0%		989,613		930,838		930,838		10/1/2024
Other Healthcare Total		18.2%				$	44,573,088	$	42,308,367	$	42,002,872
Other Technology
	8E14 Networks, Inc.		Senior Secured	13.0%		$	217,430	$	176,828	$	176,828	9/1/2023
	8E14 Networks, Inc.		Senior Secured	13.0%		244,666		244,666		244,666		12/1/2023
	8E14 Networks, Inc.		Senior Secured	13.0%		593,274		593,274		593,274		9/1/2024

49

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	8E14 Networks, Inc. Subtotal					1,055,370	1,014,768	1,014,768
	8i Corporation		Senior Secured	12.0%		1,221,610	1,171,343	1,171,343	12/1/2023
	Aclima, Inc.		Senior Secured	11.9%		149,173	143,913	143,913	4/1/2022
	Aclima, Inc.		Senior Secured	12.0%		1,507,598	1,388,554	1,388,554	10/1/2023
	Aclima, Inc. Subtotal					1,656,771	1,532,467	1,532,467
	Antitoxin Technologies Inc. ** ^		Senior Secured	12.0%		814,262	738,781	692,140	12/1/2023
	Antitoxin Technologies Inc. ** ^		Senior Secured	11.5%		163,653	160,030	151,726	9/1/2022
	Antitoxin Technologies Inc. Subtotal ** ^					977,915	898,811	843,866
	ATeam Army, Inc.		Senior Secured	12.0%		705,214	684,917	684,917	4/1/2023
	Bankroll Club, LLC		Senior Secured	12.0%		1,484,693	1,263,475	1,263,475	4/1/2025
	Bankroll Club, LLC		Senior Secured	12.0%		1,483,500	1,483,500	1,483,500	4/1/2025
	Bankroll Club, LLC Subtotal					2,968,193	2,746,975	2,746,975
	Beanfields, PBC		Senior Secured	18.0%		1,126,232	1,136,604	1,005,227	*
	BloomTech Inc.		Senior Secured	11.3%		3,292,027	3,188,984	3,188,984	7/1/2023
	BloomTech Inc.		Senior Secured	11.3%		1,724,925	1,724,925	1,724,925	8/1/2023
	BloomTech Inc. Subtotal					5,016,952	4,913,909	4,913,909
	Brave Care Technologies, Inc.		Senior Secured	12.0%		2,226,032	2,078,142	2,078,142	9/1/2024
	Brightside Benefit, Inc.		Senior Secured	12.1%		211,297	207,383	207,383	9/1/2022
	Brightside Benefit, Inc.		Senior Secured	12.4%		456,660	453,272	453,272	3/1/2023
	Brightside Benefit, Inc. Subtotal					667,957	660,655	660,655
	Bryte, Inc.		Senior Secured	10.0%		2,478,976	2,295,843	2,295,843	4/1/2025
	BW Industries, Inc.		Senior Secured	11.8%		1,098,200	1,048,349	1,048,349	5/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		1,157,127	1,144,903	1,144,903	6/1/2023
	BW Industries, Inc. Subtotal					2,255,327	2,193,252	2,193,252
	Candy Club Holdings, Inc. **		Senior Secured	12.0%		2,474,741	2,474,741	2,474,741	5/1/2025
	Candy Club Holdings, Inc. **		Senior Secured	12.0%		4,945,712	3,938,353	3,938,353	10/1/2024
	Candy Club Holdings, Inc. Subtotal **					7,420,453	6,413,094	6,413,094
	Ceres Imaging, Inc.		Senior Secured	12.0%		1,979,769	1,796,975	1,796,975	4/1/2025
	ClipCall, Inc.		Senior Secured	12.5%		377,537	347,225	347,225	10/1/2023
	Content Adjacent, Inc.		Senior Secured	12.0%		494,793	494,793	494,793	6/1/2024
	Content Adjacent, Inc.		Senior Secured	12.0%		1,977,137	1,920,036	1,920,036	6/1/2024
	Content Adjacent, Inc. Subtotal					2,471,930	2,414,829	2,414,829
	Coterie Applications, Inc.		Senior Secured	11.0%		2,476,651	2,240,496	2,240,496	9/1/2025
	Coterie Applications, Inc.		Senior Secured	12.5%		494,338	494,338	494,338	6/1/2024
	Coterie Applications, Inc.		Senior Secured	12.5%		723,625	671,265	671,265	9/1/2023
	Coterie Applications, Inc.		Senior Secured	12.5%		903,053	903,053	903,053	3/1/2024
	Coterie Applications, Inc. Subtotal					4,597,667	4,309,152	4,309,152
	Daybase, Inc.		Senior Secured	12.0%		989,639	908,021	908,021	9/1/2024
	Equestrian Labs, Inc.		Senior Secured	12.0%		1,483,577	1,398,054	1,234,057	6/1/2024
	Equestrian Labs, Inc.		Senior Secured	12.0%		742,341	725,469	640,369	6/1/2024
	Equestrian Labs, Inc.		Senior Secured	12.0%		742,058	727,787	642,415	6/1/2024
	Equestrian Labs, Inc. Subtotal					2,967,976	2,851,310	2,516,841
	Fakespot, Inc.		Senior Secured	12.0%		494,493	447,448	447,448	8/1/2024
	Fakespot, Inc.		Senior Secured	12.0%		989,486	972,163	972,163	8/1/2024
	Fakespot, Inc. Subtotal					1,483,979	1,419,611	1,419,611
	Fitplan, Inc. ** ^		Senior Secured	12.5%		994,922	815,498	815,498	11/1/2023
	Flo Water, Inc.		Senior Secured	11.8%		1,394,506	1,348,314	1,348,314	12/1/2023
	Hadrian Automation, Inc.		Senior Secured	11.5%		2,722,876	2,583,157	2,583,157	2/1/2025

50

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	Higher Ground Education, Inc.		Senior Secured	12.5%		4,942,636	4,742,950	4,742,950	2/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		275,567	273,064	273,064	5/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		781,981	775,361	775,361	4/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,075,086	1,050,104	1,050,104	1/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		319,321	316,022	316,022	8/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		6,923,164	6,611,952	6,611,952	6/1/2025
	Higher Ground Education, Inc. Subtotal					14,317,755	13,769,453	13,769,453
	Hint, Inc.		Senior Secured	12.0%		3,440,711	3,234,998	3,234,998	6/1/2023
	Hyphen Technologies, Inc.		Senior Secured	12.0%		2,473,894	2,330,578	2,330,578	7/1/2024
	Inscopix, Inc.		Senior Secured	12.0%		4,946,375	4,826,097	4,826,097	4/1/2025
	Intergalactic Foods Corporation		Senior Secured	12.0%		494,826	464,110	464,110	1/1/2025
	Invert Robotics Group, Ltd. ** ^		Senior Secured	13.0%		1,978,043	1,769,078	1,769,078	1/1/2025
	Jiko Group, Inc.		Senior Secured	12.0%		2,200,833	2,142,294	2,142,294	6/1/2023
	Kinoo, Inc.		Senior Secured	11.5%		990,167	921,525	921,525	1/1/2025
	Lacuna Technologies, Inc.		Senior Secured	12.0%		1,484,897	1,347,463	1,347,463	5/1/2025
	Level Home, Inc.		Senior Secured	11.8%		9,898,880	9,735,057	9,735,057	2/1/2025
	Level Home, Inc.		Senior Secured	11.8%		9,895,966	9,267,817	9,267,817	5/1/2025
	Level Home, Inc. Subtotal					19,794,846	19,002,874	19,002,874
	Luva Inc.		Senior Secured	11.3%		495,238	459,320	459,320	12/1/2024
	Make School, Inc.		Senior Secured	18.0%		79,946	45,838	19,536	*
	MASC Inc.		Senior Secured	12.0%		494,854	426,580	426,580	9/1/2024
	Mavenform, Inc.		Senior Secured	11.5%		494,974	484,719	484,719	6/1/2025
	Mavenform, Inc.		Senior Secured	11.5%		989,298	947,765	947,765	6/1/2024
	Mavenform, Inc. Subtotal					1,484,272	1,432,484	1,432,484
	Merlin Labs, Inc.		Senior Secured	11.0%		115,653	114,777	114,777	1/1/2023
	Merlin Labs, Inc.		Senior Secured	11.0%		2,971,743	2,810,122	2,810,122	6/1/2025
	Merlin Labs, Inc.		Senior Secured	11.0%		110,140	109,024	109,024	6/1/2022
	Merlin Labs, Inc. Subtotal					3,197,536	3,033,923	3,033,923
	MinoMonsters, Inc. ** ^		Senior Secured	11.5%		2,474,886	2,387,475	2,387,475	10/1/2024
	Momentus, Inc. **		Senior Secured	12.0%		24,726,579	22,774,001	22,774,001	3/1/2022
	Natomas Labs, Inc.		Senior Secured	12.3%		2,473,076	2,310,655	2,310,655	9/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		1,748,452	1,715,249	1,715,249	2/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		2,621,376	2,492,372	2,492,372	2/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		1,484,049	1,450,349	1,450,349	9/1/2024
	Natomas Labs, Inc. Subtotal					8,326,953	7,968,625	7,968,625
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		4,073,677	4,012,576	4,012,576	12/1/2023
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		1,177,191	1,163,157	1,163,157	8/1/2022
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		2,423,182	2,360,035	2,360,035	8/1/2023
	NewGlobe Schools, Inc. Subtotal ** ^					7,674,050	7,535,768	7,535,768
	Noteleaf, Inc.		Senior Secured	18.0%		2,277,124	1,861,011	309,063	*
	OnePointOne, Inc.		Senior Secured	12.0%		1,748,153	1,715,659	1,715,659	2/1/2024
	OnePointOne, Inc.		Senior Secured	12.0%		1,747,224	1,650,931	1,650,931	2/1/2024
	OnePointOne, Inc. Subtotal					3,495,377	3,366,590	3,366,590
	Opya, Inc.		Senior Secured	12.0%		480,293	466,077	466,077	11/1/2023
	Percepto, Inc.		Senior Secured	12.2%		879,619	856,749	856,749	4/1/2023
	Phase Four, Inc.		Senior Secured	11.5%		1,485,295	1,388,478	1,388,478	12/1/2024
	Plant Prefab, Inc.		Senior Secured	11.0%		306,696	300,902	300,902	8/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		2,971,403	2,786,656	2,786,656	8/1/2024

51

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Plant Prefab, Inc.		Senior Secured	11.0%		1,981,660		1,934,305		1,934,305		11/1/2024
	Plant Prefab, Inc. Subtotal					5,259,759		5,021,863		5,021,863
	Platform Science, Inc.		Senior Secured	12.0%		94,426		93,729		93,729		2/1/2022
	Platform Science, Inc.		Senior Secured	11.5%		3,011,412		2,917,289		2,917,289		10/1/2023
	Platform Science, Inc. Subtotal					3,105,838		3,011,018		3,011,018
	Plethora, Inc.		Senior Secured	18.0%		2,281,576		2,211,796		507,589		*
	Privoro Holdings, Inc.		Senior Secured	12.0%		1,718,533		1,638,692		1,638,692		4/1/2024
	Reali Inc.		Senior Secured	12.5%		2,894,499		2,812,255		2,812,255		9/1/2023
	Reali Inc.		Senior Secured	12.5%		11,870,649		11,366,149		11,366,149		12/1/2024
	Reali Inc.		Senior Secured	12.5%		2,709,730		2,602,399		2,602,399		3/1/2024
	Reali Inc. Subtotal					17,474,878		16,780,803		16,780,803
	Romaine Empire, Inc.		Senior Secured	12.3%		3,896,929		3,781,983		3,781,983		9/1/2023
	Saltbox, Inc.		Senior Secured	12.3%		269,697		263,567		263,567		6/1/2023
	Setex Technologies, Inc.		Senior Secured	12.3%		1,236,308		1,109,408		1,109,408		8/1/2024
	SMS OPCO LLC		Senior Secured	8.0%		33,875		15,125		15,125		*
	Sorfeo Inc.		Senior Secured	11.5%		989,918		981,903		981,903		9/1/2024
	Sustainable Living Partners, LLC		Senior Secured	12.5%		2,971,313		2,758,178		2,758,178		8/1/2023
	Sustainable Living Partners, LLC		Senior Secured	12.5%		9,892,044		8,598,175		8,598,175		9/1/2025
	Sustainable Living Partners, LLC Subtotal					12,863,357		11,356,353		11,356,353
	The Farm Project, PBC.		Senior Secured	12.0%		3,926,667		3,714,785		3,714,785		1/1/2025
	The Safe and Fair Food Company LLC		Senior Secured	12.3%		2,471,977		2,204,367		2,204,367		9/1/2024
	TomoCredit, Inc.		Senior Secured	12.5%		289,608		289,608		289,608		9/1/2023
	TomoCredit, Inc.		Senior Secured	12.5%		434,205		409,659		409,659		9/1/2023
	TomoCredit, Inc. Subtotal					723,813		699,267		699,267
	Umbra Lab, Inc.		Senior Secured	12.0%		4,944,750		4,799,256		4,799,256		6/1/2024
	Umbra Lab, Inc.		Senior Secured	12.0%		4,946,551		4,781,591		4,781,591		6/1/2024
	Umbra Lab, Inc. Subtotal					9,891,301		9,580,847		9,580,847
	Veev Group, Inc.		Senior Secured	12.5%		2,360,822		2,337,325		2,337,325		6/1/2023
	Veev Group, Inc.		Senior Secured	12.5%		19,779,528		18,948,019		18,948,019		12/1/2024
	Veev Group, Inc.		Senior Secured	12.5%		786,775		740,586		740,586		6/1/2023
	Veev Group, Inc. Subtotal					22,927,125		22,025,930		22,025,930
	Velo Holdings Limited		Senior Secured	12.0%		2,471,720		1,955,642		1,539,333		*
	Welcome Tech, Inc.		Senior Secured	10.5%		153,082		150,226		150,226		5/1/2022
	Wheels Labs, Inc.		Senior Secured	12.0%		2,221,660		2,134,921		2,134,921		6/1/2023
	Wine Plum, Inc.		Senior Secured	12.5%		329,558		324,821		324,821		9/1/2022
	World Wrapps II, Inc.		Senior Secured	12.0%		480,319		480,319		480,319		6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		494,453		494,453		494,453		6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		494,418		394,196		394,196		6/1/2024
	World Wrapps II, Inc. Subtotal					1,469,190		1,368,968		1,368,968
Other Technology Total		102.7%				$	255,168,933	$	240,678,546	$	236,458,989
Security
	Lassen Peak, Inc.		Senior Secured	11.0%		$	371,530	$	347,750	$	347,750	8/1/2024
	Nok Nok Labs, Inc.		Senior Secured	12.5%		191,326		190,411		190,411		6/1/2022
	Popily, Inc.		Senior Secured	12.5%		2,036,717		1,852,544		1,852,544		8/1/2024
Security Total		1.0%				$	2,599,573	$	2,390,705	$	2,390,705
Software
	Afero, Inc.		Senior Secured	12.3%		$	2,110,745	$	1,925,141	$	1,925,141	1/1/2024
	Amino, Inc.		Senior Secured	11.5%		8,910,784		8,465,259		8,465,259		2/1/2025
	BackboneAI Inc.		Senior Secured	12.3%		314,742		310,330		310,330		6/1/2023
	BackboneAI Inc.		Senior Secured	12.3%		480,420		471,361		471,361		5/1/2024

52

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value (d)	Final Maturity Date
	BackboneAI Inc.		Senior Secured	12.3%		314,588	290,514	290,514	6/1/2023
	BackboneAI Inc. Subtotal					1,109,750	1,072,205	1,072,205
	Big Run Studios, Inc.		Senior Secured	11.5%		1,979,680	1,870,020	1,870,020	8/1/2024
	Big Run Studios, Inc.		Senior Secured	11.5%		990,230	968,648	968,648	12/1/2024
	Big Run Studios, Inc. Subtotal					2,969,910	2,838,668	2,838,668
	Bizly, Inc.		Senior Secured	11.5%		346,312	294,503	294,503	12/1/2024
	Bizly, Inc.		Senior Secured	11.5%		296,956	290,080	290,080	12/1/2024
	Bizly, Inc.		Senior Secured	11.5%		990,414	953,972	953,972	3/1/2025
	Bizly, Inc. Subtotal					1,633,682	1,538,555	1,538,555
	Blockdaemon, Inc.		Senior Secured	12.0%		903,100	861,263	861,263	3/1/2024
	Blockdaemon, Inc.		Senior Secured	11.3%		55,201	54,707	54,707	6/1/2022
	Blockdaemon, Inc. Subtotal					958,301	915,970	915,970
	BriteCo LLC		Senior Secured	12.0%		395,658	342,857	342,857	7/1/2024
	BriteCo LLC		Senior Secured	12.0%		346,461	346,461	346,461	2/1/2025
	BriteCo LLC Subtotal					742,119	689,318	689,318
	Censia Inc.		Senior Secured	11.0%		360,514	353,690	353,690	10/1/2022
	Chowbus, Inc.		Senior Secured	12.0%		989,944	918,165	918,165	11/1/2024
	Chowbus, Inc.		Senior Secured	12.0%		3,959,556	3,303,025	3,303,025	11/1/2024
	Chowbus, Inc. Subtotal					4,949,500	4,221,190	4,221,190
	Cloudleaf, Inc.		Senior Secured	12.0%		741,575	732,365	732,365	9/1/2024
	Cloudleaf, Inc.		Senior Secured	12.0%		956,267	919,269	919,269	8/1/2023
	Cloudleaf, Inc. Subtotal					1,697,842	1,651,634	1,651,634
	Dynamics, Inc.		Senior Secured	12.5%		293,593	291,440	291,440	2/1/2022
	Eskalera, Inc.		Senior Secured	10.5%		527,451	518,933	518,933	3/1/2023
	Grokker, Inc.		Senior Secured	11.5%		989,743	946,783	946,783	3/1/2025
	ICX Media, Inc.		Senior Secured	12.5%		762,829	651,140	449,541	*
	Ipolipo, Inc.		Senior Secured	12.0%		568,765	544,693	544,693	9/1/2022
	Medable, Inc.		Senior Secured	12.0%		498,356	494,657	494,657	2/1/2023
	Medable, Inc.		Senior Secured	12.0%		996,585	967,179	967,179	2/1/2023
	Medable, Inc. Subtotal					1,494,941	1,461,836	1,461,836
	Metawave Corporation		Senior Secured	12.0%		237,768	235,670	235,670	7/1/2022
	Migo Money, Inc. ** ^		Senior Secured	12.5%		56,631	56,631	56,631	3/1/2022
	Pixlee TurnTo, Inc.		Senior Secured	12.3%		1,266,162	1,223,909	1,223,909	1/1/2024
	Pixlee TurnTo, Inc.		Senior Secured	12.0%		2,226,752	2,123,863	2,123,863	8/1/2025
	Pixlee TurnTo, Inc. Subtotal					3,492,914	3,347,772	3,347,772
	Safe Securities Inc.		Senior Secured	12.0%		249,200	240,930	240,930	2/1/2023
	Safe Securities Inc.		Senior Secured	11.5%		5,941,379	5,623,508	5,623,508	9/1/2025
	Safe Securities Inc. Subtotal					6,190,579	5,864,438	5,864,438
	SF Insuretech, Inc.		Senior Secured	11.8%		2,969,348	2,821,808	2,821,808	8/1/2024
	SmartVid.io, Inc.		Senior Secured	11.8%		1,979,037	1,783,763	1,783,763	9/1/2024
	Sonatus, Inc		Senior Secured	12.5%		723,799	663,896	663,896	9/1/2023
	Splitwise, Inc.		Senior Secured	12.3%		216,004	212,084	212,084	12/1/2022
	StayTuned Digital, Inc.		Senior Secured	12.0%		1,484,877	1,473,861	1,473,861	2/1/2025
	StayTuned Digital, Inc.		Senior Secured	12.0%		283,336	235,242	235,242	1/1/2025
	StayTuned Digital, Inc. Subtotal					1,768,213	1,709,103	1,709,103
	Swiftly Systems, Inc.		Senior Secured	11.5%		4,713,756	4,077,467	4,077,467	10/1/2024
	Swiftly Systems, Inc.		Senior Secured	11.5%		2,473,626	2,364,621	2,364,621	1/1/2025
	Swiftly Systems, Inc. Subtotal					7,187,382	6,442,088	6,442,088
	Swivel, Inc.		Senior Secured	12.0%		83,680	83,680	83,680	10/1/2022
	Swivel, Inc.		Senior Secured	12.0%		67,603	66,233	66,233	8/1/2022
	Swivel, Inc. Subtotal					151,283	149,913	149,913
	Terragon, Inc. ** ^		Senior Secured	12.0%		480,496	365,014	365,014	5/1/2024
	Trucking Jobs Technologies, Inc.		Senior Secured	10.5%		634,198	584,969	584,969	7/1/2024
	Truthset, Inc.		Senior Secured	10.5%		185,411	179,361	179,361	2/1/2023

53

Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value (d)		Final Maturity Date
	Truthset, Inc.		Senior Secured	10.5%		222,283		222,283		222,283		5/1/2023
	Truthset, Inc. Subtotal					407,694		401,644		401,644
	WorkRails, Inc.		Senior Secured	12.0%		123,625		120,527		120,527		3/1/2025
	WorkRails, Inc.		Senior Secured	12.0%		371,239		339,771		339,771		2/1/2025
	WorkRails, Inc. Subtotal					494,864		460,298		460,298
	Workspot, Inc.		Senior Secured	12.0%		2,352,623		2,265,753		2,265,753		11/1/2023
	Workspot, Inc.		Senior Secured	12.0%		220,008		215,206		215,206		8/1/2022
	Workspot, Inc.		Senior Secured	12.0%		272,328		270,000		270,000		10/1/2022
	Workspot, Inc.		Senior Secured	12.0%		903,253		864,056		864,056		3/1/2024
	Workspot, Inc. Subtotal					3,748,212		3,615,015		3,615,015
Software Total		24.6%				$	60,818,891	$	56,800,561	$	56,598,962
Technology Services
	iLearningEngines Inc.		Senior Secured	11.5%		$	1,980,078	$	1,874,081	$	1,874,081	1/1/2025
	iLearningEngines Inc.		Senior Secured	11.5%		2,475,711		735,489		735,489		10/1/2024
	iLearningEngines Inc.		Senior Secured	11.5%		7,919,550		7,244,078		7,244,078		6/1/2024
	iLearningEngines Inc. Subtotal					12,375,339		9,853,648		9,853,648
	Klar Holdings Limited ** ^		Senior Secured	12.5%		91,083		84,354		84,354		10/1/2022
	Klar Holdings Limited ** ^		Senior Secured	12.0%	3.0%	2,487,279		2,439,207		2,439,207		8/1/2024
	Klar Holdings Limited ** ^		Senior Secured	12.0%		2,473,187		2,327,776		2,327,776		6/1/2024
	Klar Holdings Limited ** ^		Senior Secured	14.2%	4.0%	171,136		165,351		165,351		7/1/2023
	Klar Holdings Limited Subtotal ** ^					5,222,685		5,016,688		5,016,688
	Liftit, Inc. ** ^		Senior Secured	12.0%		181,508		180,377		180,377		10/1/2022
	Liftit, Inc. ** ^		Senior Secured	12.0%		146,623		143,541		143,541		8/1/2022
	Liftit, Inc. Subtotal ** ^					328,131		323,918		323,918
	Loansnap Holdings Inc. **		Senior Secured	10.3%		3,717,780		3,467,958		3,467,958		2/1/2025
	Loansnap Holdings Inc. **		Senior Secured	11.0%		1,179,442		1,145,802		1,145,802		12/1/2022
	Loansnap Holdings Inc. Subtotal **					4,897,222		4,613,760		4,613,760
	Riffyn, Inc.		Senior Secured	11.5%		1,746,666		1,699,155		1,699,155		2/1/2024
	Riffyn, Inc.		Senior Secured	11.5%		1,864,230		1,846,053		1,846,053		4/1/2024
	Riffyn, Inc. Subtotal					3,610,896		3,545,208		3,545,208
	Zanbato, Inc.		Senior Secured	11.0%		2,522,754		2,469,483		2,469,483		9/1/2023
	Zeel Networks, Inc.		Senior Secured	11.0%		2,004,362		1,951,357		1,916,763		6/1/2024
Technology Services Total		12.1%				$	30,961,389	$	27,774,062	$	27,739,468
Wireless
	AirVine Scientific, Inc.		Senior Secured	10.8%		$	619,299	$	604,976	$	604,976	6/1/2024
	AirVine Scientific, Inc.		Senior Secured	12.0%		41,050		40,220		40,220		9/1/2022
	AirVine Scientific, Inc.		Senior Secured	12.0%		41,078		40,718		40,718		9/1/2022
	AirVine Scientific, Inc.		Senior Secured	10.8%		618,987		586,089		586,089		6/1/2024
	AirVine Scientific, Inc. Subtotal					1,320,414		1,272,003		1,272,003
	MeshPlusPlus, Inc.		Senior Secured	12.5%		677,531		634,884		634,884		3/1/2024
	MeshPlusPlus, Inc.		Senior Secured	12.5%		247,256		241,501		241,501		6/1/2024
	MeshPlusPlus, Inc. Subtotal					924,787		876,385		876,385
	Parallel Wireless, Inc.		Senior Secured	11.8%		2,245,500		2,223,695		2,223,695		8/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%		4,080,176		3,975,828		3,975,828		6/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%		2,346,787		2,322,840		2,322,840		9/1/2023
	Parallel Wireless, Inc. Subtotal					8,672,463		8,522,363		8,522,363
Wireless Total		4.6%				$	10,917,664	$	10,670,751	$	10,670,751
Grand Total Loans		210.3%				$	535,514,424	$	501,909,222	$	484,047,644

54

Company	Percent of Net Assets	Cost		Fair Value
Cash Equivalents
First American Government Obligations	3.0%	$	6,939,126	$	6,939,126
Total Cash Equivalents	3.0%	$	6,939,126	$	6,939,126

* As of December 31, 2021, loans with a cost basis of $27.1 million and a fair value of $9.6 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

** Indicates assets that the Fund deems “non-qualifying assets.” As of December 31, 2021, 13.2% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an "eligible portfolio company," as defined in Section 2(a)(46)) represent 70% of its total assets. As part of this calculation, the numerator consists of the fair value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

^ Entity is not domiciled in the United States and does not have its principal place of business in the United States.

(a) The percentage of net assets that each industry group represents is shown with the industry totals (the sum of the percentages does not equal 100% because the percentages are based on net assets as opposed to total loans).

(b) The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment.

(c) The end of term payments are contractually due on the maturity date and are in addition to the interest rate shown. End of term payments are the percentage of the final payment divided by the original loan amount and are amortized over the full term of the loan.

(d) There is no readily available market price or secondary market for the Fund’s loan investments, hence the Manager determines fair value of all loan investments presented in the Schedule of Investments based on a hypothetical market and the estimates may include the use of significant unobservable inputs.

    As of December 31, 2021, all loans were made to non-affiliates.

See notes to financial statements.

55

VENTURE LENDING & LEASING IX, INC.

Schedules of Derivative Instruments

As of December 31, 2022 and 2021

Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	AS OF DECEMBER 31, 2022
				Notional Amount		Fair Value		Upfront payments/receipts		Unrealized appreciation/(depreciation) (a)
Interest Rate Collar
Floating interest rate of USD-SOFR with a cap rate of 0.86% to be received monthly	Floating interest rate of USD-SOFR with a floor rate of 0.35% to be paid monthly	Zions Bancorporation, N.A.	3/18/2024	$	87,000,000	$	4,244,303	$	—	$	4,244,303
Floating interest rate of USD-SOFR with a cap rate of 1.36% to be received monthly	Floating interest rate of USD-SOFR with a floor rate of 0.42% to be paid monthly	Zions Bancorporation, N.A.	6/30/2025	50,000,000		3,421,781		—		3,421,781
Floating interest rate of USD-SOFR with a cap rate of 2.11% to be received monthly	Floating interest rate of USD-SOFR with a floor rate of 0.53% to be paid monthly	Zions Bancorporation, N.A.	3/18/2024	90,000,000		2,978,267		—		2,978,267
Total				$	227,000,000	$	10,644,351	$	—	$	10,644,351

Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	AS OF DECEMBER 31, 2021
				Notional Amount		Fair Value		Upfront payments/receipts		Unrealized appreciation/(depreciation) (a)
Interest Rate Collar
Floating interest rate of USD-LIBOR-BBA with a cap rate of 1.15%, to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.17% to be paid monthly	MUFG Union Bank, N.A.	6/30/2025	$	20,000,000	$	255,356	—		$	255,356
Floating interest rate of USD-LIBOR-BBA with a cap rate of 1.00% to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.35% to be paid monthly	Zions Bancorporation, N.A.	3/18/2024	87,000,000		377,254		—		377,254
Floating interest rate of USD-LIBOR-BBA with a cap rate of 1.50% to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.42% to be paid monthly	Zions Bancorporation, N.A.	6/30/2025	50,000,000		329,992		—		329,992
Floating interest rate of USD-LIBOR-BBA with a cap rate of 2.25% to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.53% to be paid monthly	Zions Bancorporation, N.A.	3/18/2024	90,000,000		(130,697)		—		(130,697)
Total				$	247,000,000	$	831,905	$	—	$	831,905

(a) The unrealized appreciation/(depreciation) was valued using prices or valuation based on observable inputs other than quoted price in active markets for identical assets and liabilities. See “Note 3. Fair Value Disclosures” for more information.

See notes to financial statements.

56

VENTURE LENDING & LEASING IX, INC.

Notes to Financial Statements

1. ORGANIZATION AND OPERATIONS OF THE FUND

    Venture Lending & Leasing IX, Inc. (the “Fund”) was incorporated in Maryland on June 28, 2017 as a non-diversified, closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) and is managed by Westech Investment Advisors, LLC (the “Manager” or “Management”). All of the issued and outstanding membership interests of the Manager were acquired by P10 Intermediate Holdings LLC, a Delaware limited liability company whose ultimate parent is P10, Inc., a Delaware corporation (together, “P10”) on October 13, 2022 (the “Transaction”). The management of day-to-day operations of the Manager remains substantially unchanged and continues to be directed by the Manager’s personnel following the closing of the Transaction.

The Fund will be dissolved on December 31, 2028 unless the Board of Directors (the “Board”) opts to elect early dissolution. One hundred percent of the stock of the Fund is held by Venture Lending & Leasing IX, LLC (the “Company”). Prior to commencing operations on May 2, 2018, the Fund had no operations other than accruing organizational expenses and the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in June 2017. This issuance of stock was a requirement to apply for a finance lender’s license from the California Commissioner of Corporations, which was obtained on September 22, 2017.

The Fund’s investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies, most of which are private. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt, or soon thereafter. The Fund also has guidelines for the percentages of total assets that are invested in different types of assets. The portfolio investments of the Fund primarily consist of debt financing to early and expansion stage venture capital-backed technology companies.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Use of Estimates

The preparation of financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As an investment company, the Fund follows accounting and reporting guidance as set forth in Topic 946 (“Financial Services - Investment Companies”) of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification, as amended (“ASC”). Certain prior period information has been reclassified and/or disclosed to conform to the current year presentation.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and money market mutual funds with maturities of or the ability to redeem or liquidate holdings within 90 days or less. Cash and cash equivalents are held in three bank accounts with two financial institutions, Mitsubishi UFJ Financial Group, Inc. and U.S. Bank National Association, and as a result are subject to custodial concentration risk for cash and cash equivalents. Cash in excess of the Federal Deposit Insurance Corporation (“FDIC”) limit of $250,000 is unsecured. Money market mutual funds held as cash equivalents are valued at their most recently traded net asset value. Within cash and cash equivalents, as of December 31, 2022, the Fund held 6,754,823 units in the First American Government Obligations Fund valued at $1 per unit at a yield of 4.06% and $319,834 in cash, which represented 2.64% of the net assets of the Fund. Within cash and cash equivalents, as of December 31, 2021, the Fund held 6,939,126 units in the First American Government Obligations Fund valued at $1 per unit at a yield of 0.02%, which represented 3.01% of the net assets of the Fund.

Interest Income

Interest income on loans is recognized on an accrual basis using the effective interest method including amounts resulting from the accretion of discount on loans included as additional compensation as part of the loan agreements. Additionally, fees received as part of the transaction are added to the loan discount and accreted over the life of the loan.

Realized Gains and Losses from Loans

    Realized gains or losses on the sale of loans are computed using the difference between the amortized cost and the sales proceeds. Realized losses on loan write-offs are recognized when management determines a loan is uncollectible.

57

Investment Valuation

    The Fund accounts for loans for which market quotations are not readily available at fair value as determined in good faith by the Manager, who has been appointed as the Fund's valuation designee, pursuant to Rule 2a-5 under the 1940 Act. Subject to the oversight of the Fund's Board of Directors, all valuations are determined under the direction of the Manager, in accordance with the valuation methods and Rule 2a-5.

As of December 31, 2022 and 2021, the financial statements included nonmarketable investments of $489.7 million and $484.0 million, respectively, (or 94.7% and 96.6% of total assets, respectively), with the fair values determined by the Manager in the absence of readily available market values. Because of the inherent uncertainty of these valuations, estimated fair values of such investments may differ significantly from the fair values that would have been used had a readily available market for the securities existed, and the differences could be material. Below is the information used by the Manager in making these estimates.

Loans

The Fund defines fair value as the price that would be received to sell an asset or paid to lower a liability in an orderly transaction between market participants at the measurement date. Because there is no readily available market price and no secondary market for substantially all of the loan investments made by the Fund in its borrowing portfolio companies, Management determines fair value based on hypothetical markets, and on several factors related to each borrower, including, but not limited to, the borrower’s payment history, available cash and “burn rate,” revenues, net income or loss, the likelihood that the borrower will be able to secure additional financing in the future, and an evaluation of the general interest rate environment. The amount of any valuation adjustment considers the estimated amount and timing of cash payments of principal and interest from the borrower and/or liquidation analysis and is determined based upon a credit analysis of the borrower and an analysis of the expected recovery from the borrower, including consideration of factors such as the nature and quality of the Fund’s security interests in collateral, the estimated fair value of the Fund’s collateral, the size of the loan, and the estimated time that will elapse before the Fund achieves a recovery. Management has evaluated these factors and has concluded that, the effect of deterioration in the quality of the underlying collateral, increase in size of the loan, increase in the estimated time to recovery and increase in the hypothetical market coupon rate would have the effect of lowering the fair value of the current portfolio of loans.

Non-Accrual Loans

The Fund’s policy is to classify a loan as non-accrual when the portfolio company is delinquent for three consecutive months on its monthly loan payment, or, in the opinion of Management, either ceases or drastically curtails its operations and Management deems that it is unlikely that the loan will return to performing status. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed for the quarter in which the loan was placed on non-accrual status. Any uncollected interest related to quarters prior to when the loan was placed on non-accrual status is added to the principal balance, and the aggregate balance of the principal and interest is evaluated in accordance with the policy for valuation of loans in determining Management’s best estimate of fair value. Interest received by the Fund on non-accrual loans will be recognized as interest income if and when the proceeds exceed the book value of the respective loan.

If a borrower of a non-accrual loan resumes making regular payments and Management believes that such borrower has regained the ability to service the loan on a sustainable basis, the loan is reclassified back to accrual or performing status. Interest that would have been accrued during the time a loan was classified as non-accrual will be added back to the remaining payment schedule causing a change in the effective interest rate.

As of December 31, 2022 and 2021, loans with a cost basis of $40.0 million and $27.1 million and a fair value of $12.4 million and $9.6 million, respectively, were classified as non-accrual.

Warrants and Equity Securities

Warrants and equity securities received in connection with loan transactions are measured at fair value at the time of acquisition. Warrants are valued based on a Black-Scholes option pricing model which considers, among several factors, the underlying stock value, expected term, volatility, and risk-free interest rate. It is anticipated that such securities will be distributed by the Fund to the Company simultaneously with, or shortly following, their acquisition.

The underlying asset value is estimated based on information available.

Volatility, or the amount of uncertainty or risk about the size of the changes in the warrant price, is based on an index of publicly traded companies grouped by industry and which are similar in nature to the underlying portfolio companies issuing the warrant (“Industry Index”). The volatility assumption for each Industry Index is based on the average volatility for individual public companies within the portfolio company’s industry for a period of time approximating the expected life of the warrants. A hypothetical increase in the volatility of the warrants used in the Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants.

58

The remaining expected lives of warrants are based on historical experience of the average life of the warrants, as warrants are often exercised in the event of acquisitions, mergers, or initial public offerings and terminated due to events such as bankruptcies, restructuring activities, or additional financings. These events cause the expected term to be less than the remaining contractual term of the warrants. As of December 31, 2022 and 2021, the Fund assumed the average duration of a warrant is 4.0 years. The effect of a hypothetical increase in the estimated initial term of the warrants used in the Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants. However, the estimated initial term of the warrants is one factor, of many, used in the valuation of warrants, and by itself does not have a significant impact on the results of operations.

The risk-free interest rate is derived from the constant maturity tables issued by the U.S. Treasury Department. The effect of a hypothetical increase in the estimated risk-free rate used in the Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants.

Other Assets and Liabilities

Other assets include costs incurred in conjunction with borrowings under the Fund’s debt facility and are stated at initial cost. These costs are amortized over the term of the facility.

The fair values of other assets and accrued liabilities are estimated at their carrying values because of the short-term nature of these assets and liabilities.

The carrying value of the borrowings under the debt facility approximates their fair value based on the borrowing rates available to the Fund.

Deferred Debt Facility Fees

    The deferred debt facility fees and costs associated with the debt facility are included in Other assets in the Statements of Assets and Liabilities and are being amortized over the estimated life of the facility, which currently matures on March 18, 2024. The amortization of these costs is recorded as interest expense in the Statements of Operations.

Commitment Fees

    Unearned income and commitment fees on loans are recognized using the effective-interest method over the term of the loan. Commitment fees are carried as liabilities when received for commitments upon which no draws have been made. When the first draw is made, the fee is treated as unearned income and is recognized as described above. If a draw is never made, the forfeited commitment fee less any applicable legal costs becomes recognized as other income after the commitment expires.

Derivative Instruments

The Fund uses derivative instruments to manage its exposure to changes in interest rates on expected borrowings under its debt facility, as the Fund originates fixed rate loans (see Note 8).

Derivative instruments are primarily valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for counterparty risk and the optionality of the interest rate terms. The valuation of the derivative instruments also considers the future expected interest rates on the notional principal balance remaining which is comparable to what a prospective acquirer would pay on the measurement date. Valuation pricing models consider inputs such as forward rates, anticipated interest rate volatility relating to the reference rate, as well as time value and other factors underlying derivative instruments.

The Fund is a party to master netting arrangements with Zions Bancorporation, N.A., however, the Fund has elected not to offset assets and liabilities under these arrangements for financial statement presentation purposes. Contracts are recorded at gross fair value in either derivative assets or derivative liability in the Statements of Assets and Liabilities, depending on whether the fair value of the contract is in favor of the Fund or the counterparty. The changes in fair value are recorded in net change in unrealized gain (loss) from derivative instruments in the Statements of Operations and the quarterly interest received or paid on the contract, if any, is recorded in net realized gain (loss) from derivative instruments in the Statements of Operations.

The interest rate collar instruments are contractually scheduled to terminate on March 18, 2024 and June 30, 2025.    

Recent Accounting Pronouncements

In June 2022, the FASB issued Accounting Standards Update No. 2022-03, "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03"). The amendments in this Update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The guidance is effective for fiscal years beginning after December 15, 2023. The Fund is evaluating the effects of these amendments on its financial statements and disclosures.

59

3. FAIR VALUE DISCLOSURES

    The Fund provides asset-based financing primarily to start-up and emerging growth venture-backed companies pursuant to commitments whereby the Fund agrees to finance assets and provide working or growth capital up to a specified amount for the term of the commitment, upon the terms and subject to the conditions specified by such commitment. Even though these loans are generally secured by the assets of the borrowers, the Fund in most cases is subject to the credit risk of such companies. As of December 31, 2022 and 2021, the Fund’s investments in loans were primarily to companies based within the United States and were diversified among borrowers in the industry segments shown in the Schedules of Investments. All loans are senior to unsecured creditors and other secured creditors, unless otherwise indicated in the Schedules of Investments.

The Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale. Because there is no readily available market price and no secondary market for substantially all of the loan investments made by the Fund to borrowing portfolio companies, Management determines fair value (or estimated exit value) based on a hypothetical market, and several factors related to each borrower.

    Loan balances in the Schedules of Investments are listed by borrower. Typically, a borrower’s balance will be composed of several loans drawn under a commitment made by the Fund with the interest rate on each loan fixed at the time each loan is funded. Each loan drawn under a commitment has a different maturity date and amount.

The following table shows the weighted-average interest rate of the performing loans and all loans.

	Performing Loans				All Loans
	For the years ended				For the years ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Weighted-Average Interest Rate - Cash	13.21	%	15.76	%	13.27	%	15.50	%
Weighted Average Interest Rate - Non-Cash	3.57	%	5.86	%	3.48	%	5.71	%
Weighted-Average Interest Rate	16.78	%	21.62	%	16.75	%	21.21	%

    Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs, volatility of values ascribed to warrants and new loans funded during the year.

    The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and loan as discussed in the Fund’s loan accounting policy. Such changes result in the fair value adjustments made to the individual loans, which in accordance with U.S. GAAP, would be based on the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date. Where the risk profile is consistent with the original underwriting, the cost basis of the loan often approximates fair value.

    All loans as of December 31, 2022 and 2021 were pledged as collateral for the debt facility, and the Fund’s borrowings are generally collateralized by all assets of the Fund. As of December 31, 2022 and 2021, the Fund had unexpired unfunded commitments to borrowers of $68.1 million and $97.9 million, respectively.

Valuation Hierarchy

    Under the FASB ASC Topic 820 (“Fair Value Measurement”), the Fund categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Fund’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.

    The three levels of the fair value hierarchy are defined as follows:

Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2	Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3	Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

    There were no transfers in and out of Level 1, 2 or 3 during the year ended December 31, 2022 and 2021.

    The Fund’s cash equivalents were valued at the traded net asset value of the money market fund. As a result, these measurements are classified as Level 1. The Fund’s derivative instruments are based on quotes from the market makers that derive fair values from market data, and therefore, are classified as Level 2. The Fund’s borrowings under the debt facility are also classified as Level 2, because the carrying values of the borrowings are based on rates that are observable at commonly quoted intervals, which are Level 2 inputs, and that approximate fair values. The Funds’ loan transactions are individually negotiated and unique, and because there is little to no market in which these assets trade, the inputs for these assets are valued using estimated exit values. As a result, the Fund’s loan investments are classified as Level 3.

60

    The following tables provide quantitative information about the Fund’s Level 3 fair value measurements of the Fund’s investments by industry as of December 31, 2022 and 2021. In addition to the techniques and inputs noted in the tables below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements.

Investment Type - Level 3
Loan Investments	Fair Value at December 31, 2022	Valuation Techniques / Methodologies	Unobservable Input	Range	Weighted Average (a)
Biotechnology	$20,242,076	Hypothetical market analysis	Hypothetical market coupon rate	13% - 17%	15%
Computers & Storage	$22,378,980	Hypothetical market analysis	Hypothetical market coupon rate	14 - 16%	14%
Enterprise Networking	$3,549,308	Asset Recovery	Probability weighting of alternative outcomes	10% - 40% *
Internet	$58,936,140	Hypothetical market analysis	Hypothetical market coupon rate	14% - 30%	16%
		Asset Recovery	Probability weighting of alternative outcomes	5% - 100%^
Medical Devices	$6,814,809	Hypothetical market analysis	Hypothetical market coupon rate	13% - 20%	15%
		Asset Recovery	Probability weighting of alternative outcomes	5% - 95%*
Other Healthcare	$35,863,539	Hypothetical market analysis	Hypothetical market coupon rate	13% - 22%	16%
		Asset Recovery	Probability weighting of alternative outcomes	5% - 80%*
Other Technology	$238,242,511	Hypothetical market analysis	Hypothetical market coupon rate	14% - 34%	16%
		Asset Recovery	Probability weighting of alternative outcomes	5% - 100%^
Security	$5,178,554	Hypothetical market analysis	Hypothetical market coupon rate	13% - 16%	14%
		Asset Recovery	Probability weighting of alternative outcomes	100%*
Software	$72,045,093	Hypothetical market analysis	Hypothetical market coupon rate	13% - 37%	16%
		Asset Recovery	Probability weighing of alternative outcomes	5% - 90%^
Technology Services	$23,738,663	Hypothetical market analysis	Hypothetical market coupon rate	13% - 24%	20%
		Asset Recovery	Probability weighting of alternative outcomes	25%*
Wireless	$2,701,992	Hypothetical market analysis	Hypothetical market coupon rate	14% - 17%	16%
Total Loan Investments	$489,691,665

(a) The weighted-average hypothetical market coupon rates were calculated using the relative fair value of the loans.

* There is only one loan within the industry.

^ Probability weightings vary among loan investments within each industry based on different potential future outcomes.

61

Investment Type - Level 3
Loan Investments	Fair Value at December 31, 2021	Valuation Techniques / Methodologies	Unobservable Input	Range	Weighted Average (a)
Biotechnology	$15,817,093	Hypothetical market analysis	Hypothetical market coupon rate	13% - 16%	15%
Computers & Storage	$24,062,710	Hypothetical market analysis	Hypothetical market coupon rate	*	14%
Enterprise Networking	$4,311,087	Asset Recovery	Probability weighting of alternative outcomes	10% - 20%*
Internet	$46,160,725	Hypothetical market analysis	Hypothetical market coupon rate	13% - 19%	16%
		Asset Recovery	Probability weighting of alternative outcomes	10% - 100%^
Medical Devices	$17,834,282	Hypothetical market analysis	Hypothetical market coupon rate	13% - 32%	17%
		Asset Recovery	Probability weighting of alternative outcomes	35% - 65%*
Other Healthcare	$42,002,872	Hypothetical market analysis	Hypothetical market coupon rate	14% - 24%	16%
		Asset Recovery	Probability weighting of alternative outcomes	20% - 80%*
Other Technology	$236,458,989	Hypothetical market analysis	Hypothetical market coupon rate	12% - 46%	19%
		Asset Recovery	Probability weighting of alternative outcomes	5% - 100%^
Security	$2,390,705	Hypothetical market analysis	Hypothetical market coupon rate	14% - 19%	18%
Software	$56,598,962	Hypothetical market analysis	Hypothetical market coupon rate	12% - 37%	17%
		Asset Recovery	Probability weighing of alternative outcomes	10% - 40%*
Technology Services	$27,739,468	Hypothetical market analysis	Hypothetical market coupon rate	13% - 26%	18%
		Asset Recovery	Probability weighting of alternative outcomes	10% - 50%*
Wireless	$10,670,751	Hypothetical market analysis	Hypothetical market coupon rate	14% - 17%	14%
Total Loan Investments	$484,047,644

(a) The weighted-average hypothetical market coupon rates were calculated using the relative fair value of the loans.

* There is only one loan within the industry.

^ Probability weightings vary among loan investments within each industry based on different potential future outcomes.

62

    The following tables present the balances of assets and liabilities as of December 31, 2022 and 2021 measured at fair value on a recurring basis:

As of December 31, 2022
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	489,691,665	$	489,691,665
Derivative assets	—		10,644,351		—		10,644,351
Cash equivalents	6,754,823		—		—		6,754,823
Total	$	6,754,823	$	10,644,351	$	489,691,665	$	507,090,839
LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	—		244,500,000		—		244,500,000
Total	$	—	$	244,500,000	$	—	$	244,500,000

As of December 31, 2021
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	484,047,644	$	484,047,644
Derivative assets	—		962,602		—		962,602
Cash equivalents	6,939,126		—		—		6,939,126
Total	$	6,939,126	$	962,602	$	484,047,644	$	491,949,372
LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	263,000,000	$	—	$	263,000,000
Derivative liability	—		130,697		—		130,697
Total	$	—	$	263,130,697	$	—	$	263,130,697

† For a detailed listing of borrowers comprising this amount, please refer to the Schedules of Investments.

    The following tables provide a summary of changes in Level 3 assets measured at fair value on a recurring basis:

	For the Year Ended December 31, 2022
	Loans		Warrants		Stocks		Others
Beginning balance	$	484,047,644	$	—	$	—	$	—
Acquisitions and originations	236,094,146		16,224,696		2,810,274		314,220
Principal payments on loans, net of accretion	(210,910,358)		—		—		—
Proceeds from sale of loan	(1,800,000)		—		—		—
Distributions to shareholder	—		(16,224,696)		(2,810,274)		(314,220)
Net realized loss from loans	(3,387,060)		—		—		—
Net change in unrealized loss from loans	(14,352,707)		—		—		—
Ending balance	$	489,691,665	$	—	$	—	$	—
Net change in unrealized loss from loans relating to loans still held at December 31, 2022	$	(17,199,833)	$	—	$	—	$	—

	For the Year Ended December 31, 2021
	Loans		Warrants		Stocks
Beginning balance	$	310,522,149	$	—	$	—
Acquisitions and originations	358,801,269		34,182,382		1,846,658
Principal payments on loans, net of accretion	(179,783,947)		—		—
Distributions to shareholder	—		(34,182,382)		(1,846,658)
Net realized loss from loans	(119,127)		—		—
Net change in unrealized loss from loans	(5,372,700)		—		—
Ending balance	$	484,047,644	$	—	$	—
Net change in unrealized loss from loans relating to loans still held at December 31, 2021	$	(5,620,711)	$	—	$	—

63

4. EARNINGS PER SHARE

Basic earnings per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding. Diluted earnings (loss) per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding, including the dilutive effects of potential common shares (e.g., stock options). The Fund has no instruments that would be potential common shares; thus, reported basic and diluted earnings (loss) per share are the same.

5.  CAPITAL STOCK

As of both December 31, 2022 and 2021, there were 10,000,000 shares of $0.001 par value common stock authorized, and 100,000 shares issued and outstanding. Total committed capital of the Company, as of both December 31, 2022 and 2021, was $460.0 million. Total contributed capital to the Company through December 31, 2022 and 2021 was $460.0 million and $388.7 million, respectively, of which $407.1 million and $345.6 million was contributed to the Fund, respectively.

The chart below shows the distributions of the Fund for the years ended December 31, 2022, 2021 and 2020.

	For the Year Ended		For the Year Ended		For the Year Ended
	December 31, 2022		December 31, 2021		December 31, 2020
Cash distributions	$	62,500,000	$	85,800,000	$	30,800,000
Distributions of equity securities and convertible notes	19,349,190		36,029,040		15,616,824
Total distributions to shareholder	$	81,849,190	$	121,829,040	$	46,416,824

6. DEBT FACILITY

    The 1940 Act requires a BDC to meet certain levels of asset coverage with respect to its outstanding “senior securities,” which typically consist of outstanding borrowings under credit facilities and other debt instruments. Historically, BDCs have only been allowed to incur indebtedness by issuing senior securities if their asset coverage equals at least 200% after giving effect to such borrowings. The Small Business Credit Availability Act (the “SBCAA”), which was signed into law on March 23, 2018, added a new Section 61(a)(2) to the 1940 Act that permits BDCs like the Fund to increase the amount of indebtedness they may incur by lowering the asset coverage requirement from 200% to 150% if they make certain disclosures and obtain the approval by either (1) a “required majority,” as defined in Section 57(o) of the 1940 Act, of the BDC’s board of directors, including a majority of non-interested directors within the meaning of Section 2(a)(19) of the 1940 Act (‘Independent Directors”), with effectiveness one year after the date of such approval or (2) a majority of votes cast at a special or annual meeting of the BDC’s shareholders at which a quorum is present, which is effective the day after such stockholder approval.

    On December 5, 2018, the required majority of the Fund’s Board, including a majority of its independent directors, unanimously determined it to be in the best interests of the Fund and its sole shareholder, the Company, to provide the Fund with maximum leverage flexibility, and approved the application to the Fund of a minimum asset coverage ratio of 150%, pursuant to Section 61(a)(2) of the 1940 Act, which would double the Fund’s borrowing limits, subject to approval by the Company, as the sole shareholder, via the pass-through voting of its members. Thereafter, at a special meeting of shareholders held on April 24, 2019, the Fund’s sole shareholder, the Company, approved the proposal to apply the reduced asset coverage requirement to the Fund. The 150% asset coverage ratio became effective for the Fund on April 25, 2019. As of December 31, 2022 and 2021, the Fund’s asset coverage for borrowings was 209% and 187%, respectively.

    On December 20, 2018, the Fund entered into a syndicated loan agreement led by MUFG Union Bank, N.A., Wells Fargo Securities, LLC and ING Capital LLC, with participation from Zions Bancorporation, N.A., doing business as California Bank & Trust, Bank Leumi USA, Umpqua Bank, HSBC Bank USA, N.A., and First Bank, that established a secured revolving loan facility in an initial amount of up to $200.0 million with the option to request that borrowing availability be increased up to $400.0 million (the “Loan Agreement”), subject to further negotiation and credit approval.

On March 18, 2021, the Fund entered into an Amendment to the Loan and Security Agreement with MUFG Union Bank, N.A., Wells Fargo Securities, LLC, Wells Fargo Bank, N.A. and ING Capital, LLC, with participation from TIAA, FSB, Bank Leumi USA, HSBC Bank USA, N.A., Umpqua Bank, Zions Bancorporation, N.A., doing business as California Bank & Trust, Hitachi Capital America Corp, First Bank, and Bank of Hope, that increased the size of the facility to $350 million and extended the term of the facility (the “Amended and Restated Loan and Security Agreement”). An additional $50.0 million was potentially available to the Fund, subject to further negotiation and credit approval, through an accordion provision.

64

On May 17, 2022, the Fund, entered into a First Amendment to the Amended and Restated Loan and Security Agreement (the “First Amendment”) with lenders named therein. The First Amendment provides for, among other modifications (i) an increase in the size of the facility to $400,000,000, (ii) replacement of the interest rate benchmark from LIBOR to Secured Overnight Financing Rate (“SOFR”), and (iii) conversion of an existing LIBOR Market Index Rate Loan to a Daily Simple SOFR Rate Loan.

Borrowings of the Fund are collateralized by all of the assets of the Fund and the Manager's right to receive management fees from the Fund. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan or a SOFR Rate Loan (calculated at Daily Simple SOFR or another applicable Term SOFR Reference Rate). As of December 31, 2022, the Fund’s outstanding borrowings were entirely based on the Daily Simple SOFR Rate Loan. The facility terminates on March 18, 2024, but can be accelerated in the event of default, such as failure by the Fund to make timely interest or principal payments.

The Fund pays interest on its borrowings and a fee on the unused portion of the facility. Under the First Amendment, interest is charged to the Fund based on its borrowings at, pursuant to the election of the Fund, an annual rate equal to either (i) the Reference Rate plus 1.50%, (ii) for a SOFR Rate Loan with an interest period of one month, SOFR plus 2.60% or (iii) for a SOFR Rate Loan with an interest period of three months, SOFR plus 2.65%. When the Fund is using 50% or more of the maximum amount available under the Loan Agreement, the applicable commitment fee is 0.25% of the unused portion of the loan facility; otherwise, the applicable commitment fee is 0.50% of the unused portion. The Fund pays the unused credit line fee quarterly. As of December 31, 2022 and 2021, $244.5 million and $263.0 million, respectively, was outstanding under the facility.

    As of December 31, 2022, the SOFR rate was as follows:

                

Overnight	4.3000%
Daily Simple SOFR	4.3000%
30-day Average SOFR	4.0617%
90-day Average SOFR	3.6189%

    Bank fees and other costs of $4.0 million incurred in connection with the acquisition of the facility have been capitalized and are amortized to interest expense on a straight-line basis over the expected life of the facility. As of December 31, 2022 and 2021, the unamortized fees and costs of $1.3 million and $2.0 million, respectively, are being amortized over the expected life of the facility, which is expected to terminate on March 18, 2024.

    The facility is revolving and as such does not have a specified repayment schedule, although advances are secured by the assets of the Fund and thus repayments will be required as assets decline. The facility contains various covenants including financial covenants related to: (i) minimum debt service coverage ratio, (ii) interest coverage ratio, (iii) unfunded commitment ratio, (iv) maximum quarterly loan loss reserve ratio, (v) maximum annual loan loss reserve ratio and (vi) maximum loan loss test. There are also various restrictive covenants, including limitations on: (i) the incurrence of liens, (ii) consolidations, mergers and asset sales and (iii) capital expenditures. As of December 31, 2022 and 2021, Management is not aware of instances of non-compliance with financial covenants.

    The following is the summary of the outstanding facility draws as of December 31, 2022:

	Amount		Maturity Date	All-In Interest Rate (a)
SOFR Rate Loan	$	244,500,000	March 18, 2024	Variable based on Daily Simple SOFR rate
Total Outstanding	$	244,500,000

(a)Inclusive of 2.60% applicable SOFR Rate Loan margin plus Daily Simple SOFR rate.

    The following is the summary of the outstanding facility draws as of December 31, 2021:

	Amount		Maturity Date	All-In Interest Rate (a)
LIBOR Market Index Rate Loan	$	263,000,000	March 18, 2024	Variable based on 1-Month LIBOR rate
Total Outstanding	$	263,000,000

(a) Inclusive of 2.50% applicable LIBOR margin plus LIBOR rate.

The floating interest rate for the debt facility as of December 31, 2022 and 2021 was 4.30% and 0.10%, respectively.

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7. MANAGEMENT AND RELATED PARTIES

Management

On October 13, 2022, in connection with the Transaction, the Fund entered into a new investment management agreement (the “Current Agreement”), by and between the Fund and the Manager, that replaced the previous investment management agreement entered into between the Fund and the Manager (the “Previous Agreement”). The closing of the Transaction constituted a change of control of the Manager which caused the Previous Agreement to terminate. Significant terms of the Current Agreement are the same as those of the Previous Agreement, including the fee rates described below.

As compensation for its services to the Fund, from the date of the first capital call, May 1, 2018, the Manager receives a management fee (“Management Fee”) computed and paid at the end of the quarter at an annual rate of the Company’s committed equity capital (regardless of when or if the capital was called) based on the following schedule of annual percentages:

	Management Fee
Year 1	1.575%
Year 2	1.600%
Year 3	1.575%
Year 4	1.500%
Year 5	1.250%
Year 6	0.900%
Year 7	0.600%
Year 8	0.350%
Year 9	0.150%

For the periods from January 1, 2022 through June 30, 2022 and from July 1, 2022 through December 31, 2022, Management Fees were calculated at 1.500% and 1.250% of the Company's committed capital, respectively. For the periods from January 1, 2021 through June 30, 2021 and from July 1, 2021 through December 31, 2021, Management Fees were calculated at 1.575% and 1.500% of the Company's committed capital, respectively.

Management Fees of $6.3 million, $7.1 million and $7.3 million were recognized as expenses for the years ended December 31, 2022, 2021 and 2020, respectively.

Related Parties

Certain officers and directors of the Fund also serve as officers and directors of the Manager. The Amended and Restated Articles of Incorporation of the Fund provide for indemnification of directors, officers, employees and agents (including the Manager) of the Fund to the full extent permitted by applicable state law and the 1940 Act, including the advance of expenses and reasonable counsel fees. The Amended and Restated Articles of Incorporation of the Fund also contain a provision eliminating personal liability of a Fund director or officer to the Fund or its shareholder for monetary damages for certain breaches of their duty of care. For this reason, the Fund has acquired a directors and officers insurance policy.

Transactions with Venture Lending & Leasing VIII, Inc. (“Fund VIII”)  

    The Manager also serves as investment manager for Fund VIII.  The Fund’s Board of Directors determined that so long as Fund VIII has capital available to invest in loan transactions with final maturities earlier than December 31, 2025 (the date on which Fund VIII will be dissolved), the Fund may invest in each portfolio company in which Fund VIII invests.  Generally, the amount of each investment will be allocated 50% to the Fund and 50% to Fund VIII, or such other allocations as may be determined by the respective fund boards, so long as the Fund has capital available to invest. Effective March 31, 2020, Fund VIII was no longer permitted to enter new commitments to borrowers; however, Fund VIII was permitted to fund existing commitments in which the Fund might also be invested. Fund VIII's last commitment expired on September 30, 2021. The ability of the Fund to co-invest with Fund VIII, and other clients advised by the Manager, is subject to the conditions (“Conditions”) with which the Funds are currently complying while seeking certain exemptive relief from the Securities and Exchange Commission (“SEC”) from the provisions of Sections 17(d) and 57 of the 1940 Act and Rule 17d-1 thereunder. The Manager has exercised, and the Board of Directors ratified, its discretion to extend the Fund’s investment period for two additional quarters, thereby allowing the Fund to make new commitments through December 31, 2022 and to fund commitments through December 31, 2023, the end of the Fund’s investment period. To the extent that clients, other than Fund VIII, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

66

Transactions with WTI Fund X, Inc. ("Fund X")

The Manager also serves as the investment manager for Fund X. The Fund’s Board of Directors determined that so long as Fund X has capital available to invest in loan transactions with final maturities earlier than December 31, 2031 (the date on which Fund X will be dissolved), the Fund may invest in each portfolio company in which Fund X invests. Generally, the amount of each investment will be allocated 50% to the Fund and 50% to Fund X, or such other allocations as may be determined by the respective fund boards, so long as the Fund has capital available to invest. The ability of the Fund to co-invest with Fund X, and other clients advised by the Manager, is subject to the Conditions described above. The Manager has exercised, and the Board of Directors ratified, its discretion to extend the Fund’s investment period for two additional quarters, thereby allowing the Fund to make new commitments through December 31, 2022 and to fund commitments through December 31, 2023, the end of the Fund’s investment period. To the extent that clients, other than Fund X, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Intercreditor Agreements  

    In all transactions in which the Fund and other funds managed by the Manager invest or those in which another lender(s) has either invested or may later invest (or in the event a successor fund is raised, in which the Fund and the successor fund invest), it is expected that the Fund and, other funds managed by the Manager (or the successor fund as the case may be), and/or the other lender(s) will enter into an intercreditor agreement pursuant to which the Fund and, other funds managed by the Manager (or the successor fund), and/or the other lender(s), along with any predecessor funds which still have a balance outstanding, will cooperate in pursuing their remedies following a default by the common borrower. Generally, under such intercreditor agreements, each party would agree that its security interest would be treated in parity with the security interest of the other party, regardless of which security interest would have priority under applicable law. Accordingly, proceeds realized from the sale of any collateral or the exercise of any other creditor’s rights will be allocated between the Fund and, other funds managed by the Manager, and any predecessor funds as described above, pro rata in accordance with the amounts of their respective investments. An exception to the foregoing arrangement would occur in situations where, for example, one of the lenders financed specific items of equipment collateral; in that case, usually the lender who financed the specific assets will have a senior lien on that asset, and the other lenders will have a junior priority lien (even though they may ratably share liens of equal priority on other assets of the common borrower). As a result of such intercreditor agreements, the Fund may have less flexibility in pursuing its remedies following a default than it would have had had there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and other funds managed by the Manager (or the successor fund) invest at the same time in the same borrower, such borrower would be required to service two loans rather than one. Any additional administrative costs or burdens resulting therefrom may make the Fund a less attractive lender and may make it more difficult for the Fund to acquire such loans.

8.    DERIVATIVE INSTRUMENTS

The Fund uses derivative instruments to manage its exposure to interest rates on expected borrowings under its debt facility, as the Fund originates fixed rate loans.

Interest Rate Collar

The Fund entered into interest rate collar transactions with Zions Bancorporation, N.A. dba California Bank & Trust. Certain information related to the Fund's interest rate collar contracts is presented below:

Counterparties	Effective Date	Notional Amount	Cap	Floor	Index	Maturity Date
Zions Bancorporation, N.A.	06/01/2022	$87,000,000	0.86%	0.35%	USD-SOFR rate	03/18/2024
Zions Bancorporation, N.A.	05/31/2022	$50,000,000	1.36%	0.42%	USD-SOFR rate	06/30/2025
Zions Bancorporation, N.A.	06/01/2022	$90,000,000	2.11%	0.53%	USD-SOFR rate	03/18/2024

The interest rate collar mitigates the Fund's exposure to interest rate fluctuations on variable rate index of the debt facility. The collar establishes a range where the Fund pays the counterparty if the SOFR rate falls below the established floor rate, and the counterparty will pay the Fund if the SOFR rate exceeds the established cap rate. The interest rate collar settles monthly.

Interest Rate Swap and Floor

On February 7, 2019, the Fund entered into an interest rate swap and floor agreement with MUFG Union Bank, N.A. The floor allowed the Fund to match the swap with the terms of the variable rate index of the debt facility. The interest rate swap and floor agreement terminated on December 20, 2021.

67

The following table shows the Fund's derivative instruments at fair value on the Fund's Statement of Assets and Liabilities as of December 31, 2022 and 2021.

	Derivative Assets				Derivative Liabilities
Derivative Instruments	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Interest rate collar	$	10,644,351	$	962,602	$	—	$	130,697

    

The following table shows the effect of the Fund's derivative instruments on the Fund's Statement of Operations for the years ended December 31, 2022, 2021 and 2020.

		For the Year Ended December 31,
Derivative Instruments	Statements of Operations Caption	2022		2021		2020
Interest rate collar	Net change in unrealized gain (loss) from derivative instruments	$	9,812,446	$	886,648	$	(54,742)
	Net realized gain (loss) from derivative instruments	$	1,891,885	$	(128,416)	$	(1,574)
Interest rate swap and floor	Net change in unrealized gain (loss) from derivative instruments	$	—	$	1,199,471	$	(373,898)
	Net realized loss from derivative instruments	$	—	$	(1,220,269)	$	(959,173)

The following tables show the Fund's assets and liabilities related to derivatives by counterparty, net of amounts available for offset under the master netting agreement and net of any collateral received or pledged by the Fund for such assets and liabilities as of December 31, 2022 and December 31, 2021.

	As of December 31, 2022
Counterparties	Derivative Asset Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash collateral received		Cash Collateral Received		Net Amount (1)
Zions Bancorporation, N.A.	$	10,644,351	$	—	$	—	$	—	$	10,644,351
Total	$	10,644,351	$	—	$	—	$	—	$	10,644,351
	As of December 31, 2021
Counterparties	Derivative Asset Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash collateral received		Cash Collateral Received		Net Amount (1)
MUFG Union Bank, N.A.	$	255,356	$	—	$	—	$	—	$	255,356
Zions Bancorporation, N.A.	707,246		(130,697)		—		—		576,549
Total	$	962,602	$	(130,697)	$	—	$	—	$	831,905
	As of December 31, 2021
Counterparty	Derivative Liability Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount (2)
Zions Bancorporation, N.A.	$	(130,697)	$	130,697	$	—	$	—	$	—
Total	$	(130,697)	$	130,697	$	—	$	—	$	—
(1) Net amount of derivative assets represents the net amount due from the counterparty to the Fund.
(2) Net amount of derivative liabilities represents the net amount owed by the Fund to the counterparty. There were no derivative liabilities as of December 31, 2022.

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9. TAX STATUS

    The Fund has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986 (the “Code”) and operates in a manner to qualify for the tax treatment applicable to RICs. Failing to maintain at least 70% of total assets in “qualifying assets” will result in the loss of BDC status, resulting in losing its favorable tax treatment as a RIC. As of December 31, 2022, the Fund has met the BDC and RIC requirements. The Fund elected to be treated for federal income tax purposes as a RIC under the Code with the filing of its federal income tax return for 2019.

In order to qualify for favorable tax treatment as a RIC, the Fund is required to distribute annually to its shareholder at least 90% of its investment company taxable income, as defined by the Code. To avoid federal excise taxes, the Fund must distribute annually at least 98% of its ordinary income and 98.2% of net capital gains from the current year and any undistributed ordinary income and net capital gains from the preceding years. The Fund, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If the Fund chooses to do so, all other things being equal, this would increase expenses and reduce the amount available to be distributed to its shareholder. The Fund will accrue excise tax on estimated undistributed taxable income as required.

    Below are tables summarizing the cost of investments for federal income tax purposes and the appreciation and depreciation of the investments reported on the Schedules of Investments and Statements of Assets and Liabilities as of December 31, 2022 and 2021:

	As of December 31, 2022
Asset	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Loans	$	521,905,950	$	—	$	(32,214,285)	$	(32,214,285)
Derivative assets	—		10,644,351				10,644,351
Total	$	521,905,950	$	10,644,351	$	(32,214,285)	$	(21,569,934)
There were no derivative liabilities as of December 31, 2022.

	As of December 31, 2021
Asset	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Loans	$	501,909,222	$	—	$	(17,861,578)	$	(17,861,578)
Derivative assets	—		962,602		—		962,602
Total	$	501,909,222	$	962,602	$	(17,861,578)	$	(16,898,976)
	As of December 31, 2021
Liability	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Derivative liability	$	—	$	—	$	(130,697)	$	(130,697)
Total	$	—	$	—	$	(130,697)	$	(130,697)

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with U.S. GAAP. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Temporary and permanent differences are primarily attributable to differences in the tax treatment of certain loans and the tax characterization of income and non-deductible expenses. These differences are generally determined in conjunction with the preparation of the Fund’s annual RIC tax return.

Book and tax basis differences relating to shareholder dividends and distributions and other permanent book and tax differences are reclassified among the Fund’s capital accounts. As of December 31, 2022 and 2021, there were no book reclassification of dividends and distributions, and other permanent book and tax differences, among the Fund's capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP. For income tax purposes, the distributions paid to the shareholder are reported as ordinary income, return of capital, or a combination thereof. For the years ended December 31, 2022 and 2021, the tax character of distributions paid was ordinary income in the amount of $62.9 million and $69.5 million, and return of capital of $18.9 million and $52.3 million, respectively.

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As of December 31, 2022 and 2021, the components of total distributions on a tax basis were as follows:

	December 31, 2022		December 31, 2021
Accumulated capital losses	$	(6,418,486)	$	(4,923,311)
Other temporary differences	(1,091,811)		(1,105,931)
Distributions in excess of net investment income	(109,832,473)		(92,372,533)
Net unrealized depreciation	(21,569,935)		(17,029,674)
Total distributions	$	(138,912,705)	$	(115,431,449)

    As of December 31, 2022, the Fund had no undistributed earnings. The Fund may pay distributions in excess of its taxable net investment income. This excess would be a tax-free return of capital in the period and reduce the shareholder’s tax basis in its shares.

    The Fund’s tax returns remain open for examination by the federal government for a period of three years and California tax authorities for a period of four years from when they are filed. As of December 31, 2022, the Fund had no uncertain tax positions and no capital loss carryforwards.

10. UNEXPIRED UNFUNDED COMMITMENTS

     As of December 31, 2022 and 2021, the Fund’s unexpired unfunded commitments to borrowers totaled $68.1 million and $97.9 million, respectively. Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is the Manager’s experience that not all unexpired unfunded commitments will be used by the borrowers. Many credit agreements contain provisions which are milestone dependent and not all borrowers will achieve these milestones. Additionally, the Fund’s credit agreements contain provisions that give relief from funding obligations in the event the borrower has a material adverse change to its financial condition. Therefore, the unexpired unfunded commitments do not necessarily reflect future cash requirements or future investments for the Fund.

    The tables below are the Fund’s unexpired unfunded commitments as of December 31, 2022 and 2021:

Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2022		Expiration Date
Abacum Inc.	Software	$	3,000,000	12/31/2023
Airspeed, Inc.	Other Technology	625,000		03/31/2023
Azumo, Inc.	Other Technology	1,000,000		03/31/2023
Bankroll Club, LLC	Other Technology	1,000,000		01/31/2023
BlueCart, Inc.	Software	500,000		04/30/2023
Bryte, Inc.	Other Technology	2,500,000		01/31/2023
Canopy Technology Corp.	Software	1,000,000		02/28/2023
CornerUp, Inc.	Other Technology	1,000,000		06/30/2023
Creoate Limited	Other Technology	500,000		03/31/2023
EasyKnock, Inc.	Other Technology	2,500,000		01/31/2023
Fanimal, Inc.	Other Technology	625,000		12/31/2023
Form Remodel, Inc.	Software	500,000		01/31/2023
FutureProof Technologies, Inc.	Software	1,250,000		07/31/2023
Grayce, Inc.	Other Healthcare	750,000		03/31/2023
Heading Health Inc.	Other Technology	750,000		06/30/2023
Hoken Holdings Inc.	Software	625,000		07/31/2023
Holo, Inc.	Other Technology	500,000		01/15/2023
iLearningEngines Inc.	Technology Services	2,500,000		01/31/2023
Julie Products Inc.	Other Healthcare	750,000		06/30/2023
Juvo Mobile, Inc.	Wireless	1,000,000		03/31/2023
KBS, Inc.	Other Healthcare	500,000		05/30/2023
LendTable Inc.	Other Technology	1,500,000		07/31/2023
Literati, Inc.	Other Technology	2,500,000		03/31/2023
Logistech Solutions Pte. Ltd.	Other Technology	3,500,000		05/31/2023
Miami Labs, Inc.	Internet	7,500,000		06/30/2023
Nue Life Health, Inc.	Other Technology	2,500,000		01/31/2023

70

Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2022		Expiration Date
Open Inc.	Other Healthcare	500,000		01/31/2023
Overalls, Inc.	Software	500,000		03/31/2023
Plant Prefab, Inc.	Other Technology	1,500,000		03/31/2023
PlantBaby, inc.	Other Technology	125,000		01/31/2023
Platform Science, Inc.	Other Technology	5,000,000		09/30/2023
Rise Gardens, Inc.	Other Technology	500,000		02/28/2023
Romaine Empire, Inc.	Other Technology	3,000,000		04/30/2023
SISU Aesthetics Clinic, Inc.	Other Technology	1,500,000		06/30/2023
Snoqualmie, Inc.	Other Healthcare	1,750,000		09/15/2023
Supplant, Inc.	Other Technology	1,000,000		07/30/2023
TheSquareFoot, Inc.	Other Technology	1,200,000		03/31/2023
TLNT Inc.	Other Technology	625,000		04/30/2023
Ukko Inc.	Biotechnology	2,500,000		03/31/2023
Vinvesto, Inc.	Internet	500,000		02/28/2023
Virtuix Holdings, Inc.	Other Technology	500,000		05/31/2023
Yuva Biosciences, Inc.	Other Healthcare	250,000		07/31/2023
Zimeno Inc.	Other Technology	6,250,000		01/29/2023
Total		$	68,075,000

Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2021		Expiration Date
10club Pte Ltd.	Internet	$	25,000,000	09/30/2022
Amino, Inc.	Software	11,000,000		12/31/2022
Bryte, Inc.	Other Technology	2,500,000		01/31/2023
Ceres Imaging, Inc.	Other Technology	1,750,000		10/31/2022
Coterie Applications, Inc.	Other Technology	5,000,000		01/31/2022
Fakespot, Inc.	Other Technology	500,000		01/31/2022
Genomic Prediction, Inc.	Biotechnology	1,000,000		03/31/2022
iLearningEngines Inc.	Technology Services	7,500,000		07/31/2022
Invert Robotics Group, Ltd.	Other Technology	1,000,000		01/31/2022
Kinoo, Inc.	Other Technology	1,000,000		04/30/2022
Lacuna Technologies, Inc.	Other Technology	2,500,000		07/31/2022
Lassen Peak, Inc.	Security	375,000		01/31/2022
Loansnap Holdings Inc.	Technology Services	3,750,000		04/30/2022
Luva Inc.	Other Technology	500,000		02/28/2022
MASC Inc.	Other Technology	1,500,000		07/31/2022
Mavenform, Inc.	Other Technology	2,000,000		04/30/2022
Merlin Labs, Inc.	Other Technology	1,000,000		03/31/2022
Norbert Health, Inc.	Medical Devices	1,000,000		01/31/2022
Phase Four, Inc.	Other Technology	1,000,000		04/01/2022
RenoFi, Inc.	Internet	6,000,000		10/31/2022
Safe Securities Inc.	Software	2,000,000		04/15/2022
SF Insuretech, Inc.	Software	5,000,000		03/31/2022
StayTuned Digital, Inc.	Software	3,213,732		12/31/2022
Taptap Send, Inc.	Other Technology	9,000,000		12/31/2022
Therapydia, Inc.	Other Healthcare	1,000,000		04/30/2022
Trucking Jobs Technologies, Inc.	Software	610,000		01/31/2022
Usual Beverage Co.	Internet	1,000,000		01/31/2022
WorkRails, Inc.	Software	250,000		05/31/2022
Total		$	97,948,732

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11. FINANCIAL HIGHLIGHTS

U.S. GAAP requires disclosure of financial highlights of the Fund for the years ended December 31, 2022, 2021, 2020, 2019, and 2018.

The total rate of return is defined as the return based on the change in value during the period of a theoretical investment made at the beginning of the period.  The total rate of return assumes a constant rate of return for the Fund during the period reported and weights each cash flow by the amount of time held in the Fund. This required methodology differs from an internal rate of return.

For the years ended December 31, 2022, 2021, 2020, 2019 and 2018, the ratios of expenses and net investment income (loss) to average net assets, calculated below, are computed based upon the aggregate weighted average net assets of the Fund for the periods presented. Net investment income (loss) is inclusive of all investment income net of expenses and excludes realized or unrealized gains and losses.

Beginning and ending net asset values per share are based on the beginning and ending number of shares outstanding. Other per share information is calculated based upon the aggregate weighted average net assets of the Fund for the periods presented.

The following per share data and ratios have been derived from the information provided in the financial statements:

	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2022			December 31, 2021			December 31, 2020			December 31, 2019			December 31, 2018
Total return	26.49		%	33.72		%	13.87		%	9.70		%	160.39		%
Per share amounts:
Net asset value, beginning of year	$	2,301.94		$	1,833.27		$	1,138.32		$	740.89		$	(1.59)
Net investment income (loss)	644.03			709.50			339.13			118.72			(9.64)
Net realized and change in unrealized loss from loans and derivative instruments	(60.35)			(47.54)			(130.01)			(41.97)			—
Net increase (decrease) in net assets resulting from operations	583.68			661.96			209.12			76.75			(9.64)
Distributions of income to shareholder	(629.08)			(694.82)			(329.25)			(94.05)			(72.88)
Return of capital to shareholder	(189.42)			(523.47)			(134.92)			(241.27)			—
Contributions from shareholder	615.00			1,025.00			950.00			656.00			825.00
Net asset value, end of year	$	2,682.12		$	2,301.94		$	1,833.27		$	1,138.32		$	740.89
Net assets, end of year	$268,212,295			$230,193,551			$183,326,835			$113,832,373			$74,088,727
Ratios to average net assets:
Expenses	7.95		%	6.69		%	8.17		%	14.78		%	16.60		%
Net investment income (loss)	26.17		%	31.60		%	22.50		%	14.70		%	(2.96)		%
Portfolio turn-over rate	0.38		%	—		%	—		%	0.54		%	—		%
Average debt outstanding	$	264,153,846		$	206,569,231		$	109,269,231		$	61,169,231		$	6,000,000		^

^ The average debt outstanding is over the period from the establishment of the debt facility, December 20, 2018, through December 31, 2018.

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12. SUBSEQUENT EVENTS

On March 10, 2023, SVB Financial Group’s (“SVB”) wholly owned subsidiary, Silicon Valley Bank (the “Bank”) was closed by the California Department of Financial Protection and Innovation, and the FDIC was appointed as receiver. The Fund had exposure to this event indirectly through certain of its Portfolio Companies who hold deposits with SVB in excess of the FDIC insured limits, which could impact their ability to repay the Fund and meet other contractual obligations.

On March 12, 2023, the FDIC in a joint statement with the Federal Reserve and the Department of Treasury announced that all depositors of SVB will be fully protected and were given full access to their funds beginning March 13, 2023.

Other than the foregoing, the Fund evaluated other subsequent events through the date the financial statements were issued and determined that no additional subsequent events had occurred that would require accrual or disclosure in the financial statements.

73