FORM 10-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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

For the year ended December 31, ~~2014~~2015



[ ]	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 814-00799

VENTURE LENDING & LEASING VI, INC.

(Exact name of registrant as specified in its charter)



Maryland	27-1682622
(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 has (i) filed all reports required to be filed by Section 13 or 15(d) of the Securities and 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part II of this Form 10-K or any amendment to this Form 10-K: [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):



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

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 1715, ~~2015~~2016 was 100,000.

Documents 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 1311, ~~2015~~2016	III

PART I.


ITEM 1.	BUSINESS

Introduction.

Venture Lending & Leasing VI, Inc. (the “Fund”) was incorporated in Maryland on January 11, 2010, as a non-diversified, closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940 (“1940 Act”). The Fund is a wholly owned subsidiary of Venture Lending & Leasing VI, LLC, a Delaware limited liability company (the “Company”). The purpose of the Fund is to provide asset-based financing to venture-capital-backed companies, in the form of secured loans. Additionally, the Fund may provide debt financing to public and late-stage private companies. Prior to commencing its operations on June 29, 2010, the Fund had no operations other than the sale of 100,000 shares of common stock, $0.001 par value to the Company for $25,000 in January 2010. As of December 31, ~~2014~~2015, the Fund meets the requirements, including diversification requirements, to qualify as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986.

The Fund's shares of Common Stock, at $.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. As a BDC, the Fund ismust ~~required to~~ invest inat ~~eligible~~least ~~portfolio~~70% ~~companies~~of ~~and~~its ~~(with~~total ~~certain~~assets ~~exceptions)~~in ~~make~~qualifying ~~available~~assets to(“Qualifying ~~them~~Assets”) ~~significant~~consisting ~~managerial~~of ~~assistance. Generally,~~(a) aninterests ~~eligible~~in ~~portfolio~~Eligible ~~company~~Portfolio isCompanies aand ~~U.S.~~(b) ~~company~~certain ~~(i.e.,~~other isassets ~~organized~~including cash and ~~has~~cash ~~its~~equivalents. An ~~principal~~"Eligible ~~place~~Portfolio ofCompany" ~~business~~is ina ~~the~~United ~~U.S.)~~States company that is not an investment company, (as defined, or ~~excepted~~excluded from the definition of an investment company ~~pursuant~~in to Section 3~~(c)~~ of the 1940 Act), and that ~~meets one of the following tests~~either: (1i) itdoes ~~has~~ not ~~issued~~have a class of ~~margin~~ securities ~~that~~listed ison ~~eligible~~a ~~for~~national ~~margin~~securities ~~loans;~~exchange, ~~(2)~~or does ~~not~~ have ~~any~~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 million; or (3ii) it is aactively ~~very~~controlled ~~small~~by a BDC and ~~solvent~~has ~~company~~an ~~($4~~affiliate ~~million~~of a BDC on the Eligible Portfolio Company’s Board of Directors; or ~~less~~(iii) inhas total assets of not more than $4 million and capital and surplus of not less than $2 million); or (4iv) itmeets issuch ~~controlled~~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 orowns ~~group~~more than 25% of ~~companies~~the ~~including~~outstanding voting securities of the eligible portfolio company. Also included in Qualifying Assets are follow-on investments in a ~~BDC~~company ~~and~~that met the ~~BDC~~definition ~~exercises~~of Eligible Portfolio Company at the time of the Fund’s initial investment, but subsequently does not meet such definition because it has a ~~controlling~~class ~~influence~~of ~~over~~securities listed on a national securities exchange, if, at the ~~portfolio~~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 ~~has~~(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 ~~affiliated~~Eligible ~~person~~Portfolio ~~who~~Company, and (b) is aone ~~director~~of the twenty largest holders of record of the ~~portfolio~~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 of December 31, 2015, the percentage of non-qualifying investments in the Fund was 8.3%.

BDCs cannot acquire any assets other than those Qualifying Assets described in subparagraphs (1) through (8) below ~~(“Qualifying Assets”)~~ unless, at the time of the acquisition, the assets described in subparagraphs (1) through (8) below represent 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~~Eligible ~~portfolio~~Portfolio ~~companies”~~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 Commission 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~~Eligible ~~portfolio~~Portfolio ~~company~~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~~Eligible ~~portfolio~~Portfolio ~~company~~Company, and, (iii) the BDC is one of the 20 largest holders of the issuer's outstanding voting securities.

3. Securities of any ~~eligible~~Eligible ~~portfolio~~Portfolio ~~company~~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~~Eligible ~~portfolio~~Portfolio ~~company~~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;3

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; or

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 business development company, 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 business development company of a controlling influence over the management or polices of the portfolio company by the business development company acting individually or as part of a group acting together which controls the portfolio company. The officers of the Fund intend to 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.

Venture Loans. Venture loans generally consist of a promissory note secured by the equipment or other assets of the borrower. The Fund generally obtains a security interest in the assets financed and receives periodic payments of interest and principal, and may receive a final payment constituting additional interest at the end of the transaction's term. The interest rate and amortization terms of venture loans are individually negotiated between the Fund and each borrower.

Typically, loans are structured as commitments by the Fund to finance assets of the borrower over a specified period of time. The commitment of the Fund to finance future asset acquisitions 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 financed. Although the Fund's commitments generally provide that the Fund is not required to continue to fund additional loans if there is a material adverse change in the borrower's financial condition, it is possible that a borrower's financial condition will not be as strong at the time the Fund finances an asset acquisition as it was at the time the commitment was entered into.

Warrants and Equity Securities. The Fund generally acquires warrants to purchase equity securities of the borrower in connection with asset financings. 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. Substantially all the warrants and underlying equity securities are restricted securities under the Securities Act of 1933 (“1933 Act”) at the time of issuance; the Fund generally negotiates registration rights with the borrower that may provide (i) "piggyback" registration rights, which permit the Fund under certain circumstances to include some or all of the securities owned by it in a registration statement filed by the borrower or (ii) under rare circumstances, "demand" registration rights permitting the Fund under certain circumstances to require the borrower to register the securities under the 1933 Act (in some cases at the Fund's expense).

Investment Policies. For purposes of ~~these~~the investment policies ~~and~~(other ~~unless~~than ~~otherwise~~the ~~specified~~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 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 maximum amount of securities to be issued by the borrower ofto the Fund pursuant to such commitment; 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 qualify as a RIC, and therefore must meet diversification standards under the Internal Revenue Code.

To qualify as a RIC, the Fund must meet the issuer diversification standards under the Internal Revenue Code that require that, at the close of each quarter of the Fund's taxable year, (i) not more than 25% of the market value of its total assets is invested in the securities of a single issuer and (ii) at least 50% of the market value of its total assets is represented by cash, cash items, government securities, securities of other RICs and other securities (with each investment in such other securities limited so that not more than 5% of the market value of the Fund's total assets is invested in the securities of a single issuer and the Fund does not own more than 10% of the outstanding voting securities of a single issuer). For purposes of the diversification requirements under the Internal Revenue 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.

The Fund will generally invest no more than 30% of its total assets in securities of companies in any single industry. 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, medical devices, software, and several other categories.

Investment Guidelines. In selecting investments for the Fund's portfolio, Westech Investment Advisors LLC (the “Manager”) will endeavor to meet the investment guidelines established 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.

Leverage. The Fund is permitted to borrow money from and issue debt securities to banks, insurance companies and other lenders to obtain additional funds to originate venture loans. 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 percent. "Asset coverage" means the ratio which the value of the Fund's total assets, less all liabilities not represented by the borrowings and 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

Investment Guidelines. In selecting investments for the Fund's ~~borrowings~~portfolio, ~~and~~Westech ~~other~~Investment ~~senior~~Advisors ~~securities~~LLC (the “Manager”) will endeavor to ~~50%~~meet the investment guidelines established by the Fund's Board of ~~its~~Directors. ~~total~~The ~~assets~~Fund ~~less~~may, ~~its~~however, ~~liabilities~~make ~~other~~investments ~~than~~that do not conform to one or more of these guidelines when deemed appropriate by the ~~borrowings~~Manager. ~~and~~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 ~~senior~~attractive ~~securities~~transaction terms or features.

The use of leverage increases investment risk. The Fund's lenders require that the Fund pledge portfolio assets as collateral for loans. If the Fund is unable to service the borrowings, the Fund may risk the loss of such pledged assets. Lenders also require 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.

Temporary Investments. Pending investment, inand ~~asset~~until ~~financing~~distributions ~~transactions~~to ~~and~~the ~~pending~~shareholders ~~distributions~~are made, the Fund ~~invests~~will invest excess cash in: (i) ~~securities~~time ~~issued~~deposits, orcertificates ~~guaranteed~~of bydeposit ~~the~~and ~~U.S.~~similar ~~government,~~instruments ~~its~~of ~~agencies~~highly-rated orbanks; ~~instrumentalities,~~ (ii) ~~repurchase agreements fully collateralized by U.S. government~~ securities orissued ~~(iii) short-term high-quality debt instruments of U.S. corporations. All such investments will mature in one year~~ or ~~less. The~~guaranteed ~~U.S.~~by ~~government securities in which~~ the ~~Fund may invest include~~ U.S. government, ~~securities~~its ~~backed~~agencies byor ~~the~~instrumentalities; ~~full faith and credit of the U.S. government~~ (~~such~~iii) asrepurchase ~~Treasury~~agreements ~~bills,~~that ~~notes~~are: ~~and bonds~~(a) asissued ~~well as securities backed only~~ by ~~the~~highly-rated ~~credit of the issuing agency. Corporate securities in which the Fund may invest include commercial paper, bankers' acceptances and certificates of deposit of domestic or foreign issuers.~~banks

~~The~~or ~~Fund~~securities ~~also~~dealers; ~~may~~and ~~enter~~(b) ~~into repurchase agreements that are~~ fully collateralized by U.S. government securities; ~~with~~(iv) ~~banks~~short-term orhigh-quality ~~recognized~~debt ~~securities~~instruments ~~dealers,~~of ~~in which the Fund purchases a~~ U.S. ~~government~~corporations; ~~security from the institution~~ and ~~simultaneously~~(v) ~~agrees~~money ~~to resell it to the seller at an agreed-upon date and price. The repurchase price is related to an agreed-upon~~ market ~~rate~~funds ~~of interest rather than the coupon of the debt security~~ and, inother ~~that~~pooled ~~sense,~~investment ~~these~~funds ~~agreements~~whose investments are ~~analogous~~restricted to ~~secured~~those ~~loans~~described ~~from the Fund to the seller~~above. ~~Repurchase~~ ~~agreements~~The ~~carry~~average ~~certain~~maturity ~~risks~~of ~~not~~such ~~associated with direct~~ investments ~~in securities~~, ~~including~~weighted ~~possible~~by ~~declines~~their inpar ~~the market~~ value, ofwill ~~the~~not ~~underlying~~exceed ~~securities~~90 ~~and delays and costs to the Fund if the other party to the transaction defaults~~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 status as a BDC) are not fundamental policies and may be ~~changed~~changes by the Fund’'s ~~board~~Board of ~~directors~~Directors at any time. The Fund has invested in transactions with Venture Lending & Leasing V, Inc. ("Fund V") and Venture Lending & Leasing VII, Inc. ("Fund VII") generally in the form of independent loan commitments to the same venture capital-backed companies. See the discussion herein under the caption “Risk Factors – Conflicts of Interest”.

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.

The Fund, as a BDC, may sell its ~~own~~ securities at a price that is below its net asset value per share, provided that a majority of the Fund's disinterested directors 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 Managers, 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 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.

Until June 29, 2014, the Fund may make loan commitments to reinvest the proceeds of matured, repaid or resold investments, net of required distributions to its shareholder, principal payments on borrowings and expenses or other obligations of the Fund, in new loans. Following that date, 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 Internal Revenue 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.

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.


ITEM 1A.	RISK FACTORS.

GENERAL

Reliance on Management. The Fund is 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 over ~~several~~55 ~~decades~~years’ 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 situations such as convertible and subordinated debt of public and late-stage private companies. ~~The~~ officers of the Manager have primary responsibility for the selection of the companies in which the Fund invests, the negotiation of the terms of such investments and the monitoring 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 their positions.

Illiquid and Long-Term Investment. After the fourth anniversary following the first closing of the Company's offering of membership interests, the Fund has ceased to make new equity investments as well as investments in venture loans (except pursuant to commitments made before the fourth anniversary following the first closing of the Company's offering of membership interest) and will distribute to its shareholder all proceeds received from principal payments and sales 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; 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 Articles of Incorporation provide that, on December 31, 2020, 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, 2020, 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.

~~Competition. Other~~Although ~~entities~~shares ~~and~~of ~~individuals compete for investments similar to those made by~~ the Fund, ~~some~~have ofbeen ~~whom,~~registered ~~with~~under ~~respect to investments in~~ the ~~form~~1934 ~~of loans~~Act, ~~and~~there ~~many~~will ofbe ~~whom,~~no ~~with~~trading ~~respect~~market tofor ~~the~~shares ~~equity investments and convertible and subordinated debt, have greater resources than the Fund. Competition could increase given the low barriers to entry~~ in the ~~industry. Additionally, the~~ Fund's ~~need~~(which toare ~~comply~~all ~~with~~owned ~~provisions~~by of the ~~Investment~~ Company ~~Act of 1940 Act (the “1940 Act”~~), ~~pertaining to BDCs~~ and, ifthus ~~the~~shares ~~Fund qualifies as a RIC, provisions~~ of the ~~Internal Revenue Code pertaining to RICs, might restrict the~~ Fund's ~~flexibility~~should asbe ~~compared~~considered ~~with its competitors~~illiquid.

Competition. Other entities and individuals compete for investments similar to those 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, if the Fund continues to qualify as a RIC, provisions of the

Internal Revenue 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.

Convertible Debt. Convertible debt instruments issued by public and late-stage private companies may comprise some of the special situations in which the Fund ~~invests~~may invest. Convertible debt generally offers lower interest yields than non-convertible debt of similar quality. The market value of ~~convertible~~ debt tends to decline as interest rates increase and, conversely, to increase as interest rates decline. ~~However,~~ The ~~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. Part of the special situations in which the Fund ~~invests~~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 borrows money from and issues debt securities to banks, insurance companies and other lenders to obtain additional funds to originate venture loans. 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%. "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, provision 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%. If the Fund is unable to pay dividends or distributions in the amounts required under the Internal Revenue 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 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 will 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. Furthermore, since the calculation of the investment management fee ~~paid to the Manager~~ is based ~~in part~~ on a percentage of the managed assets, such fee will be higher if the Fund utilizes leverage than if no borrowings were incurred. Lenders have required that the Fund pledge portfolio assets as collateral for borrowings, and have required that the Company provide guarantees of the debt facility. If the Fund is unable to service the borrowings, the Fund may risk the loss of such pledged assets.

Lenders have ~~also~~ required that the Fund ~~agrees~~pledge toportfolio ~~loan~~assets ~~covenants~~as ~~limiting~~collateral ~~the~~for ~~Fund's ability to incur additional debt or otherwise limiting the Fund's flexibility~~borrowings, and ~~loan~~may ~~agreements~~require ~~provide~~that ~~for acceleration of~~ the ~~maturity~~Company ofprovide ~~the~~guarantees ~~indebtedness~~or ifother ~~certain~~credit ~~financial tests are not met~~enhancements. To The ~~minimize~~Company, ~~risks associated with lending money at fixed rates~~however, ~~the~~will ~~Fund~~not ~~enters~~pledge ~~into~~its ~~interest~~assets ~~rate hedging transactions with respect~~ to ~~all~~secure ~~or any portion of the Fund's investments. There can be no assurance that~~ such ~~interest~~borrowings ~~rate~~as ~~hedging~~this ~~transactions~~could ~~will~~result bein ~~available~~unrelated inbusiness ~~forms~~taxable ~~acceptable~~income to ~~the Fund. The variable interest rate that the Fund's lenders charge cannot be perfectly hedged, and there may be a divergence between the interest rate obtained by the Fund on~~ its ~~interest~~tax-exempt ~~rate~~members. If ~~hedging transactions and~~ the ~~interest rate charged to the~~ Fund byis ~~its~~unable ~~lenders. In addition, entering into interest rate hedging transactions raises costs~~ to service the ~~Fund. Finally~~borrowings, ~~it is possible that~~ the Fund ~~could~~may ~~incur~~risk ~~losses from being “over-hedged” which would result if~~ the ~~loan~~loss ~~that~~of ~~was~~such ~~hedged~~pledged ~~is repaid faster than expected~~assets.

~~Regulation. The~~Lenders ~~Fund~~have ~~has~~also ~~elected~~required tothat bethe ~~treated~~Fund asagree ato ~~BDC~~loan ~~under~~covenants limiting the ~~Small~~Fund’s ~~Business~~ability ~~Incentive~~to ~~Act~~incur ofadditional ~~1980,~~debt ~~which~~or ~~modified~~otherwise limiting the ~~1940~~Fund’s ~~Act. Although~~flexibility, ~~BDCs~~and ~~are~~loan ~~now~~agreements ~~exempt~~may ~~from~~provide ~~registration~~for ~~under~~acceleration of the ~~1940~~maturity ~~Act~~of ~~and~~the ~~are~~indebtedness ~~relieved~~if ~~from~~certain ~~compliance~~financial ~~with~~tests ~~many~~are ~~provisions~~not ofmet. To ~~the~~minimize ~~1940~~risks ~~Act,~~associated ~~there~~with ~~are~~borrowing ~~now~~money ~~greater~~at ~~restrictions~~floating inrates ~~some~~and ~~respects~~lending onmoney ~~permitted~~at ~~types~~fixed ~~of investments for BDCs. Moreover~~rates, the ~~applicable~~Fund ~~provisions~~may ofenter ~~the~~into ~~1940~~interest ~~Act~~rate ~~continue~~hedging totransactions ~~impose~~with ~~numerous~~respect ~~restrictions~~to onall ~~the~~or ~~activities~~any portion of the Fund,’s ~~including~~borrowings. There ~~restrictions~~can onbe ~~leverage~~no ~~and~~assurance onthat ~~the~~such ~~nature~~interest ofrate ~~its~~hedging ~~investments. While~~transactions ~~the~~will ~~Fund~~be isavailable ~~not~~in ~~aware~~forms ofacceptable ~~any~~to ~~judicial~~the ~~rulings~~Fund. In ~~under~~addition, ~~and~~entering isinto ~~aware~~interest ofrate ~~only~~hedging atransactions ~~few~~raises ~~administrative~~costs ~~interpretations~~to ~~of,~~ the ~~Small Business Incentive Act of 1980~~Fund. Finally, ~~there~~it ~~can~~is bepossible nothat ~~assurance~~the ~~that~~Fund ~~such~~could ~~Act~~incur ~~will~~losses befrom ~~interpreted~~being or“overhedged,” ~~administratively~~which ~~implemented~~would inresult aif ~~manner~~the ~~consistent~~debt ~~with~~that ~~the~~was ~~Fund's~~hedged ~~objectives~~is orrepaid ~~manner~~faster ofthan ~~operation~~expected.

~~Litigation~~Regulation. The Fund ~~could~~has elected to be ~~subject~~treated as a BDC under the Small Business Incentive Act of 1980, which modified the 1940 Act. Although BDCs are not required to ~~litigation~~register byunder ~~borrowers~~the 1940 Act and are relieved from compliance with a number of the provisions of the 1940 Act, ~~based~~there are now greater restrictions in some respects on ~~theories~~permitted types of ~~“breach~~investments for BDCs. Moreover, the applicable provisions of ~~contract~~the 1940 Act continue to ~~lend”~~impose ornumerous ~~"lender~~restrictions ~~liability"~~on orthe ~~otherwise,~~activities inof ~~connection~~the ~~with~~Fund, ~~its~~including ~~loan~~restrictions on leverage and ~~investment~~on ~~transactions~~the nature of its investments. ~~The~~ While ~~defense~~the Fund is not aware of ~~such~~any judicial rulings under, and is aware of only a ~~lawsuit~~few administrative interpretations of, ~~even~~the ifSmall ~~ultimately~~Business ~~determined~~Incentive toAct of 1980, there can be ~~without~~no ~~merit,~~assurance ~~could~~that such Act will be ~~costly~~interpreted ~~and~~or ~~time-consuming.~~administratively implemented in a manner consistent with the Fund’s objectives or manner of operation.

~~Tax Status~~Litigation. The Fund ~~must~~could ~~meet~~be asubject ~~number~~to oflitigation ~~requirements,~~by ~~described under "Federal Income Taxation~~borrowers," tobased ~~qualify~~on ~~for~~theories ~~the~~of ~~pass-through~~breach ~~status~~of ascontract ato ~~RIC and~~lend, if“lender ~~qualified~~liability,” toor ~~continue~~otherwise toin soconnection ~~qualify. For~~with ~~example,~~its ~~the~~loan ~~Fund~~and ~~must~~investment ~~meet~~transactions. The ~~specified~~defense ~~asset~~of ~~diversification~~such ~~standards under the Internal Revenue Code which might be difficult to meet if the borrowers under some loans draw down their committed financing at~~ a ~~faster rate than other borrowers~~lawsuit, ~~particularly~~even ~~during~~if ~~the~~ultimately ~~early~~determined ~~periods~~to ofbe ~~the~~without ~~Fund's operations. If the Fund experiences difficulty in meeting the diversification requirement for any quarter of its taxable year~~merit, itcould ~~might~~be ~~accelerate~~costly ~~capital~~and ~~calls~~time-consuming ~~or borrowings in order~~ to ~~increase~~ the Fund.

Tax Status. The Fund must meet a number of requirements, described herein under the caption “Federal Income Taxation,” 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 Internal Revenue Code which might be difficult to meet if the borrowers under some loans drew down their committed financing at a faster rate than other borrowers, 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. ~~However,~~ The ~~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.

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 remains 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 Internal Revenue Code, if the Fund’s status as a RIC is challenged by 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 Internal Revenue Code, regulations thereunder, Internal Revenue Service (the “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 may be deductible by an individual Member as a miscellaneous itemized deduction, subject to the limitation on miscellaneous itemized deductions not exceeding 2% of adjusted gross income to the extent the Fund is not engaged in a trade or business.

Calculation of ~~Investment~~ Management Fee. As compensation for its services to the Fund, the Manager receives a management fee (“Management Fee”) computed and paid at the end of each quarter at an annual rate of 2.5 percent of the Company's committed equity capital (regardless of when or if the capital is called) as of the last day of each fiscal quarter in a two-year period commencing with the first capital closing, which took place on June 29, 2010. Following this two-year period, Management Fees are calculated and paid at the end of each quarter at an annual rate of 2.5 percent of the Fund's total assets (including amounts derived from borrowed funds) as of the last day of each quarter.

(regardless of when or if the capital is called) as of the last day of each fiscal quarter in a two-year period commencing with the first capital closing, which took place on June 29, 2010. Following this two-year period, Management Fees are calculated and paid at the end of each quarter at an annual rate of 2.5 percent of the Fund's total assets (including amounts derived from borrowed funds) as of the last day of each quarter.

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 the risk of war and political unrest, 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 and the possible inability to subject foreign persons to the jurisdiction of courts in the United States. ~~Additionally~~ Furthermore, ~~as discussed under “Remedies Upon Default” below,~~ 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.

Foreign ~~currency~~Currency & ~~exchange~~Exchange ~~rate~~Rate ~~risks~~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 in connection with conversions between various currencies.

Accounting & ~~disclosure~~Disclosure ~~standards~~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 ("US GAAP") or International Accounting Standards ("IAS"). Accordingly, less information may be available to investors.

Credit Risks. Most of the companies with which the Fund enters into financing transactions ~~have~~will not have achieved profitability, may experience substantial fluctuations in their operating results or, in ~~some~~many cases, dowill not have significant operating revenues. The ability of ~~these~~any ~~companies~~borrower to meet ~~their~~its obligations to the Fund, therefore, ~~depends~~will depend to a significant extent on the willingness of asuch borrower'’s equity venture capital investors or outside investors to provide additional equity financing, which in turn depends on the borrower's success in meeting its business plan, the market climate for venture capital investments and many other factors. The companies to which the Fund provides financing frequently engage 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 small group of persons whose death, disability or resignation would adversely affect the company.

Remedies Upon Default. In the event of a default on a portfolio loan, the available remedies to the Fund include legal action against the borrower and foreclosure or repossession of collateral given by the borrower. The Fund can 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. On occasion, the Fund will make loans to a borrower that has one or more other secured lenders (including the Fund's immediate predecessor, Fund V and its immediate successor, Fund VII). 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 a broader lien on substantially all of the borrower's assets, including its intellectual property.

~~The~~venture ~~Fund~~capital ~~utilizes~~equity ~~certain~~investors ofor ~~its~~outside ~~funds~~investors into ~~investments~~provide ~~that~~additional ~~involve~~equity ~~the~~ financing, ofwhich ~~equipment~~in ~~assets. Equipment~~turn ~~assets are often subject to rapid depreciation or obsolescence such that it is likely the value of the assets underlying a loan to finance such assets~~ will ~~depreciate~~depend ~~during~~on the ~~term of the loan transaction below the amount of the~~ borrower'’s ~~obligations. In~~success ~~addition,~~in ~~although~~meeting ~~borrowers~~its ~~are~~business ~~required~~plan, ~~under~~ the ~~transaction~~market ~~documents~~climate ~~to provide customary insurance~~ for ~~the~~venture ~~assets~~capital ~~underlying~~investments ~~a loan~~generally, and ~~are~~many ~~prohibited~~other ~~from~~factors. The ~~disposing~~companies ofto ~~the~~which ~~assets without~~ the Fund's ~~consent,~~provides ~~compliance~~financing ~~with~~will ~~these~~frequently ~~covenants cannot~~ be ~~assured~~engaged ~~and,~~ in the ~~event~~development of ~~non-compliance,~~new ~~the~~products ~~assets~~or ~~could~~technologies, ~~become~~and ~~unavailable to~~ the ~~Fund~~success ~~due~~of tothese ~~destruction~~efforts, ~~theft, sale~~ or ~~other~~the ~~circumstances. Realization~~ability of ~~value~~the ~~from~~companies ~~intellectual~~to ~~property~~successfully ~~collateral~~manufacture ~~can~~or ~~also~~market beproducts ~~time~~or ~~consuming~~technologies ~~and~~developed, ~~present~~cannot ~~special~~be ~~challenges,~~assured. These ~~given~~companies ~~the~~frequently ~~often~~face ~~unique~~intense ~~nature~~competition, ~~and~~including ~~limited~~competition ~~market~~from ~~for~~companies ~~such~~with ~~assets. The~~greater ~~Fund's~~resources, ~~ability~~and tomay ~~obtain~~face ~~payment~~risks ~~beyond~~of ~~the~~product ~~collateral~~or ~~underlying~~technological ~~the~~obsolescence, ~~loan~~non-acceptance ~~from~~in the ~~borrower~~market, ~~might be limited by bankruptcy~~ or ~~similar~~rapidly ~~laws~~changing ~~affecting~~regulatory ~~creditors'~~environments, ~~rights. In~~any ~~limited~~of ~~instances~~which ~~where~~could ~~the~~adversely ~~Fund~~affect ~~takes~~their ~~security~~prospects. The ~~interests~~success inof asuch ~~borrower's~~companies ~~assets~~often ~~located~~depends inon athe ~~foreign~~management ~~country,~~talents ~~there~~and ~~may~~efforts beof ~~practical~~one ~~and~~person ~~local~~or ~~law~~small ~~impediments~~group toof ~~cost-effective~~persons ~~recovery~~whose ~~against such collateral. Therefore~~death, ~~there~~disability ~~can~~or beresignation ~~no assurance that the Fund~~ would ~~ultimately~~adversely ~~collect~~affect the ~~full amount owed on a defaulted loan~~company.

~~Emerging~~Remedies ~~Company~~Upon ~~Risks~~Default. ~~The~~In ~~possibility~~the ~~that~~event of a default on a portfolio loan, the ~~companies~~available inremedies ~~which~~to the Fund ~~invests~~would ~~will~~include ~~not~~legal beaction ~~able~~against tothe ~~commercialize~~borrower ~~their~~and ~~technology~~foreclosure or ~~product~~repossession ~~concept~~of ~~presents~~collateral ~~significant~~given ~~risk~~by to the ~~Fund~~borrower. ~~Additionally~~ The Fund could experience significant delays in exercising its rights as a secured lender, ~~although~~and ~~some~~might incur substantial costs in taking possession of ~~such~~and ~~companies~~liquidating ~~may~~its ~~already~~collateral and in taking other steps to protect its investment. The Fund generally will require that it have a ~~commercially~~first ~~successful~~priority ~~product~~security orinterest ~~product~~in ~~line~~any atequipment of a borrower financed with the ~~time~~proceeds of ~~investment~~the Fund’s loans, ~~technology~~although ~~products~~that ~~and~~security ~~services~~interest ~~often~~may extend to the borrower’s other assets in which another lender might have a ~~more~~senior ~~limited~~or ~~market~~parity orsecurity ~~life~~interest. It ~~span~~is ~~than~~anticipated ~~products~~that inthe Fund will make loans to a borrower that has one or more other ~~industries~~secured lenders. ~~Thus~~ In such circumstances, the ~~ultimate~~Fund ~~success~~may share all or a portion of ~~these~~its ~~companies~~collateral ~~may~~with ~~depend~~the onother ~~their~~lender(s) ~~ability~~and towill ~~continually~~enter ~~innovate~~into inintercreditor ~~increasingly~~agreements ~~competitive~~governing ~~markets. Most~~the respective rights of the ~~companies~~Fund inand such other lender(s), which could limit the Fund’s ~~invests~~flexibility ~~will~~in ~~require~~pursuing ~~substantial~~its ~~additional~~remedies ~~equity~~as ~~financing~~a tosecured ~~satisfy~~creditor, ~~their~~and ~~continuing~~reduce ~~growth~~the ~~and~~proceeds ~~working~~realized ~~capital~~from ~~requirements. Each~~foreclosing ~~round~~or oftaking ~~venture~~possession ~~financing~~of isthe ~~typically~~collateral. In ~~intended~~the tocase ~~provide~~of agrowth ~~company~~capital ~~with~~or ~~enough~~working capital toloans ~~reach~~(where the ~~next~~loan ~~stage~~proceeds ofcan ~~development. The~~be ~~circumstances~~used orby ~~market~~the ~~conditions~~company ~~under~~for ~~which~~general ~~such~~corporate ~~companies~~purposes), ~~will~~the ~~seek~~Fund ~~additional~~will ~~capital~~typically isreceive ~~unpredictable. It~~either isa ~~possible~~broader ~~that~~lien ~~one~~on orsubstantially ~~more~~all of ~~such~~the ~~companies~~borrower’s ~~will~~assets, ~~not~~including beits ~~able~~intellectual toproperty, ~~raise~~or ~~additional~~a ~~financing~~lien oron ~~may~~substantially beall ~~able~~of tothe doborrower’s soassets, ~~only~~excluding atintellectual property, and a ~~price~~negative orpledge on ~~terms~~such ~~which~~intellectual ~~are unfavorable~~property.

~~Privately-held~~As ~~Company~~noted ~~Risks. The~~above, the Fund ~~invests~~may ~~primarily~~utilize incertain ~~privately-held~~of ~~companies. Generally,~~its ~~very~~funds ~~little~~in ~~public~~investments ~~information~~that ~~exists~~involve ~~about~~the ~~these~~financing ~~companies~~of ~~and~~equipment ~~the~~assets. Equipment ~~Fund~~assets isare ~~required~~often subject to ~~rely~~rapid ondepreciation or obsolescence such that it is likely the ~~ability~~value of the ~~Manager~~assets underlying a loan to ~~obtain~~finance ~~adequate~~such ~~information~~assets towill ~~evaluate~~depreciate during the ~~potential~~term ~~returns~~of ~~from~~the ~~investing~~loan intransaction ~~these~~below ~~companies~~the amount of the borrower’s obligations. ~~Moreover~~ In addition, ~~these~~although ~~companies~~borrowers ~~typically~~will ~~depend~~be ~~upon~~required under the ~~management~~transaction ~~talents~~documents ~~and~~to ~~efforts~~provide ofcustomary insurance for the assets underlying a ~~small~~loan, ~~group~~and will be prohibited from disposing of ~~individuals~~the assets without the Fund’s consent, compliance with these covenants cannot be assured and, in the ~~loss~~event of ~~one~~non‑compliance, the assets could become unavailable to the Fund due to destruction, theft, sale or ~~more~~other circumstances. Realization of ~~these~~value ~~individuals~~from ~~could~~intellectual ~~have~~property acollateral ~~significant~~can ~~impact~~also onbe time consuming and present special challenges, given the ~~investment~~often ~~returns~~unique nature and limited market for such assets. The Fund’s ability to obtain payment beyond the collateral underlying the loan from athe ~~particular~~borrower ~~company~~might be limited by bankruptcy or similar laws affecting creditors’ rights. ~~Also,~~ In ~~these~~limited ~~companies~~instances ~~frequently~~where ~~have~~the ~~less~~Fund ~~diverse~~takes ~~product~~security ~~lines~~interests in a borrower’s assets located in a foreign country, there may be practical and ~~smaller~~local ~~market~~law ~~presence~~impediments ~~than~~to ~~larger~~cost-effective ~~companies~~recovery against such collateral. Therefore, ~~They~~there ~~are~~can ~~thus~~be ~~generally~~no ~~more~~assurance ~~vulnerable~~that tothe ~~economic~~Fund ~~downturns~~would ~~and~~ultimately ~~may~~collect ~~experience~~the ~~substantial~~full ~~variations~~amount inowed ~~operating~~on ~~results~~a defaulted loan.

~~Due~~Emerging ~~diligence~~Company ~~risks~~Risks. ~~Before~~The ~~making~~possibility ~~investments,~~that the ~~Investment~~companies ~~Manager~~in ~~intends~~which tothe ~~conduct~~Fund ainvests ~~limited~~will ~~amount~~not ofbe ~~due~~able ~~diligence~~to ~~that~~commercialize ittheir ~~deems~~technology ~~reasonable~~or ~~and~~product ~~appropriate~~concept ~~based~~presents onsignificant ~~the~~risk. Additionally, ~~facts~~although ~~and~~some ~~circumstances~~of ~~applicable~~such tocompanies ~~each~~may ~~investment. When~~already ~~conducting~~have ~~due~~a ~~diligence~~commercially ~~and~~successful ~~making~~product anor ~~assessment~~product ~~regarding~~line anat the time of investment, ~~the~~technology ~~Investment~~products ~~Manager~~and ~~will~~services beoften ~~required~~have toa ~~rely~~more onlimited ~~resources~~market ~~available~~or tolife ~~it,~~span ~~including~~than ~~information~~products ~~provided~~in byother industries. Thus, the ~~target~~ultimate success of ~~the~~these ~~investment~~companies ~~and,~~may independ ~~some~~on ~~circumstances,~~their ~~third~~ability ~~party~~to ~~investigations~~continually innovate in increasingly competitive markets. ~~The~~Most ~~due~~of ~~diligence~~the ~~process~~companies ~~may~~in atwhich ~~times~~the beFund ~~subjective~~invests ~~with~~will ~~respect~~require tosubstantial ~~newly~~additional ~~organized~~equity ~~companies~~financing ~~for~~to ~~which~~satisfy ~~only~~their ~~limited~~continuing ~~information~~growth isand ~~available~~working capital requirements. ~~Accordingly,~~Each ~~there~~round ~~can~~of beventure nofinancing ~~assurance~~is ~~that~~typically ~~the~~intended ~~due~~to ~~diligence~~provide ~~investigation~~a ~~that~~company with enough capital to reach the ~~Investment~~next ~~Manager~~stage ~~will~~of ~~carry~~development. The ~~out~~circumstances ~~with~~or ~~respect~~market toconditions ~~any~~under ~~investment~~which ~~opportunity~~such companies will ~~reveal~~seek oradditional ~~highlight~~capital ~~all~~is ~~relevant~~unpredictable. It ~~facts~~is possible that ~~may~~certain beof ~~necessary~~such orcompanies ~~helpful~~will innot ~~evaluating~~be ~~such~~able ~~investment~~to ~~opportunity. Further,~~raise ~~there~~additional ~~can~~financing or may be noable ~~assurance~~to ~~that~~do ~~such~~so anonly ~~investigation~~at ~~will~~a ~~result~~price inor anon ~~investment~~terms ~~being~~which ~~successful~~are unfavorable.

~~Global~~Privately-held ~~Economic~~Company Risks. The ~~ability~~Fund ofintends ~~the~~to ~~Fund~~invest toprimarily ~~provide~~in anprivately-held ~~acceptable~~companies. Generally, ~~return~~very ~~may~~little bepublic ~~adversely~~information ~~affected~~exists byabout ~~economic~~these companies and ~~business~~the ~~factors~~Fund is required to ~~which~~rely ~~global~~on ~~marketplace~~the isability ~~subject. These~~of ~~factors,~~the ~~which~~Manager ~~generally~~to ~~are~~obtain ~~beyond~~adequate ~~the~~information ~~control~~to ofevaluate the ~~Manager,~~potential ~~include:~~returns ~~general~~from ~~economic~~investing ~~conditions~~in these companies. Moreover, ~~such~~these ascompanies ~~inflation~~typically depend upon the management talents and ~~fluctuations~~efforts inof ~~general~~a ~~business~~small ~~conditions;~~group of individuals and the ~~impact~~loss of ~~further~~one ~~terrorist~~or ~~attacks~~more ~~against~~of ~~the~~these ~~United~~individuals ~~States;~~could have a significant impact on the ~~effects~~investment ofreturns ~~strikes~~from a particular company. Also, ~~labor~~these ~~disputes~~companies frequently have less diverse product lines and ~~foreign~~smaller ~~political~~market ~~unrest;~~presence than larger companies. They are thus generally more vulnerable to economic downturns and ~~uncertainty~~may ofexperience ~~the~~substantial ~~recovery~~variations ofin ~~the~~operating Uresults.~~S. economy.~~

~~Speculative~~Due ~~Nature~~diligence ~~of Warrants and Equity Investments~~risks. ~~The~~ Before ~~value~~making ofinvestments, the ~~warrants~~Manager ~~that~~intends ~~the~~to ~~Fund~~conduct ~~generally~~a ~~receives~~limited inamount ~~connection~~of ~~with~~due ~~its~~diligence ~~financing~~that ~~investments~~it isdeems ~~dependent~~reasonable onand ~~the~~appropriate ~~value~~based ofon the ~~equity~~facts ~~securities~~and ~~for~~circumstances ~~which~~applicable ~~the~~to ~~warrants~~each ~~can be exercised~~investment. ~~The~~ When ~~value~~conducting ofdue ~~such~~diligence ~~warrants,~~and ~~direct~~making ~~equity~~an ~~investments,~~assessment ~~and~~regarding ~~equities~~an ~~received~~investment, ~~upon~~the ~~conversion~~Manager ofwill ~~debt~~be ~~instruments~~required isto ~~dependent~~rely ~~primarily~~ on ~~the~~resources ~~success~~available ofto ~~the~~it, ~~company's~~including ~~business~~information ~~strategy~~provided ~~and~~by the ~~growth~~target of ~~its~~the ~~earnings~~investment and, ~~but~~in ~~also~~some ~~depends~~circumstances, onthird ~~general~~party ~~economic~~investigations. The ~~and~~due ~~equity~~diligence ~~market~~process ~~conditions. The~~may ~~prospects~~at ~~for~~times ~~achieving~~be ~~consistent~~subjective ~~profitability~~with inrespect ~~the~~to ~~case~~newly oforganized ~~many~~ companies infor which ~~the~~only ~~Fund~~limited ~~invests~~information ~~are~~is ~~speculative~~available. ~~The warrants~~ Accordingly, ~~equity~~there ~~securities for which the warrants~~ can be ~~exercised,~~no ~~direct~~assurance ~~equity~~that ~~investments,~~the ~~and~~due ~~equities~~diligence ~~received~~investigation ~~upon conversion of debt instruments generally are restricted securities~~ that ~~cannot~~the ~~readily~~Manager bewill ~~sold~~carry ~~for~~out ~~some~~with ~~period~~respect ofto ~~time. If~~any ~~the~~investment ~~value~~opportunity ofwill ~~the~~reveal ~~equity~~or ~~securities~~highlight ~~underlying~~all arelevant ~~warrant~~facts ~~does~~that ~~not~~may ~~increase~~be ~~above~~necessary ~~the~~or ~~exercise~~helpful ~~price~~in ~~during~~evaluating ~~the~~such ~~life~~investment ~~of the warrant~~opportunity. Further, ~~the~~there ~~Fund~~can ~~would~~be ~~permit~~no ~~the~~assurance ~~warrant~~that tosuch ~~expire~~an ~~unexercised~~investigation ~~and~~will ~~the~~result ~~warrant~~in ~~would~~an ~~then~~investment ~~have~~being ~~no value~~successful.

~~Illiquidity~~Crisis ofin ~~Investments~~Financial Markets. ~~Substantially~~ The ~~all~~ability of the Fund's ~~portfolio investments (other than short-term investments) consist of securities that, at the time of acquisition, are subject~~ to ~~restrictions~~provide onan ~~sale~~acceptable ~~and~~return ~~for~~may ~~which no ready market will exist. Restricted securities cannot~~ be ~~sold~~adversely ~~publicly~~affected ~~without~~by ~~prior~~economic ~~agreement~~factors ~~with the issuer~~ to ~~register~~which the ~~securities~~market ~~under~~place ~~the~~is ~~1933~~subject. Volatility ~~Act,~~in ~~or by selling such securities under Rule 144 or other provisions of~~ the ~~1933~~global ~~Act~~financial ~~which~~markets ~~permit~~reached ~~only~~unprecedented ~~limited~~levels ~~sales~~during ~~under~~2008 ~~specified conditions. Venture loans~~ and ~~equity investments are privately negotiated transactions~~2009, and ~~there~~these isvolatile noconditions ~~established~~continued ~~trading~~for ~~market~~some inperiod ~~which~~thereafter ~~such~~(albeit ~~loans~~to ~~and~~a ~~equity~~lesser ~~investments~~extent) ~~can be sold. Convertible~~ and ~~subordinated debt investments~~ may ~~also~~recur beinto ~~privately~~the ~~negotiated transactions~~future. In ~~the~~This ~~case~~market ofturmoil ~~warrants~~could orhave ~~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~~material ~~combination~~adverse ~~with~~effect ~~another~~on ~~company which purchases~~ the Fund'’s ~~warrants~~business orand ~~equity securities or exchanges them for publicly-traded securities of the acquirer~~operations. The ~~feasibility~~tightening of ~~such transactions depends upon~~ the ~~entity's~~credit ~~financial~~markets ~~results~~could asimpair ~~well as general economic and equity market conditions. Furthermore, even if~~ the ~~restricted warrants or equity securities owned become publicly-traded, the~~ Fund'’s ability to ~~sell~~either ~~such~~acquire ~~securities may be limited by the lack (~~or ~~limited~~utilize ~~nature)~~leverage ~~of a trading market for such securities. When restricted securities are sold~~ to ~~the~~maximize ~~public,~~ the ~~Fund,~~return ~~under~~it ~~certain~~achieves ~~circumstances,~~on ~~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~~investments.

~~Because~~It is possible that market conditions could decrease the demand for venture loans. Furthermore, market conditions could also adversely impact the ability of the ~~illiquidity~~Fund’s borrowers to meet their obligations to the Fund and the value of the Fund'’s direct investments, ain companies. Most of the companies in which the Fund will invest will not have achieved profitability and will require substantial ~~portion~~equity offinancing ~~its~~to ~~assets~~satisfy ~~are~~their ~~carried~~continuing atgrowth ~~fair~~and ~~value~~working ascapital ~~determined~~requirements. The byeconomic downturn could decrease the ~~Manager~~demand infor ~~accordance~~such ~~with~~borrower’s ~~the~~products ~~Fund'~~and technology, thereby impairing such borrower’s ~~policy~~financial ascondition ~~approved~~and byability ~~the~~to ~~Board~~raise ofadditional ~~Directors~~equity financing from outside investors. ~~This~~ Should ~~value~~these ~~will~~events ~~not~~occur, ~~necessarily~~there ~~reflect~~could be an increase in borrower defaults under their obligations to the Fund, or a decrease in the value of the ~~assets~~Fund’s ~~which~~direct ~~may~~equity beinvestments. U.S. ~~realized~~and ~~upon~~global aeconomic ~~sale~~conditions could deteriorate and remain weak for an extended period of time.

~~Non-Diversified~~Other ~~Status~~Global Economic Risks. ~~The~~ In addition to the crisis in the financial markets discussed above, the ability of the Fund isto ~~classified~~provide asan aacceptable ~~“non-diversified”~~return ~~investment~~may ~~company~~be ~~under~~adversely affected by other economic and business factors to which the ~~1940~~U.S. ~~Act~~market place is subject. ~~The~~ These ~~Fund~~factors, ~~qualifies~~which asgenerally aare ~~RIC~~beyond ~~under~~the control of the ~~Internal~~Manager, ~~Revenue~~include: general ~~Code~~economic conditions, such as inflation and ~~will~~fluctuations ~~thereafter~~in ~~seek~~general tobusiness ~~continually~~conditions; ~~meet~~the impact of terrorist attacks against the ~~diversification~~United ~~standards~~States ~~there-under.~~or ~~Nevertheless,~~any other country in which the Fund's ~~assets~~ may bemake ~~subject~~loans; tothe aeffects ~~greater~~of ~~risk~~strikes, oflabor ~~loss~~disputes ~~than~~and ifforeign ~~its~~political ~~investments~~unrest; ~~were~~and ~~more~~uncertainty ~~widely~~in ~~diversified~~the U.S. economy.

~~Challenges~~Speculative inNature ~~Financial~~of ~~Markets~~Warrants and Equity Investments. The ~~ability~~value of the warrants that the Fund togenerally ~~provide~~will anreceive ~~acceptable~~in ~~return~~connection ~~may~~with beits ~~adversely~~financing ~~affected~~investments byis ~~economic~~dependent ~~factors~~on tothe ~~which~~value of the ~~marketplace~~equity issecurities ~~subject. The~~for ~~Fund's~~which ~~estimates~~the ofwarrants ~~fair~~can be exercised. The value ~~are~~of ~~based~~such onwarrants, ~~the~~direct ~~best~~equity ~~information~~investments, ~~available~~and toequities ~~the~~received ~~Manager~~upon asconversion of ~~the~~debt ~~date~~instruments ofis ~~valuation.~~dependent ~~Restrictions~~primarily on the ~~availability~~success of ~~financing~~the ~~could~~company’s ~~result~~business instrategy aand ~~low~~the ~~volume~~growth of ~~purchase~~its earnings, but also depends on general economic and ~~sale~~equity ~~transactions~~market conditions. The prospects for ~~certain~~achieving ~~investments,~~consistent ~~limiting~~profitability in the ~~number~~case of ~~observable~~many ~~inputs~~companies ~~available to Management~~ in ~~making~~which ~~their~~the ~~estimates~~Fund ofinvests ~~fair~~are ~~value~~speculative. The ~~Market~~warrants, ~~turmoil~~equity ~~could~~securities ~~have~~for awhich ~~material~~the ~~adverse~~warrants ~~effect~~can onbe ~~the~~exercised, ~~Fund's~~direct ~~business~~equity investments, and ~~operations.~~equities ~~Market~~received ~~turmoil~~upon ~~could~~conversion ~~impact~~of ~~the~~debt ~~Fund's~~instruments ~~ability~~generally towill ~~secure~~be arestricted ~~debt~~securities ~~facility~~that atcannot ~~terms~~readily ~~acceptable~~be tosold ~~the~~for ~~Fund~~some period of time. ~~Should~~ If the ~~Fund~~value ~~not~~of bethe ~~able~~equity tosecurities ~~secure~~underlying a ~~facility~~warrant ofdoes not increase above the ~~size~~exercise itprice ~~seeks~~during the life of the warrant, the Fund's ~~ability~~would topermit ~~utilize~~the ~~leverage~~warrant to ~~maximize~~expire ~~the~~unexercised ~~return~~and itthe ~~achieves~~warrant onwould ~~investments~~then ~~will~~have beno ~~impaired~~value.

~~Market~~Illiquidity ~~conditions~~of ~~could~~Investments. Substantially ~~also~~all ~~adversely~~of ~~impact~~ the ~~ability~~Fund's portfolio investments (other than short-term investments) will consist of securities that, at the ~~Fund's~~time ~~borrowers~~of acquisition, are subject to ~~meet~~restrictions ~~their~~on ~~obligations~~sale and for which no ready market will exist. Restricted securities cannot be sold publicly without prior agreement with the issuer to register the ~~Fund~~securities ~~and~~under the ~~value~~1933 Act, or by selling such securities under Rule 144 or other provisions of the ~~Fund's~~1933 ~~direct~~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 ~~companies~~which such loans and equity investments can be sold. ~~Most~~ Convertible ofand subordinated debt investments may also be privately negotiated transactions. In the ~~companies~~case inof ~~which~~warrants or equity securities, the Fund ~~invests~~generally ~~have~~will ~~not~~realize ~~achieved~~the ~~profitability~~value ~~and~~of ~~require~~such ~~substantial~~securities ~~equity~~only ~~financing~~if the issuer is able to ~~satisfy~~make ~~their~~an ~~continuing~~initial ~~growth~~public ~~and~~offering ~~working~~of ~~capital~~its ~~requirements. A~~shares, ~~weak~~or ~~economy~~enters ~~could~~into ~~hinder~~a ~~and~~business ~~possibly~~combination ~~decrease~~with another company which purchases the ~~demand~~Fund’s warrants or equity securities or exchanges them for publicly-traded securities of the acquiror. The feasibility of such ~~borrower'~~transactions depends upon the entity’s ~~products~~financial results as well as general economic and ~~technology,~~equity ~~thereby~~market ~~impairing~~conditions. In ~~such~~the ~~borrower's~~past, crises in the financial ~~condition~~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 ~~raise~~realize ~~additional~~liquidity ~~equity~~through ~~financing~~its ~~from~~investments ~~outside~~will ~~investors~~be impaired. ~~This~~ Furthermore, ~~could~~even ~~result~~if inthe anrestricted ~~increase~~warrants inor ~~borrower~~equity ~~defaults~~securities ~~under~~owned ~~their~~become ~~obligations~~publicly-traded, the Fund’s ability to sell such securities may be limited by the ~~Fund,~~lack (or limited nature) of a ~~decrease~~trading inmarket for such securities. If the ~~value~~Fund holds material nonpublic information regarding the issuer of the securities, the Fund'’s ~~direct~~ability ~~equity~~to ~~investments. U.S.~~sell ~~and~~such ~~global~~securities ~~economic~~may ~~conditions~~also ~~could~~be ~~continue~~limited toby ~~deteriorate~~insider ~~and~~trading ~~remain~~laws. When ~~weak~~restricted ~~for~~securities anare ~~extended~~sold ~~period~~to ofthe ~~time.~~public, ~~Additionally~~the Fund, itunder iscertain ~~possible~~circumstances, ~~that~~may ~~market~~be ~~conditions~~deemed ~~could~~an ~~decrease~~“underwriter” ~~the~~or ~~demand~~a controlling person with respect thereto for ~~venture~~the ~~loans~~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 Manager, in accordance with the Fund' policy, as approved by the 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. The Fund intends to continue to qualify as a RIC under the Internal Revenue Code and will thereafter seek to continually meet the diversification standards thereunder. Nevertheless, the Fund’s assets may be subject to a greater risk of loss than if its investments were more widely diversified.

CONFLICTS OF INTEREST

Transactions with Fund V. The Manager also served as investment manager for Fund V, which was dissolved on August 6, 2014 and no longer funds any commitments. However, prior to the dissolution of Fund V, the Fund's Board of Directors determined that so long as Fund V had capital available to invest in loan transactions with final maturities earlier than December 31, 2015 (the date on which Fund V was planned to be dissolved), the Fund would invest in each portfolio company in which Fund V invested (“Investments”). Initially the amount of each Investment was allocated 50% to the Fund and 50% to Fund V so long as Fund V had capital available to invest. After February 2011, Fund V was no longer permitted to enter into new commitments to borrowers. As of June 30, 2014, the Fund was no longer permitted to enter into new commitments to borrowers; however, the Fund was permitted to fund existing commitments.

To the extent that clients, other than Fund V, 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 procedures approved by the Fund's Board of Directors (including a majority of the disinterested directors).

Transactions with Fund VII. The Manager also serves as investment manager for Fund VII. The Fund's Board of Directors determined that so long as the Fund has capital available to invest in loan transactions with final maturities earlier than December 31, 2020 (the date on which the Fund will be dissolved), the Fund will invest in each portfolio company in which Fund VII invests (“Investments”). Initially the amount of each Investment had been allocated 50% to the Fund and 50% to Fund VII so long as the Fund had capital available to invest. As of June 30, 2014, the Fund was no longer permitted to enter into new commitments to borrowers; however, the Fund was permitted to fund existing commitments.

To the extent that clients, other than Fund VII, 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 procedures approved by the Fund's Board of Directors (including a majority of the disinterested directors).

Intercreditor Agreements. In each transaction in which both the Fund and either Fund V or Fund VII invest, it is expected that the Fund and Fund V or Fund VII will enter into an intercreditor agreement pursuant to which the Fund and Fund V or Fund VII 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 Fund V or Fund VII 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 lender 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 there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and Fund V or Fund VII invest or invested 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 there from may make the Fund a less attractive lender, and may make it more difficult for the Fund to acquire such loans.

To the extent that clients, other than Fund VII, 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 procedures approved by the Fund's Board of Directors

(including a majority of the disinterested directors).

Intercreditor Agreements. In each transaction in which both the Fund and either Fund V or Fund VII invest or in which the other lender 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 Fund V or Fund VII (or the Fund and the successor fund as the case may be) will enter into an intercreditor agreement pursuant to which the Fund and Fund V or Fund VII (or the Fund and the successor fund) 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 Fund V or Fund VII (or the Fund and a successor fund) 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 lender 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 there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and Fund V or Fund VII (or the Fund and a successor fund) invest or invested 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 there from may make the Fund a less attractive lender, and may make it more difficult for the Fund to acquire such loans.

Effect of Borrowings. During the first two years of the Fund's investment operations, the Management Fee was calculated with reference to the committed equity capital of the Company, regardless of when or if all of such capital is called. Thereafter, the Management Fee is computed and paid quarterly, at an annual rate of 2.5% of the total value of the Fund's assets (including amounts derived from borrowed funds) as of the last day of each such fiscal quarter. Therefore, decisions by the Manager to cause the Fund to borrow additional funds may increase the quarterly fees payable to the Manager. The Fund's overall borrowing limits, however, are set by the Fund's Board of Directors in light of its fiduciary obligations.

~~Indemnification and Exculpation~~Valuation. ~~The~~ ~~Articles~~Manager ofis ~~Incorporation~~responsible offor valuing the Fund’s ~~provide~~assets ~~for~~and ~~indemnification of directors~~liabilities, ~~officers,~~subject ~~employees,~~to ~~and~~oversight ~~agents~~by ~~(including~~ the ~~Manager)~~Fund's Board of ~~the~~Directors ~~Fund~~in to the ~~full~~case ~~extent~~of ~~permitted~~the byFund ~~applicable state law~~ and ~~the~~has ~~1940~~an ~~Act,~~inherent ~~including~~conflict ~~the~~in ~~advance~~performing ofthis ~~expenses and reasonable counsel fees~~function. The ~~Articles~~Fund ofdoes ~~Incorporation~~not ofintend ~~the~~to ~~Fund~~engage ~~also~~an ~~contain~~independent avaluation ~~provision~~agent ~~eliminating~~to ~~personal~~value ~~liability~~its ofassets aand ~~Fund~~therefore ~~director~~is orentirely ~~officer~~reliant toupon ~~the~~Manager ~~Fund~~and or its ~~shareholder~~delegates for ~~monetary~~valuing ~~damages~~the ~~for~~assets. ~~certain~~There ~~breaches~~is ofa ~~their~~conflict ~~duty~~in ofthat ~~care.~~Manager ~~Furthermore, the~~will ~~Fund~~have ~~has entered into~~ an ~~indemnification~~incentive ~~agreement~~to ~~with~~increase ~~each~~the value of ~~its~~the ~~directors~~assets ~~and~~for ~~officers, and~~ its ~~controller. A~~performance ~~successful~~record ~~claim~~and ~~for~~to ~~such~~increase ~~indemnification would deplete~~ the ~~Fund's~~Investment ~~assets~~Management byFees ~~the~~that ~~amount~~it ~~paid~~receives.

Indemnification and Exculpation. The organizational documents 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 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. Furthermore, the Fund has entered into an indemnification agreement with each of its directors and officers, and its controller. A successful claim for such indemnification would deplete the Fund's assets by the amount paid.

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, with the members of the Company’s advisory board being 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 $20,000 (plus $1,000 per meeting and an additional $10,000 for the chair of the Audit Committee), and any change to the compensation to be paid to the disinterested directors will be determined by the Nominating and Corporate Governance 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 $10,000). The disinterested directors and advisory board members will also be reimbursed for certain expenses. The payment of such fees may limit the objectivity and independence 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 or the Company 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 officers, principals and employees of the Manager may be passive investors in companies in which the Fund or the Company is considering an investment, either directly or indirectly through an investment in a venture capital fund that, in turn, is an investor in such a company. The officers, principals and employees of the Manager may recommend that the Fund or the Company invest in a company in which such person may serve as a director or advisor. Such a relationship presents potential conflicts of interest in that the relationship could provide 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 such principal or employee could use information acquired through association with the Manager to influence or benefit his or her personal investment. The Manager addresses these potential conflicts through its policies and procedures that are designed to insulate its investment decision-making process from these incentives. For 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 or the Company has made or may make. The Manager's policies and procedures require such principals to first offer an investment opportunity to the Fund or the Company prior to offering such opportunity to an unaffiliated fund.


ITEM 1B.	UNRESOLVED STAFF COMMENTS.

~~Not~~On February 1, 2016, the Fund filed a letter with the SEC's Division of Investment Management that was intended to respond to comments regarding the interest rates applicable to the Fund's individual underlying investments.


ITEM 2.	PROPERTIES.

All of the Fund's office space is provided by the Manager.


ITEM 3.	LEGAL PROCEEDINGS.

The Fund is not a party to any material legal proceedings.


ITEM 4.	MINE SAFETY ISSUES.

Not applicable

PART II.


ITEM 5.	MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER MATTERS.

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 1715, ~~2015~~2016 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. 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, ~~2014~~2015, the Fund had distributed $~~204~~292.6 million to date to its shareholder, of which $~~147~~233.7 million was in cash.

1112

ITEM 6. SELECTED FINANCIAL DATA.

The following table summarizes certain financial data and should be read in conjunction with the “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto included elsewhere in this Form 10-K. The selected financial data set forth below have been derived from the audited financial statements.

	For the Year Ended December 31
	2014			2013			2012			2011			2010*
	2015			2014			2013			2012			2011
Statement of Operations Data:
Investment income:
Interest on loans	$	4927,~~218~~798,~~072~~922		$	5949,~~366~~218,~~653~~072		$	4359,~~739~~366,~~317~~653		$	1843,~~988~~739,~~607~~317		$	118,~~117~~988,~~908~~607
Other interest and other income	~~401~~60,~~840~~438			~~100~~401,~~285~~840			~~186~~100,~~205~~285			23186,~~269~~205			723,~~434~~269
Total investment income	4927,~~619~~859,~~912~~360			5949,~~466~~619,~~938~~912			4359,~~925~~466,~~522~~938			1943,~~011~~925,~~876~~522			119,~~125~~011,~~342~~876
Expenses:
Management fees	73,~~004~~663,~~350~~506			87,~~435~~004,~~598~~350			78,~~615~~435,~~663~~598			7,~~350~~615,~~000~~663			37,~~715~~350,~~274~~000
Interest expense	42,~~301~~339,~~581~~888			4,~~801~~301,~~009~~581			4,~~161~~801,~~447~~009			14,~~662~~161,~~063~~447			—1,662,063
Banking and professional fees	~~475~~550,~~184~~018			~~549~~475,~~267~~184			~~350~~549,~~339~~267			~~211~~350,~~050~~339			~~130~~211,~~371~~050
Organizational costs	—			—			—			—			122,079
Other operating expenses	142,009			217,273			167,085			142,283			120,789
Other operating expenses	217,273			167,085			142,283			120,789			65,875
Total expenses	6,695,421			11,998,388			13,952,959			12,269,732			9,343,902
Total expenses	11,998,388			13,952,959			12,269,732			9,343,902			4,033,599
Net investment income	21,163,939			37,621,524			45,513,979			31,655,790			9,667,974
Net investment income (loss)	37,621,524			45,513,979			31,655,790			9,667,974			(2,908,257		)
Net realized gain (loss) from investments	(9,752,799		)	(1,990,790		)	(3,582,446		)	(1,377,330		)	360,960
Net realized (loss) gain from investments	(1,990,790		)	(3,582,446		)	(1,377,330		)	360,960			—
Net change in unrealized loss from investments	(1,879,875		)	(805,414		)	(7,163,165		)	(3,295,924		)	(898,509		)
Net change in unrealized loss from investments	(805,414		)	(7,163,165		)	(3,295,924		)	(898,509		)	—
Net realized loss from hedging activities	—			(696,351		)	(1,119,201		)	(684,307		)	(158,756		)
Net realized and change in unrealized gain (loss) from hedging activities	99,592			(210,953		)	(1,233,646		)	(1,370,765		)	—
Net change in unrealized gain (loss) from hedging activities	(32,504		)	795,943			908,248			(549,339		)	(1,212,009		)
Net realized and change in unrealized loss from investment and hedging activities	(211,~~696~~665,~~612~~178		)	(102,~~956~~696,~~564~~612		)	(510,~~906~~956,~~900~~564		)	(15,~~908~~906,~~314~~900		)	—(1,908,314		)
Net increase (decrease) in net assets resulting from operations	$	34,924,912		$	34,557,415		$	25,748,890		$	7,759,660		$	(2,908,257	)
Net increase in net assets resulting from operations	$	9,498,761		$	34,924,912		$	34,557,415		$	25,748,890		$	7,759,660
AMOUNTS PER COMMON SHARE:
Net increase (decrease) in net assets resulting from operations	$	349.25		$	345.57		$	257.49		$	77.60		$	(29.08	)
Net increase in net assets resulting from operations	$	94.99		$	349.25		$	345.57		$	257.49		$	77.60
Weighted average shares outstanding	100,000			100,000			100,000			100,000			100,000
	As of December 31,
	2014			2013			2012			2011			2010*
	2015			2014			2013			2012			2011
Balance sheet data:
Loans	$	~~227~~95,~~745~~005,~~693~~982		$	~~293~~227,~~800~~745,~~885~~693		$	~~313~~293,~~848~~800,~~702~~885		$	~~174~~313,~~777~~848,~~564~~702		$	29174,~~312~~777,~~847~~564
Net assets	$	~~137~~58,~~015~~505,~~488~~200		$	~~194~~137,~~365~~015,~~857~~488		$	~~195~~194,~~928~~365,~~871~~857		$	~~131~~195,~~409~~928,~~460~~871		$	33131,~~106~~409,~~540~~460

* From June 29, 2010, commencement of operations, through December 31, 2010.


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

Overview

The Fund is a financial services company providing financing and advisory services to a variety of carefully selected venture-backed companies throughout the United States with a focus on growth oriented companies. The Fund’s portfolio is well diversified and consists of companies in the communications, information services, media, and technology, including software and technology-enabled business services, bio-technology, and medical devices industry sectors, among others. The Fund’s capital is generally used by portfolio

1213

~~consists of~~ companies in the communications, information services, media, and technology, including software and technology-enabled business services, bio-technology, and medical devices industry sectors, among others. The Fund’s capital is generally used by portfolio companies to finance acquisitions of fixed assets and working capital. On June 29, 2010, the Fund completed its first closing of capital, made its first investment, and became a non-diversified, closed-end investment company that elected to be treated as a business development company (a "BDC") under the Investment Company Act of 1940. The Fund elected to be treated for federal income tax purposes as a regulated investment company (a "RIC") under the Internal Revenue Code with the filing of its federal corporate income tax return for 2010. Pursuant to this election, the Fund generally will not have to pay corporate-level taxes on any income distributed to our shareholder as dividends, allowing the Fund 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 Internal Revenue 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 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 a superior risk adjusted investment returns. The Fund seeks to achieve its investment objective by providing debt financing to portfolio companies. Since inception, the Fund's investing activities have focused primarily on private debt securities. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments. The Fund generally distributes these warrants to its shareholder upon receipt. The Fund also has guidelines for the percentages of total assets which will be invested in different types of assets.

The portfolio investments of the Fund will primarily consist of debt financing to venture capital backed technology companies. The borrower's ability to repay its loans may be adversely impacted by a number of factors, and as a result, the loan may not fully be 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.

CRITICAL ACCOUNTING POLICIES

The Manager has identified the most critical accounting estimates upon which the financial statements depend and determined the critical accounting estimates by considering accounting policies that involve the most complex or subjective decisions or assessments. The two critical accounting policies relate to the valuation of loans and treatment of non-accrual loans.

Loans are held at fair value as determined by management, in accordance with the valuation methods described in the valuation of loans section of Note 2 to the financial statements (Summary of Significant Accounting Policies). Critical factors in determining the fair value of a loan include payment history, collateral position, financial strength of borrower, prospects for the borrower's raising future equity rounds, likelihood of sale or acquisition of the borrower, and length of expected holding period of the loan, as well as an evaluation of the general interest rate environment. 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, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

Total investment income for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013 was $4927.69 million, $5949.56 million and $4359.95 million respectively, which primarily consisted of interest on venture loans outstanding. The remaining income consisted of interest and dividends on the temporary investment of cash, and other income from commitment fees and unamortized warrants. The average gross outstanding performing loans calculated on a monthly basis was $~~261~~146.2 million, as$261.2 ofmillion ~~December 31,~~and ~~2014,~~ $302.4 million as of December 31, ~~2013~~2015, 2014 and ~~$241.0~~2013 ~~million as of December 31, 2012~~respectively. The average interest rate on gross outstanding performing loans was 18.6844% ~~for the year ended December 31~~, ~~2014,~~18.68% and 19.31% for the year ended December 31, ~~2013~~2015, 2014 and ~~18.15%~~2013 ~~for the year ended December 31, 2012~~respectively. 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.

Expenses for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013 were $126.07 million, $1412.0 million and $1214.30 million respectively. Management fees were calculated based on the Company’s committed capital for the first two years of the Fund’s life and thereafter as a percentage of Fund assets. Management fees for the Fund were $3.7 million, $7.0 million ~~for~~and ~~the year ended December 31, 2014,~~ $8.4 million for the year ended December 31, ~~2013~~2015, 2014 and ~~$7.6~~2013 ~~million for the year ended December 31, 2012~~respectively. Management fees decreased in 2014 due to the decline in assets under management.

Total interest expense was $42.3 million, $4.83 million and $4.28 million for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013, respectively. Interest expense decreased in ~~2014~~2015 due to a decrease in average debt outstanding to $~~119~~69.97 million in ~~2014~~2015, from $~~137~~119.89 million in ~~2013~~2014 and $~~108~~137.58 million in ~~2012~~2013. This decrease was ~~partially~~also ~~offset~~because byof ana ~~increase~~decrease in the interest rate to 3.5936% in ~~2014~~2015 from 3.4859% in ~~2013~~2014 and 3.8448% in ~~2012~~2013. The Fund entered into agreements with Union Bank, N.A. that established a secured revolving loan facility on January 14, 2011. The facility was extended through March 23, 2017 (see Note 67).

The banking and professional fees were $0.56 million, ~~$0.5~~for ~~million~~the ~~and~~year ended December 31, 2015 and $0.45 million for the years ended December 31, 2014, ~~2013~~ and ~~2012~~2013, respectively. The banking and professional fees was comprised of legal, audit and other professional fees. These fees ~~rose~~remains inalmost ~~2014~~the ~~and~~same ~~2013~~in ~~primarily~~2015, ~~because~~2014 ~~of increased legal~~ and ~~accounting fees as the Fund continued to grow~~2013.

13Other operating expenses were $0.1 million for the year ended December 31, 2015, and $0.2 million for the years ended December 31, 2014 and 2013, respectively. These expenses included director fees, custody fee, tax fees, and other expenses related to the operation of the Fund.

Other operating expenses were $0.2 million, $0.2 million and $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. These expenses included director fees, custody fee, tax fees, and other expenses related to the operation of the Fund. 14

Net investment income for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013 was $3721.62 million, $4537.56 million and $3145.75 million, respectively.

Total net realized loss from investments was $29.08 million, $32.60 million and $13.46 million for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013, respectively. ~~The~~Net realized ~~gain~~loss ~~consists~~amounts are net of recoveries of previously written off ~~or reserved uncollectible~~ loans~~, reduced by write offs~~.

Net change in unrealized loss from investments was $01.89 million, $70.28 million and $37.32 million for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013, respectively. The unrealized loss consists of fair market value adjustments taken against loans.

Net realized loss from hedging activities was $0.0 million, $0.7 million and $1.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Net change in unrealized gain (loss) from hedging activities was less than $(0.1) million, $(0.2)8 million and $(10.2)9 million for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013, respectively. The realized and change in unrealized loss from hedging activities consists of the unrealized losses from hedging activities and the net interest received or paid on the interest rate swap transaction as well as interest rate cap transactions. The Fund entered into an interest rate swap transaction with Union Bank, N.A. to convert floating rate liabilities to fixed rates on February 18, 2011 and entered into an additional interest rate swap transaction with Wells Fargo Bank, N.A. on June 26, 2012. Both interest rate swap transactions terminated on September 23, 2014 (see Note 89). On September 30, 2014, the Fund entered into interest rate cap transactions with MUFG Union Bank, N.A and Wells Fargo Bank, N.A. to cap the floating rate liabilities at a fixed rate (see Note 910).

Net increase in net assets resulting from operations for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013 was $~~34.~~9.5 million, $34.69 million and $2534.76 million, respectively. On a per share basis, for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013, there was a net increase in net assets resulting from operations of $~~349~~94.2599, $~~345~~349.5725 and $~~257~~345.4957.

Liquidity and Capital Resources - December 31, ~~2014~~2015 and ~~2013~~2014

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. As of December 31, ~~2014~~2015 the Company had received subscriptions for capital in the amount of $294.0 million, of which $279.3 million had been called and received. As of December 31, ~~2014~~2015, $14.7 million of capital remains uncalled. The remaining $14.7 million in committed capital as of December 31, ~~2014~~2015 isexpired ~~due to expire~~ in June 2015 as the five year anniversary ~~will have~~ passed,. atNo ~~which time no~~ further capital can be called.

As of December 31, ~~2014~~2015 and ~~2013~~2014, 63% and 116%, respectively, of the Fund’s assets consisted of cash and cash equivalents. The Fund invested its assets in venture loans during ~~2014~~2015. Amounts disbursed under the Fund’s loan commitments was $~~104~~3.64 million for the year ended December 31, ~~2014~~2015. Net loan amounts outstanding after amortization and valuation adjustment were approximately $~~227~~95.70 million as of December 31, ~~2014~~2015. Unexpired unfunded commitments as of December 31, ~~2014~~2015 were approximately $211.28 million.

Year Ended	Cumulative Amount Disbursed	Principal Amortization and Fair Market Adjustment	Balance Outstanding– Fair Value	UnexpiredUnfunded Commitments
December 31, 2014	$712,034,984	$484,289,291	$227,745,693	$21,172,500
December 31, 2015	$715.4 million	$620.4 million	$95.0 million	$1.8 million
December 31, 2013	$607,467,484	$313,666,599	$293,800,885	$57,390,000
December 31, 2014	$712.0 million	$484.3 million	$227.7 million	$21.2 million

Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is the Fund’s experience that not all unfunded commitments will be used by borrowers.

The Fund seeks to meet the requirements to qualify for the special pass-through status available to RICs under the Internal Revenue 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) (“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 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.

The Fund established a secured revolving loan facility in an amount of up to $160 million with Union Bank, N.A., Wells Fargo Bank, N.A. and Bank Leumi USA on September 23, 2011 (the "Loan Agreement"). The Loan Agreement was extended on September 23, 2014 and then amended and restated in its entirely on September 30, 2014, reducing the size to $120 million, and securing an initial 12-month revolver plan and a subsequent 18-month amortized repayment plan. Amounts borrowed under the Loan Agreement may be, at the option of the Fund, either Reference Rate loans (as defined in the Loan Agreement) or LIBOR loans. As of December 31, 2015, $40.4 million is outstanding under the facility. The Loan Agreement will terminate on March 23, 2017, but can be accelerated under an event of default such

1415

~~the Fund, either Reference Rate loans (~~as defined in the Loan Agreement) or LIBOR loans. As of December 31, 2014, $106.6 million is outstanding under the facility. The Loan Agreement will terminate on March 23, 2017, but can be accelerated under an event of default such as failure by the Fund to make timely interest or principal payments. Subsequent to year end, the Fund pre-emptively lowered the facility size to $9445 million in order to size the facility in relation to the borrowing base.

The Fund has adequate cash reserves and approximately $3063.2 million in ~~quarterly~~ scheduled receivable payments over the next year. These amounts are sufficient to meet the declining commitment backlog and operational expenses of the Fund over the next year. Since the Fund is no longer making new commitments, liquidity demands will continue to decrease. ~~Additionally, the Fund has access to $14.7 million in uncalled capital as a potential liquidity source, however, we believe it is highly unlikely that this should be needed.~~ The Fund no longer needs to borrow as the Fund has sufficient cash on hand and from operations to meet the Fund’s foreseeable cash needs.

ITEM 7A . Quantitative and Qualitative Disclosures About Market Risk

The Fund's business activities contain elements of risk. The Fund considers the principal types of market risk to be interest rate risk and valuation risk. The Fund considers the management of risk essential to conducting its business and to maintaining profitability. Accordingly, 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 the Fund distributes all equity investments upon receipt to the Company.

The Fund's sensitivity to changes in interest rates 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, ~~2014~~2015, the outstanding debt balance was $~~106~~40.64 million with interest based on an interest rate of 0.1746%, for which the Fund had an interest rate cap in place at 0.70% on $8234 million of outstanding debt, leaving the Fund's maximum exposure to interest rate sensitivity at 0.5324%, which we do not believe is material to the financial statements. Additionally, the Fund has interest rate risk on the $6.4 million uncapped portion of the debt facility.

Although management believes that this measure is indicative of the Fund's sensitivity to interest rate changes, it makes estimates to adjust for potential changes in credit quality, size and composition of the balance sheet and other business developments that could affect net income. Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by these estimates.


ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Quarterly Results

This information has been derived from unaudited financial statements that, in the opinion of management, include all normal recurring adjustments necessary for a fair presentation of such information. The operating results for any quarter are not necessarily indicative of results for any future year. The format of the statements have been modified, thus certain numbers have been combined in order to fit the format of the statements. Prior to commencing its operations on June 29, 2010, the Fund had no operations other than the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in January 2010. This issuance of stock was a requirement in order to apply for a finance lender's license from the California Commissioner of Corporations, which was obtained on April 13, 2010.

December 31, 2014 (Unaudited)

	Quarterly Information for the Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Investment Income:
Interest on loans	$	13,777,666		$	12,312,501		$	12,532,551		$	10,595,354
Other interest and other income	289,015			69,239			9,515			34,071
Total investment income	14,066,681			12,381,740			12,542,066			10,629,425
Expenses:
Management fees	1,969,748			1,832,803			1,665,838			1,535,961
Interest expense	1,100,541			1,084,899			1,232,582			883,559
Banking and professional fees	104,308			51,069			152,787			167,020
Other operating expenses	49,764			22,019			58,373			87,117
Total expenses	3,224,361			2,990,790			3,109,580			2,673,657
Net investment income	10,842,320			9,390,950			9,432,486			7,955,768
Net realized gain (loss) from investments	(1,309,141		)	(680,657		)	(3,083		)	2,091
Net change in unrealized gain (loss) from investments	1,186,141			(2,005,073		)	(851,000		)	864,518
Net realized and change in unrealized (loss) gain from hedging activities	(43,108		)	(5,324		)	185,180			(37,156		)
Net realized and change in unrealized gain (loss) from investment and hedging activities	$	(166,108	)	$	(2,691,054	)	$	(668,903	)	$	829,453
Net increase in net assets resulting from operations	$	10,676,212		$	6,699,896		$	8,763,583		$	8,785,221
Amount per common share:
Net increase in net assets resulting from operations	$	106.76		$	67.00		$	87.64		$	87.85
Weighted average shares outstanding	100,000			100,000			100,000			100,000

December 31, ~~2013~~ 2015 (Unaudited)

	Quarterly Information for the Three Months Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Investment Income:
Interest on loans	$	1410,~~224~~291,~~818~~534		$	148,~~955~~523,~~616~~890		$	145,~~829~~029,~~051~~170		$	153,~~357~~954,~~168~~328
Other interest and other income	8258,~~690~~227			151,~~522~~602			~~537~~248			~~1,536~~361
Total investment income	1410,~~307~~349,~~508~~761			148,~~971~~525,~~138~~492			145,~~829~~029,~~588~~418			153,~~358~~954,~~704~~689
Expenses:
Management fees	21,~~083~~284,~~111~~958			2975,~~173,816~~207			2780,~~093,439~~587			2622,~~085,232~~754
Interest expense	1771,~~169,820~~347			1643,~~234,192~~611			1503,~~218,791~~878			1421,~~178,206~~052
Banking and professional fees	~~176~~154,~~588~~565			~~164~~93,~~689~~224			~~121~~91,~~586~~218			86211,~~404~~011
Other operating expenses	2726,~~557~~953			2515,~~502~~595			3029,~~732~~465			8369,~~294~~996
Total expenses	32,~~457~~237,~~076~~823			31,~~598~~727,~~199~~637			31,~~464~~405,~~548~~148			31,~~433~~324,~~136~~813
Net investment income	108,~~850~~111,~~432~~938			116,~~372~~797,~~939~~855			113,~~365~~624,~~040~~270			112,~~925~~629,~~568~~876
Net realized loss from investments	(~~842~~1,~~496~~018,031		)	(~~931~~410,~~926~~929		)	(~~686~~2,~~859~~679,239		)	(15,~~121~~644,~~165~~600		)
Net change in unrealized loss from investments	(2,999,575		)	(1,591,000		)	(1,899,563		)	(673,027		)
Net change in unrealized gain (loss) from investments	(4,522,997		)	(4,448,691		)	2,331,181			4,760,632
Net realized and change in unrealized gain (loss) from hedging activities	16,413			(29,675		)	(146,149		)	(51,542		)
Net change in unrealized gain (loss) from hedging activities	(53,383		)	1,201			(6,876		)	26,554
Net realized and change in unrealized loss from investment and hedging activities	$	(3,825,658	)	$	(2,552,601	)	$	(2,732,571	)	$	(1,845,734	)
Net realized and change in unrealized gain (loss) from investment and hedging activities	$	(5,594,411	)	$	(4,858,419	)	$	(354,934	)	$	(857,414	)
Net increase in net assets resulting from operations	$	72,~~024~~517,~~774~~527		$	81,~~820~~939,~~338~~436		$	83,~~632~~269,~~469~~336		$	101,~~079~~772,~~834~~462
Amount per common share:
Net increase in net assets resulting from operations	$	~~70.~~25.18		$	8819.2039		$	~~86.~~32.69		$	~~100~~17.8072
Weighted average shares outstanding	100,000			100,000			100,000			100,000

December 31, ~~2012~~ 2014 (Unaudited)

	Quarterly Information for the Three Months Ended
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Investment Income:
Interest on loans	$	813,~~756~~777,~~858~~666		$	1112,~~127~~312,~~932~~501		$	1112,~~679~~532,~~874~~551		$	1210,~~174~~595,~~653~~354
Other interest and other income	~~159~~289,~~489~~015			~~473~~69,239			259,~~785~~515			~~458~~34,071
Total investment income	814,~~916~~066,~~347~~681			1112,~~128~~381,~~405~~740			1112,~~705~~542,~~659~~066			1210,~~175~~629,~~111~~425
Expenses:
Management fees	1,~~837~~969,~~500~~748			1,~~836~~832,~~753~~803			1,~~844~~665,~~880~~838			21,~~096~~535,~~530~~961
Interest expense	~~850~~1,~~051~~100,541			~~965~~1,~~709~~084,899			1,~~160~~232,~~296~~582			1883,~~185,391~~559
Banking and professional fees	~~123~~104,~~155~~308			6851,~~365~~069			69152,~~908~~787			88167,~~911~~020
Other operating expenses	2349,~~408~~764			3622,~~198~~019			2758,~~243~~373			5587,~~434~~117
Total expenses	23,~~834~~224,~~114~~361			2,~~907~~990,~~025~~790			3,~~102~~109,~~327~~580			32,~~426~~673,~~266~~657
Net investment income (loss)	6,082,233			8,221,380			8,603,332			8,748,845
Net investment income	10,842,320			9,390,950			9,432,486			7,955,768
Net realized loss from investments	—			—			(24,561		)	(1,352,769		)
Net realized gain (loss) from investments	(1,309,141		)	(680,657		)	(3,083		)	2,091
Net change in unrealized gain (loss) from investments	~~(425~~1,~~000~~186,141		)	(12,~~755~~005,~~338~~073		)	(1851,~~198,871~~000		)	83864,~~285~~518
Net realized and change in unrealized loss from hedging activities	(396,706		)	(308,906		)	(505,935		)	(22,099		)
Net realized loss from hedging activities	(300,149		)	(300,338		)	(95,864		)	—
Net realized and change in unrealized loss from investment and hedging activities	(821,706		)	(2,064,244		)	(1,729,367		)	(1,291,583		)
Net change in unrealized gain (loss) from hedging activities	257,041			295,014			281,044			(37,156		)
Net increase in net assets resulting from operations	$	5,260,527		$	6,157,136		$	6,873,965		$	7,457,262
Net realized and change in unrealized gain (loss) from investment and hedging activities	$	(166,108	)	$	(2,691,054	)	$	(668,903	)	$	829,453
Net increase in net assets resulting from operations	$	10,676,212		$	6,699,896		$	8,763,583		$	8,785,221
Amount per common share:
Net increase in net assets resulting from operations	$	52106.6176		$	6167.5700		$	6887.7464		$	7487.5785
Weighted average shares outstanding	100,000			100,000			100,000			100,000

December 31, 2013 (Unaudited)



	Quarterly Information for the Three Months Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Investment Income:
Interest on loans	$	14,224,818		$	14,955,616		$	14,829,051		$	15,357,168
Other interest and other income	82,690			15,522			537			1,536
Total investment income	14,307,508			14,971,138			14,829,588			15,358,704
Expenses:
Management fees	2,083,111			2,173,816			2,093,439			2,085,232
Interest expense	1,169,820			1,234,192			1,218,791			1,178,206
Banking and professional fees	176,588			164,689			121,586			86,404
Other operating expenses	27,557			25,502			30,732			83,294
Total expenses	3,457,076			3,598,199			3,464,548			3,433,136
Net investment income	10,850,432			11,372,939			11,365,040			11,925,568

Net realized loss from investments	(842,496		)	(931,926		)	(686,859		)	(1,121,165		)
Net change in unrealized loss from investments	(2,999,575		)	(1,591,000		)	(1,899,563		)	(673,027		)
Net realized loss from hedging activities	(264,025		)	(274,969		)	(287,696		)	(292,511		)
Net change in unrealized gain from hedging activities	280,438			245,294			141,547			240,969
Net realized and change in unrealized loss from investment and hedging activities	$	(3,825,658	)	$	(2,552,601	)	$	(2,732,571	)	$	(1,845,734	)
Net increase in net assets resulting from operations	$	7,024,774		$	8,820,338		$	8,632,469		$	10,079,834
Amount per common share:
Net increase in net assets resulting from operations	$	70.25		$	88.20		$	86.32		$	100.80
Weighted average shares outstanding	100,000			100,000			100,000			100,000


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

Not applicable.


ITEM 9A.	CONTROLS AND PROCEDURES.

At the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of our Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Fund’s disclosure controls and procedures were effective 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.

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with Management’s Report that occurred during the Fund’s fourth quarter ended December 31, ~~2014~~2015 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) released an updated version of its Internal Control - Integrated Framework to reflect certain significant changes in business and operational environments that have occurred since the original framework was introduced in 1992. Under the supervision of and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we

1819

Treadway Commission (“COSO”) released an updated version of its Internal Control - Integrated Framework to reflect certain significant changes in business and operational environments that have occurred since the original framework was introduced in 1992. Under the supervision of and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the COSO’s 2013 updated Internal Control - Integrated Framework. Based on our evaluation under the 2013 COSO Internal Control - Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, ~~2014~~2015.

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 Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

Changes in Internal Controls

There were no significant changes in the Fund's internal controls or in other factors that could significantly affect these controls during the fiscal year ended December 31, ~~2014~~2015.


ITEM 9B.	OTHER INFORMATION

Not applicable.

PART III


ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The following are the executive officers of the Fund. All officers serve at the pleasure of the Fund's Board.

Name and Position With Fund	Age	Occupation During Past Five Years
Ronald W. Swenson, Chairman, and Director	7071	Chairman, ~~CEO~~Chief Executive Officer, Director, and other positions for Westech Investment Advisors since 1994
Maurice C. Werdegar, President and Chief Executive Officer	5051	Chief Executive Officer, President, Chief Operating Officer, Director and other positions for Westech Investment Advisors since 2001
Jay L. Cohan, Vice President, Assistant Secretary	5051	Vice President, Assistant Secretary and other positions for Westech Investment Advisors since 1999
Martin D. Eng, Vice President, CFO, Treasurer, and Secretary	6364	Vice President, ~~CFO~~Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary for Westech Investment Advisors since 2005.
David R. Wanek, Vice President	4243	Vice President and other positions for Westech Investment Advisors since 2001

The information required by this item concerning the directors of the Fund 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 1311, ~~2015~~2016 (“Proxy Statement”) under the captions “Proposal 1 - To Elect Five Directors of the Fund” and “Section 16(a) Beneficial Ownership Reporting Compliance” 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.


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.

1920


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

The information required by this item will be contained in the Fund's Proxy Statement under the captions: “Other Information - Independent Registered Public Accounting Firm.”

PART IV.


ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES


(a)	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, ~~2014~~2015 and ~~2013~~2014

Statements of Operations for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

Statements of Changes in Net Assets for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

Statements of Cash Flows for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

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.


(a)	2. Exhibits

Exhibit	Exhibit Title
3(i)	Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on January 11, 2010, incorporated by reference to the Fund's Form 10 filed with the Securities and Exchange Commission on February 9, 2010.
3(ii)	Bylaws of the Fund, incorporated by reference to the Fund's Form 10 filed with the Securities and Exchange Commission, February 9, 2010.
4.1	Form of Purchase Agreement between the Fund and the Company, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on February 9, 2010.
10.1	Custodian Agreement between the Fund and Wells Fargo Bank, incorporated by reference to the Fund's 10-K dated March 15, 2012
10.3	Form of Management Agreement between the Fund, and the Manager, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on February 9, 2010.
31.1 - 32.2	Certifications pursuant to The Sarbanes-Oxley Act of 2002 (Rule 13a-14 and section 1350 Certifications)

2021

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 VI, INC.

(Registrant)

By:	/S/Maurice C. Werdegar		~~By:~~	~~/S/Martin D. Eng~~By:	/S/Martin D. Eng
	Maurice C. Werdegar			~~Martin D. Eng~~	Martin D. Eng
	President and Chief Executive Officer			~~Chief Financial Officer~~	Chief Financial Officer
	Date:	March 1715, ~~2015~~2016		~~Date:~~	~~March 17, 2015~~Date:	March 15, 2016

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/ William Miller	Director	March 1715, ~~2015~~2016
	William R. Miller
By:	/S/ Roger V. Smith	Director	March 1715, ~~2015~~2016
	Roger V. Smith
By:	/S/ Ronald W. Swenson	Chairman & Director	March 1715, ~~2015~~2016
	Ronald W. Swenson
By:	/S/ Alan Zafran	Director	March 1715, ~~2015~~2016
	Alan Zafran
By:	/S/ Maurice C. Werdegar	President, CEO & Director	March 1715, ~~2015~~2016
	Maurice C. Werdegar

2122

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholder of

Venture Lending & Leasing VI, Inc.:

We have audited the accompanying statements of assets and liabilities of Venture Lending & Leasing VI, Inc. (the "Fund"), including the schedules of investments presented in Note 3, as of December 31, ~~2014~~2015 and ~~2013~~2014, and the related statements of operations, cash flows, and changes in net assets for each of the three years in the period ended December 31, ~~2014~~2015. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of loans owned as of December 31, 2015 and 2014, by correspondence with the borrowers; where replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Venture Lending & Leasing VI, Inc. as of December 31, ~~2014~~2015 and ~~2013~~2014, and the results of its operations, its cash flows, and changes in its net assets for each of the three years in the period ended December 31, ~~2014~~2015, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 2, the financial statements include nonmarketable investments valued at $~~227~~95.70 million (9395% of total assets) and $~~293~~227.87 million (8893% of total assets) as of December 31, ~~2014~~2015 and ~~2013~~2014, respectively, whose fair values have been estimated by management in the absence of readily determinable fair values. Also discussed in Note 2 is the information used by management in making these estimates.

/s/ Deloitte & Touche LLP

March 1715, ~~2015~~2016

San Francisco, California

2223

VENTURE LENDING & LEASING VI, INC.

Statements of Assets and Liabilities

As of December 31, ~~2014~~2015 and ~~2013~~2014

	December 31, 2014			December 31, 2013
	December 31, 2015			December 31, 2014
ASSETS
Loan, at estimated fair value
Investments:
(Cost of $239,908,705 and $305,158,484)	$	227,745,693		$	293,800,885
Loans, at estimated fair value
Other Investment	149,844			$	—
(Cost of $109,048,869 and $239,908,705)	$	95,005,982		$	227,745,693
(Cost of $207,000 and $0)
Interest Rate Caps (Cost of $115,000 and $207,000)	25,340			$	149,844
Cash and cash equivalents	14,006,961			35,377,189
Total Investments (Cost of $109,163,869 and $240,115,705)	95,031,322			227,895,537
Other assets	3,851,394			4,458,893
Cash and cash equivalents	2,646,011			14,006,961
Total assets	245,753,892			333,636,967
Other assets	1,963,441			3,851,394
Total assets	99,640,774			245,753,892
LIABILITIES
Borrowings under debt facility	~~106~~40,~~550~~400,000			~~134~~106,~~200~~550,000
Accrued management fees	1622,~~528,462~~755			21,~~085~~528,~~231~~462
Accounts payable and other accrued liabilities	~~659~~112,~~942~~819			2659,~~985,879~~942
Total liabilities	~~108~~41,~~738~~135,~~404~~574			~~139~~108,~~271~~738,~~110~~404
NET ASSETS	$	~~137~~58,~~015~~505,~~488~~200		$	~~194~~137,~~365~~015,~~857~~488
Analysis of Net Assets:
Capital paid in on shares of capital stock	$	241,525,000		$	241,525,000
Return of capital distributions	(89,381,087		)	(32,040,189		)
Unrealized depreciation investments	(14,132,547		)	(12,220,168		)
Accumulated deficit	(15,128,425		)	(15,118,954		)
Distribution in excess of net investment income	(168,887,253		)	(92,289,344		)
Net assets (equivalent to $1,370.15 and $1,943.66 per share based on 100,000 shares of capital stock outstanding - See Note 5)	$	137,015,488		$	194,365,857
Net assets (equivalent to $585.05 and $1,370.15 per share based on 100,000 shares of capital stock outstanding - See Note 6)	$	58,505,200		$	137,015,488
Commitments & Contingent Liabilities:
Unfunded unexpired commitments (See Note 4)	$	1,750,000		$	21,172,500

See notes to financial statements.

2324

VENTURE LENDING & LEASING VI, INC.

Statements of Operations

For the Years Ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

	For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2014			December 31, 2013			December 31, 2012
	December 31, 2015			December 31, 2014			December 31, 2013
INVESTMENT INCOME:
Interest on loans	$	4927,~~218~~798,~~072~~922		$	5949,~~366~~218,~~653~~072		$	4359,~~739~~366,~~317~~653
Other interest and other income	~~401~~60,~~840~~438			~~100~~401,~~285~~840			~~186~~100,~~205~~285
Total investment income	4927,~~619~~859,~~912~~360			5949,~~466~~619,~~938~~912			4359,~~925~~466,~~522~~938
EXPENSES:
Management fees	73,~~004~~663,~~350~~506			87,~~435~~004,~~598~~350			78,~~615~~435,~~663~~598
Interest expense	42,~~301~~339,~~581~~888			4,~~801~~301,~~009~~581			4,~~161~~801,~~447~~009
Banking and professional fees	~~475~~550,~~184~~018			~~549~~475,~~267~~184			~~350~~549,~~339~~267
Other operating expenses	~~217~~142,~~273~~009			~~167~~217,~~085~~273			~~142~~167,~~283~~085
Total expenses	116,~~998~~695,~~388~~421			1311,~~952~~998,~~959~~388			1213,~~269~~952,~~732~~959
Net investment income	3721,~~621~~163,~~524~~939			4537,~~513~~621,~~979~~524			3145,~~655~~513,~~790~~979
Net realized loss from investments	(19,~~990~~752,~~790~~799		)	(31,~~582~~990,~~446~~790		)	(13,~~377~~582,~~330~~446		)
Net change in unrealized loss from investments	(~~805~~1,~~414~~879,875		)	(7805,~~163,165~~414		)	(37,~~295~~163,~~924~~165		)
Net realized and change in unrealized gain (loss) from hedging activities	99,592			(210,953		)	(1,233,646		)
Net realized loss from hedging activities	—			(696,351		)	(1,119,201		)
Net realized and change in unrealized loss from investment and hedging activities	(2,696,612		)	(10,956,564		)	(5,906,900		)
Net change in unrealized gain (loss) from hedging activities	(32,504		)	795,943			908,248
Net increase in net assets resulting from operations	$	34,924,912		$	34,557,415		$	25,748,890
Net realized and change in unrealized loss from investment and hedging activities	(11,665,178		)	(2,696,612		)	(10,956,564		)
Net increase in net assets resulting from operations per share	$	349.25		$	345.57		$	257.49
Net increase in net assets resulting from operations	$	9,498,761		$	34,924,912		$	34,557,415
Net increase in net assets resulting from operations per share	$	94.99		$	349.25		$	345.57
Weighted average shares outstanding	100,000			100,000			100,000

See notes to financial statements.

2425

VENTURE LENDING & LEASING VI, INC.

Statements of Changes In Net Assets

For the Years Ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

	For the Year ended			For the Year ended			For the Year Ended
	December 31, 2014			December 31, 2013			December 31, 2012
	December 31, 2015			December 31, 2014			December 31, 2013
Net increase in net assets resulting from operations:
Net investment income	$	3721,~~621~~163,~~524~~939		$	4537,~~513~~621,~~979~~524		$	3145,~~655~~513,~~790~~979
Net realized loss from investments	(19,~~990~~752,~~790~~799		)	(31,~~582~~990,~~446~~790		)	(13,~~377~~582,~~330~~446		)
Net change in unrealized loss from investments	(~~805~~1,~~414~~879,875		)	(7805,~~163,165~~414		)	(37,~~295~~163,~~924~~165		)
Net realized and change in unrealized gain (loss) from hedging activities	99,592			(210,953		)	(1,233,646		)
Net realized loss from hedging activities	—			(696,351		)	(1,119,201		)
Net increase in net assets resulting from operations	34,924,912			34,557,415			25,748,890
Net change in unrealized gain (loss) from hedging activities	(32,504		)	795,943			908,248
Distributions of income to shareholder	(34,934,383		)	(40,812,332		)	(29,594,153		)
Net increase in net assets resulting from operations	9,498,761			34,924,912			34,557,415
Return of capital to shareholder	(57,340,898		)	(3,308,097		)	(12,635,326		)
Distributions of income to shareholder	(11,411,140		)	(34,934,383		)	(40,812,332		)
Contributions from shareholder	—			8,000,000			81,000,000
Return of capital to shareholder	(76,597,909		)	(57,340,898		)	(3,308,097		)
Total increase (decrease)	(57,350,369		)	(1,563,014		)	64,519,411
Contributions from shareholder	—			—			8,000,000
Total decrease	(78,510,288		)	(57,350,369		)	(1,563,014		)
Net assets
Beginning of year	~~194~~137,~~365~~015,~~857~~488			~~195~~194,~~928~~365,~~871~~857			~~131~~195,~~409~~928,~~460~~871
End of year	$	137,015,488		$	194,365,857		$	195,928,871
End of year (Undistributed net investment income of $0, $0 and $0)	$	58,505,200		$	137,015,488		$	194,365,857

See notes to financial statements.

2526

VENTURE LENDING & LEASING VI, INC.

Statements of Cash Flows

For the Years Ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013

	For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2014			December 31, 2013			December 31, 2012
	December 31, 2015			December 31, 2014			December 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	349,~~924~~498,~~912~~761		$	34,~~557~~924,~~415~~912		$	2534,~~748~~557,~~890~~415
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Net realized loss from investments	19,~~990~~752,~~790~~799			31,~~582~~990,~~446~~790			13,~~377~~582,~~330~~446
Net change in unrealized loss from investments	~~805~~1,~~414~~879,875			7805,~~163,165~~414			37,~~295~~163,~~924~~165
Net change in unrealized (gain) loss from hedging activities	~~(795~~32,~~943~~504		)	(~~908~~795,~~248~~943		)	~~549~~(908,~~339~~248		)
Amortization of deferred costs related to borrowing facility	~~425~~227,~~848~~993			~~491~~425,~~799~~848			~~489~~491,~~075~~799
Net (increase) decrease in other assets	544,634			400,838			(1,659,121		)
Net decrease in other assets	1,751,960			544,634			400,838
Receipt of equity securities as payment for waiver	~~(327,440~~—		)	(~~587~~327,~~537~~440		)	(85587,~~603~~537		)
Net increase in accounts payable, other accrued liabilities, and accrued management fees	(2,029,607		)	463,283			318,892
Net increase (decrease) in accounts payable, other accrued liabilities, and accrued management fees	(1,452,830		)	(2,029,607		)	463,283
Origination of loans	(~~104~~3,~~567~~362,500		)	(~~168~~104,~~188~~567,~~165~~500		)	(~~227~~168,~~538~~188,~~293~~165		)
Principal payments on loans	~~166~~122,~~465~~547,~~742~~456			~~175~~166,~~892~~465,~~097~~742			83175,~~261~~892,~~571~~097
Acquisition of equity securities	(686,~~787,095~~968		)	(106,~~334~~787,~~618~~095		)	(1410,~~841~~334,~~547~~618		)
Net cash provided by (used in) operating activities	90,649,755			42,532,475			(129,083,543		)
Net cash provided by operating activities	140,789,050			90,649,755			42,532,475
Contributions from shareholder	—			~~8,000,000~~—			818,000,000
Cash distribution to shareholder	(8386,~~800~~000,000		)	(3183,~~600~~800,000		)	(2631,~~770~~600,000		)
Borrowings (repayment) under debt facility	(27,650,000		)	11,800,000			64,000,000
Borrowings under debt facility	—			—			11,800,000
Investment in interest rate cap agreement	(230,000		)	—			—
Repayment of borrowings under debt facility	(66,150,000		)	(27,650,000		)	(11,600,000		)
Payment of bank facility and fees and costs	(339,983		)	(11,600,000		)	(16,787		)
Investment in interest rate cap agreement	—			(230,000		)	—
Net cash provided by (used in) financing activities	(112,019,983		)	(23,400,000		)	118,213,213
Payment of bank facility and fees and costs	—			(339,983		)	—
Net increase (decrease) in cash and cash equivalents	(21,370,228		)	19,132,475			(10,870,330		)
Net cash used in financing activities	(152,150,000		)	(112,019,983		)	(23,400,000		)
Net increase (decrease) in cash and cash equivalents	(11,360,950		)	(21,370,228		)	19,132,475
CASH AND CASH EQUIVALENTS:
Beginning of year	3514,~~377~~006,~~189~~961			1635,~~244~~377,~~714~~189			2716,~~115~~244,~~044~~714
End of year	$	142,~~006~~646,~~961~~011		$	3514,~~377~~006,~~189~~961		$	1635,~~244~~377,~~714~~189
SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE YEAR FOR:
Interest	$	42,~~602~~281,~~356~~352		$	4,~~316~~602,~~596~~356		$	34,~~245~~316,~~154~~596
Settlement under interest rate swap agreement	$	~~696,351~~—		$	1696,~~119,201~~351		$	~~684~~1,~~307~~119,201
NON-CASH ACTIVITIES:
Distributions of equity securities to shareholder	$	82,~~475~~009,~~281~~049		$	128,~~520~~475,~~429~~281		$	1512,~~459~~520,~~479~~429
Receipt of equity securities as repayment of loans	$	1,~~360~~922,~~746~~081		$	1,~~598~~360,~~274~~746		$	~~532~~1,~~330~~598,274

See notes to financial statements.

2627

VENTURE LENDING & LEASING VI, INC.

Notes to Financial Statements for the Years Ended December 31, ~~2014~~2015 and ~~2013~~2014

1. ORGANIZATION AND OPERATIONS OF THE FUND

Venture Lending & Leasing VI, Inc. (the “Fund”), was incorporated in Maryland on January 11, 2010 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 ("1940 Act") and is managed by Westech Investment Advisors, LLC, formerly known as Westech Investment Advisors, Inc., (“Manager” or “Management”). The Fund will be dissolved on December 31, 2020 unless an election is made to dissolve earlier by the Board of Directors. The Manager was formed upon the conversion of Westech Investment Advisors, Inc. into a limited liability company. One hundred percent of the stock of the Fund is held by Venture Lending & Leasing VI, LLC (the “Company”). Prior to commencing its operations on June 29, 2010, the Fund had no operations other than the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in January 2010. This issuance of stock was a requirement in order to apply for a finance lender's license from the California Commissioner of Corporations, which was obtained on April 13, 2010.

The Fund's investment objective is to achieve a superior risk-adjusted investment return. The Fund seeks to achieve its investment objective by providing debt financing to portfolio companies. The Fund's investing activities focus primarily on private debt securities. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments. The Fund generally distributes these warrants to its shareholder upon receipt. The Fund also has guidelines for the percentage of total assets which will be invested in different types of assets.

The portfolio investments of the Fund consist of debt financing to early and late stage venture capital backed technology companies.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and money market mutual funds with maturities of 90 days or less. Money market mutual funds held as cash equivalents are valued at their most recently traded net asset value.

Interest Income

Interest income on loans is recognized using the effective interest method including amounts resulting from the amortization of discounts to equity securities received as part of the loan transaction. Additionally, fees received as part of the transaction are added to the loan discount and amortized over the life of the loan.

Valuation Procedures

The Fund accounts for loans at fair value in accordance with the “Valuation Methods” below. All valuations are determined under the direction of Management, in accordance with ~~this~~the ~~Policy~~Valuation Methods.

The Fund's loans are valued in connection with the issuance of its periodic financial statements, the issuance or repurchase of the Fund's shares at a price equivalent to the current net asset value per share, and at such other times as required by law. On a quarterly basis, Management will submit to the Board of Directors (“Board”) a “Valuation Report,” which details the rationale for the valuation of investments.

As of December 31, ~~2014~~2015 and ~~2013~~2014, the financial statements include nonmarketable investments ($~~227~~95.70 million and $~~293~~227.87 million or approximately 9395% and 8893% of the total assets) with fair values determined by the Manager in the absence of readily determinable market values. Because of the illiquidity of the Fund's investments, a substantial portion of its assets are carried at fair value as determined by the Manager in accordance with the Fund's policy as approved by the Board. Due to the inherent uncertainty of these valuations, estimated fair values of such investments may differ significantly from the values that would have been used had a ready 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. There is no secondary market for the loans; hence Management determines fair value based on hypothetical markets. Venture loans are generally held to maturity and are recorded at estimated fair value. The

2728

determination of fair value is based on a number of factors including the amount for which an investment could be exchanged in a current sale, which assumes an orderly disposition over a reasonable period other than in a forced sale. Management considers the fact that no ready market exists for substantially all of the investments held by the Fund. Management determines whether to adjust the estimated fair value of a loan based on a number of factors 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, as well as an evaluation of the general interest rate environment. The amount of any valuation adjustment considers 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 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 the size of the loan and increase in the estimated time to recovery and increase in the hypothetical market coupon rate would have the effect of lowering the value of the current portfolio of loans.

Non-accrual Loans

The Fund's policy is to place a loan on non-accrual status when the loan stops performing 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 recorded onif aand ~~cash~~when ~~basis~~the proceeds exceed the book value of the loans.

If a borrower of a non-accrual loan resumes making regular payments and Management deems that the borrower has

sufficient resources that it is unlikely the loan will return to non-accrual status, the loan is re-classified back to accrual or performing status. Interest that would have been accrued during the non accrual status will be added back to the remaining payment schedule, and thus changing the effective interest rate.

As of December 31, ~~2014~~2015, loans with a cost basis of $1820.59 million and a fair value of $7.30 million, have been classified as non-accrual. As of December 31, ~~2013~~2014, loans with a cost basis of $2118.05 million and a fair value of $97.93 million, have been classified as non-accrual.

Warrants and Stock

Warrants and stock that are received in connection with loan transactions generally will be assigned a fair value at the time of acquisition. These securities are then distributed by the Fund to the Company at the assigned value. Warrants are valued based on a modified Black-Scholes option pricing model which takes into account underlying stock value, expected term, volatility, and risk-free interest rate, among other factors.

Underlying asset value is estimated based on information available, including information regarding recent rounds of funding of the portfolio company, or the publicly-quoted stock price at the end of the financial reporting period for warrants for comparable publicly-quoted securities.

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 client 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 client company's industry for a period of time approximating the expected life of the warrants. A hypothetical increase in the ~~estimated~~volatility ~~initial term~~ of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

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. The Fund assumed the average duration of a warrant is 3 years prior to October 1, 2014 and 3.5 years from October 1, 2014 to December 31, ~~2014~~2015. The effect of a hypothetical increase in the estimated initial term of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

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 modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

On an ~~annual~~regular basis, the Fund engages an independent valuation company to provide valuation assistance to value the warrants which are received as part of loan consideration. These warrants are immediately distributed to the Fund’s shareholder. This independent third party evaluates the Fund's valuation methodology and assumptions for reasonableness from the perspective of a market participant. The independent third party also calculates several of the inputs used such as volatility and risk free rate. ~~Upon the receipt of such data, a sample test is performed to ensure the accuracy of the independent calculations and that the source~~

2829

Upon the receipt of such data, a sample test is performed to ensure the accuracy of the independent calculations and that the source of data is reliable and consistent with the way in which the calculations were made in prior periods. Such inputs are entered into the database with a second review to ensure the accuracy of the input information. All calculations of warrant values are performed by one employee and reviewed by a second party. The inputs of the modified Black-Scholes option pricing model are reevaluated every quarter.

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. The costs are amortized over the term of the facility.

As of December 31, ~~2014~~2015 and ~~2013~~2014, the fair values of Other Assets and Liabilities are estimated at their carrying values because of the short-term nature of these assets or liabilities.

As of December 31, ~~2014~~2015 and ~~2013~~2014, based on borrowing rates available to the Fund, which are Level 2 inputs, the estimated fair values of the borrowings under the debt facility were $~~106~~40.64 million and $~~134~~106.26 million, respectively.

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.

Interest Rate Swap Agreements

The Fund entered into interest rate swap agreements to hedge its interest rate on its expected long term borrowings under its debt facility (see Note 89). Interest rate swaps are primarily valued on the basis of quotes obtained from brokers and dealers and adjusted for counterparty risk. The valuation of the swap agreement 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 swap instruments. The contracts were recorded at fair value in either other assets or accounts payable and other accrued liabilities in the Statements of Assets and Liabilities, depending on whether the value of the contract is in favor of the Fund or the counter party. The changes in fair value are recorded in net ~~realized and~~ change in unrealized gain (loss) from hedging activities in the Statements of Operations. The quarterly interest paid or received on the interest rate swap contracts was also recorded in net realized ~~and change in unrealized gain (~~loss) from hedging activities in the Statements of Operations. The interest swap agreements terminated on September 23, 2014.

Interest Rate Cap Agreements

On September 30, 2014, the Fund entered into interest rate cap agreements which are primarily valued on the basis of 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 cap instruments. The contracts are recorded at fair value in ~~Other~~Interest ~~Investment~~Rate Caps in the Statements of Assets and Liabilities. The changes in fair value are recorded in Net ~~realized and~~ change in unrealized gain (loss) from hedging activities in the Statements of Operations. The monthly interest received on the interest rate cap contracts is also recorded in Net realized ~~and change in unrealized gain (~~loss) from hedging activities in the Statements of Operations.

Credit Risks

Most of the companies with which the Fund enters into financing transactions ~~have~~will not have achieved profitability, may experience substantial fluctuations in their operating results or, in ~~some~~many cases, dowill not have significant operating revenues. The ability of ~~these~~any ~~companies~~borrower to meet ~~their~~its obligations to the Fund, therefore, ~~depends~~will depend to a significant extent on the willingness of asuch borrower'’s ~~equity~~ venture capital equity investors or outside investors to provide additional equity financing, which in turn ~~depends~~will depend on the borrower'’s success in meeting its business plan, the market climate for venture capital investments generally, and many other factors. The companies to which the Fund provides financing will frequently ~~engage~~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 small group of persons whose death, disability or resignation would adversely affect the company.

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 to the Fund. 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 one or more of such 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.

29Crisis in Financial Markets

~~product~~The ~~line~~ability atof the ~~time~~Fund ofto ~~investment,~~provide ~~technology~~an ~~products~~acceptable ~~and~~return ~~services~~may ~~often~~be ~~have~~adversely aaffected ~~more~~by ~~limited~~economic ~~market~~factors orto ~~life~~which ~~span than products in other industries. Thus,~~ the ~~ultimate~~market ~~success~~place ofis ~~these companies may depend on their ability to continually innovate in increasingly competitive markets~~subject. ~~Most~~ ofVolatility ~~the companies~~ in ~~which~~ the ~~Fund~~global ~~invests~~financial ~~will~~markets ~~require~~reached ~~substantial~~unprecedented ~~additional~~levels ~~equity~~during ~~financing~~2008 toand ~~satisfy~~2009, ~~their continuing growth~~ and ~~working~~these ~~capital~~volatile ~~requirements. Each~~conditions ~~round~~continued offor ~~venture~~some ~~financing~~period isthereafter ~~typically~~(albeit ~~intended~~ to ~~provide~~ a ~~company~~lesser ~~with~~extent) ~~enough~~and ~~capital~~may torecur ~~reach~~into the ~~next stage of development~~future. ~~The~~ ~~circumstances~~This or market ~~conditions~~turmoil ~~under~~could ~~which~~have ~~such~~a ~~companies~~material ~~will~~adverse ~~seek~~effect ~~additional~~on ~~capital~~the isFund’s ~~unpredictable. It~~business isand ~~possible~~operations. ~~that~~The ~~one~~tightening orof ~~more~~the ofcredit ~~such~~markets ~~companies~~could ~~will~~impair ~~not~~the beFund’s ~~able~~ability to ~~raise~~either ~~additional~~acquire ~~financing~~ or ~~may~~utilize beleverage ~~able~~ to domaximize sothe ~~only~~return atit aachieves ~~price or~~ on ~~terms which are unfavorable~~investments.

~~Challenges~~It is possible that market conditions could decrease the demand for venture loans. Furthermore, market conditions could also adversely impact the ability of the Fund’s borrowers to meet their obligations to the Fund and the value of the Fund’s direct investments in ~~Financial~~companies. ~~Markets~~ 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.

The ability of the Fund to provide an acceptable return may be adversely affected by economic factors to which the marketplace is subject. Valuations of loans may be adversely affected by these macro economic factors. The Fund's estimates of fair value are based on the best information available to the Manager as of the date of valuation. Restrictions on the availability of financing could result in a low volume of purchase and sale transactions, limiting the number of observable inputs available to Management in making their estimates of fair value. The market turmoil could have a material adverse effect on the Fund's business and operations. Market turmoil could impact the Fund's ability to increase the size of its facility, should it seek to do so, thereby decreasing the Fund's ability to utilize leverage to maximize the return it achieves on investments.

Market conditions could also adversely impact 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 invests have not achieved profitability and require substantial equity financing to satisfy their continuing growth and working capital requirements. A weak economy could hinder and possibly decrease the demand for such borrower's products and technology, thereby impairing such borrower's financial condition and ability to raise additional equity financing from outside investors. This could result in an increase in borrower defaults under their obligations to the Fund, or a decrease in the value of the Fund's direct equity investments. U.S. and global economic conditions could deteriorate and become weak for an extended period of time. Additionally, it is possible that market conditions could decrease the demand for venture loans.

Deferred Bank Fees

The deferred bank fees and costs associated with the debt facility have been allocated over the estimated life of the facility, which was originally determined to be January 2014. Starting in October 2011, the estimated life of the facility changed to September 2014. ~~Through~~The debt facility was extended again on September 23, 2014 and then on September 30, 2014, ~~the~~it ~~deferred~~was amended, restated and renewed through March 23, 2017. Deferred bank fees and costs associated with the ~~September~~renewal ~~30,~~of ~~2014~~the ~~extended~~debt ~~expiration~~facility ~~date~~are ~~previously~~being ~~had been~~ amortized over the estimated life of the renewed facility. through March 23, 2017.

The ~~debt~~amortization ~~facility~~of ~~was~~these ~~extended again on September 23, 2014 and then on September 30, 2014, it was amended, restated and renewed through March 23, 2017. Deferred bank fees and~~ costs ~~associated~~are ~~with~~recorded ~~the~~in ~~renewal~~interest ofexpense ~~the~~in ~~debt facility are being amortized over~~ the ~~estimated~~Statements ~~life~~ of ~~the~~Operations ~~renewed~~(see ~~facility~~Note ~~through March 23, 2017~~7).

~~The~~Recent ~~amortization~~Accounting ~~of these costs are recorded in interest expense in the Statements of Operations as of December 31, 2014 (see Note 6).~~ Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update ("ASU")2015-03 Interest-Imputation of Interest, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The amended guidance is effective for the Fund’s interim and annual periods beginning on January 1, 2016. Management does not expect the adoption of this guidance to significantly impact the Fund’s financial position or results of operations.

Tax Status

The Fund has elected to be treated as a Regulated Investment Company ("RIC") under Subchapter M of the Internal Revenue Code (the "Code") and operates in a manner so as 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.

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 our 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 is a table summarizing the cost (on GAAP and tax basis) and the appreciation and depreciation of the investments reported on the schedule of investments in Note 3 below:

As of December 31, 2015:



Asset	Cost	Unrealized Appreciation	Unrealized Depreciation		Net Appreciation (Depreciation)		Fair Value
Loans	$109,048,869	$0	$(14,042,887)		$(14,042,887)		$95,005,982
Interest Rate Caps	115,000	—	(89,660	)	(89,660	)	25,340
Total	$109,163,869	$0	$(14,132,547)		$(14,132,547)		$95,031,322

As of December 31, 2014 :



Asset	Cost	Unrealized Appreciation	Unrealized Depreciation		Net Appreciation (Depreciation)		Fair Value
Loans	$239,908,705	$0	$(12,163,012)		$(12,163,012)		$227,745,693
Interest Rate Caps	207,000	—	(57,156	)	(57,156	)	149,844
Total	$240,115,705	$0	$(12,220,168)		$(12,220,168)		$227,895,537

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 Accounting Principles Generally

Accepted in the United States of America ("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. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP.

30Though December 31, 2015, the Fund had no undistributed earnings. Additionally, for the year ended December 31, 2015, distributions were made in excess of distributable earnings by $76.6 million. The Fund may pay return of capital. This excess would be a tax-free return of capital in the period and reduce the shareholder's tax basis in its shares. As of December 31, 2015, the Fund had no uncertain tax positions. As of December 31, 2015, the Fund had no capital loss carry forwards.

The Fund ~~may pay return of capital. This excess would be a tax-free return of capital in the period and reduce the shareholder~~'s tax ~~basis~~years inopen ~~its~~to ~~shares.~~examination ~~The~~by ~~cumulative~~the ~~amount~~federal isare ~~disclosed~~for on the ~~Statements~~years of2012 ~~Assets~~ and ~~Liabilities~~forward ~~as return of capital distributions. Cumulative return of capital distributions were $89.4 million~~ and ~~$32.0~~California ~~million~~tax asauthorities ofare ~~December~~for ~~31, 2014 and 2013, respectively. As of December 31, 2014,~~ the ~~Fund~~years ~~had~~2011 noand ~~uncertain tax positions~~forward.

~~The~~3. SCHEDULES ~~Fund's~~OF ~~tax years open to examination by major jurisdictions are 2011 and forward.~~INVESTMENTS

~~3. SUMMARY~~As OFof ~~INVESTMENTS~~December 31, 2015, all loans were made to non-affiliates as follows:

Loans generally are made to borrowers 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 commitments, upon the terms and subject to the conditions specified by such commitment. As of December 31, 2014, the Fund's investments in loans are primarily to companies based within the United States and are diversified among borrowers in the industries shown below. The percentage of net assets that each industry group represents is shown with the industry totals below (the sum of the percentages does not equal 100 percent because the percentages are based on net assets as opposed to total loans). All loans are senior to unsecured creditors except for that of Akademos, Inc., Beanstock Media, Inc., The Lucky Group, Inc. and YouDocs Beauty, Inc. which are subordinate.



	Percentage	Estimated Fair	Par Value	Final
Borrower	of Net Assets	Value 12/31/15	Value12/31/15	Maturity Date
Computers & Storage
Clustrix, Inc.		$ 1,258,439	$ 1,258,439	5/1/2017
D-Wave Systems, Inc. **		1,003,360	1,003,360	2/1/2017
Gridstore, Inc.		913,030	913,030	6/1/2017
Veloxum, Inc.		0	416,093	*
Subtotal:	5.4%	$ 3,174,829	$ 3,590,922

Enterprise Networking
Apprion, Inc.		$ 147,799	$ 147,799	4/1/2016
Subtotal:	0.3%	$ 147,799	$ 147,799

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.

Loan balances are summarized 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. For the years ended December 31, 2014 and 2013, the weighted average interest rate on performing loans was 18.68% and 19.31% respectively. These rates were inclusive of both cash and non-cash interest income. For the year ended December 31, 2014 and 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. For the years ended December 31, 2014 and 2013 the cash portion was 14.31% and 14.73%, respectively. 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 being adjusted from par value of the individual loan. Where the risk profile is consistent with the original underwriting, which is primarily the case for this loan portfolio, the par value of the loan approximates fair value.

Loans as of December 31, 2014 are to non-affiliates and consist of the following:

		Estimated Fair	Par Value	Final
Borrower		Value 12/31/14	Value 12/31/14	Maturity Date
Carrier Networking
Treq Labs, Inc.		$ 1,823,279	$ 1,823,279	*
Subtotal:	1.3%	$ 1,823,279	$ 1,823,279
Computers & Storage
Clustrix, Inc.		$ 2,134,611	$ 2,134,611	5/1/2017
Connected Data, Inc.		1,881,044	1,881,044	5/1/2017
D-Wave Systems, Inc.		1,598,859	1,598,859	2/1/2017
Gridstore, Inc.		1,413,836	1,413,836	6/1/2017
Veloxum, Inc.		416,093	416,093	*
Vidcie, Inc.		431,642	431,642	12/1/2015
Subtotal:	5.7%	$ 7,876,085	$ 7,876,085
Enterprise Networking
Apprion, Inc.		$ 534,558	$ 534,558	4/1/2016
Splashtop, Inc.		1,127,792	1,127,792	5/1/2016

Subtotal:	1.2%	$ 1,662,350	$ 1,662,350
Internet
Behalf, Inc.		$ 1,488,729	$ 1,488,729	5/1/2017
Better Doctor, Inc.		304,363	304,363	6/1/2016
Change.org, Inc.		1,923,173	1,923,173	11/1/2016
CloudTalk, Inc.		5,000	124,008	*
CustomMade, Inc.		1,713,379	1,713,379	5/1/2017
DailyFeats, Inc.		210,068	210,068	1/1/2016
Desti, Inc.		38,983	43,283	*
Digital Caddies, Inc.		854,469	854,469	6/1/2017
FanBridge, Inc.		453,896	643,896	*
FanDuel, Inc.		1,400,975	1,400,975	9/1/2016
Fast Labs, Inc.		373,488	373,488	3/1/2017
Fingi, Inc.		275,000	352,718	6/1/2018
FlipTop, Inc.		379,583	379,583	6/1/2017
Giddy Apps, Inc.		938,861	938,861	12/1/2017
Giga Omni Media, Inc.		2,498,405	2,498,405	2/1/2016
Giveforward, Inc.		474,588	474,588	7/1/2017
Good Eggs, Inc.		303,029	303,029	6/1/2016
Grovo Learning, Inc.		876,425	876,425	3/1/2017
HEXAGRAM 49, Inc.		421,188	421,188	1/1/2016
Inside Vault, Inc.		437,370	437,370	5/1/2017
Jun Group, LLC		710,184	710,184	2/1/2017
KargoCard, Co.		473,843	473,843	1/1/2016
Kitsy Lane, Inc.		193,730	193,730	12/1/2016
Kiwi Crate, Inc.		1,042,522	1,042,522	7/1/2017
Komli Media, Inc.		2,981,677	2,981,677	11/1/2015
Kulbyt, Inc.		109,363	109,363	8/1/2015
Lenddo International		1,045,505	1,045,505	12/1/2015
Lightside Games, Inc.		162,230	235,230	*
LocalResponse, Inc.		341,958	341,958	3/1/2016
MassDrop, Inc.		358,248	358,248	9/1/2017
MediaSpike, Inc.		207,440	207,440	12/1/2016
MeetMe, Inc.		1,322,995	1,322,995	4/1/2016
Minno, Inc.		1,588,734	1,588,734	3/1/2018
Moda Operandi, Inc.		125,127	125,127	12/1/2015
Modasuite, Inc.		1,256,711	1,256,711	7/1/2016
Monetate, Inc.		3,736,811	3,736,811	6/1/2018
Moveline Group, Inc.		—	929,799	*
Navigating Cancer, Inc.		934,389	934,389	7/1/2016
Osix Corp.		302,026	302,026	10/1/2016
PerformLine, Inc.		68,562	68,562	5/1/2015
Piryx, Inc.		1,511,061	1,511,061	6/1/2017
Pixalate, Inc.		407,620	407,620	3/1/2017
Playstudios, Inc.		3,400,117	3,400,117	6/1/2018

Pleying, Inc.		184,031	184,031	12/1/2016
Internet
Quantcast Corp.		7,331,527	7,331,527	4/1/2017
CustomMade Ventures Corp.		$ 687,276	$ 687,276		*
Quri, Inc.		1,906,998	1,906,998	6/1/2018
DailyFeats, Inc.		18,441	18,441		1/1/2016
Radius Intelligence, Inc.		1,608,479	1,608,479	10/1/2017
Digital Caddies, Inc. **		0	987,584		*
Relay Network, LLC		435,496	435,496	7/1/2015
FanBridge, Inc.		453,896	643,896		*
Retail Innovation Group		1,611,875	1,611,875	7/1/2016
Giddy Apps, Inc.		1,063,297	1,063,297		12/1/2017
Rivet Games, Inc.		123,082	190,082	*
Giveforward, Inc.		406,113	406,113		7/1/2017
The SavvySource For Parents, Inc.		396,598	396,598	12/1/2016
Grovo Learning, Inc.		522,397	522,397		3/1/2017
Schooltube, Inc.		68,222	108,222	*
HEXAGRAM 49, Inc.		18,716	18,716		1/1/2016
ServiceMarketplace, Inc.		215,178	215,178	7/1/2017
InsideVault, Inc.		259,715	259,715		5/1/2017
Session M, Inc.		1,557,014	1,557,014	2/1/2017
Kitsy Lane, Inc.		39,441	169,441		*
Smart Lunches, Inc.		155,505	155,505	6/1/2016
Kiwi Crate, Inc.		814,731	814,731		4/1/2018
Sociable Labs, Inc.		313,361	313,361	7/1/2016
Lightside Games, Inc.		54,230	127,230		*
TangoCard, Inc.		47,019	47,019	3/1/2015
Madison Reed, Inc.		1,276,132	1,276,132		6/1/2018
The Black Tux, Inc.		722,390	722,390	2/1/2018
Monetate, Inc.		2,475,198	2,475,198		6/1/2018
The Lucky Group, Inc.		4,845,416	5,345,416	8/1/2018
Navigating Cancer, Inc.		184,646	184,646		7/1/2016
UserVoice, Inc.		317,346	317,346	11/1/2015
Osix Corp.		57,340	57,340		10/1/2016
Waluzi, Inc.		79,987	79,987	8/1/2016
Piryx, Inc.		1,187,196	1,467,196		*
Weddington Way, Inc.		815,644	815,644	11/1/2016
Pixalate, Inc.		227,339	227,339		3/1/2017
WHI, Inc.		1,877,385	1,877,385	7/1/2017
Playstudios, Inc.		2,065,680	2,065,680		6/1/2018
YouDocs Beauty, Inc.		961,655	1,161,655	5/1/2018
Quantcast Corp.		3,404,740	3,404,740		4/1/2017
Subtotal:	46.1%	$ 63,226,033	$ 65,426,858
Quri, Inc.		1,696,743	1,696,743		6/1/2018
Medical Devices
Radius Intelligence, Inc.		1,257,560	1,257,560		10/1/2017
AxioMed, Inc.		$ 23,748	$ 1,569,748	*
Rivet Games, Inc.		63,082	130,082		*
Blockade Medical, LLC		463,868	463,868	9/1/2017
Schooltube, Inc.		0	108,222		*
Cayenne Medical, Inc.		4,765,638	4,765,638	12/1/2017
Schoola, Inc.		102,300	102,300		12/1/2016
Cervilenz, Inc.		1,823,990	1,823,990	4/1/2016
Smart Lunches, Inc.		63,640	63,640		6/1/2016
HourGlass Technologies, Inc.		243,351	869,351	*
Sociable Labs, Inc.		113,422	113,422		7/1/2016
MimOSA, Inc.		194,284	194,284	12/1/2015
THECLYMB		870,456	870,456		10/1/2017
NasoForm, Inc.		30,077	30,077	2/1/2015
Weddington Way, Inc.		306,628	306,628		11/1/2016
Redox Medical, Inc.		500,000	3,600,000	*
WHI, Inc.		1,160,565	1,160,565		7/1/2017
Sonoma Orthopedic Products, Inc.		2,362,253	2,362,253	4/1/2016
YouDocs Beauty, Inc.***		1,061,305	1,192,024		*
Subtotal:	7.6%	$ 10,407,209	$ 15,679,209
Yourmechanic, Inc.		151,324	151,324		7/1/2017
Other Healthcare
Subtotal:	37.7%	$ 22,063,549	$ 24,030,073
Cogito Health, Inc.		$ 512,736	$ 512,736	4/1/2017
Medical Devices
Health Integrated, Inc.		2,089,102	2,089,102	10/1/2017
AxioMed, Inc.		$ 14,238	$ 1,560,238		*
HealthEquityLabs, Inc.		927,690	927,690	6/1/2018
Blockade Medical, LLC		347,432	347,432		9/1/2017
Mulberry Health, Inc.		4,812,610	4,812,610	12/1/2017
Hourglass Technology, Inc.		0	872,325		*
Physician Software Systems, LLC		476,037	476,037	7/1/2017
MimOSA, Inc.		109,833	209,833		12/1/2016
Practice Fusion, Inc.		4,443,620	4,443,620	6/1/2016
Redox Medical, Inc.		250,000	3,600,000		*
Project Healthy Living, Inc.		892,851	892,851	10/1/2016
Subtotal:	1.2%	$ 721,503	$ 6,589,828
Therapydia, Inc.		602,420	602,420	10/1/2017
Other Healthcare
Urgent Care Centers of New England, Inc.		2,349,955	2,349,955	4/1/2018
Cogito Health, Inc.		$ 309,223	$ 309,223		4/1/2017
ZocDoc, Inc.		4,517,666	4,517,666	6/1/2017
Health Integrated, Inc.		1,305,577	1,305,577		10/1/2017
Subtotal:	15.8%	$ 21,624,687	$ 21,624,687

Other Technology
HealthEquityLabs, Inc.		949,393	949,393		6/1/2018
21e6, LLC		$ 12,754,495	$ 12,754,495	8/1/2017
Mulberry Health, Inc.		3,436,073	3,436,073		12/1/2017
Automatic Labs, Inc.		766,320	766,320	12/1/2016
Physician Software Systems, LLC		321,221	321,221		7/1/2017
Beeline Bikes, Inc.		135,592	135,592	6/1/2017
Practice Fusion, Inc.		1,604,096	1,604,096		6/1/2016
Daylight Solutions, Inc.		2,571,168	2,571,168	8/1/2017
Project Healthy Living, Inc.		444,667	444,667		10/1/2016
Ecologic Brands, Inc.		635,944	635,944	6/1/2017
Therapydia, Inc.		352,299	352,299		10/1/2017
General Assembly, Inc.		1,956,427	1,956,427	12/1/2016
Urgent Care Centers of New England, Inc.		3,050,202	3,050,202		9/1/2018
InsideTrack, Inc.		1,304,318	1,304,318	9/1/2017
Subtotal:	20.1%	$ 11,772,751	$ 11,772,751
LanzaTech New Zealand Ltd.		8,090,966	8,090,966	7/1/2016
Other Technology
Lumo BodyTech, Inc.		1,179,641	1,179,641	12/1/2017
21, Inc.		$ 10,680,985	$ 10,680,985		9/1/2017
Neuehouse, LLC		3,997,428	3,997,428	7/1/2017
Automatic Labs, Inc.		401,358	401,358		12/1/2016
nWay, Inc.		1,361,505	1,361,505	3/1/2018
Beeline Bikes, Inc.		89,107	89,107		6/1/2017
Pinnacle Engines, Inc.		1,583,540	1,583,540	12/1/2017
Daylight Solutions, Inc.		1,338,564	1,338,564		8/1/2017
PLAE, Inc.		462,689	462,689	6/1/2017
eco.logic brands, inc.		375,524	375,524		6/1/2017
Prana Holdings, Inc.		4,514,012	4,514,012	7/1/2016
General Assembly, Inc.		1,045,212	1,045,212		12/1/2016
Scoot Networks, Inc.		414,974	414,974	3/1/2017
InsideTrack, Inc.		906,204	906,204		9/1/2017
Skully Helmets, Inc.		227,456	227,456	7/1/2017
LanzaTech New Zealand Ltd.**		2,167,522	2,167,522		7/1/2016
Sproutling, Inc.		709,251	709,251	9/1/2017
Lumo BodyTech, Inc.		987,135	987,135		12/1/2017
Thoughtful Media Group, Inc.		393,020	573,020	*
Neuehouse, LLC		2,609,757	2,609,757		7/1/2017
Tribogenics, Inc.		1,186,455	1,186,455	9/1/2016
nWay, Inc.		1,049,777	1,049,777		3/1/2018
YPX Cayman Holdings Co.		1,003,708	1,003,708	4/1/2016
Pinnacle Engines, Inc.		870,363	870,363		12/1/2017
ZeaChem, Inc.		374,248	4,076,248	*
Prana Holdings, Inc.		2,280,795	2,280,795		7/1/2016
Subtotal:	33.3%	$ 45,623,157	$ 49,505,157
Scoot Networks, Inc.		253,204	253,204		3/1/2017
Security
Skully, Inc.		161,357	161,357		7/1/2017
Agari Data, Inc.		$ 1,082,097	$ 1,082,097	9/1/2017
Sproutling, Inc.		483,241	483,241		1/15/2016
Guardian Analytics, Inc.		2,856,906	2,856,906	1/1/2018
Tribogenics, Inc.		471,201	471,201		9/1/2016
Kinamik, Inc.		633,670	643,670	*
Zeachem		0	3,023,096		*
Uplogix, Inc.		1,250,804	1,250,804	5/1/2017
YPX Cayman Holdings Co. **		177,626	177,626		4/1/2016
Venafi, Inc.		3,709,903	3,709,903	6/1/2017
Subtotal:	45.0%	$ 26,348,932	$ 29,372,028
Voltage Security, Inc.		2,369,626	2,369,626	9/1/2017
Security
Subtotal:	8.7%	$ 11,903,006	$ 11,913,006
Agari Data, Inc.		$ 734,959	$ 734,959		9/1/2017
Software
Guardian Analytics, Inc.		2,124,840	2,124,840		2/1/2019
3Scale, Inc.		$ 712,931	$ 712,931	9/1/2017
Uplogix, Inc.		421,843	1,121,843		*
AcousticEye, Ltd.		153,386	153,386	12/1/2015
Subtotal:	5.6%	$ 3,281,642	$ 3,981,642
Appconomy, Inc.		1,024,362	2,037,362	*
Software
Apportable, Inc.		835,072	835,072	3/1/2017
3Scale, Inc.		$ 594,565	$ 594,565		9/1/2017
Artificial Solutions ASH AB		123,155	123,155	2/1/2015
Appconomy, Inc.		400,000	1,839,362		*
Atigeo, LLC.		2,784,801	2,784,801	9/1/2017
Atigeo Corporation		2,088,385	2,088,385		9/1/2017
Beanstock Media, Inc.		1,336,495	1,336,495	12/1/2018
Beanstock Media, Inc. ***		85,000	1,322,744		*
BlazeMeter, Inc.		699,151	699,151	10/1/2017
BlazeMeter, Inc. **		697,581	697,581		1/1/2018
Brightpearl, Inc.		457,337	457,337	6/1/2016
ClearPath, Inc.		95,856	95,856		5/1/2016
ClearPath, Inc.		275,217	275,217	5/1/2016
Clypd, Inc.		291,458	291,458		11/1/2016
Clypd, Inc.		571,745	571,745	11/1/2016
Corduro, Inc.		12,212	102,212		*
Corduro, Inc.		42,212	132,212	*
Encoding.com, Inc.		239,707	239,707		11/1/2016
gloStream, Inc.		786,295	1,086,295		*

D Software, Inc.		156,130	156,130	6/1/2016
Innerworkings, Inc.		0	326,744		*
Dataium, LLC		162,472	354,472	7/1/2016
MediaPlatform, Inc.		165,244	165,244		9/1/2016
DropThought, Inc.		477,668	477,668	12/1/2016
Mintigo, Inc.**		1,048,984	1,048,984		1/1/2018
eCommera, Inc.		3,885,784	3,885,784	3/1/2017
Nectar Holdings, Inc.		872,439	872,439		12/1/2017
Encoding.com, Inc.		524,900	524,900	11/1/2016
OrderGroove, Inc.		704,374	704,374		12/1/2017
gloStream, Inc.		939,981	1,239,981	*
Palantir Technologies, Inc.		1,865,160	1,865,160		4/1/2016
Innerworkings Holdings, Ltd.		14,249	341,471	*
SCVNGR, Inc.		887,926	887,926		10/1/2016
Intalio, Inc.		286,710	286,710	8/1/2015
SoundHound, Inc.		2,026,388	2,026,388		5/1/2017
MediaPlatform, Inc.		563,199	563,199	9/1/2016
STG-Impact Holdings Corp.		2,094,582	2,094,582		1/21/2016
Mintigo, Inc.		1,427,018	1,427,018	1/1/2018
StreetLight Data, Inc.		378,297	378,297		4/1/2017
Nectar Holdings, Inc.		1,171,556	1,171,556	12/1/2017
Top Hat Monocle Corp.**		253,954	253,954		7/1/2016
OrderGroove, Inc.		878,707	878,707	12/1/2016
Workspot, Inc.		78,658	78,658		9/1/2016
Palantir Technologies, Inc.		6,892,406	6,892,406	4/1/2016
ZeroTurnaround USA, Inc.**		1,252,981	1,252,981		6/1/2018
Pursway, Inc.		1,078,449	1,078,449	7/1/2016
Subtotal:	28.9%	$ 16,920,046	$ 20,313,896
Riskonnect, Inc.		184,191	184,191	8/1/2015
Technology Services
SCVNGR, Inc.		1,821,982	1,821,982	10/1/2016
Akademos, Inc.***		$ 598,955	$ 598,955		6/1/2017
SnapLogic, Inc.		1,648,742	1,648,742	7/1/2016
Amped, Inc.		1,036,377	1,036,377		11/1/2017
SoundHound, Inc.		3,640,099	3,640,099	5/1/2017
BidPal, Inc.		229,075	229,075		7/1/2016
STG-Impact Holdings Corp.		5,677,173	5,677,173	3/1/2016
Blazent, Inc.		184,686	184,686		5/1/2016
StreetLight Data, Inc.		635,179	635,179	4/1/2017
Blue Technologies Limited**		453,140	453,140		6/1/2017
Superfish, Inc.		376,601	376,601	10/1/2015
BountyJobs, Inc.		332,991	332,991		10/1/2017
Top Hat Monocle Corp.		640,324	640,324	7/1/2016
Callisto Media, Inc.		248,078	248,078		9/1/2016
Vuemix, Inc.		44,466	44,466	8/1/2015
FSA Store, Inc.		833,766	833,766		9/1/2017
Workspot, Inc.		164,807	164,807	9/1/2016
Grassroots Unwired, Inc.		27,182	27,182		8/1/2016
Xceedium, Inc.		147,224	147,224	4/1/2015
Maxi Mobility, Inc.		63,044	63,044		7/1/2016
ZeroTurnaround USA, Inc.		1,428,219	1,428,219	6/1/2018
Rated People, Ltd.**		1,050,689	1,395,689		*
Subtotal:	32.0%	$ 43,884,100	$ 45,806,322
Stackstorm, Inc.		211,072	211,072		1/1/2018
Technology Services
TiqIQ, Inc.		172,041	172,041		7/1/2017
Akademos, Inc.		$ 890,914	$ 890,914	6/1/2017
Subtotal:	9.3%	$ 5,441,096	$ 5,786,096
Amped, Inc.		1,431,563	1,431,563	11/1/2017
Wireless
BidPal, Inc.		623,702	623,702	4/1/2016
Azumio, Inc.		$ 372,598	$ 472,598		*
Blazent, Inc.		583,639	583,639	5/1/2016
GPShopper, LLC		317,990	317,990		7/1/2017
Blue Technologies Limited		700,984	700,984	6/1/2017
InfoReach, Inc.		264,276	264,276		3/1/2017
BountyJobs, Inc.		909,044	909,044	10/1/2017
Kicksend Holdings		31,476	61,475		*
Callisto Media, Inc.		576,716	576,716	9/1/2016
SpiderCloud Wireless, Inc.		4,147,495	4,147,495		7/1/2017
FSA Store, Inc.		1,220,757	1,220,757	9/1/2017
Subtotal:	8.9%	$ 5,133,835	$ 5,263,834
Grassroots Unwired, Inc.		73,323	73,323	8/1/2016
Total Loan (Cost of $109,048,869):	162.4%	95,005,982	110,848,869
Maxi Mobility, Inc.		154,981	154,981	7/1/2016
Interest Rate Caps	0.0%	25,340	115,000
Rated People, Ltd.		1,913,091	1,913,091	12/1/2016
Total Investments (Cost of $109,163,869)	162.4%	$ 95,031,322	$ 110,963,869
Stackstorm, Inc.		267,700	267,700	8/1/2017
TiqIQ, Inc.		244,011	244,011	7/1/2017
Subtotal:	7.0%	$ 9,590,425	$ 9,590,425
Wireless
Appstack, Inc.		-	295,965	*
Azumio, Inc.		675,052	675,052	11/1/2015

*As of December 31, 2015, loans with a costs basis of $20.9 million and fair value of $7.0 million have been classified as non-accrual. These loans have been accelerated from their original maturity and are due in its 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" under Section 55(a) of the 1940 Act, as amended. Qualifying assets must represent at least 70% of the Fund's total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2015, 8.3% of the Fund's assets represented non-qualifying assets.

*** Indicates assets that are not senior loans.

Clementine Labs, Inc.		235,375	235,375	3/1/2017
Flint Mobile, Inc.		571,293	571,293	1/1/2016
GPShopper, LLC		685,378	685,378	7/1/2017
InfoReach, Inc.		431,000	431,000	3/1/2017
Meru Networks, Inc.		2,791,500	2,791,500	8/1/2015
Receivd, Inc.		40,459	420,459	*
SpiderCloud Wireless, Inc.		4,695,305	4,695,305	7/1/2017
Subtotal:	7.4%	$ 10,125,362	$ 10,801,327
Total (Cost of $239,908,705):	166.2%	$ 227,745,693	$ 241,708,705

As of December 31, 2014, all loans were made to non-affiliates as follows:

*As of December 31, 2014, loans with a costs basis of $18.5 million and fair value of $7.3 million have been classified as non-accrual. These loans have been accelerated from their original maturity and are due in its entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.



	Percentage	Estimated Fair		Par Value		Final
Borrower	of Net Assets	Value 12/31/14		Value 12/31/14		Maturity Date
Carrier Networking
Treq Labs, Inc.		$	1,823,279	$	1,823,279	*
Subtotal:	1.3%	$	1,823,279	$	1,823,279

Computers & Storage
Clustrix, Inc.		$	2,134,611	$	2,134,611	5/1/2017
Connected Data, Inc.		1,881,044		1,881,044		5/1/2017
D-Wave Systems, Inc.**		1,598,859		1,598,859		2/1/2017
Gridstore, Inc.		1,413,836		1,413,836		6/1/2017
Veloxum, Inc.		416,093		416,093		*
Vidcie, Inc.		431,642		431,642		12/1/2015
Subtotal:	5.7%	$	7,876,085	$	7,876,085

Enterprise Networking
Apprion, Inc.		$	534,558	$	534,558	4/1/2016
Splashtop, Inc.		1,127,792		1,127,792		5/1/2016
Subtotal:	1.2%	$	1,662,350	$	1,662,350

Internet
Behalf, Inc. **		$	1,488,729	$	1,488,729	5/1/2017
Better Doctor, Inc.		304,363		304,363		6/1/2016
Change.org, Inc.		1,923,173		1,923,173		11/1/2016
CloudTalk, Inc.		5,000		124,008		*
CustomMade, Inc.		1,713,379		1,713,379		5/1/2017
DailyFeats, Inc.		210,068		210,068		1/1/2016
Desti, Inc.		38,983		43,283		*
Digital Caddies, Inc.**		854,469		854,469		6/1/2017
FanBridge, Inc.		453,896		643,896		*
FanDuel, Inc.**		1,400,975		1,400,975		9/1/2016
Fast Labs, Inc.		373,488		373,488		3/1/2017
Fingi, Inc.		275,000		352,718		6/1/2018
FlipTop, Inc.		379,583		379,583		6/1/2017
Giddy Apps, Inc.		938,861		938,861		12/1/2017
Giga Omni Media, Inc.		2,498,405		2,498,405		2/1/2016
Giveforward, Inc.		474,588		474,588		7/1/2017
Good Eggs, Inc.		303,029		303,029		6/1/2016
Grovo Learning, Inc.		876,425		876,425		3/1/2017
HEXAGRAM 49, Inc.		421,188		421,188		1/1/2016
Inside Vault, Inc.		437,370		437,370		5/1/2017
Jun Group, LLC		710,184		710,184		2/1/2017
KargoCard, Co.**		473,843		473,843		1/1/2016
Kitsy Lane, Inc.		193,730		193,730		12/1/2016
Kiwi Crate, Inc.		1,042,522		1,042,522		7/1/2017
Komli Media, Inc.**		2,981,677		2,981,677		11/1/2015

Loans as of December 31, 2013 are to non-affiliates and consist of the following:

	Percentage of	Estimated Fair		Par Value		Final
Borrower	Net Assets	Value 12/31/13		12/31/2013		Maturity Date
Biotechnology
Stem CentRx, Inc.		$	18,433	$	18,433	1/1/2014
Subtotal:	0.0%	$	18,433	$	18,433
Carrier Networking
Vello Systems, Inc.		$	2,023,248	$	2,023,248	6/1/2016
VocalNet, LLC		271,056		376,056		10/1/2016
Subtotal:	1.2%	$	2,294,304	$	2,399,304
Computers & Storage
Connected Data, Inc.		$	1,399,414	$	1,399,414	11/1/2016
D-Wave Systems, Inc.		44,621		44,621		1/1/2014
Looxcie, Inc.		743,209		743,209		12/1/2015
Veloxum, Inc.		104,093		416,093		*
Vidyo, Inc.		9,455,897		9,455,897		5/1/2016
Subtotal:	6.0%	$	11,747,234	$	12,059,234
Enterprise Networking
Apprion, Inc.		$	848,878	$	848,878	4/1/2016
BurstPoint Networks, Inc.		594,951		594,951		5/1/2016
Splashtop, Inc.		1,657,534		1,657,534		5/1/2016
Subtotal:	1.6%	$	3,101,363	$	3,101,363
Internet
Beach Mint, Inc.		$	6,615,252	$	6,615,252	5/1/2016
Better Doctor, Inc.		472,914		472,914		6/1/2016
Blekko, Inc.		1,904,118		1,904,118		12/1/2016
Byliner, Inc.		925,175		925,175		5/1/2016
Carwoo!, Inc.		89,437		919,437		*

Central Desktop, Inc.		3,035,119			3,035,119			4/1/2016
Kulbyt, Inc.			109,363			109,363			8/1/2015
Change.org, Inc.		2,375,933			2,375,933			11/1/2016
Lenddo International**			1,045,505			1,045,505			12/1/2015
CloudTalk, Inc.		5,000			124,009			*
Lightside Games, Inc.			162,230			235,230			*
CustomMade, Inc.		1,880,757			1,880,757			5/1/2017
LocalResponse, Inc.			341,958			341,958			3/1/2016
DailyFeats, Inc.		334,194			334,194			1/1/2016
MassDrop, Inc.			358,248			358,248			9/1/2017
Desti, Inc.		395,283			395,283			5/1/2016
MediaSpike, Inc.			207,440			207,440			12/1/2016
Dezine, Inc.		—			142,590			*
MeetMe, Inc.			1,322,995			1,322,995			4/1/2016
Direct Media Technologies, Inc.		1,257,922			1,257,922			12/1/2014
Minno, Inc.			1,588,734			1,588,734			3/1/2018
EDO Interactive, Inc.		1,205,349			1,205,349			11/1/2014
Moda Operandi, Inc.			125,127			125,127			12/1/2015
EyeView, Inc.		1,029,314			1,029,314			3/1/2015
Modasuite, Inc. **			1,256,711			1,256,711			7/1/2016
FanBridge, Inc.		453,896			643,896			*
Monetate, Inc.			3,736,811			3,736,811			6/1/2018
FanDuel, Inc.		1,880,835			1,880,835			9/1/2016
Moveline Group, Inc.			—			929,799			*
Fast Labs, Inc.		229,448			229,448			1/1/2017
Navigating Cancer, Inc.			934,389			934,389			7/1/2016
FlipTop, Inc.		549,660			549,660			6/1/2015
Osix Corp.			302,026			302,026			10/1/2016
Giga Omni Media, Inc.		4,229,897			4,229,897			2/1/2016
PerformLine, Inc.			68,562			68,562			5/1/2015
Good Eggs, Inc.		452,593			452,593			5/1/2016
Piryx, Inc.			1,511,061			1,511,061			6/1/2017
Grovo Learning, Inc.		701,522			701,522			3/1/2017
Pixalate, Inc.			407,620			407,620			3/1/2017
HEXAGRAM 49, Inc.		787,098			787,098			1/1/2016
Playstudios, Inc.			3,400,117			3,400,117			6/1/2018
Identified, Inc.		2,459,801			2,459,801			6/1/2016
Pleying, Inc.			184,031			184,031			12/1/2016
isocket, Inc.		475,585			475,585			1/1/2015
Quantcast Corp.			7,331,527			7,331,527			4/1/2017
Jarvis Labs, Inc.		234,471			234,471			10/1/2016
Quri, Inc.			1,906,998			1,906,998			6/1/2018
Jun Group, LLC		616,118			616,118			11/1/2014
Radius Intelligence, Inc.			1,608,479			1,608,479			10/1/2017
Kanjoya, Inc.		149,260			149,260			4/1/2014
Relay Network, LLC			435,496			435,496			7/1/2015
KargoCard, Co.		1,006,303			1,006,303			1/1/2016
Retail Innovation Group			1,611,875			1,611,875			7/1/2016
Kitsy Lane, Inc.		304,957			304,957			12/1/2016
Rivet Games, Inc.			123,082			190,082			*
Kiwi Crate, Inc.		1,419,972			1,419,972			10/1/2016
The SavvySource For Parents, Inc.			396,598			396,598			12/1/2016
Komli Media, Inc.		5,936,578			5,936,578			11/1/2015
Schooltube, Inc.			68,222			108,222			*
Kulbyt, Inc.		263,601			263,601			8/1/2015
ServiceMarketplace, Inc.			215,178			215,178			7/1/2017
Lenddo International		1,917,916			1,917,916			12/1/2015
Session M, Inc.			1,557,014			1,557,014			2/1/2017
Lightside Games, Inc.		222,230			295,230			*
Smart Lunches, Inc.			155,505			155,505			6/1/2016
LocalResponse, Inc.		611,036			611,036			3/1/2016
Sociable Labs, Inc.			313,361			313,361			7/1/2016
LOLapps, Inc.		18,961			18,961			1/1/2014
TangoCard, Inc.			47,019			47,019			3/1/2015
MeetMe, Inc.		2,350,769			2,350,769			4/1/2016
The Black Tux, Inc.			722,390			722,390			2/1/2018
Modasuite, Inc.		1,910,112			1,910,112			7/1/2016
The Lucky Group, Inc.***			4,845,416			5,345,416			8/1/2018
ModeWalk, Inc.		191,118			239,118			1/1/2015
UserVoice, Inc.			317,346			317,346			11/1/2015
Mojo Motors, Inc.		45,392			45,392			6/1/2014
Waluzi, Inc.			79,987			79,987			8/1/2016
Monetate, Inc.		3,419,341			3,419,341			5/1/2015
Weddington Way, Inc.			815,644			815,644			11/1/2016
Navigating Cancer, Inc.		1,625,647			1,625,647			7/1/2016
WHI, Inc.			1,877,385			1,877,385			7/1/2017
nPario, Inc.		99,940			397,940			*
YouDocs Beauty, Inc.***			961,655			1,161,655			5/1/2018
Osix Corp.		498,178			498,178			10/1/2016
Subtotal:	46.1%		$	63,226,033		$	65,426,858
PerformLine, Inc.		217,734			217,734			5/1/2015
Medical Devices
Piryx, Inc.		1,460,721			1,460,721			9/1/2016
AxioMed, Inc.			$	23,748		$	1,569,748		*
Pixalate, Inc.		217,736			217,736			11/1/2016
Blockade Medical, LLC			463,868			463,868			9/1/2017
Playstudios, Inc.		2,598,317			2,598,317			6/1/2017
Cayenne Medical, Inc.			4,765,638			4,765,638			12/1/2017
Pleygo, Inc.		209,632			209,632			12/1/2016
Cervilenz, Inc.			1,823,990			1,823,990			4/1/2016
Quantcast Corp.		12,639,322			12,639,322			4/1/2017
HourGlass Technologies, Inc.			243,351			869,351			*

Radius Intelligence, Inc.		1,697,202			1,697,202			3/1/2016
MimOSA, Inc.			194,284			194,284			12/1/2015
Relay Network, LLC		1,194,015			1,194,015			7/1/2015
NasoForm, Inc.			30,077			30,077			2/1/2015
Retail Innovation Group		2,372,213			2,372,213			7/1/2016
Redox Medical, Inc.			500,000			3,600,000			*
Rivet Games, Inc.		226,278			293,278			*
Sonoma Orthopedic Products, Inc.			2,362,253			2,362,253			4/1/2016
Santa.com, Inc.		252,227			802,227			*
Subtotal:	7.6%		$	10,407,209		$	15,679,209
The SavvySource For Parents, Inc.		561,822			561,822			7/1/2015
Other Healthcare
Schooltube, Inc.		63,741			103,741			5/1/2016
Cogito Health, Inc.			$	512,736		$	512,736		4/1/2017
Session M, Inc.		1,885,531			1,885,531			2/1/2017
Health Integrated, Inc.			2,089,102			2,089,102			10/1/2017
Smart Lunches, Inc.		232,785			232,785			6/1/2016
HealthEquityLabs, Inc.			927,690			927,690			6/1/2018
Sociable Labs, Inc.		459,559			459,559			7/1/2016
Mulberry Health, Inc.			4,812,610			4,812,610			12/1/2017
SocialChorus, Inc.		485,720			485,720			9/1/2014
Physician Software Systems, LLC			476,037			476,037			7/1/2017
Spotlight Ticket Management, Inc.		340,677			340,677			9/1/2015
Practice Fusion, Inc.			4,443,620			4,443,620			6/1/2016
StitchFix, Inc.		940,043			940,043			8/1/2016
Project Healthy Living, Inc.			892,851			892,851			10/1/2016
StumbleUpon, Inc.		1,073,615			1,073,615			12/1/2015
Therapydia, Inc.			602,420			602,420			10/1/2017
TalentBin, Inc.		228,709			228,709			7/1/2017
Urgent Care Centers of New England, Inc.			2,349,955			2,349,955			4/1/2018
TangoCard, Inc.		250,039			250,039			3/1/2015
ZocDoc, Inc.			4,517,666			4,517,666			6/1/2017
True & Co., Inc.		1,114,636			1,114,636			6/1/2016
Subtotal:	15.8%		$	21,624,687		$	21,624,687
UserVoice, Inc.		684,364			684,364			11/1/2015
Other Technology
Waluzi, Inc.		109,637			109,637			8/1/2016
21e6, LLC			$	12,754,495		$	12,754,495		8/1/2017
We Heart It, Inc.		1,113,290			1,113,290			2/1/2017
Automatic Labs, Inc.			766,320			766,320			12/1/2016
Weddington Way, Inc.		1,209,857			1,209,857			11/1/2016
Beeline Bikes, Inc.			135,592			135,592			6/1/2017
YouDocs Beauty, Inc.		1,192,798			1,192,798			6/1/2016
Daylight Solutions, Inc.			2,571,168			2,571,168			8/1/2017
Zazma, Inc.		1,820,045			1,820,045			5/1/2017
Ecologic Brands, Inc.			635,944			635,944			6/1/2017
Subtotal:	48.2%	$	93,440,267		$	95,797,866
General Assembly, Inc.			1,956,427			1,956,427			12/1/2016
Medical Devices
InsideTrack, Inc.			1,304,318			1,304,318			9/1/2017
Avedro, Inc.		$	3,605,194		$	3,605,194		10/1/2015
LanzaTech New Zealand Ltd.**			8,090,966			8,090,966			7/1/2016
AxioMed, Inc.		2,683,106			2,683,106			11/1/2016
Lumo BodyTech, Inc.			1,179,641			1,179,641			12/1/2017
Cellscape Corp.		802,598			802,598			1/1/2016
Neuehouse, LLC			3,997,428			3,997,428			7/1/2017
Cervilenz, Inc.		3,243,102			3,243,102			4/1/2016
nWay, Inc.			1,361,505			1,361,505			3/1/2018
ConforMIS, Inc.		950,224			950,224			5/1/2014
Pinnacle Engines, Inc.			1,583,540			1,583,540			12/1/2017
HourGlass Technologies, Inc.		215,448			841,448			*
PLAE, Inc.			462,689			462,689			6/1/2017
MimOSA, Inc.		243,152			243,152			2/1/2015
Prana Holdings, Inc.			4,514,012			4,514,012			7/1/2016
NasoForm, Inc.		194,522			194,522			2/1/2015
Scoot Networks, Inc.			414,974			414,974			3/1/2017
Redox Biomedical		1,800,000			3,600,000			*
Skully Helmets, Inc.			227,456			227,456			7/1/2017
Sonoma Orthopedic Products, Inc.		3,022,303			3,022,303			9/1/2015
Sproutling, Inc.			709,251			709,251			9/1/2017
Xlumena, Inc.		153,758			153,758			5/1/2014
Thoughtful Media Group, Inc.			393,020			573,020			*
Zipline Medical, Inc.		1,633,730			1,633,730			5/1/2016
Tribogenics, Inc.			1,186,455			1,186,455			9/1/2016
Subtotal:	9.5%	$	18,547,137		$	20,973,137
YPX Cayman Holdings Co.**			1,003,708			1,003,708			4/1/2016
Other Healthcare
ZeaChem, Inc.			374,248			4,076,248			*
Caring.com, Inc.		$	3,758,873		$	3,758,873		6/1/2017
Subtotal:	33.3%		$	45,623,157		$	49,505,157
Cogito Health, Inc.		560,265			560,265			4/1/2017
Security
Ekso Bionics, Inc.		2,029,493			2,254,493			*
Agari Data, Inc.			$	1,082,097		$	1,082,097		9/1/2017
Health Guru Media, Inc.		1,360,010			1,360,010			12/1/2014
Guardian Analytics, Inc.			2,856,906			2,856,906			1/1/2018
Health Integrated		1,360,207			1,360,207			2/1/2017
Kinamik, Inc.			633,670			643,670			*

Mulberry Health, Inc.		4,738,816			4,738,816			12/1/2017
Uplogix, Inc.			1,250,804			1,250,804			5/1/2017
Pathway Genomics Corp.		1,033,714			1,033,714			12/1/2014
Venafi, Inc.			3,709,903			3,709,903			6/1/2017
Practice Fusion, Inc.		6,902,052			6,902,052			6/1/2016
Voltage Security, Inc.			2,369,626			2,369,626			9/1/2017
Project Healthy Living		943,454			943,454			10/1/2016
Subtotal:	8.7%		$	11,903,006		$	11,913,006
Quantia Communications, Inc.		1,959,386			1,959,386			9/1/2014
Software
Therapydia, Inc.		220,776			220,776			1/1/2017
3Scale, Inc.			$	712,931		$	712,931		9/1/2017
Wellfount Corp.		1,409,607			1,409,607			9/1/2015
AcousticEye, Ltd. **			153,386			153,386			12/1/2015
Subtotal:	13.5%	$	26,276,653		$	26,501,653
Appconomy, Inc.			1,024,362			2,037,362			*
Other Technology
Apportable, Inc.			835,072			835,072			3/1/2017
Automatic Labs, Inc.		$	937,315		$	937,315		12/1/2016
Artificial Solutions ASH AB **			123,155			123,155			2/1/2015
Daylight Solutions, Inc.		2,235,618			2,235,618			7/1/2015
Atigeo, LLC.			2,784,801			2,784,801			9/1/2017
Ecologic Brands, Inc.		850,527			850,527			6/1/2017
Beanstock Media, Inc.***			1,336,495			1,336,495			12/1/2018
General Assembly, Inc.		2,325,684			2,325,684			12/1/2016
BlazeMeter, Inc.**			699,151			699,151			10/1/2017
LanzaTech New Zealand Ltd.		13,215,013			13,215,013			7/1/2016
Brightpearl, Inc.**			457,337			457,337			6/1/2016
nScaled, Inc.		702,029			702,029			1/1/2016
ClearPath, Inc.			275,217			275,217			5/1/2016
Pinnacle Engines, Inc.		1,572,801			1,572,801			3/1/2015
Clypd, Inc.			571,745			571,745			11/1/2016
Prana Holdings, Inc.		7,019,273			7,019,273			7/1/2016
Corduro, Inc.			42,212			132,212			*
Pure Energies Group, Inc.		1,419,062			1,419,062			6/1/2016
D Software, Inc.			156,130			156,130			6/1/2016
Solaria Corp.		580,037			1,060,037			*
Dataium, LLC			162,472			354,472			7/1/2016
Thoughtful Media Group, Inc.		547,375			1,047,375			*
DropThought, Inc.			477,668			477,668			12/1/2016
Tribogenics, Inc.		1,743,238			1,743,238			9/1/2016
eCommera, Inc. **			3,885,784			3,885,784			3/1/2017
Wallaby Financial, Inc.		134,111			134,111			8/1/2016
Encoding.com, Inc.			524,900			524,900			11/1/2016
YPX Cayman Holdings Co.		1,741,790			1,741,790			4/1/2016
gloStream, Inc.			939,981			1,239,981			*
ZeaChem, Inc.		1,223,125			4,925,125			*
Innerworkings Holdings, Ltd.			14,249			341,471			*
Subtotal:	18.6%	$	36,246,998		$	40,928,998
Intalio, Inc.			286,710			286,710			8/1/2015
Security
MediaPlatform, Inc.			563,199			563,199			9/1/2016
Agari Data, Inc.		$	453,674		$	453,674		5/1/2017
Mintigo, Inc.**			1,427,018			1,427,018			1/1/2018
Kinamik, Inc.		312,631			622,631			*
Nectar Holdings, Inc.			1,171,556			1,171,556			12/1/2017
Pandesa Corp.		191,958			191,958			2/1/2015
OrderGroove, Inc.			878,707			878,707			12/1/2016
Uplogix, Inc.		1,618,761			1,618,761			7/1/2015
Palantir Technologies, Inc.			6,892,406			6,892,406			4/1/2016
Subtotal:	1.3%	$	2,577,024		$	2,887,024
Pursway, Inc. **			1,078,449			1,078,449			7/1/2016
Software
Riskonnect, Inc.			184,191			184,191			8/1/2015
AcousticEye, Ltd.		$	287,569		$	287,569		12/1/2015
SCVNGR, Inc.			1,821,982			1,821,982			10/1/2016
Appconomy, Inc.		670,362			2,683,362			*
SnapLogic, Inc.			1,648,742			1,648,742			7/1/2016
Apportable		209,718			209,718			12/1/2016
SoundHound, Inc.			3,640,099			3,640,099			5/1/2017
Artificial Solutions ASH AB		748,467			748,467			2/1/2015
STG-Impact Holdings Corp.			5,677,173			5,677,173			3/1/2016
Brightpearl, Inc.		706,581			706,581			6/1/2016
StreetLight Data, Inc.			635,179			635,179			4/1/2017
Ceros, Inc.		668,612			668,612			4/1/2016
Superfish, Inc.			376,601			376,601			10/1/2015
ClearPath, Inc.		706,431			706,431			5/1/2016
Top Hat Monocle Corp. **			640,324			640,324			7/1/2016
Clypd, Inc.		712,353			712,353			11/1/2016
Vuemix, Inc.			44,466			44,466			8/1/2015
Corduro, Inc.		65,238			155,238			*
Workspot, Inc.			164,807			164,807			9/1/2016
D Software, Inc.		340,204			340,204			6/1/2016
Xceedium, Inc.			147,224			147,224			4/1/2015
Dataium, LLC		474,082			474,082			3/1/2016
ZeroTurnaround USA, Inc.**			1,428,219			1,428,219			6/1/2018
eCommera LTD.		5,151,682			5,151,682			3/1/2017
Subtotal:	32%		$	43,884,100		$	45,806,322
Technology Services

Encoding.com, Inc.		714,472			714,472			11/1/2016
Akademos, Inc.***			$	890,914		$	890,914		6/1/2017
gloStream, Inc.		1,256,866			1,256,866			6/1/2016
Amped, Inc.			1,431,563			1,431,563			11/1/2017
Image Vision Labs, Inc.		67,450			67,450			6/1/2014
BidPal, Inc.			623,702			623,702			4/1/2016
Innerworkings Holdings, Ltd.		44,867			448,867			*
Blazent, Inc.			583,639			583,639			5/1/2016
Innotas, Inc.		111,293			111,293			3/1/2014
Blue Technologies Limited**			700,984			700,984			6/1/2017
Intalio, Inc.		582,873			582,873			6/1/2015
BountyJobs, Inc.			909,044			909,044			10/1/2017
Lex Machina, Inc.		73,779			73,779			4/1/2014
Callisto Media, Inc.			576,716			576,716			9/1/2016
Lulo Ventures, Inc.		1,401,588			1,401,588			11/1/2016
FSA Store, Inc.			1,220,757			1,220,757			9/1/2017
MediaPlatform, Inc.		641,446			641,446			3/1/2016
Grassroots Unwired, Inc.			73,323			73,323			8/1/2016
NewVoiceMedia, Ltd.		1,381,901			1,381,901			2/1/2015
Maxi Mobility, Inc.			154,981			154,981			7/1/2016
OrderGroove, Inc.		1,184,088			1,184,088			12/1/2016
Rated People, Ltd.**			1,913,091			1,913,091			12/1/2016
Palantir Technologies, Inc.		12,294,649			12,294,649			4/1/2016
Stackstorm, Inc.			267,700			267,700			8/1/2017
PivotLink, Inc.		2,926,468			2,926,468			11/1/2015
TiqIQ, Inc.			244,011			244,011			7/1/2017
Pursway, Inc.		1,760,989			1,760,989			3/1/2016
Subtotal:	7%		$	9,590,425		$	9,590,425
Quantisense, Inc.		893,773			893,773			6/1/2015
Wireless
Riskonnect, Inc.		575,426			575,426			8/1/2015
Appstack, Inc.			-			295,965			*
SCVNGR, Inc.		2,352,638			2,352,638			10/1/2016
Azumio, Inc.			675,052			675,052			11/1/2015
SnapLogic, Inc.		2,330,274			2,330,274			7/1/2016
Clementine Labs, Inc.			235,375			235,375			3/1/2017
SoundHound, Inc.		4,180,337			4,180,337			5/1/2017
Flint Mobile, Inc.			571,293			571,293			1/1/2016
STG-Impact Holdings Corp.		8,786,785			8,786,785			3/1/2016
GPShopper, LLC			685,378			685,378			7/1/2017
StreetLight Data		228,182			228,182			12/1/2016
InfoReach, Inc.			431,000			431,000			3/1/2017
Superfish, Inc.		970,653			970,653			10/1/2015
Meru Networks, Inc. **			2,791,500			2,791,500			8/1/2015
Target Data, Inc.		624,919			624,919			9/1/2015
Receivd, Inc.			40,459			420,459			*
The Cloudscaling Group, Inc.		1,708,603			1,708,603			9/1/2015
SpiderCloud Wireless, Inc.			4,695,305			4,695,305			7/1/2017
Top Hat Monocle Corp.		944,150			944,150			7/1/2016
Subtotal:	7.4%		$	10,125,362		$	10,801,327
Vuemix, Inc.		164,852			164,852			8/1/2015
Total (Cost of $239,908,705):	166.2%		$	227,745,693		$	241,708,705
Workspot, Inc.		213,048			213,048			9/1/2016
Interest Rate Caps (Cost of $207,000)	0.1	%	149,844			207,000
Xceedium, Inc.		535,145			535,145			4/1/2015
Total Investments (Cost of $240,115,705)	166.3	%	$	227,895,537		$	241,915,705
XOS Technologies, Inc.		990,373			1,100,373			*
Subtotal:	31.3%	$	60,683,186		$	63,300,186
Technology Services
Akademos, Inc.		$	827,130		$	827,130		6/1/2017
BidPal, Inc.		969,754			969,754			12/1/2015
Blazent, Inc.		927,116			927,116			5/1/2016
Boost Media, Inc.		893,456			893,456			11/1/2016
BountyJobs, Inc.		1,408,096			1,408,096			7/1/2015
Callisto Media, Inc.		831,240			831,240			9/1/2016
DigitalPath, Inc.		1,709,497			1,709,497			1/1/2016
FSA Store, Inc.		709,863			709,863			9/1/2017
Grassroots Unwired, Inc.		106,696			106,696			8/1/2016
Maxi Mobility, Inc.		222,904			222,904			7/1/2016
Perfect Market, Inc.		2,480,014			2,480,014			1/1/2016
Rated People, Ltd.		3,225,704			3,225,704			12/1/2016
The New Orleans Exchange, Inc.		4,926,946			4,926,946			1/1/2016
Subtotal:	9.9%	$	19,238,416		$	19,238,416

** Indicates assets that the Fund deems "non-qualifying assets" under Section 55(a) of the 1940 Act, as amended. Qualifying assets must represent at least 70% of the Fund's total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2014, 14.7% of the Fund's assets represented non-qualifying assets.

*** Indicates assets that are not senior loans.

4. FAIR VALUE DISCLOSURES

Loans generally are made to borrowers 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 commitments, upon the terms and subject to the conditions specified by such commitment. As of December 31, 2015, the Fund's investments in loans are primarily to companies based within the United States and are diversified among borrowers in the industries shown below. The percentage of net assets that each industry group represents is shown with the industry totals below (the sum of the percentages does not equal 100 percent because the percentages are based on net assets as opposed

Wireless
AppStack, Inc.		$	370,818	$	370,818	12/1/2015
Azumio, Inc.		980,427		980,427		8/1/2015
Cellfire, Inc.		421,120		421,120		12/1/2014
Corona Labs, Inc.		490,545		613,545		2/1/2016
Flint Mobile, Inc.		1,016,916		1,016,916		1/1/2016
GPShopper, LLC		862,562		862,562		7/1/2017
July Systems, Inc.		716,551		716,551		10/1/2014
Meru Networks, Inc.		6,479,069		6,479,069		8/1/2015
Physical Graph Corporation		1,901,737		1,901,737		4/1/2017
Quixey, Inc.		3,256,074		3,256,074		6/1/2016
Receivd, Inc.		223,346		223,346		11/1/2016
SpiderCloud Wireless Inc.		2,291,176		2,291,176		12/1/2016
StarMaker Interactive, Inc.		226,525		226,525		2/1/2015
Zipit Wireless, Inc.		393,004		393,004		10/1/2014
Subtotal:	10.1%	$	19,629,870	$	19,752,870
Total (Cost of $305,158,484):	151.2%	$	293,800,885	$	306,958,484

to total loans). All loans are senior to unsecured creditors except for that of Akademos, Inc., Beanstock Media, Inc., and YouDocs Beauty, Inc. which are subordinate.

*AsThe ofFund ~~December 31,~~defines ~~2013,~~fair ~~loans~~value ~~with~~as athe ~~costs~~price ~~basis~~that ofwould ~~$21.0~~be ~~million~~received ~~and~~to ~~fair~~sell ~~value~~an ofasset ~~$9.9~~or ~~million~~paid ~~have~~to ~~been~~transfer ~~classified~~a asliability ~~non-accrual.~~in ~~These~~an ~~loans~~orderly ~~have~~transaction ~~been~~between ~~accelerated~~market ~~from~~participants ~~their~~at ~~original~~the ~~maturity~~measurement ~~and~~date; ~~are~~that ~~due~~is, inan ~~its~~exit ~~entirety~~price. ~~During~~The exit price assumes the ~~period~~asset ~~for~~or ~~which~~liability ~~these~~was ~~loans~~exchanged ~~have~~in ~~been~~an onorderly ~~non-accrual~~transaction; ~~status,~~it was nonot ~~interest~~a ~~income~~forced ~~has~~liquidation ~~been~~or ~~recognized~~distressed sale.

~~The~~Loan ~~Fund~~balances ~~provides~~are ~~asset-based~~summarized ~~financing~~by ~~primarily~~borrower. Typically toa ~~start-up~~borrower's ~~and~~balance ~~emerging~~will ~~growth~~be ~~venture-capital-backed~~composed ~~companies. These~~of several loans ~~are~~drawn ~~generally~~under ~~secured~~a commitment made by ~~assets~~the ofFund with the ~~borrowers~~interest rate on each loan fixed at the time each loan is funded. AsEach loan drawn under a ~~result~~commitment has a different maturity date and amount. For the years ended December 31, 2015 and 2014, the ~~Fund~~weighted isaverage ~~subject~~interest torate ~~general~~on ~~credit~~performing ~~risk~~loans ~~associated~~was ~~with~~18.44% ~~such~~and ~~companies~~18. As68% respectively. These rates were inclusive of both cash and non-cash interest income. For the years ended December 31, 2015 and 2014 the cash portion was 14.20% and ~~2013~~14.31%, respectively. Interest is calculated using the effective interest method, and rates earned by the Fund ~~had~~will ~~unexpired~~fluctuate ~~unfunded~~based ~~commitments~~on tomany ~~borrowers~~factors including early payoffs, volatility of ~~$21.2~~values ~~million~~ascribed to warrants, and ~~$57.4~~new ~~million~~loans ~~respectively~~funded during the year.

~~Valuation~~The ~~Hierarchy~~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 being adjusted from par value of the individual loan. Where the risk profile is consistent with the original underwriting, which is primarily the case for this loan portfolio, the par value of the loan approximates fair value.

All loans as of December 31, 2015 and 2014 were pledged as collateral for the debt facility, and the Fund's borrowings are generally collateralized by all assets of the Fund.

The Fund provides asset-based financing primarily to start-up and emerging growth venture-capital-backed companies. These loans are generally secured by assets of the borrowers. As a result, the Fund is subject to general credit risk associated with such companies. As of December 31, 2015 and 2014, the Fund had unexpired unfunded commitments to borrowers of $1.8 million and $21.2 million respectively.

Under FASB Accounting Standards Codification (ASC) 820-10, 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.

Transfers of investments between levels of the fair value hierarchy are recorded on the actual date of the event or change in circumstances that caused the transfer. There were no transfers in and out of Level 1, 2, and 3 during the year ended December 31, 2015.

~~circumstances~~The ~~that~~Fund's ~~caused~~cash equivalents were valued at the ~~transfer~~traded net asset value of the money market fund. ~~There~~As ~~were~~a noresult, ~~transfers~~these inmeasurements ~~and~~are ~~out~~classified ofas Level 1. The Fund's investments in the interest rate cap are based on quotes from the market makers that derive fair values from market data, and therefore, are classified as Level 2. The Fund uses estimated exit values when determining the value of its investments. Because loan transactions are individually negotiated and unique, and 3there ~~during~~is no market in which these assets trade, the ~~year~~inputs ~~ended~~for ~~December 31~~these assets, ~~2014~~which are discussed in the Valuation Methods listed above, are classified as Level 3.

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 valuation of its interest rate swaps is based on quotes from the market makers and therefore, is classified as Level 2. The Fund uses estimated exit values when determining the value of its investments. Because these transactions are individually negotiated and unique, and there is no market in which these assets trade, the inputs for these assets, which are discussed in the Valuation Methods listed above, are classified as Level 3.

The following table provides quantitative information about the Fund's Level 3 fair value measurements of the Fund's investments as of December 31, 2014. In addition to the techniques and inputs noted in the table below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements. The below table is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to the Fund's fair value measurements.

Investment Type
- Level 3	Fair Value at	Valuation Techniques/		Weighted Average/
Debt Investments	12/31/2014	Methodologies	Unobservable Input	Range
Carrier Networking	$1,823,279	Liquidation	Investment Collateral	$1,823,279
Computer & Storage	$7,876,085	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	19%
		Liquidation	Investment Collateral	$416,093
Enterprise Networking	$1,662,350	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
Internet	$63,226,033	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0-$453,896
Medical Devices	$10,407,209	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$23,748-$500,000
Other Healthcare	$21,624,687	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
Other Technology	$45,623,157	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$374,248-$393,020
Security	$11,903,006	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$633,670
Software	$43,884,100	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$14,249-$1,024,362
Technology Services	$9,590,425	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
Wireless	$10,125,362	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0-$40,459
	$227,745,693

The following table provides quantitative information about the Fund's Level 3 fair value measurements of the Fund's investments as of December 31, 2015. In addition to the techniques and inputs noted in the table below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements.

The following table provides quantitative information about the Fund's Level 3 fair value measurements of the Fund's investments as of December 31, 2013. In addition to the techniques and inputs noted in the table below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements. The below table is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to the Fund's fair value measurements.



Investment Type
- Level 3	Fair Value at	Valuation Techniques/		Weighted Average/
Debt Investments	12/31/2015	Methodologies	Unobservable Input	Amount or Range
Computer & Storage	$3,174,829	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	20%
		Liquidation	Investment Collateral	$0

Internet	$22,063,549	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0-$1,187,196

Other Healthcare	$11,772,751	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	14%

Other Technology	$26,348,932	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0

Software	$16,920,046	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0-$786,295

Technology Services	$5,441,096	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$1,050,689

Wireless	$5,133,835	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$31,476-$372,598

Security	$3,281,642	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
		Liquidation	Investment Collateral	$421,843

Other (*)	$869,302	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
		Liquidation	Investment Collateral	$0-$250,000

	$95,005,982

(*) Other loans are comprised of companies in the Enterprise Networking and Medical Device industries.

Investment Type
- Level 3	Fair Value at	Valuation Techniques/		Weighted Average/
Debt Investments	12/31/2013	Methodologies	Unobservable Input	Range
Computer & Storage	$11,747,234	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
		Liquidation	Investment Collateral	$104,093
Enterprise Networking	$3,101,363	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
Internet	$93,440,267	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
		Liquidation	Investment Collateral	$0-$453,896
Medical Devices	$18,547,137	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$215,448-$1,800,000
Other Healthcare	$26,276,653	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$2,029,493
Other Technology	$36,246,998	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$547,375 - $1,223,125
Security	$2,577,024	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
		Liquidation	Investment Collateral	$312,631
Software	$60,683,186	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$44,866-$990,373
Technology Services	$19,238,416	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
Wireless	$19,629,870	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
Others	$2,312,737	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	24%
	$ 293,800,885

* Other loans are comprised of companies in the Biotechnology and Carrier Networking industries.



Investment Type
- Level 3	Fair Value at	Valuation Techniques/		Weighted Average/
Debt Investments	12/31/2014	Methodologies	Unobservable Input	Amount/ Range
Carrier Networking	$1,823,279	Liquidation	Investment Collateral	$1,823,279

Computer & Storage	$7,876,085	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	19%
		Liquidation	Investment Collateral	$416,093

Enterprise Networking	$1,662,350	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%

Internet	$63,226,033	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0-$453,896

Medical Devices	$10,407,209	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$23,748-$500,000

Other Healthcare	$21,624,687	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%

Other Technology	$45,623,157	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$374,248-$393,020

Security	$11,903,006	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$633,670

Software	$43,884,100	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$14,249-$1,024,362

Technology Services	$9,590,425	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%

Wireless	$10,125,362	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$0-$40,459

	$227,745,693

The following table presents the balances of assets ~~and liabilities~~ as of December 31, ~~2014~~2015 and ~~2013~~2014 measured at fair value on a recurring basis:

As of December 31, 2014	Level 1		Level 2		Level 3		Total
As of December 31, 2015	Level 1		Level 2		Level 3		Total
ASSETS:
Loans*	$	—	$	—	$	~~227~~95,~~745~~005,~~693~~982	$	~~227~~95,~~745~~005,~~693~~982
Interest cap agreement	$	—	$	149,844	$	—	$	149,844
Interest rate caps	—		25,340		—		25,340
Cash equivalents	142,~~006~~646,~~961~~011		—		—		142,~~006~~646,~~961~~011
Total assets	$	142,~~006~~646,~~961~~011	$	~~149~~25,~~844~~340	$	~~227~~95,~~745~~005,~~693~~982	$	~~241~~97,~~902~~677,~~498~~333
LIABILITIES
Interest rate swap agreements	—		$	—	—		$	—
Total liabilities	—		$	—	—		$	—

As of December 31, 2013	Level 1		Level 2		Level 3		Total
As of December 31, 2014	Level 1		Level 2		Level 3		Total
ASSETS:
Loans*	$	—	$	—	$	~~293~~227,~~800~~745,~~885~~693	$	~~293~~227,~~800~~745,~~885~~693
Cash equivalents	35,377,189		—		—		35,377,189
Interest rate caps	—		149,844		—		149,844
Total assets	$	35,377,189	$	—	$	293,800,885	$	329,178,074
Cash equivalents	14,006,961		—		—		14,006,961
LIABILITIES
Total assets	$	14,006,961	$	149,844	$	227,745,693	$	241,902,498
Interest rate swap agreement	$	—	$	853,099	$	—	$	853,099
Total liabilities	$	—	$	853,099	$	—	$	853,099

*For a detailed listing of borrowers comprising this amount please refer to Note 3, ~~Summary~~Schedules of Investments.

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

	For the Year Ended December 31, 2014
	For the Year Ended December 31, 2015
	Loans			~~Other~~Convertible ~~investments~~Notes			Warrants			Stock
Beginning balance	$	~~293~~227,~~800~~745,~~885~~693		$	—		$	—		$	—
Acquisitions and originations	~~104~~3,~~567~~362,500			~~240~~272,~~281~~740			7994,~~927,444~~082			~~307~~742,~~557~~227
Principal reductions	(~~167~~124,~~826~~469,~~488~~537		)	—			—			—
Distribution to shareholder	—			(~~240~~272,~~281~~740		)	(7994,~~927,444~~082		)	(~~307~~742,~~557~~227		)
Net change in unrealized loss from investments	(~~805~~1,~~414~~879,875		)	—			—			—
Net realized loss from investments	(19,~~990~~752,~~790~~799		)	—			—			—
Ending balance	$	~~227~~95,~~745~~005,~~693~~982		$	—		$	—		$	—
Net change in unrealized loss on investments relating to investments still held at December 31, 2014	$	(3,669,004	)
Net change in unrealized loss on investments relating to investments still held at December 31, 2015	$	(4,188,666	)



	For the Year Ended December 31, 2014
	Loans			Convertible Notes			Warrants			Stock
Beginning balance	$	293,800,885		$	—		$	—
Acquisitions and originations	104,567,500			240,281			7,927,444			307,557
Principal reductions	(167,826,488		)	—			—			—
Distribution to shareholder	—			(240,281		)	(7,927,444		)	(307,557		)
Net change in unrealized loss from investments	(805,414		)	—			—			—
Net realized loss from investments	(1,990,790		)	—			—			—
Ending balance	$	227,745,693		$	—		$	—		$	—
Net change in unrealized loss on investments relating to investments still held at December 31, 2014	$	(3,669,004	)

	For the Year Ended December 31, 2013
	Loans			Other investments			Warrants			Stock
Beginning balance	$	313,848,702		$	—		$	—
Acquisitions and originations	168,188,165			282,372			11,390,805			847,252
Principal reductions	(177,490,371		)	—			—			—
Distribution to shareholder	—			(282,372		)	(11,390,805		)	(847,252		)
Net change in unrealized loss from investments	(7,163,165		)	—			—			—
Net realized loss from investments	(3,582,446		)	—			—			—
Ending balance	$	293,800,885		$	—		$	—		$	—
Net change in unrealized loss on investments relating to investments still held at December 31, 2013	$	9,176,728

5. EARNINGS PER SHARE

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 income (loss) by the weighted average common shares outstanding, including the dilutive effects of potential common shares (e.g., stock options). The Fund held no instruments that would be potential common shares; thus, reported basic and diluted earnings (loss) per share are the same.

56. CAPITAL STOCK

As of December 31, ~~2014~~2015, 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 is $294.0 million. Total contributed capital to the Company through December 31, ~~2014~~2015 was $279.30 million, of which $241.5 million was contributed to the Fund.

The chart below shows the distributions of the Fund for the years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013.

	For the Year Ended		For the Year Ended		For the Year Ended
	December 31, 2014		December 31, 2013		December 31, 2012
	December 31, 2015		December 31, 2014		December 31, 2013
Cash distributions	$	8386,~~800~~000,000	$	3183,~~600~~800,000	$	2631,~~770~~600,000
Distributions of equity securities	82,~~475~~009,~~281~~049		128,~~520~~475,~~429~~282		1512,~~459~~520,~~479~~429
Total distributions to shareholder	$	9288,~~275~~009,~~281~~049	$	4492,~~120~~275,~~429~~282	$	4244,~~229~~120,~~479~~429

67. DEBT FACILITY

The Fund established a secured revolving loan facility in an amount of up to $160 million with Union Bank, N.A., Wells Fargo Bank, N.A. and Bank Leumi USA on September 23, 2011 (the "Loan Agreement"). Borrowings under the Loan Agreement are collateralized by all of the assets of the Fund. The Fund will pay interest on its borrowings, and will also pay a fee on the unused portion of the facility.

The Loan Agreement was extended on September 23, 2014 and then amended and restated in its ~~entirely~~entirety on September 30, 2014, reducing the size to $120 million, and securing an initial 12-month ~~revolver~~repayment plan and a subsequent 18-month amortized repayment plan. The size of the facility was reduced to $84 million on April 15, 2015, $74 million on June 12, 2015, $64 million on July 21, 2015, $54 million on August 20, 2015, and by $3 million per month from October 23, 2015. The Fund will continue to reduce the facility because of required amortization and its sufficient cash and cash flow to meet the needs of the unfunded commitments as well as pay expenses without further need to borrow. Amounts borrowed under the Loan Agreement may be, at the option of the Fund, either Reference Rate loans ~~(as~~or LIBOR loans. Reference Rate Loan is defined inas ~~the~~a Loan ~~Agreement~~bearing interest at the highest of: (a) orthe ~~LIBOR~~Federal ~~loans~~Funds Rate for such day plus one percent (1.0%), Asand of(b) ~~December 31~~the rate most recently announced by Union Bank, ~~2014~~N.A at its corporate headquarters as the “Union Bank, ~~$106~~N.6A. ~~million~~Reference Rate”. LIBOR Rate Loan is ~~outstanding~~defined ~~under~~as a Loan bearing interest at the ~~facility~~prevailing LIBOR rate determined by Union Bank, N.A. ~~The~~to ~~Loan~~be ~~Agreement~~the ~~will~~per ~~terminate~~annum rate (rounded upward to the nearest one-hundredth of one percent (1/100%)) at which Dollar deposits in immediately available funds and in lawful money of the United States would be offered to Union Bank, N.A., on ~~March~~behalf 23of Union Bank, ~~2017~~N.A., ~~but~~Wells ~~can~~Fargo beBank, ~~accelerated~~N.A. ~~under~~and anBank ~~event~~Leumi USA, outside of ~~default~~the United States at approximately 11:00 a.m. (LIBOR time) three (3) Business Days before the first day of such asLIBOR ~~failure~~Loan Period, in an amount approximately equal to the principal amount of, and for a length of time approximately equal to the LIBOR Loan Period for, the LIBOR Loan sought by the Fund. toAs ~~make~~of ~~timely~~December 31, ~~interest~~2015, orall ~~principal~~of ~~payments~~the Fund’s borrowings were based on the LIBOR rate.

~~Borrowings~~The ~~under this~~ facility ~~are~~revolved ~~collateralized~~for by12 ~~receivables~~months ~~under~~from ~~loans~~September ~~advanced~~30, by2014, ~~the~~after ~~Fund with assignment to the financial institution~~that, ~~plus other assets of~~ the ~~Fund.~~Loan ~~The~~Agreement ~~amortization~~size ~~schedule~~began ~~for each borrowing under the facility is expected~~ to ~~correspond to the amortization of the loans supporting each borrowing~~reduce. The ~~Fund~~Loan ~~pays~~Agreement awill ~~commitment~~terminate ~~fee of 0.325 percent (annual fee paid quarterly) based~~ on ~~the~~March ~~total~~23, ~~unused~~2017, ~~portion~~but ofcan ~~the~~be ~~facility. The~~accelerated ~~Fund~~under ~~pays~~an ~~interest~~event ~~on its borrowings and also pays a fee on the unused portion~~ of ~~the~~default ~~facility.~~such ~~The~~as ~~Fund~~failure ~~pays~~by ~~interest on its borrowings . The facility revolves for 12 months, at which time~~ the ~~Loan Agreement size begins to reduce. Subsequent to year end, the~~ Fund ~~pre-emptively lowered the facility size~~ to ~~$94~~make ~~million~~timely ininterest ~~order~~or toprincipal ~~size the facility in relation to the borrowing base~~payments.

Borrowings under the facility are collateralized by receivables under loans advanced by the Fund with assignment to the financial institution, plus other assets of the Fund. Such borrowings will bear interest at an annual rate of either LIBOR plus 2.75% or the Reference Rate plus 1.75%. The Fund pays an unused line fee of 0.325% of the total unused commitment amount on a quarterly basis. As of December 31, 2015, the LIBOR rate is as follows:



1 month LIBOR	0.43%
3 month LIBOR	0.61%

Fees and costs previously incurred under the facility have been fully amortized. Bank fees of $280,000 and legal fees of $59,983 were incurred in connection with the renewal of the facility on September 30, 2014. Additional bank fees and other costs incurred were

capitalized and amortized to interest expense on a straight line basis over the new expected life of the facility. The remaining unamortized cost and fees of $~~305~~169,~~985~~991 are being amortized over the new expected life of the facility (March 2017).

The facility contains various covenants, including financial covenants related to: (i) Debt to Net Worth Ratio, (ii) Minimum Debt Service Coverage Ratio, (iii) Interest Coverage Ratio, (iv) Asset Coverage, (v) Asset Coverage Under Investment Company Act, (vi) Maximum Loan Loss Reserves, and (vii) Unfunded Commitment Ratio. 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, ~~2014~~2015, Management believes that the Fund was in compliance with ~~these~~ese covenants.

The following is the summary of the outstanding facility draws as of December 31, ~~2014~~2015:

Draw/Roll-Over Date	Amount		Draw Maturity Date	Interest Rate
December 15, 2014	$	106,550,000	1/14/2015*	2.92%
December 10, 2015	$	10,000,000	1/14/2016*	3.07%
TOTAL OUTSTANDING	$	106,550,000
December 10, 2015	$	30,400,000	3/14/2016 **	3.26%
TOTAL OUTSTANDING	$	40,400,000

*Loans were subsequently reduced by $74.17 million in January ~~2015~~2016, $53.53 million in February ~~2015,~~2016 and $62.30 million in March ~~2015~~2016. ~~$16 million was rolled for a 30-day LIBOR loan, maturing on April 13, 2015, and the remaining balance was rolled for a 90-day LIBOR loan, maturing on June 15, 2015.~~

7**Loans were subsequently reduced by $0. ~~MANAGEMENT~~8 ~~AND~~million ~~RELATED~~in ~~PARTIES~~March 2016; $10.0 million was rolled for a 30-day LIBOR loan, maturing on April 14, 2016 and $19.6 million was rolled for a 90-day LIBOR loan, maturing on June 14, 2016.

8. MANAGEMENT AND RELATED PARTIES

Management

As compensation for its services to the Fund, the Manager receives a management fee (“Management Fee”) computed and paid at the end of each quarter at an annual rate of 2.5 percent of the Company's committed equity capital (regardless of when or if the capital is called) as of the last day of each fiscal quarter in a two-year period commencing with the first capital closing, which took place on June 29, 2010. Following this two-year period, Management Fees are calculated and paid at the end of each quarter at an annual rate of 2.5 percent of the Fund's total assets (including amounts derived from borrowed funds) as of the last day of each quarter. Management Fees of $73.07 million, $87.40 million and $78.64 million were recognized as expenses for years ended December 31, ~~2014~~2015, ~~2013~~2014 and ~~2012~~2013, respectively.

Related Parties

Certain officers and directors of the Company also serve as officers and directors of the Manager. The 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 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 the directors & officers insurance policy.

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

The Manager also served as investment manager for Fund V which was dissolved on August 6, 2014. However, prior to the dissolution of Fund V, the Fund's Board of Directors determined that so long as Fund V had capital available to invest in loan transactions with final maturities earlier than December 31, 2015, the Fund would invest in each portfolio company in which Fund V invested (“Investments”). Initially the amount of each Investment was allocated 50% to the Fund and 50% to Fund V so long as Fund V had capital available to invest. After February 2011, Fund V was no longer permitted to enter into new commitments to borrowers; after June 2014, the Fund was no longer permitted to enter into new commitments to borrowers.

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

The Manager also serves as investment manager for Fund VII. The Fund's Board of Directors determined that so long as the Fund has capital available to invest in loan transactions with final maturities earlier than December 31, 2020 (the date on which the Fund will be dissolved), the Fund will invest in each portfolio company in which Fund VII invests (“Investments”). Initially the amount of each Investment has been allocated 50% to the Fund and 50% to Fund VII so long as the Fund had capital available to invest. After June 2014, the Fund is no longer permitted to enter into new commitments to borrowers; however, the Fund will be permitted to fund existing commitments. While investing the Fund's capital in the same companies in which Fund VII is also investing could provide the Fund with greater diversification and access to larger transactions, it could also result in a slower pace of investment than would be the case if the Fund were investing in companies by itself.

Intercreditor Agreements

In each transaction in which both the Fund and Fund V or Fund VII invest, it is expected that the Fund and Fund V or Fund VII will enter into an intercreditor agreement pursuant to which the Fund and Fund V or Fund VII will cooperate in pursuing their remedies following

aIntercreditor ~~default by the common borrower.~~Agreements 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 Fund V or Fund VII 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 lender 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 there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and Fund V or Fund VII 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 there from may make the Fund a less attractive lender, and may make it more difficult for the Fund to acquire such loans.

In each transaction in which both the Fund and Fund V or Fund VII invest or in which the other lender has either invested or may later invest, it is expected that the Fund and Fund V or Fund VII will enter into an intercreditor agreement pursuant to which the Fund and Fund V or Fund VII 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 Fund V or Fund VII 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 lender 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 there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and Fund V or Fund VII 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 from there may make the Fund a less attractive lender, and may make it more difficult for the Fund to acquire such loans.

To the extent that clients, other than Fund V or Fund VII, 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 procedures approved by the Fund's Board of Directors (including a majority of the disinterested directors).

89. INTEREST RATE SWAP AGREEMENTS

On February 18, 2011 and June 26, 2012, the Fund entered into an interest rate swap transaction with Union Bank, N.A. and Wells Fargo Bank, N.A., respectively, to convert floating rate liabilities to fixed rates. The purpose of the interest rate swap agreement was to protect the Fund against rising interest rates, as the Fund originates loans with fixed interest rates. The Fund adjusted the notional principal amount as the outstanding balance under the debt facility changed. The interest rate swap agreements terminated on September 23, 2014.

AsFor ~~of December 31, 2014 and 2013,~~ the total fair value of the interest rate swaps was $0.0 million and $(0.9) million, respectively, and is recorded as accounts payable and other accrued liabilities in the Statements of Assets and Liabilities. Change in unrealized gain from hedging activities of $853,099 and $908,248, and net realized loss from hedging activities of $696,351 and $1,119,201, for the years ended December 31, ~~2014~~2015 and ~~2013~~2014, ~~respectively,~~the ~~are~~derivative ~~included~~financial ininstruments ~~net~~had ~~realized~~the ~~and~~following ~~change~~effect inon ~~unrealized~~our ~~loss~~Statement ~~from hedging activities in the Statements~~ of Operations.:

As of December 31, 2014 and 2013, the fair value of the Fund's derivative financial instruments was as follows:



		Year Ended December 31,
Derivatives Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized	2015		2014			2013
Interest rate swap agreements	Net realized gain (loss) from hedging activities	$	—	$	(696,351	)	$	(1,119,200	)
Interest rate swap agreements	Net change in unrealized gain (loss) from hedging activities	$	—	$	853,099		$	908,248

Liability Derivatives

December 31, 2014

December 31, 2013

Derivatives Not Designated as Hedging Instruments:

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Interest rate swap agreements

Accounts payable and other accrued liabilities

—

Accounts payable and other accrued liabilities

853,099

10. INTEREST RATE CAP AGREEMENTS

~~For~~As of September 30, 2014, the ~~years~~Fund ~~ended December~~has 31entered into two interest rate cap agreements with MUFG Union Bank, ~~2014~~N.A. and ~~2013~~Wells Fargo Bank, N.A. with a notional principal amount of $42 million for each agreement, to cap floating interest rates at 0.7%. The purpose of the ~~derivative~~interest ~~financial~~rate ~~instruments~~cap ~~had~~agreement is to protect the ~~following~~Fund ~~effect~~against rising interest rates, as the Fund originates loans with fixed interest rates. The Fund continues to adjust the notional principal amount as the outstanding balance under the debt facility changes.The notional principal amount as of December 31, 2015 is $17 million for each agreement. The Fund paid upfront fees of $0.2 million which are amortized on ~~our~~a ~~Statement~~straight line basis over the life of ~~Operations:~~the instrument and receives from the counterparty a payment of interest amounts above the 0.7% cap based on 30-day LIBOR. Payments, if necessary are made monthly and will terminate on March 23, 2017.

		Year Ended December 31,
Derivatives Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized	2014		2013
Interest rate swap agreements	Net realized and change in unrealized gain (loss) from hedging activities	$	156,748	$	(210,953	)

The average notional amount outstanding was $55.1 million and $84.0 million for the year ended December 31, 2015 and 2014, respectively.

9. INTEREST RATE CAP AGREEMENTS

The Fund has entered into two interest rate cap agreements with MUFG Union Bank, N.A. and Wells Fargo Bank, N.A. with a notional principal amount of $42 million for each agreement, to cap floating interest rates at 0.7%. The purpose of the interest rate cap agreement is to protect the Fund against rising interest rates, as the Fund originates loans with fixed interest rates. The Fund continues to adjust the notional principal amount as the outstanding balance under the debt facility changes.The notional principal amount as of December 31, 2014 is $41 million for each agreement. The Fund paid upfront fees of $0.2 million which are amortized on a straight line basis over the

~~life~~As of ~~the~~December ~~instrument~~31, 2015 and ~~receives~~2014, ~~from~~ the ~~counterparty~~fair avalue ~~payment~~ of ~~interest amounts above~~ the ~~0.7%~~Fund's ~~cap~~derivative ~~based~~financial oninstruments ~~30-day~~was ~~LIBOR.~~as ~~Payments, if necessary are made monthly and will terminate on March 23, 2017.~~follows:

As of December 31, 2014 and 2013, the fair value of the Fund's derivative financial instruments was as follows:

Asset Derivatives

December 31, 2015

December 31, 2014

Derivatives Not Designated as Hedging Instruments:

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Interest rate cap agreements

Total Investment

25,340

Other Investment

149,844

Asset Derivatives

December 31, 2014

December 31, 2013

Derivatives Not Designated as Hedging Instruments:

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Interest rate cap agreements

Other Investment

149,844

Other Investment

—

For the years ended December 31, 2015 and 2014, the derivative financial instruments had the following effect on our Statement of Operations:

For the years ended December 31, 2014 and 2013, the derivative financial instruments had the following effect on our Statement of Operations:



		Year Ended December 31,
Derivatives Not Designated as Hedging Instruments:	Location of Loss Recognized	2015		2014		2013
Interest rate cap agreements	Net change in unrealized loss from hedging activities	$	32,504	$	57,156	$	—

		Year Ended December 31,
Derivatives Not Designated as Hedging Instruments:	Location of Loss Recognized	2014			2013
Interest rate cap agreements	Net realized and change in unrealized gain (loss) from hedging activities	$	(57,156	)	$	—

11. FINANCIAL HIGHLIGHTS

10. FINANCIAL HIGHLIGHTS

Accounting principles generally accepted in the United States of America require disclosure of financial highlights of the Fund for the periods presented. 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.

The ratios of expenses and net investment income 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 is inclusive of all investment income net of expenses, and excludes net 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 years 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
	December 31, 2014			December 31, 2013			December 31, 2012
Total return	23.38		%	19.26		%	17.74		%
Per share amounts:
Net asset value, beginning of year	$	1,943.66		$	1,959.29		$	1,314.09
Net investment income	376.22			455.14			316.56
Net realized and change in unrealized loss from investment and hedging activities	(26.98		)	(109.57		)	(59.07		)
Net increase in net assets resulting from operations	349.24			345.57			257.49
Distributions of income to shareholder	(349.34		)	(408.12		)	(295.94		)
Return of capital to shareholder	(573.41		)	(33.08		)	(126.35		)
Contributions from shareholder	—			80.00			810.00
Net asset value, end of year	$	1,370.15		$	1,943.66		$	1,959.29
Net assets, end of year	$	137,015,488		$	194,365,857		$	195,928,871
Ratios to average net assets:
Expenses	7.23		%	7.20		%	7.84		%
Net investment income	22.67		%	23.48		%	20.23		%

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

11. SUBSEQUENT EVENTS



	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2015			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011

Total return	11.23		%	23.38		%	19.26		%	17.74		%	8.10		%

Per share amounts:
Net asset value, beginning of year	$	1,370.15		$	1,943.66		$	1,959.29		$	1,314.09		$	331.07
Net investment income	211.65			376.22			455.14			316.56			96.68
Net realized and change in unrealized loss from investment and hedging activities	(116.66		)	(26.98		)	(109.57		)	(59.07		)	(19.09		)
Net increase in net assets resulting from operations	94.99			349.24			345.57			257.49			77.59
Distributions of income to shareholder	(114.11		)	(349.34		)	(408.12		)	(295.94		)	(98.70		)
Return of capital to shareholder	(765.98		)	(573.41		)	(33.08		)	(126.35		)	(130.87		)
Contributions from shareholder	—			—			80.00			810.00			1,135.00
Net asset value, end of year	$	585.05		$	1,370.15		$	1,943.66		$	1,959.29		$	1,314.09

Net assets, end of year	$	58,505,200		$	137,015,488		$	194,365,857		$	195,928,871		$	131,409,460

Ratios to average net assets:
Expenses	7.13		%	7.23		%	7.20		%	7.84		%	11.85		%
Net investment income	22.55		%	22.67		%	23.48		%	20.23		%	12.26		%
Portfolio turnover rate	0.19		%	0		%	0		%	0		%	0		%
Average debt outstanding	$	69,715,384		$	119,884,615		$	137,823,077		$	108,461,538		$	40,307,692

~~The~~12. ~~Fund~~SUBSEQUENT evaluated 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, other than as disclosed in Note 6.EVENTS

.The Fund evaluated 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.

Filing Compare · Venture Lending & Leasing VI, Inc.