UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



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

For the quarterly period ended ~~March 31,~~September 30, 2019



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

For the transition period from ___________ to ______________

Commission file number 814-01253

Venture Lending & Leasing IX, Inc.

(Exact Name of Registrant as specified in its charter)



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

104 La Mesa Drive, Suite 102, Portola Valley, CA	94028
(Address of principal executive offices)	(Zip Code)

(650) 234-4300

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [ ]

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



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

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

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:



Class		Outstanding as of ~~May 14,~~November 13, 2019
Common Stock, $0.001 par value		100,000

VENTURE LENDING & LEASING IX, INC.

INDEX



PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Statements of Assets and Liabilities (Unaudited)
	As of ~~March 31,~~September 30, 2019 and December 31, 2018

	Condensed Statements of Operations (Unaudited)
	For the three and nine months ended ~~March 31,~~September 30, 2019 and 2018

	Condensed Statements of Changes in Net Assets (Unaudited)
	For the three and nine months ended ~~March 31,~~September 30, 2019 and 2018

	Condensed Statements of Cash Flows (Unaudited)
	For the ~~three~~nine months ended ~~March 31,~~September 30, 2019 and 2018

	Condensed Schedules of Investments (Unaudited)
	As of ~~March 31,~~September 30, 2019 and December 31, 2018

	Condensed Schedule of Open Swap Contracts (Unaudited)
	As of September 30, 2019

	Notes to Condensed Financial Statements (Unaudited)

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.	Quantitative and Qualitative Disclosures About Market Risk

Item 4.	Controls and Procedures

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings

Item 1A.	Risk Factors

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.	Defaults Upon Senior Securities

Item 4.	Mine Safety Disclosures

Item 5.	Other Information

Item 6.	Exhibits

SIGNATURES

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

AS OF ~~MARCH 31,~~SEPTEMBER 30, 2019 AND DECEMBER 31, 2018


	March 31, 2019			December 31, 2018			September 30, 2019			December 31, 2018
ASSETS
Loans, at estimated fair value
(cost of $98,317,234 and $79,045,107)	$	98,304,920		$	79,045,107
(cost of $169,122,313 and $79,045,107)							$	167,759,844		$	79,045,107
Cash and cash equivalents	2,757,819			832,815			4,847,880			832,815
Dividend and interest receivables	1,450,636			985,020			2,234,052			985,020
Other assets	1,275,176			1,316,366			1,146,299			1,316,366
Total assets	103,788,551			82,179,308			175,988,075			82,179,308

LIABILITIES
Borrowings under debt facility	34,000,000			6,000,000			85,000,000			6,000,000
Accrued management fees	1,811,250			1,811,250			1,840,000			1,811,250
Derivative liability - interest rate swap	303,362			—			1,014,599			—
Accounts payable and other accrued liabilities	757,139			279,331			1,812,766			279,331
Total liabilities	36,871,751			8,090,581			89,667,365			8,090,581

NET ASSETS	$	66,916,800		$	74,088,727		$	86,320,710		$	74,088,727

Analysis of Net Assets:

Capital paid in on shares of capital stock	$	92,525,000		$	82,525,000		$	117,025,000		$	82,525,000
Net unrealized depreciation on investments	(315,676		)	(1,148,292		)	(2,377,068		)	(1,148,292		)
Distribution in excess of net investment income	(25,292,524		)	(7,287,981		)	(28,327,222		)	(7,287,981		)
Net assets (equivalent to $669.17 and $740.89 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)	$	66,916,800		$	74,088,727
Net assets (equivalent to $863.21 and $740.89 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)							$	86,320,710		$	74,088,727

Commitments & Contingent Liabilities:
Unexpired unfunded commitments (See Note 10)	$	42,387,500		$	31,025,000		$	59,825,000		$	31,025,000

See notes to condensed financial ~~statements~~

statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2019 AND 2018


	For the Three Months Ended March 31, 2019			For the Three Months Ended March 31, 2018			For the Three Months Ended September 30, 2019			For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2019			For the Nine Months Ended September 30, 2018

INVESTMENT INCOME:
Interest on loans	$	3,964,607		$	—		$	6,089,248		$	1,411,618		$	15,459,659		$	1,636,371
Other interest and other income	51,238			—			32,770			87,983			177,136			107,556
Total investment income	4,015,845			—			6,122,018			1,499,601			15,636,795			1,743,927

EXPENSES:
Management fees	1,811,250			—			1,840,000			1,811,250			5,462,500			3,022,058
Organization costs	—			26,973			—			—			—			27,654
Interest expense	716,565			—			1,156,808			—			2,768,712			—
Banking and professional fees	175,591			—			26,855			181,443			319,058			207,115
Other operating expenses	33,966			—			59,975			43,625			124,149			84,306
Total expenses	2,737,372			26,973			3,083,638			2,036,318			8,674,419			3,341,133

Net investment income (loss)	1,278,473			(26,973		)	3,038,380			(536,717		)	6,962,376			(1,597,206		)

Net realized loss from derivative instruments	(919		)	—			(4,681		)	—			(9,595		)	—
Net change in unrealized loss from loans	(12,314		)	—			(1,362,469		)	—			(1,362,469		)	—
Net change in unrealized loss from derivative instruments	(303,362		)	—			(113,664		)	—			(1,014,599		)	—
Net realized and change in unrealized loss from loans and derivative instruments	(316,595		)	—			(1,480,814		)	—			(2,386,663		)	—

Net increase (decrease) in net assets resulting from operations	$	961,878		$	(26,973	)	$	1,557,566		$	(536,717	)	$	4,575,713		$	(1,597,206	)

Amounts per common share:
Net increase (decrease) in net assets resulting from operations per share	$	9.62		$	(0.27	)	$	15.58		$	(5.37	)	$	45.76		$	(15.97	)
Weighted average shares outstanding	100,000			100,000			100,000			100,000			100,000			100,000

See notes to condensed financial ~~statements~~

statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2019 AND 2018

For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss) $ 1,278,473
$ (26,973 )
Net realized loss from derivative instruments (919 ) —
Net change in unrealized loss from loans (12,314 ) —
Net change in unrealized loss from derivative instruments (303,362 ) —
Net increase (decrease) in net assets resulting from operations 961,878
(26,973 )

Distributions of income to shareholder (1,277,554 ) —
Return of capital to shareholder (16,856,251 ) —
Contributions from shareholder 10,000,000
—
Net decrease in capital transactions (8,133,805 ) —

Net decrease in net assets (7,171,927 ) (26,973 )

Net assets
Beginning of period 74,088,727
(159,165 )
End of period $ 66,916,800
$ (186,138 )



	Common Stock
	Shares	Par Value		Additional Paid-in Capital		Total Distributable Earnings (Loss)			Net Assets
Balance at June 30, 2018	100,000	$	100	$	54,524,900	$	(3,259,881	)	$	51,265,119
Net decrease in net assets resulting from operations	—	—		—		(536,717		)	(536,717		)
Return of capital to shareholder	—	—		—		(3,129,795		)	(3,129,795		)
Contributions from shareholder	—	—		9,000,000		—			9,000,000
Balance at September 30, 2018	100,000	$	100	$	63,524,900	$	(6,926,393	)	$	56,598,607

Balance at June 30, 2019	100,000	$	100	$	102,524,900	$	(26,631,252	)	$	75,893,748
Net increase in net assets resulting from operations	—	—		—		1,557,566			1,557,566
Distributions of income to shareholder	—	—		—		(3,033,700		)	(3,033,700		)
Return of capital to shareholder	—	—		—		(2,596,904		)	(2,596,904		)
Contributions from shareholder	—	—		14,500,000		—			14,500,000
Balance at September 30, 2019	100,000	$	100	$	117,024,900	$	(30,704,290	)	$	86,320,710

Balance at December 31, 2017	100,000	$	100	$	24,900	$	(184,165	)	$	(159,165	)
Net decrease in net assets resulting from operations	—	—		—		(1,597,206		)	(1,597,206		)
Return of capital to shareholder	—	—		—		(5,145,022		)	(5,145,022		)
Contributions from shareholder	—	—		63,500,000		—			63,500,000
Balance at September 30, 2018	100,000	$	100	$	63,524,900	$	(6,926,393	)	$	56,598,607

Balance at December 31, 2018	100,000	$	100	$	82,524,900	$	(8,436,273	)	$	74,088,727
Net increase in net assets resulting from operations	—	—		—		4,575,713			4,575,713
Distributions of income to shareholder	—	—		—		(6,952,781		)	(6,952,781		)
Return of capital to shareholder	—	—		—		(19,890,949		)	(19,890,949		)
Contributions from shareholder	—	—		34,500,000		—			34,500,000
Balance at September 30, 2019	100,000	$	100	$	117,024,900	$	(30,704,290	)	$	86,320,710

See notes to condensed financial ~~statements~~

statements.

VENTURE LENDING & LEASING IX INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE ~~THREE~~NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2019 AND 2018


	For the Three Months Ended March 31, 2019			For the Three Months Ended March 31, 2018			For the Nine Months Ended September 30, 2019			For the Nine Months Ended September 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase (decrease) in net assets resulting from operations	$	961,878		$	(26,973	)	$	4,575,713		$	(1,597,206	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net realized loss from derivative instruments	919			—			9,595			—
Net change in unrealized loss from loans	12,314			—			1,362,469			—
Net change in unrealized loss from derivative instruments	303,362			—			1,014,599			—
Amortization of deferred costs related to borrowing facility	105,805			—			317,415			—
Net increase in dividend and interest receivables	(465,616		)	—			(1,249,032		)	(616,420		)
Net increase in other assets	(64,615		)	—			(147,347		)	(60,769		)
Net increase in accounts payable, other accrued liabilities and accrued management fees	477,808			26,973			1,562,184			1,841,922
Origination of loans	(25,387,500		)	—			(109,925,000		)	(57,625,000		)
Principal payments on loans	5,661,316			—			18,357,701			5,867,482
Acquisition of equity securities	(1,679,748		)	—			(6,653,637		)	(5,145,022		)
Net cash used in operating activities	(20,074,077		)	—			(90,775,340		)	(57,335,013		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distribution to shareholder	(16,000,000		)	—			(18,700,000		)	—
Contribution from shareholder	10,000,000						34,500,000			63,500,000
Borrowings under debt facility	38,000,000			—			98,700,000			—
Repayments of borrowings under debt facility	(10,000,000		)	—			(19,700,000		)	—
Payments made for interest rate swap	(919		)	—			(29,315		)	—
Interest received from interest rate swap							19,720			—
Net cash provided by financing activities	21,999,081			—			94,790,405			63,500,000

Net increase in cash and cash equivalents	1,925,004			—			4,015,065			6,164,987

CASH AND CASH EQUIVALENTS:
Beginning of period	832,815			25,000			832,815			25,000
End of period	$	2,757,819		$	25,000		$	4,847,880		$	6,189,987

SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE PERIOD:
Interest - Debt facility	$	563,817		$	—		$	2,250,865		$	—
NON-CASH OPERATING AND FINANCING ACTIVITIES:
Distributions of equity securities to shareholder	$	2,133,805		$	—		$	8,143,730		$	5,145,022
Receipt of equity securities as repayment of loans	$	454,057		$	—		$	1,490,093		$	—

See notes to condensed financial ~~statements~~statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULES OF INVESTMENTS (UNAUDITED)

AS OF ~~MARCH 31,~~SEPTEMBER 30, 2019

As of ~~March 31,~~September 30, 2019, all loans were valued using significant unobservable inputs and were made to non-affiliates. Additionally, all loans were pledged as collateral as part of the debt facility.


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date

Biotechnology
	Antheia, Inc.		Senior Secured	11.5%		$	1,484,981	$	1,383,725	$	1,383,725	12/1/2022	Antheia, Inc.		Senior Secured	11.5%		$	1,484,099	$	1,399,756	$	1,399,756	12/1/2022
													Antheia, Inc.		Senior Secured	11.5%		1,485,455		1,454,289		1,454,289		12/1/2022
													Antheia, Inc. Subtotal					2,969,554		2,854,045		2,854,045
Biotechnology Total		2.1%				$	1,484,981	$	1,383,725	$	1,383,725			3.3%				$	2,969,554	$	2,854,045	$	2,854,045

Computer & Storage
													Canary Connect, Inc.		Senior Secured	12.8%		$	2,468,125	$	2,357,953	$	2,357,953	3/1/2023
Computers & Storage Total														2.7%				$	2,468,125	$	2,357,953	$	2,357,953

Enterprise Networking
	SnapRoute, Inc.		Senior Secured	11.0%		$	3,465,730	$	3,291,125	$	3,291,125	11/1/2021	SnapRoute, Inc.		Senior Secured	11.0%		$	3,056,019	$	2,934,372	$	1,725,909	11/1/2021
Enterprise Networking Total		4.9%				$	3,465,730	$	3,291,125	$	3,291,125			2.0%				$	3,056,019	$	2,934,372	$	1,725,909

Internet
	Amino Payments, Inc.		Senior Secured	9.0%	4.8%	$	628,294	$	604,108	$	604,108	12/1/2021
	DreamCloud Holdings, LLC		Senior Secured	12.0%		1,294,947		726,247		713,933		1/1/2020
	Osix Corporation		Senior Secured	12.3%		98,948		82,419		82,419		12/1/2021
	Protecht, Inc.		Senior Secured	12.5%		988,327		933,983		933,983		12/1/2021
	Thrive Market, Inc.		Senior Secured	12.3%		7,417,576		7,162,857		7,162,857		4/1/2022
Internet Total		14.2%				$	10,428,092	$	9,509,614	$	9,497,300

Medical Devices
	CytoVale, Inc.		Senior Secured	12.0%		$	618,438	$	571,846	$	571,846	3/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		618,685		604,795		604,795		6/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		494,998		483,413		483,413		7/1/2022
	CytoVale, Inc. Subtotal					1,732,121		1,660,054		1,660,054
	Medrobotics Corporation, Inc.		Senior Secured	12.0%		9,890,248		8,674,304		8,674,304		6/1/2021
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,462,862		3,187,256		3,187,256		4/1/2023
Medical Devices Total		20.2%				$	15,085,231	$	13,521,614	$	13,521,614

Other Healthcare
	Caredox, Inc.		Senior Secured	11.8%		$	1,237,116	$	1,177,674	$	1,177,674	10/1/2021
	Discover Echo, Inc.		Senior Secured	11.0%		541,115		510,582		510,582		12/1/2020
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	123,625		110,713		110,713		3/1/2023
Other Healthcare Total		2.7%				$	1,901,856	$	1,798,969	$	1,798,969

Other Technology
	Aclima, Inc.		Senior Secured	11.0%	2.0%	$	1,991,653	$	1,889,355	$	1,889,355	7/1/2021	Ainsly, Inc.*^		Senior Secured	12.5%		$	742,103	$	668,011	$	668,011	8/1/2022
	Apollo Flight Research Inc.		Senior Secured	11.0%		494,958		464,725		464,725		6/1/2022	Ainsly, Inc.*^		Senior Secured	12.5%		247,384		247,384		247,384		8/1/2022
	AvantStay, Inc.		Senior Secured	11.0%		983,499		925,141		925,141		6/1/2022	Ainsly, Inc.*^ Subtotal					989,487		915,395		915,395
	Brightside Benefit, Inc.		Senior Secured	12.1%		742,188		682,646		682,646		9/1/2022	Amino Payments, Inc.		Senior Secured	10.8%		552,134		514,103		514,103		3/1/2022
	Dosh Holdings, Inc.		Senior Secured	11.0%		4,953,679		4,646,562		4,646,562		6/1/2022	Cesium, Inc.		Senior Secured	10.3%		247,830		226,179		226,179		1/1/2023
	Dragonfly Vert, Inc.		Senior Secured	12.5%		989,288		939,025		939,025		12/1/2021	FindShadow, PBC		Senior Secured	11.5%		618,682		582,881		582,881		4/1/2022
	Fitplan, Inc.* ^		Senior Secured	12.5%		741,948		694,530		694,530		3/1/2022	Masse, Inc.		Senior Secured	11.5%		371,371		336,529		336,529		10/1/2022
	Fitplan, Inc.* ^		Senior Secured	12.5%		247,371		247,371		247,371		3/1/2022	MyPizza Technologies, Inc.		Senior Secured	11.5%		4,950,610		4,657,854		4,657,854		12/1/2022
	Fitplan, Inc.* ^		Senior Secured	12.5%		494,884		472,307		472,307		3/1/2022	MyPizza Technologies, Inc.		Senior Secured	11.5%		2,475,584		2,413,684		2,413,684		2/1/2023
	Fitplan, Inc.* ^ Subtotal					1,484,203		1,414,208		1,414,208			MyPizza Technologies, Inc. Subtotal					7,426,194		7,071,538		7,071,538
	Hint, Inc.		Senior Secured	11.0%		2,403,271		2,183,987		2,183,987		8/1/2021	Osix Corporation		Senior Secured	12.3%		90,326		78,385		78,385		12/1/2021
													Protecht, Inc.		Senior Secured	12.5%		902,402		863,661		863,661		12/1/2021
													Serface Care, Inc.		Senior Secured	12.3%		720,810		674,109		674,109		2/1/2022
													Serface Care, Inc.		Senior Secured	12.3%		240,329		234,288		234,288		2/1/2022
	Kobo360, Inc.* ^		Senior Secured	11.3%		247,483		238,209		238,209		6/1/2020	Serface Care, Inc. Subtotal					961,139		908,397		908,397
													Thrive Market, Inc.		Senior Secured	12.3%		7,032,061		6,842,047		6,842,047		4/1/2022
													Verishop, Inc.		Senior Secured	12.0%		2,465,833		2,297,258		2,297,258		12/1/2023
Internet Total														23.9%				$	21,657,459	$	20,636,373	$	20,636,373

Medical Devices
													Ablacon, Inc.		Senior Secured	11.0%		$	2,476,319	$	2,307,440	$	2,307,440	3/1/2023
													CytoVale, Inc.		Senior Secured	12.0%		570,044		535,676		535,676		3/1/2022
													CytoVale, Inc.		Senior Secured	12.0%		618,297		607,635		607,635		6/1/2022
													CytoVale, Inc.		Senior Secured	12.0%		494,691		485,673		485,673		7/1/2022
													CytoVale, Inc. Subtotal					1,683,032		1,628,984		1,628,984
													Medrobotics Corporation, Inc.		Senior Secured	12.0%		9,883,496		8,221,456		8,221,456		6/1/2021
													NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,460,577		3,226,356		3,226,356		4/1/2023
													NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,463,927		3,397,656		3,397,656		4/1/2023

Industry Borrower Percent of Net Assets (a) Collateral Interest Rate End of Term Payment Principal Cost Fair Value Maturity Date
Kobo360, Inc.* ^ Senior Secured 11.3% 247,539
247,539
247,539
9/1/2020
Kobo360, Inc.* ^ Subtotal 495,022
485,748
485,748

Kogniz, Inc. Senior Secured 12.8% 370,804
287,211
287,211
9/1/2021
Make School, Inc. Senior Secured 11.3% 961,350
916,977
916,977
8/1/2021
Nevada Nanotech Systems, Inc. Senior Secured 12.0% 903,388
834,523
834,523
6/1/2021
NewGlobe Schools, Inc. Senior Secured 12.5% 3,948,609
3,711,662
3,711,662
8/1/2022
Plant Prefab, Inc. Senior Secured 11.0% 495,412
448,978
448,978
2/1/2022
Platform Science, Inc. Senior Secured 12.0% 1,237,414
1,127,791
1,127,791
2/1/2022
Plethora, Inc. Senior Secured 9.5% 4.3% 458,205
426,955
426,955
6/1/2021
Plethora, Inc. Senior Secured 9.5% 4.3% 250,089
245,997
245,997
9/1/2021
Plethora, Inc. Senior Secured 9.5% 4.3% 499,296
490,668
490,668
10/1/2021
Plethora, Inc. Subtotal 1,207,590
1,163,620
1,163,620

Saber es Poder, Inc. Senior Secured 10.5% 495,624
484,526
484,526
5/1/2022
Saber es Poder, Inc. Senior Secured 10.5% 495,552
464,285
464,285
3/1/2022
Saber es Poder, Inc. Subtotal 991,176
948,811
948,811

Scoot Networks, Inc. Senior Secured 12.8% 793,490
743,856
743,856
3/1/2021
SkyKick, Inc. Senior Secured 11.0% 4,953,303
4,679,974
4,679,974
6/1/2022
Strong Arm Technologies, Inc. Senior Secured 12.0% 983,200
942,186
942,186
5/1/2021
Theatro Labs, Inc. Senior Secured 12.0% 1,484,008
1,431,457
1,431,457
8/1/2022
Thras.io, Inc. Senior Secured 12.0% 45.2% 262,500
228,140
228,140
4/1/2024
Virtuix Holdings, Inc. Senior Secured 12.3% 247,344
240,060
240,060
4/1/2022
Voodoo Manufacturing, Inc. Senior Secured 12.0% 369,625
332,291
332,291
3/1/2022
Wheels Labs, Inc. Senior Secured 12.5% 4,453,050
4,242,585
4,242,585
8/1/2022
Other Technology Total 53.7% $ 38,200,024
$ 35,911,519
$ 35,911,519

Security
Axonius, Inc. Senior Secured 12.0% $ 494,727
$ 473,632
$ 473,632
9/1/2021
Nok Nok Labs, Inc. Senior Secured 12.5% 988,600
962,001
962,001
6/1/2022
Safetrust Holdings, Inc. Senior Secured 12.5% 451,684
412,169
412,169
6/1/2021
Security Total 2.8% $ 1,935,011
$ 1,847,802
$ 1,847,802

Semiconductors and Equipment
ETA Compute, Inc. Senior Secured 12.0% $ 1,484,386
$ 1,414,458
$ 1,414,458
11/1/2021
Semiconductors & Equipment Total 2.1% $ 1,484,386
$ 1,414,458
$ 1,414,458

Software
Blockdaemon, Inc. Senior Secured 11.3% $ 240,326
$ 216,334
$ 216,334
8/1/2021
Dynamics, Inc. Senior Secured 12.5% 7,206,426
6,209,028
6,209,028
8/1/2021
Interana, Inc. Senior Secured 11.3% 2,709,422
2,622,046
2,622,046
6/1/2021
Invoice2Go, Inc. Senior Secured 12.0% 989,478
845,478
845,478
3/1/2022
Invoice2Go, Inc. Senior Secured 12.0% 989,897
970,386
970,386
7/1/2022
Invoice2Go, Inc. Subtotal 1,979,375
1,815,864
1,815,864

Ipolipo, Inc. Senior Secured 12.0% 2,474,085
2,359,248
2,359,248
12/1/2021
Metawave Corporation Senior Secured 12.0% 989,861
942,924
942,924
7/1/2022
Metricly, Inc. Senior Secured 12.3% 494,552
456,105
456,105
11/1/2021
Mines.io, Inc.* ^ Senior Secured 12.3% 741,937
679,863
679,863
12/1/2021
Mines.io, Inc.* ^ Senior Secured 12.5% 494,680
494,680
494,680
3/1/2022
Mines.io, Inc.* ^ Subtotal 1,236,617
1,174,543
1,174,543

Oohlala Mobile, Inc.* ^ Senior Secured 11.5% 247,511
247,511
247,511
9/1/2021
Oohlala Mobile, Inc.* ^ Senior Secured 11.5% 472,719
472,719
472,719
9/1/2021
Oohlala Mobile, Inc.* ^ Subtotal 720,230
720,230
720,230

OrderGroove, Inc. Senior Secured 12.0% 2,474,489
2,319,729
2,319,729
6/1/2023
PlushCare, Inc. Senior Secured 11.8% 989,913
923,828
923,828
5/1/2022
Resilio, Inc. Senior Secured 12.8% 203,921
166,354
166,354
3/1/2021



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		2,965,000		2,883,894		2,883,894		4/1/2023
	NeuMoDx Molecular, Inc. Subtotal					9,889,504		9,507,906		9,507,906
Medical Devices Total		25.1%				$	23,932,351	$	21,665,786	$	21,665,786

Other Healthcare
	Caredox, Inc.		Senior Secured	11.8%		$	1,055,097	$	1,014,319	$	1,014,319	10/1/2021
	Discover Echo, Inc.		Senior Secured	11.0%		396,940		380,324		380,324		12/1/2020
	HumanAPI, Inc.		Senior Secured	11.8%		1,485,163		1,380,981		1,380,981		10/1/2022
	Sparta Software Corporation		Senior Secured	11.5%	2.2%	496,251		475,418		475,418		5/1/2022
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	123,953		112,837		112,837		3/1/2023
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	123,832		123,832		123,832		6/1/2023
	Therapydia, Inc. Subtotal					247,785		236,669		236,669
Other Healthcare Total		4.0%				$	3,681,236	$	3,487,711	$	3,487,711

Other Technology
	Aclima, Inc.		Senior Secured	11.5%	2.3%	$	869,477	$	851,712	$	851,712	4/1/2022
	Aclima, Inc.		Senior Secured	12.0%		1,618,315		1,550,955		1,550,955		7/1/2021
	Aclima, Inc. Subtotal					2,487,792		2,402,667		2,402,667
	Apollo Flight Research Inc.		Senior Secured	11.0%		495,197		470,727		470,727		6/1/2022
	AvantStay, Inc.		Senior Secured	11.0%		990,276		944,213		944,213		6/1/2022
	Beanfields, PBC		Senior Secured	12.5%		865,683		806,696		806,696		3/1/2023
	Brightside Benefit, Inc.		Senior Secured	12.1%		741,703		694,732		694,732		9/1/2022
	Brightside Benefit, Inc.		Senior Secured	12.4%		989,360		968,675		968,675		3/1/2023
	Brightside Benefit, Inc. Subtotal					1,731,063		1,663,407		1,663,407
	BW Industries, Inc.		Senior Secured	11.8%		1,980,402		1,736,588		1,736,588		5/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		1,964,096		1,906,814		1,906,814		6/1/2023
	BW Industries, Inc. Subtotal					3,944,498		3,643,402		3,643,402
	DOSH Holdings, Inc.		Senior Secured	11.0%		4,951,062		4,710,326		4,710,326		6/1/2022
	DOSH Holdings, Inc.		Senior Secured	11.0%		1,238,110		1,216,039		1,216,039		6/1/2022
	DOSH Holdings, Inc. Subtotal					6,189,172		5,926,365		5,926,365
	Dragonfly Vert, Inc.		Senior Secured	12.5%		903,307		867,492		867,492		12/1/2021
	Fitplan, Inc.*^		Senior Secured	12.5%		741,430		705,708		705,708		3/1/2022
	Fitplan, Inc.*^		Senior Secured	12.5%		247,202		247,202		247,202		3/1/2022
	Fitplan, Inc.*^		Senior Secured	12.5%		494,555		477,582		477,582		3/1/2022
	Fitplan, Inc.*^ Subtotal					1,483,187		1,430,492		1,430,492
	Higher Ground Education, Inc.		Senior Secured	12.5%		2,472,620		2,296,058		2,296,058		1/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,484,098		1,448,005		1,448,005		4/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		494,764		482,167		482,167		5/1/2023
	Higher Ground Education, Inc. Subtotal					4,451,482		4,226,230		4,226,230
	Hint, Inc.		Senior Secured	11.0%		1,956,824		1,810,800		1,810,800		8/1/2021
	Kobo360, Inc.*^		Senior Secured	11.3%		188,132		184,307		184,307		6/1/2020
	Kobo360, Inc.*^		Senior Secured	11.3%		247,397		247,397		247,397		9/1/2020
	Kobo360, Inc.*^ Subtotal					435,529		431,704		431,704
	Kogniz, Inc.		Senior Secured	12.8%		305,739		247,725		247,725		9/1/2021
	Make School, Inc.		Senior Secured	11.3%		783,209		753,824		753,824		8/1/2021
	Nevada Nanotech Systems, Inc.		Senior Secured	12.0%		723,067		678,816		678,816		6/1/2021
	NewGlobe Schools, Inc.		Senior Secured	12.5%		3,955,977		3,760,484		3,760,484		8/1/2022
	Noteleaf, Inc.		Senior Secured	12.5%		1,483,762		1,396,873		1,396,873		4/1/2023

Industry Borrower Percent of Net Assets (a) Collateral Interest Rate End of Term Payment Principal Cost Fair Value Maturity Date
Resilio, Inc. Senior Secured 12.8% 218,694
218,694
218,694
5/1/2021
Resilio, Inc. Subtotal 422,615
385,048
385,048

Skillshare, Inc. Senior Secured 12.0% 1,806,281
1,709,764
1,709,764
6/1/2021
Skillshare, Inc. Senior Secured 12.5% 989,470
968,509
968,509
1/1/2022
Skillshare, Inc. Subtotal 2,795,751
2,678,273
2,678,273

Stitch Labs, Inc. Senior Secured 12.0% 1,484,459
1,361,001
1,361,001
2/1/2022
Swivel, Inc. Senior Secured 12.0% 247,496
223,273
223,273
8/1/2022
Talla, Inc. Senior Secured 12.5% 494,792
446,790
446,790
5/1/2022
Venuetize, LLC Senior Secured 12.3% 247,336
217,423
217,423
4/1/2022
Workspot, Inc. Senior Secured 12.0% 742,042
683,553
683,553
9/1/2021
Zoomdata, Inc. Senior Secured 11.5% 742,548
709,829
709,829
3/1/2022
Software Total 39.5% $ 28,692,335
$ 26,465,069
$ 26,465,069

Technology Services
Keyo AI Inc. Senior Secured 10.0% $ 495,695
$ 460,263
$ 460,263
2/1/2022
Relimetrics, Inc. Senior Secured 11.3% 371,349
349,915
349,915
1/1/2022
Zeel Networks, Inc. Senior Secured 11.0% 1,237,992
1,150,608
1,150,608
3/1/2022
Zeel Networks, Inc. Senior Secured 11.0% 1,238,341
1,212,553
1,212,553
3/1/2022
Zeel Networks, Inc. Subtotal 2,476,333
2,363,161
2,363,161

Technology Services Total 4.7% $ 3,343,377
$ 3,173,339
$ 3,173,339

Grand Total 146.9% $ 106,021,023
$ 98,317,234
$ 98,304,920



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date
	Opya, Inc.		Senior Secured	12.0%		989,900		929,941		929,941		1/1/2023
	Percepto, Inc.		Senior Secured	11.8%		1,483,354		1,380,186		1,380,186		11/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		480,781		446,457		446,457		2/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		480,869		471,551		471,551		2/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		495,359		484,093		484,093		8/1/2022
	Plant Prefab, Inc. Subtotal					1,457,009		1,402,101		1,402,101
	Platform Science, Inc.		Senior Secured	12.0%		1,201,218		1,119,996		1,119,996		2/1/2022
	Plethora, Inc.		Senior Secured	11.5%		1,143,203		1,038,404		1,038,404		3/1/2022
	Redaptive, Inc.		Senior Secured	12.0%		4,948,939		4,675,642		4,675,642		12/1/2022
	Romaine Empire, Inc.		Senior Secured	11.0%	4.1%	2,980,679		2,793,926		2,793,926		2/1/2023
	Romaine Empire, Inc.		Senior Secured	12.3%	3.6%	2,975,332		2,908,331		2,908,331		2/1/2023
	Romaine Empire, Inc. Subtotal					5,956,011		5,702,257		5,702,257
	Saber es Poder, Inc.		Senior Secured	10.5%		495,314		471,894		471,894		3/1/2022
	Saber es Poder, Inc.		Senior Secured	10.5%		247,694		248,680		248,680		5/1/2022
	Saber es Poder, Inc. Subtotal					743,008		720,574		720,574
	Saltbox, Inc.		Senior Secured	12.3%		494,826		465,602		465,602		6/1/2023
	SkyKick, Inc.		Senior Secured	11.0%		4,950,665		4,736,573		4,736,573		6/1/2022
	Strong Arm Technologies, Inc.		Senior Secured	12.0%		778,338		752,663		752,663		5/1/2021
	Theatro Labs, Inc.		Senior Secured	12.0%		1,448,761		1,408,039		1,408,039		8/1/2022
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	183,517		183,517		183,517		4/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	182,514		182,513		182,513		5/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	271,855		271,855		271,855		6/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	361,559		361,559		361,559		6/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	47.3%	445,119		445,119		445,119		7/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	47.3%	87,785		87,785		87,785		8/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	47.4%	276,242		243,560		243,560		4/1/2024
	Thras.io, Inc. Subtotal					1,808,591		1,775,908		1,775,908
	Velo Holdings Limited		Senior Secured	12.0%		2,474,142		2,307,246		2,307,246		6/1/2022
	Virtuix Holdings, Inc.		Senior Secured	12.3%		247,177		241,626		241,626		4/1/2022
	Voodoo Manufacturing, Inc.		Senior Secured	12.0%		371,034		342,182		342,182		3/1/2022
	Wheels Labs, Inc.		Senior Secured	12.5%		4,450,028		4,280,809		4,280,809		8/1/2022
	Wine Plum, Inc.		Senior Secured	12.5%		989,557		934,263		934,263		9/1/2022
Other Technology Total		76.1%				$	69,121,525	$	65,675,929	$	65,675,929

Security
	Axonius, Inc.		Senior Secured	12.0%		$	407,230	$	393,001	$	393,001	9/1/2021
	Nok Nok Labs, Inc.		Senior Secured	12.5%		919,228		899,126		899,126		6/1/2022
	Safetrust Holdings, Inc.		Senior Secured	12.5%		361,937		336,462		336,462		6/1/2021
Security Total		1.9%				$	1,688,395	$	1,628,589	$	1,628,589

Semiconductors and Equipment
	ETA Compute, Inc.		Senior Secured	12.0%		$	1,310,838	$	1,261,988	$	1,261,988	11/1/2021
Semiconductors and Equipment Total		1.5%				$	1,310,838	$	1,261,988	$	1,261,988

Software
	Alkanza Inc.		Senior Secured	12.5%		$	741,768	$	654,488	$	500,482	3/1/2022
	Blockdaemon, Inc.		Senior Secured	11.3%		195,793		179,784		179,784		8/1/2021
	Blockdaemon, Inc.		Senior Secured	11.3%		247,610		236,767		236,767		6/1/2022
	Blockdaemon, Inc. Subtotal					443,403		416,551		416,551
	Censia Inc.		Senior Secured	11.0%		990,587		921,243		921,243		10/1/2022
	Dynamics, Inc.		Senior Secured	12.5%		5,887,701		5,215,775		5,215,775		8/1/2021
	Eskalera, Inc.		Senior Secured	10.5%		986,000		936,940		936,940		3/1/2023



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date
	ICX Media, Inc.		Senior Secured	12.5%		494,551		454,636		454,636		5/1/2022
	Interana, Inc.		Senior Secured	11.3%		2,164,893		2,109,246		2,109,246		6/1/2021
	Invoice2Go, Inc.		Senior Secured	12.0%		988,831		879,446		879,446		3/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,275		973,824		973,824		7/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,693		972,037		972,037		11/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,667		970,302		970,302		3/1/2023
	Invoice2Go, Inc. Subtotal					3,957,466		3,795,609		3,795,609
	Ipolipo, Inc.		Senior Secured	12.0%		2,257,851		2,176,192		2,176,192		12/1/2021
	Metawave Corporation		Senior Secured	12.0%		989,237		952,611		952,611		7/1/2022
	Mines.io, Inc.*^		Senior Secured	12.3%		677,270		632,897		632,897		12/1/2021
	Mines.io, Inc.*^		Senior Secured	12.5%		494,338		494,338		494,338		3/1/2022
	Mines.io, Inc.*^ Subtotal					1,171,608		1,127,235		1,127,235
	OrderGroove, Inc.		Senior Secured	12.0%		2,472,919		2,341,128		2,341,128		6/1/2023
	OrderGroove, Inc.		Senior Secured	12.0%		1,237,235		1,212,250		1,212,250		6/1/2023
	OrderGroove, Inc. Subtotal					3,710,154		3,553,378		3,553,378
	Owl Cameras, Inc.		Senior Secured	12.5%		3,462,732		3,232,078		3,232,078		12/1/2022
	PlushCare, Inc.		Senior Secured	11.8%		989,304		938,053		938,053		5/1/2022
	PlushCare, Inc.		Senior Secured	11.8%		742,581		724,884		724,884		5/1/2022
	PlushCare, Inc. Subtotal					1,731,885		1,662,937		1,662,937
	Ready Education Inc.*^		Senior Secured	11.5%		203,506		203,506		203,506		9/1/2021
	Ready Education Inc.*^		Senior Secured	11.5%		391,953		391,954		391,954		9/1/2021
	Ready Education Inc.*^ Subtotal					595,459		595,460		595,460
	Resilio, Inc.		Senior Secured	12.8%		157,683		134,644		134,644		3/1/2021
	Resilio, Inc.		Senior Secured	12.8%		173,423		173,423		173,423		5/1/2021
	Resilio, Inc. Subtotal					331,106		308,067		308,067
	Skillshare, Inc.		Senior Secured	12.0%		1,445,738		1,383,931		1,383,931		6/1/2021
	Skillshare, Inc.		Senior Secured	12.5%		932,221		917,065		917,065		1/1/2022
	Skillshare, Inc.		Senior Secured	12.8%		988,912		972,891		972,891		4/1/2022
	Skillshare, Inc. Subtotal					3,366,871		3,273,887		3,273,887
	Stitch Labs, Inc.		Senior Secured	12.0%		1,441,014		1,349,602		1,349,602		2/1/2022
	Stitch Labs, Inc.		Senior Secured	12.3%		742,072		726,715		726,715		6/1/2022
	Stitch Labs, Inc. Subtotal					2,183,086		2,076,317		2,076,317
	Swivel, Inc.		Senior Secured	12.0%		247,342		228,100		228,100		8/1/2022
	Swivel, Inc.		Senior Secured	12.0%		247,398		247,398		247,398		10/1/2022
	Swivel, Inc. Subtotal					494,740		475,498		475,498
	Talla, Inc.		Senior Secured	12.5%		494,456		457,025		457,025		5/1/2022
	Trendalytics Innovation Labs, Inc.		Senior Secured	12.8%		296,655		262,642		262,642		6/1/2022
	Truthset, Inc.		Senior Secured	10.5%		371,717		333,751		333,751		2/1/2023
	Venuetize, LLC		Senior Secured	12.3%		234,484		211,956		211,956		4/1/2022
	Workspot, Inc.		Senior Secured	12.0%		610,805		571,161		571,161		9/1/2021
	Workspot, Inc.		Senior Secured	12.0%		742,433		676,375		676,375		8/1/2022
	Workspot, Inc. Subtotal					1,353,238		1,247,536		1,247,536
Software Total		42.0%				$	38,711,648	$	36,451,058	$	36,297,052

Technology Services
	Keyo AI Inc.		Senior Secured	10.0%		$	480,907	$	454,861	$	454,861	2/1/2022
	Leap Services, Inc.		Senior Secured	12.0%		494,886		467,762		467,762		6/1/2022
	Lifit, Inc.*^		Senior Secured	12.0%		494,799		452,336		452,336		8/1/2022
	Lifit, Inc.*^		Senior Secured	12.0%		494,944		483,369		483,369		10/1/2022
	Liftit, Inc.*^ Subtotal					989,743		935,705		935,705
	Loansnap Holdings Inc.*		Senior Secured	11.0%		2,723,982		2,592,198		2,592,198		6/1/2022



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date
	Relimetrics, Inc.		Senior Secured	11.3%		349,564		334,060		334,060		1/1/2022
	Solugen, Inc.		Senior Secured	11.0%		2,477,059		2,264,158		2,264,158		1/1/2023
	Thrive Financial, Inc.*		Senior Secured	11.5%		990,294		922,707		922,707		10/1/2022
	Zeel Networks, Inc.		Senior Secured	11.0%		1,139,903		1,075,676		1,075,676		3/1/2022
	Zeel Networks, Inc.		Senior Secured	11.0%		1,140,233		1,121,382		1,121,382		3/1/2022
	Zeel Networks, Inc. Subtotal					2,280,136		2,197,058		2,197,058
Technology Services Total		11.8%				$	10,786,571	$	10,168,509	$	10,168,509
Grand Total		194.3%				$	179,383,721	$	169,122,313	$	167,759,844

* Indicates assets that the Fund deems “non-qualifying ~~assets” under Section 55(a) of the 1940 Act. 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 ~~March 31,~~September 30, 2019, ~~3.8%~~5.2% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an “eligible portfolio company,” as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the value of the Fund’s investments in all eligible portfolio companies, ~~as defined in Section 2(a)(46) of the 1940 Act;~~ and the denominator consists of total assets less ~~the assets described in Section 55(a)(7) of the 1940 Act.~~

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

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

The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment. The end of term payments are contractually due on the maturity date and are in addition to the interest rate shown. End of term payments are the percentage of the final payment divided by the original loan amount and are amortized over the full term of the loan.

~~See notes to condensed financial statements~~

~~VENTURE LENDING & LEASING IX, INC.~~

~~CONDENSED SCHEDULES OF INVESTMENTS (UNAUDITED)~~

~~AS OF DECEMBER 31, 2018~~

~~As of~~ ~~December 31, 2018, all loans were valued using significant unobservable inputs and were made to non-affiliates. Additionally, all loans were pledged as collateral as part of the debt facility.~~

Industry Borrower Percent of Net Assets (a) Collateral Interest Rate End of Term Payment Principal Cost Fair Value Maturity Date

Biotechnology
Antheia, Inc. Senior Secured 11.5% $ 1,485,403
$ 1,376,139
$ 1,376,139
12/1/2022
Biotechnology Total 1.86% $ 1,485,403
$ 1,376,139
$ 1,376,139

Enterprise Networking
SnapRoute, Inc. Senior Secured 11.0% $ 3,466,659
$ 3,266,067
$ 3,266,067
11/1/2021
Enterprise Networking Total 4.41% $ 3,466,659
$ 3,266,067
$ 3,266,067

Internet
Amino Payments, Inc. Senior Secured 9.0% 4.8% $ 625,521
$ 597,770
$ 597,770
12/1/2021
DreamCloud Holdings, LLC Senior Secured 12.0% 4,948,333
4,232,618
4,232,618
12/1/2021
Osix Corporation Senior Secured 12.3% 98,605
80,379
80,379
12/1/2021
Protecht, Inc. Senior Secured 12.5% 988,684
926,867
926,867
12/1/2021
Thrive Market, Inc. Senior Secured 12.3% 7,420,042
7,134,488
7,134,488
4/1/2022
Internet Total 17.51% $ 14,081,185
$ 12,972,122
$ 12,972,122

Medical Devices
CytoVale, Inc. Senior Secured 12.0% $ 618,631
$ 566,206
$ 566,206
3/1/2022
Medrobotics Corporation, Inc. Senior Secured 12.0% 9,893,475
8,990,046
8,990,046
6/1/2021
NeuMoDx Molecular, Inc. Senior Secured 12.0% 3,463,954
3,168,810
3,168,810
4/1/2023
Medical Devices Total 17.18% $ 13,976,060
$ 12,725,062
$ 12,725,062

Other Healthcare
Caredox, Inc. Senior Secured 11.8% $ 1,237,487
$ 1,168,686
$ 1,168,686
10/1/2021
Discover Echo, Inc. Senior Secured 11.0% 610,296
571,549
571,549
12/1/2020
Other Healthcare Total 2.4% $ 1,847,783
$ 1,740,235
$ 1,740,235

Other Technology
Aclima, Inc. Senior Secured 11.0% 0.5% $ 2,109,845
$ 1,987,764
$ 1,987,764
7/1/2021
Brightside Benefit, Inc. Senior Secured 12.1% 742,419
676,970
676,970
9/1/2022
Dragonfly Vert, Inc. Senior Secured 12.5% 984,722
928,746
928,746
12/1/2021
Fitplan, Inc.* ^ Senior Secured 12.5% 742,195
689,277
689,277
3/1/2022
Hint, Inc. Senior Secured 11.0% 2,475,778
2,217,362
2,217,362
8/1/2021
Kobo360 Inc.* ^ Senior Secured 11.3% 247,553
235,597
235,597
6/1/2020
Kobo360 Inc.* ^ Senior Secured 11.3% 247,607
247,607
247,607
9/1/2020
Kobo360 Inc.* ^ Subtotal 495,160
483,204
483,204

Kogniz, Inc. Senior Secured 12.8% 370,935
274,751
274,751
9/1/2021
Make School, Inc. Senior Secured 11.3% 990,265
937,821
937,821
8/1/2021
Nevada Nanotech Systems, Inc. Senior Secured 12.0% 989,590
906,963
906,963
6/1/2021
Plethora, Inc. Senior Secured 9.5% 4.3% 500,151
462,877
462,877
6/1/2021
Plethora, Inc. Senior Secured 9.5% 4.3% 248,860
244,096
244,096
9/1/2021
Plethora, Inc. Senior Secured 9.5% 4.3% 496,863
486,908
486,908
10/1/2021
Plethora, Inc. Subtotal 1,245,874
1,193,881
1,193,881

Scoot Networks, Inc. Senior Secured 12.8% 879,262
818,310
818,310
3/1/2021
SkyKick, Inc. Senior Secured 11.0% 4,952,637
4,660,147
4,660,147
6/1/2022
Strong Arm Technologies, Inc. Senior Secured 12.0% 1,081,134
1,031,438
1,031,438
5/1/2021
Theatro Labs, Inc. Senior Secured 12.0% 1,484,478
1,426,311
1,426,311
8/1/2022
Virtuix Holdings, Inc. Senior Secured 12.3% 247,423
239,317
239,317
4/1/2022
Other Technology Total 24.9% $ 19,791,717
$ 18,472,262
$ 18,472,262

Security
Axonius, Inc. Senior Secured 12.0% $ 494,882
$ 470,235
$ 470,235
9/1/2021
Nok Nok Labs, Inc. Senior Secured 12.5% 988,949
959,222
959,222
6/1/2022

Industry Borrower Percent of Net Assets (a) Collateral Interest Rate End of Term Payment Principal Cost Fair Value Maturity Date
Safetrust Holdings, Inc. Senior Secured 12.5% 494,508
447,173
447,173
6/1/2021
Security Total 2.5% $ 1,978,339
$ 1,876,630
$ 1,876,630

Semiconductors and Equipment
ETA Compute, Inc. Senior Secured 12.0% $ 1,484,845
$ 1,404,604
$ 1,404,604
11/1/2021
Semiconductors and Equipment Total 1.9% $ 1,484,845
$ 1,404,604
$ 1,404,604

Software
Blockdaemon, Inc. Senior Secured 11.3% $ 247,555
$ 219,310
$ 219,310
8/1/2021
Dynamics, Inc. Senior Secured 12.5% 7,420,031
6,251,460
6,251,460
8/1/2021
Interana, Inc. Senior Secured 11.3% 2,970,465
2,865,164
2,865,164
6/1/2021
Invoice2Go, Inc. Senior Secured 12.0% 989,788
829,825
829,825
3/1/2022
Ipolipo, Inc. Senior Secured 12.0% 2,453,333
2,323,285
2,323,285
12/1/2021
Metricly, Inc. Senior Secured 12.3% 494,715
450,708
450,708
11/1/2021
Mines.io, Inc.* ^ Senior Secured 12.3% 742,179
671,683
671,683
12/1/2021
Mines.io, Inc.* ^ Senior Secured 12.5% 494,618
494,618
494,618
3/1/2022
Mines.io, Inc.* ^ Subtotal 1,236,797
1,166,301
1,166,301

Oohlala Mobile, Inc.* ^ Senior Secured 11.5% 247,581
247,581
247,581
9/1/2021
Oohlala Mobile, Inc.* ^ Senior Secured 11.5% 469,136
469,136
469,136
9/1/2021
Oohlala Mobile, Inc.* ^ Subtotal 716,717
716,717
716,717

OrderGroove, Inc. Senior Secured 12.0% 2,474,167
2,311,992
2,311,992
6/1/2023
PlushCare, Inc. Senior Secured 11.8% 990,205
917,120
917,120
5/1/2022
Resilio, Inc. Senior Secured 12.8% 225,964
180,310
180,310
3/1/2021
Resilio, Inc. Senior Secured 12.8% 240,276
240,276
240,276
5/1/2021
Resilio, Inc. Subtotal 466,240
420,586
420,586

Skillshare, Inc. Senior Secured 12.0% 1,978,640
1,862,640
1,862,640
6/1/2021
Stitch Labs, Inc. Senior Secured 12.0% 1,484,916
1,346,447
1,346,447
2/1/2022
Venuetize, LLC Senior Secured 12.3% 247,416
214,060
214,060
4/1/2022
Workspot, Inc. Senior Secured 12.0% 742,276
674,121
674,121
9/1/2021
Zoomdata, Inc. Senior Secured 11.5% 736,105
699,299
699,299
3/1/2022
Software Total 31.4% $ 25,649,366
$ 23,269,035
$ 23,269,035

Technology Services
Keyo AI Inc. Senior Secured 10.0% $ 495,800
$ 455,925
$ 455,925
2/1/2022
Relimetrics, Inc. Senior Secured 11.3% 371,450
347,197
347,197
1/1/2022
Zeel Networks, Inc. Senior Secured 11.0% 1,238,318
1,139,829
1,139,829
3/1/2022
Technology Services Total 2.6% $ 2,105,568
$ 1,942,951
$ 1,942,951

Grand Total 106.7% $ 85,866,925
$ 79,045,107
$ 79,045,107

* Indicates assets that the Fund deems “non-qualifying assets” under Section 55(a) of the 1940 Act. 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, 2018, 3.8% of the Fund’s total assets represented non-qualifying assets. As part of this calculation, the numerator consists of all eligible portfolio companies as defined in Section 2(a)(46) of the 1940 Act; and the denominator consists of total assets less thethose assets described in Section 55(a)(7) of the 1940 Act.

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

See notes to condensed financial ~~statements~~statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULES OF INVESTMENTS (UNAUDITED)

AS OF DECEMBER 31, 2018

As of December 31, 2018, all loans were valued using significant unobservable inputs and were made to non-affiliates. Additionally, all loans were pledged as collateral as part of the debt facility.



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date

Biotechnology
	Antheia, Inc.		Senior Secured	11.5%		$	1,485,403	$	1,376,139	$	1,376,139	12/1/2022
Biotechnology Total		1.9%				$	1,485,403	$	1,376,139	$	1,376,139

Enterprise Networking
	SnapRoute, Inc.		Senior Secured	11.0%		$	3,466,659	$	3,266,067	$	3,266,067	11/1/2021
Enterprise Networking Total		4.4%				$	3,466,659	$	3,266,067	$	3,266,067

Internet
	Amino Payments, Inc.		Senior Secured	9.0%	4.8%	$	625,521	$	597,770	$	597,770	12/1/2021
	DreamCloud Holdings, LLC		Senior Secured	12.0%		4,948,333		4,232,618		4,232,618		12/1/2021
	Osix Corporation		Senior Secured	12.3%		98,605		80,379		80,379		12/1/2021
	Protecht, Inc.		Senior Secured	12.5%		988,684		926,867		926,867		12/1/2021
	Thrive Market, Inc.		Senior Secured	12.3%		7,420,042		7,134,488		7,134,488		4/1/2022
Internet Total		17.5%				$	14,081,185	$	12,972,122	$	12,972,122

Medical Devices
	CytoVale, Inc.		Senior Secured	12.0%		$	618,631	$	566,206	$	566,206	3/1/2022
	Medrobotics Corporation, Inc.		Senior Secured	12.0%		9,893,475		8,990,046		8,990,046		6/1/2021
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,463,954		3,168,810		3,168,810		4/1/2023
Medical Devices Total		17.2%				$	13,976,060	$	12,725,062	$	12,725,062

Other Healthcare
	Caredox, Inc.		Senior Secured	11.8%		$	1,237,487	$	1,168,686	$	1,168,686	10/1/2021
	Discover Echo, Inc.		Senior Secured	11.0%		610,296		571,549		571,549		12/1/2020
Other Healthcare Total		2.4%				$	1,847,783	$	1,740,235	$	1,740,235

Other Technology
	Aclima, Inc.		Senior Secured	11.0%	0.5%	$	2,109,845	$	1,987,764	$	1,987,764	7/1/2021
	Brightside Benefit, Inc.		Senior Secured	12.1%		742,419		676,970		676,970		9/1/2022
	Dragonfly Vert, Inc.		Senior Secured	12.5%		984,722		928,746		928,746		12/1/2021
	Fitplan, Inc.* ^		Senior Secured	12.5%		742,195		689,277		689,277		3/1/2022
	Hint, Inc.		Senior Secured	11.0%		2,475,778		2,217,362		2,217,362		8/1/2021
	Kobo360 Inc.* ^		Senior Secured	11.3%		247,553		235,597		235,597		6/1/2020
	Kobo360 Inc.* ^		Senior Secured	11.3%		247,607		247,607		247,607		9/1/2020
	Kobo360 Inc.* ^ Subtotal					495,160		483,204		483,204
	Kogniz, Inc.		Senior Secured	12.8%		370,935		274,751		274,751		9/1/2021
	Make School, Inc.		Senior Secured	11.3%		990,265		937,821		937,821		8/1/2021
	Nevada Nanotech Systems, Inc.		Senior Secured	12.0%		989,590		906,963		906,963		6/1/2021
	Plethora, Inc.		Senior Secured	9.5%	4.3%	500,151		462,877		462,877		6/1/2021
	Plethora, Inc.		Senior Secured	9.5%	4.3%	248,860		244,096		244,096		9/1/2021
	Plethora, Inc.		Senior Secured	9.5%	4.3%	496,863		486,908		486,908		10/1/2021
	Plethora, Inc. Subtotal					1,245,874		1,193,881		1,193,881
	Scoot Networks, Inc.		Senior Secured	12.8%		879,262		818,310		818,310		3/1/2021
	SkyKick, Inc.		Senior Secured	11.0%		4,952,637		4,660,147		4,660,147		6/1/2022



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate	End of Term Payment	Principal		Cost		Fair Value		Maturity Date
	Strong Arm Technologies, Inc.		Senior Secured	12.0%		1,081,134		1,031,438		1,031,438		5/1/2021
	Theatro Labs, Inc.		Senior Secured	12.0%		1,484,478		1,426,311		1,426,311		8/1/2022
	Virtuix Holdings, Inc.		Senior Secured	12.3%		247,423		239,317		239,317		4/1/2022
Other Technology Total		24.9%				$	19,791,717	$	18,472,262	$	18,472,262

Security
	Axonius, Inc.		Senior Secured	12.0%		$	494,882	$	470,235	$	470,235	9/1/2021
	Nok Nok Labs, Inc.		Senior Secured	12.5%		988,949		959,222		959,222		6/1/2022
	Safetrust Holdings, Inc.		Senior Secured	12.5%		494,508		447,173		447,173		6/1/2021
Security Total		2.5%				$	1,978,339	$	1,876,630	$	1,876,630

Semiconductors and Equipment
	ETA Compute, Inc.		Senior Secured	12.0%		$	1,484,845	$	1,404,604	$	1,404,604	11/1/2021
Semiconductors and Equipment Total		1.9%				$	1,484,845	$	1,404,604	$	1,404,604

Software
	Blockdaemon, Inc.		Senior Secured	11.3%		$	247,555	$	219,310	$	219,310	8/1/2021
	Dynamics, Inc.		Senior Secured	12.5%		7,420,031		6,251,460		6,251,460		8/1/2021
	Interana, Inc.		Senior Secured	11.3%		2,970,465		2,865,164		2,865,164		6/1/2021
	Invoice2Go, Inc.		Senior Secured	12.0%		989,788		829,825		829,825		3/1/2022
	Ipolipo, Inc.		Senior Secured	12.0%		2,453,333		2,323,285		2,323,285		12/1/2021
	Metricly, Inc.		Senior Secured	12.3%		494,715		450,708		450,708		11/1/2021
	Mines.io, Inc.* ^		Senior Secured	12.3%		742,179		671,683		671,683		12/1/2021
	Mines.io, Inc.* ^		Senior Secured	12.5%		494,618		494,618		494,618		3/1/2022
	Mines.io, Inc.* ^ Subtotal					1,236,797		1,166,301		1,166,301
	Oohlala Mobile, Inc.* ^		Senior Secured	11.5%		247,581		247,581		247,581		9/1/2021
	Oohlala Mobile, Inc.* ^		Senior Secured	11.5%		469,136		469,136		469,136		9/1/2021
	Oohlala Mobile, Inc.* ^ Subtotal					716,717		716,717		716,717
	OrderGroove, Inc.		Senior Secured	12.0%		2,474,167		2,311,992		2,311,992		6/1/2023
	PlushCare, Inc.		Senior Secured	11.8%		990,205		917,120		917,120		5/1/2022
	Resilio, Inc.		Senior Secured	12.8%		225,964		180,310		180,310		3/1/2021
	Resilio, Inc.		Senior Secured	12.8%		240,276		240,276		240,276		5/1/2021
	Resilio, Inc. Subtotal					466,240		420,586		420,586
	Skillshare, Inc.		Senior Secured	12.0%		1,978,640		1,862,640		1,862,640		6/1/2021
	Stitch Labs, Inc.		Senior Secured	12.0%		1,484,916		1,346,447		1,346,447		2/1/2022
	Venuetize, LLC		Senior Secured	12.3%		247,416		214,060		214,060		4/1/2022
	Workspot, Inc.		Senior Secured	12.0%		742,276		674,121		674,121		9/1/2021
	Zoomdata, Inc.		Senior Secured	11.5%		736,105		699,299		699,299		3/1/2022
Software Total		31.4%				$	25,649,366	$	23,269,035	$	23,269,035

Technology Services
	Keyo AI Inc.		Senior Secured	10.0%		$	495,800	$	455,925	$	455,925	2/1/2022
	Relimetrics, Inc.		Senior Secured	11.3%		371,450		347,197		347,197		1/1/2022
	Zeel Networks, Inc.		Senior Secured	11.0%		1,238,318		1,139,829		1,139,829		3/1/2022
Technology Services Total		2.6%				$	2,105,568	$	1,942,951	$	1,942,951
Grand Total		106.7%				$	85,866,925	$	79,045,107	$	79,045,107

* Indicates assets that the Fund deems “non-qualifying assets.” As of December 31, 2018, 3.8% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g. securities issued by an “eligible portfolio company,” as defined in Section 2(a)(46)) represent at least 70% of its total assets.

As part of this calculation, the numerator consists of the value of the Fund’s investment in all eligible portfolio companies, and the denominator consists of total assets less the assets described in Section 55(a)(7) of the 1940 Act.

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

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF OPEN SWAP CONTRACTS (UNAUDITED)

AS OF SEPTEMBER 30, 2019



Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	Notional Amount		Value		Upfront payments/receipts		Unrealized appreciation/(depreciation) (a)

Interest Rate Swap and Floor Agreements

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 2.520%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	$	35,000,000	$	802,346	$	—	$	(802,346	)

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 1.899%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	22,000,000		212,253		—		(212,253		)

Total				$	57,000,000	$	1,014,599	$	—	$	(1,014,599	)

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

There was no interest rate swap and floor agreement as of December 31, 2018.

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


1.	ORGANIZATION AND OPERATIONS OF THE FUND

Venture Lending & Leasing IX, Inc. (the “Fund”) was incorporated in Maryland on June 28, 2017 as a non-diversified, closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”) and is managed by Westech Investment Advisors, LLC (the “Manager” or “Management”). The Fund will be dissolved on December 31, 2028 unless the Board of Directors (the “Board”) opts to elect early dissolution. One hundred percent of the stock of the Fund is held by Venture Lending & Leasing IX, LLC (the “Company”). Prior to commencing its operations on May 2, 2018, the Fund had no operations other than accruing organizational expenses and the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in June 2017. This issuance of stock was a requirement to apply for a finance lender’s license from the California Commissioner of Corporations, which was obtained on September 22, 2017.

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

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

In the Manager’s opinion, the accompanying condensed interim financial statements (hereafter referred to as “financial statements”) include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of financial position and results of operations for interim periods. Certain information and note disclosures normally included in audited annual financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been omitted; however, the Fund believes that the disclosures made are adequate to make the information presented not misleading. The interim results for the ~~three~~nine months ended ~~March 31,~~September 30, 2019 are not necessarily indicative of what the results would be for a full year. These financial statements should be read in conjunction with the financial statements and the notes included in the Fund’s Annual Report on Form 10-K for the year ended December 31, 2018.


2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

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

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. Within cash and cash equivalents, as of ~~March 31,~~September 30, 2019, the Fund held ~~2,757,819~~4,847,880 units in the Blackrock Treasury Trust Institutional Fund valued at $1 per unit at a yield of ~~2.50%~~2.10%, which represented ~~4.1%~~5.6% of the net assets of the Fund.

Interest Income

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

Realized Gains and Losses from Loans

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

Investment 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 the Manager, in accordance with the valuation methods.

The Fund’s loans are valued coincident with the issuance of its quarterly 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 submits to the Board a valuation report and valuation notes, which detail the rationale for the valuation of each investment.

As of ~~March 31,~~September 30, 2019 and December 31, 2018, the financial statements ~~include~~included nonmarketable investments of ~~$98.3~~$167.8 million and $79.0 million, respectively, (or ~~94.7%~~95.3% and 96.2% of total assets, respectively), with the fair values determined by the Manager in the absence of readily determinable market values. Because of 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 at the measurement date. Because there is no readily available market price and no secondary market for substantially all of the debt investments made by the Fund ~~into~~in its borrowing portfolio companies, Management determines fair value based on hypothetical markets, and on several factors related to each borrower, including, but not limited to, the borrower’s payment history, available cash and “burn rate,” revenues, net income or loss, the likelihood that the borrower will be able to secure additional financing in the future, and an evaluation of the general interest rate environment. The amount of any valuation adjustment considers the estimated amount and timing of cash payments of principal and interest from the borrower and/or liquidation analysis and is determined based upon a credit analysis of the borrower and an analysis of the expected recovery from the borrower, including consideration of factors such as the nature and quality of the Fund’s security interests in collateral, the estimated value of the Fund’s collateral, the size of the loan, and the estimated time that will elapse before the Fund achieves a recovery. Management has evaluated these factors and has concluded that, the effect of deterioration in the quality of the underlying collateral, increase in size of the loan, increase in the estimated time to recovery and increase in the hypothetical market coupon rate would have the effect of lowering the value of the current portfolio of loans.

Non-Accrual Loans

The Fund’s policy is to classify a loan as non-accrual when the portfolio company is delinquent for three consecutive months on its monthly loan payment, or, in the opinion of Management, either ceases or drastically curtails its operation and Management deems that it is unlikely that the loan will return to performing

status. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed for the quarter in which the loan was placed on non-accrual status. Any uncollected interest related to quarters prior to when the loan was placed on non-accrual status is added to the principal balance, and the aggregate balance of the principal and interest is evaluated in accordance with the policy for valuation of loans in determining Management’s best estimate of fair value. Interest received by the Fund on non-accrual loans will be recognized as interest income if and when the proceeds exceed the book value of the respective loan.

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

As of ~~March 31,~~September 30, 2019 and December 31, 2018, there were no loans classified as non-accrual.

Warrants and Equity Securities

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

The underlying asset value is estimated based on information available, 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 portfolio companies issuing the warrant (“Industry Index”). The volatility assumption for each Industry Index is based on the average volatility for individual public companies within the portfolio company’s industry for a period of time approximating the expected life of the warrants. A hypothetical increase in the volatility of the warrants used in the 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~~As of September 30, 2019 and December 31, 2018, the Fund assumed the average duration of a warrant is 4.0 years and 3.5 years, ~~since inception, including the three months ended March 31, 2019.~~respectively. 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. However, the estimated initial term of the warrant is one factor, of many, used in the valuation of warrants, and by itself does not have a significant impact on the results of operations.

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

The Fund engages an independent valuation company to provide valuation assistance with respect to the warrants received as part of loan consideration, including an evaluation of the Fund’s valuation methodology and the reasonableness of the assumptions used from the perspective of a market participant. The independent valuation company also calculates several of the inputs used, such as volatility and risk-free rate.

Other Assets and Liabilities

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

As of ~~March 31,~~September 30, 2019 and December 31, 2018, the fair values of Other assets and accrued liabilities are estimated at their carrying values because of the short-term nature of these assets and liabilities.

As of ~~March 31,~~September 30, 2019 and December 31, 2018, the carrying value of the borrowings under the debit facility were $85.0 million and $6.0 million, respectively. The carrying values of the borrowings under the debt facility approximates their fair value based on the borrowing rates available to the ~~Fund, the estimated fair values of the borrowings under the debt facility were $34.0 million and $6.0 million, respectively.~~

Fund.

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.

Deferred Bank Fees

The deferred bank fees and costs associated with the debt facility are included in Other assets in the Condensed Statements of Assets and Liabilities and are being amortized over the estimated life of the facility, which currently matures on December 20, 2021. The amortization of these costs is recorded as Interest expense in the Condensed Statements of Operations.

Interest Rate Swap and Floor Agreement

The Fund has entered into an interest rate swap and floor agreement to ~~hedge its~~manage the Fund’s exposure to changes in interest ~~rate~~rates on its expected borrowings under its debt facility, as the Fund originates fixed rate loans (see Note 8). The floor allows the Fund to match the swap with the terms of the variable rate index of the debt facility. The interest rate swap and floor are primarily valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for counterparty risk and the optionality of the interest rate floor. The valuation of the swap and floor 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 Fund is a party to a master netting arrangement with MUFG Union Bank, N.A., however, the Fund has elected not to offset assets and liabilities under these arrangements for financial statement presentation purposes. The contract is recorded at gross fair value in either Derivative asset - interest rate swap or Derivative liability - interest rate swap in the Condensed Statements of Assets and Liabilities, depending on whether the value of the contract is in favor of the Fund or the counterparty. The changes in fair value are recorded in Net change in unrealized gain (loss) from derivative instruments in the Condensed Statements of Operations and the quarterly interest received or paid on the contract, if any, is recorded in Net realized gain (loss) from derivative instruments in the Condensed Statements of Operations. The interest rate swap and floor agreement ~~terminates~~is contractually scheduled to terminate on December 20, 2021.

3. FAIR VALUE DISCLOSURES

The Fund provides asset-based financing primarily to start-up and emerging growth venture-backed companies pursuant to commitments whereby the Fund agrees to finance assets and provide working or growth capital up to a specified amount for the term of the commitment, upon the terms and subject to the conditions specified by such commitment. Even though these loans are generally secured by the assets of the borrowers, the Fund in most cases is subject to the credit risk of such companies. As of ~~March 31,~~September 30, 2019, the Fund’s investments in loans were primarily

to companies based within the United States and were diversified among borrowers in the industry segments shown in the Condensed Schedules of Investments. All loans are senior to unsecured creditors and other secured creditors, unless as indicated in the Condensed Schedules of Investments.

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

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

For the three and nine months ended ~~March 31,~~September 30, 2019, the weighted-average interest rate on both the performing and all loans was ~~17.70%~~16.35% and 17.47%, respectively, which was inclusive of both cash and non-cash interest income. ~~For~~The weighted-average rate on both the performing and all loans were 16.24% and 15.35% for the three months ended ~~March 31,~~September 30, 2018 and for the period from May 2, 2018, the commencement of investment operations, through September 30, 2018, respectively. For the three and nine months ended September 30, 2019, the weighted-average interest rate on the cash portion of the interest income was ~~12.69%.~~12.65% and 12.78%, respectively. The ~~Fund had not commenced investment operations~~weighted-average interest rate on the cash portion of the interest income for the three months ended ~~March 31, 2018.~~September 30, 2018 and for the period from May 2, 2018, the commencement of investment operations, through September 30, 2018 was 12.23% and 11.48%, 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 period.

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

All loans as of ~~March 31,~~September 30, 2019 and December 31, 2018 were pledged as collateral for the debt facility, and the Fund’s borrowings are generally collateralized by all assets of the Fund. As of ~~March 31,~~September 30, 2019 and December 31, 2018, the Fund had unexpired unfunded commitments to borrowers of ~~$42.4~~$59.8 million and $31.0 million, respectively.

Valuation Hierarchy

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

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



Level 1		Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.



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

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 three and nine months ended ~~March 31, 2019.~~September 30, 2019 and 2018.

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 interest rate swap ~~derivative~~ is based on quotes from the market makers that derive fair values from market data, and therefore, is classified as Level 2. The Fund’s borrowings under the debt facility are also classified as Level 2, because the borrowings are based on rates that are observable at commonly quoted intervals, which are Level 2 inputs. The Fund’s loan transactions are individually negotiated and unique, and because there is little to no market in which these assets trade, the inputs for these assets, which are valued using estimated exit values, 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 by industry as of ~~March 31,~~September 30, 2019 and December 31, 2018. In addition to the techniques and inputs noted in the tables below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements.

Investment Type - Level 3

Debt Investments

Fair Values at March 31, 2019

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages / Amounts or Ranges

Fair Values at September 30, 2019

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages^(a) / Amounts or Ranges

Biotechnology

1,383,725

Hypothetical market analysis

Hypothetical market coupon rate

15%

2,854,045

Hypothetical market analysis

Hypothetical market coupon rate

14%

Computers & Storage

2,357,953

Hypothetical market analysis

Hypothetical market coupon rate

15%

Enterprise Networking

3,291,125

Hypothetical market analysis

Hypothetical market coupon rate

15%

1,725,909

Hypothetical market analysis

Hypothetical market coupon rate

15%

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$3,448,566

Internet

9,497,300

Hypothetical market analysis

Hypothetical market coupon rate

25%

20,636,373

Hypothetical market analysis

Hypothetical market coupon rate

15%

Income approach

Expected amount and timing of cash flow payments

Discount rate

$1,444,928

Medical Devices

13,521,614

Hypothetical market analysis

Hypothetical market coupon rate

22%

21,665,786

Hypothetical market analysis

Hypothetical market coupon rate

23%

Income approach

Expected amount and timing of cash flow payments

Discount rate

$11,229,225

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$11,429,931

Other Healthcare

1,798,969

Hypothetical market analysis

Hypothetical market coupon rate

16%

3,487,711

Hypothetical market analysis

Hypothetical market coupon rate

16%

Other Technology

35,911,519

Hypothetical market analysis

Hypothetical market coupon rate

16%

Security

1,847,802

Hypothetical market analysis

Hypothetical market coupon rate

16%

Semiconductors and Equipment

1,414,458

Hypothetical market analysis

Hypothetical market coupon rate

16%

Software

26,465,069

Hypothetical market analysis

Hypothetical market coupon rate

18%

Income approach

Expected amount and timing of cash flow payments

Discount rate

$586,718

Technology Services

3,173,339

Hypothetical market analysis

Hypothetical market coupon rate

14%

Total debt investments

98,304,920

Investment Type - Level 3

Debt Investments

Fair Values at December 31, 2018

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages / Amounts or Ranges

Fair Values at September 30, 2019

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages^(a) / Amounts or Ranges

Biotechnology

1,376,139

Hypothetical market analysis

Hypothetical market coupon rate

15%

Enterprise Networking

3,266,067

Hypothetical market analysis

Hypothetical market coupon rate

15%

Internet

12,972,122

Hypothetical market analysis

Hypothetical market coupon rate

17%

Medical Devices

12,725,062

Hypothetical market analysis

Hypothetical market coupon rate

19%

Other Healthcare

1,740,235

Hypothetical market analysis

Hypothetical market coupon rate

16%

Other Technology

18,472,262

Hypothetical market analysis

Hypothetical market coupon rate

16%

65,675,929

Hypothetical market analysis

Hypothetical market coupon rate

15%

Security

1,876,630

Hypothetical market analysis

Hypothetical market coupon rate

16%

1,628,589

Hypothetical market analysis

Hypothetical market coupon rate

16%

Semiconductors and Equipment

1,404,604

Hypothetical market analysis

Hypothetical market coupon rate

16%

Semiconductors & Equipment

1,261,988

Hypothetical market analysis

Hypothetical market coupon rate

16%

Software

23,269,035

Hypothetical market analysis

Hypothetical market coupon rate

19%

36,297,052

Hypothetical market analysis

Hypothetical market coupon rate

17%

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$867,521

Technology Services

1,942,951

Hypothetical market analysis

Hypothetical market coupon rate

15%

10,168,509

Hypothetical market analysis

Hypothetical market coupon rate

15%

Total debt investments

79,045,107

167,759,844

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



Investment Type - Level 3
Debt Investments	Fair Values at December 31, 2018		Valuation Techniques / Methodologies	Unobservable Inputs	Weighted Averages^(a) / Amounts or Ranges

Biotechnology	$	1,376,139	Hypothetical market analysis	Hypothetical market coupon rate	15%

Enterprise Networking	3,266,067		Hypothetical market analysis	Hypothetical market coupon rate	15%

Internet	12,972,122		Hypothetical market analysis	Hypothetical market coupon rate	17%

Medical Devices	12,725,062		Hypothetical market analysis	Hypothetical market coupon rate	19%

Other Healthcare	1,740,235		Hypothetical market analysis	Hypothetical market coupon rate	16%

Other Technology	18,472,262		Hypothetical market analysis	Hypothetical market coupon rate	16%

Security	1,876,630		Hypothetical market analysis	Hypothetical market coupon rate	16%

Semiconductors and Equipment	1,404,604		Hypothetical market analysis	Hypothetical market coupon rate	16%

Software	23,269,035		Hypothetical market analysis	Hypothetical market coupon rate	19%



Investment Type - Level 3
Technology Services	1,942,951		Hypothetical market analysis	Hypothetical market coupon rate	15%

Total debt investments	$	79,045,107

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

The following tables present the balances of assets and liabilities as of ~~March 31,~~September 30, 2019 and December 31, 2018 measured at fair value on a recurring basis:

As of March 31, 2019
ASSETS: Level 1 Level 2 Level 3 Total
Loans†
$ —
$ —
$ 98,304,920
$ 98,304,920
Cash equivalents 2,757,819
—
—
2,757,819
Total assets $ 2,757,819
$ —
$ 98,304,920
$ 101,062,739

LIABILITIES: Level 1 Level 2 Level 3 Total
Borrowings under debt facility $ —
$ 34,000,000
$ —
$ 34,000,000
Derivative liability - interest rate swap —
303,362
—
303,362
Total liabilities $ —
$ 34,303,362
$ —
$ 34,303,362



As of September 30, 2019
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	167,759,844	$	167,759,844
Cash equivalents	4,847,880		—		—		4,847,880
Total assets	$	4,847,880	$	—	$	167,759,844	$	172,607,724

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	85,000,000	$	—	$	85,000,000
Derivative liability - interest rate swap	—		1,014,599		—		1,014,599
Total liabilities	$	—	$	86,014,599	$	—	$	86,014,599



As of December 31, 2018
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	79,045,107	$	79,045,107
Total assets	$	—	$	—	$	79,045,107	$	79,045,107

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	6,000,000	$	—	$	6,000,000
Total liabilities	$	—	$	6,000,000	$	—	$	6,000,000

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

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


	For the Three Months Ended March 31, 2019						For the Three Months Ended September 30, 2019						For the Nine Months Ended September 30, 2019
	Loans			Warrants			Loans			Warrants			Loans			Warrants
Beginning balance	$	79,045,107		$	—		$	130,203,718		$	—		$	79,045,107		$	—
Acquisitions and originations	25,387,500			2,133,805			46,025,000			2,930,604			109,925,000			8,143,730
Principal reductions and amortization of discounts	(6,115,373		)	—			(7,106,405		)	—			(19,847,794		)	—
Distributions to shareholder	—			(2,133,805		)	—			(2,930,604		)	—			(8,143,730		)
Net change in unrealized loss from loans	(12,314		)	—			(1,362,469		)	—			(1,362,469		)	—
Net realized loss from investments							—			—			—			—
Ending balance	$	98,304,920		$	—		$	167,759,844		$	—		$	167,759,844		$	—
Net change in unrealized loss from loans relating to loans still held at March 31, 2019	$	(12,314	)
Net change in unrealized loss from loans relating to loans still held at September 30, 2019							$	(1,362,469	)				$	(1,362,469	)

~~There were no changes in Level 3 assets for the three months ended March 31, 2018 as the Fund commenced its operations on May 2, 2018.~~



	For the Three Months Ended September 30, 2018						For the Nine Months Ended September 30, 2018
	Loans			Warrants			Loans			Warrants
Beginning balance	$	19,527,403		$	—		$	—		$	—
Acquisitions and originations	35,625,000			3,129,795			57,625,000			5,145,022
Principal reductions and amortization of discounts	(3,394,885		)	—			(5,867,482		)	—
Distributions to shareholder	—			(3,129,795		)	—			(5,145,022		)
Ending balance	$	51,757,518		$	—		$	51,757,518		$	—
Net change in unrealized gain from loans relating to loans still held at September 30, 2018	$	—					$	—


4.	EARNINGS PER SHARE

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


5.	CAPITAL STOCK

As of both ~~March 31,~~September 30, 2019 and December 31, 2018, there were 10,000,000 shares of $0.001 par value common stock authorized, and 100,000 shares issued and outstanding. Total committed capital of the Company, as of both ~~March 31,~~September 30, 2019 and December 31, 2018, was $460.0 million. Total contributed capital to the Company ~~through March 31,~~as of September 30, 2019 and December 31, 2018 was ~~$108.1~~$138.0 million and $96.6 million, respectively, of which ~~$92.5~~$117.0 million and $82.5 million ~~was~~were contributed to the Fund in each period, respectively.

The chart below shows the distributions of the Fund for the ~~three~~nine months ended ~~March 31, 2019. There were no distributions for the three months ended March 31, 2018 as investment operations commenced on May 2,~~September 30, 2019 and 2018.


			For the Nine Months Ended September 30, 2019		For the Nine Months Ended September 30, 2018
	For the Three Months Ended March 31, 2019
Cash distributions	$	16,000,000	$	18,700,000	$	—
Distributions of equity securities	2,133,805		8,143,730		5,145,022
Total distributions to shareholder	$	18,133,805	$	26,843,730	$	5,145,022

Final classification of the distributions as either a return of capital or a distribution of income is an annual determination made at the end of each year dependent upon the Fund’s current year and cumulative earnings and profits.

6. DEBT FACILITY

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

On December 5, 2018, the required majority of the Fund’s Board, including a majority of its independent directors, unanimously determined it to be in the best interests of the Fund and its sole shareholder, the Company, to provide the Fund with maximum leverage flexibility, and approved the application to the Fund of a minimum asset coverage ratio of 150%, pursuant to Section 61(a)(2) of the 1940 Act, which would double the Fund’s borrowing limits, subject to approval by the Company via the pass-through voting of its members. Thereafter, at a special meeting of shareholders held on April 24, 2019, the Fund’s sole shareholder, the Company, approved the proposal to apply the reduced asset coverage requirement to the Fund. The 150% asset coverage ratio became effective for the Fund on April 25, 2019. As of September 30, 2019, the Fund’s asset coverage for borrowings was 201%.

On December 20, 2018, the Fund entered into a syndicated loan agreement led by MUFG Union Bank, N.A., Wells Fargo Securities, LLC and ING Capital LLC, with participation from Zions Bancorporation, N.A., doing business as California Bank & Trust, Bank Leumi USA, Umpqua Bank, HSBC Bank USA, N.A., and First Bank, that established a secured revolving loan facility in an initial amount of up to $200.0 million with the option to request that borrowing availability be increased up to $400.0 million (the “Loan Agreement”), subject to further negotiation and credit approval. All of the assets of the Fund collateralize borrowings by the Fund. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan, a LIBOR Loan or a LIBOR Market Index Rate Loan. A Reference Rate Loan is defined as a loan bearing interest at the highest of: (a) the Federal Funds Rate for such day plus one half of one percent (0.50%), (b) the prime rate and (c) LIBOR loan period of one month plus one percent (1%) (“Reference Rate”). A LIBOR Loan is defined as a loan bearing interest at the prevailing LIBOR rate for a period equal to the applicable LIBOR Loan period which appears on the Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) two (2) business days prior to the first day of the applicable LIBOR Loan period (rounded upward, if necessary, to the nearest 1/100th of 1%) divided by one minus the percentage (expressed as a decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City (“LIBOR Reserve Percentage”) (“LIBOR”). A LIBOR Market Index Rate Loan is defined as a loan bearing interest, for any day, at a variable rate of interest equal to the one-month LIBOR (“LIBOR Market Index Rate”) based on a minimum deposit of at least $5.0 million for a period equal to one month which appears on the Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) on such date of determination, or if not a business day, then the immediate preceding business day (rounded upward, if necessary to the nearest 1/100th of 1%). As of ~~March 31,~~September 30, 2019, the Fund’s outstanding borrowings were entirely based on the LIBOR rate. The facility terminates on December 20, 2021, but can be accelerated in the event of default, such as failure by the Fund to make timely interest or principal payments.

Borrowings under the facility are collateralized by receivables from loans to portfolio companies advanced by the Fund with assignment of such receivables to the financial institution, plus all of the other assets of the Fund. The Fund pays interest on its borrowings and a fee on the unused portion of the facility. Under the Loan Agreement,

interest is charged to the Fund based on its borrowings at, pursuant to the election of the Fund, an annual rate equal to either (i) the Reference Rate plus 1.50%, (ii) LIBOR plus 2.50% or (iii) the LIBOR Market Index Rate plus 2.50%. When the Fund is using 50% or more of the maximum amount available under the Loan Agreement, the applicable commitment fee is 0.25% of the unused portion of the loan facility; otherwise, the applicable commitment fee is 0.50% of the unused portion. The Fund pays the unused credit line fee quarterly. As of ~~March 31,~~September 30, 2019, ~~$34.0~~$85.0 million was outstanding under the facility.

As of ~~March 31,~~September 30, 2019, the LIBOR rate iswas as follows:



1-Month LIBOR	~~2.4945%~~2.0156%
3-Month LIBOR	~~2.5998%~~2.0851%

Bank fees and other costs of $1.3 million incurred in connection with the acquisition of the facility have been capitalized and are amortized to interest expense on a straight-line basis over the expected life of the facility. As of ~~March 31,~~September 30, 2019, the unamortized fees and costs of ~~$1.2~~$1.0 million are being amortized over the expected life of the facility, which is expected to terminate on December 20, 2021.

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

The following is the summary of the outstanding facility draws as of ~~March 31,~~September 30, 2019:

Roll-Over/Draw Date Amount Maturity Date* All-In Interest Rate**
March 29, 2019 $ 31,000,000
April 29, 2019 5.00%
March 15, 2019 3,000,000
Not applicable Variable based on 1-Month LIBOR rate
Total Outstanding $ 34,000,000



	Amount		Maturity Date*	All-In Interest Rate**
LIBOR Loan	$	31,000,000	October 25, 2019	4.55%
LIBOR Market Index Rate Loan	54,000,000		Not Applicable	Variable based on 1-Month LIBOR rate
Total Outstanding	$	85,000,000

*On ~~April~~September 26, ~~2019, Management elected to increase its borrowing from the LIBOR Market Index Rate Loan by $7.5 million. On April 29,~~ 2019, Management elected to roll over ~~$31.0~~$31 million to ana 1-Month LIBOR Loan maturing on ~~May 29,~~October 25, 2019 with an all-in interest rate of ~~4.98%~~4.55%.

**Inclusive of 2.50% applicable LIBOR margin plus LIBOR rate.


7.	MANAGEMENT FEE

As compensation for its services to the Fund, from the date of the first capital call, May 1, 2018, to ~~June~~September 30, 2018, the Manager received a management fee (“Management Fee”) computed and paid at the end of the quarter at an annual rate of 1.575% of the Company’s committed equity capital (regardless of when or if the capital was called). The Management Fee percentage ~~will remain 1.575% through June~~is 1.600% as of September 30, 2019, based on the following schedule of annual percentages:



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

Management Fees of $1.8 million and $5.5 million were recognized as expenses for the three and nine months ended ~~March 31, 2019. No~~September 30, 2019, respectively. Management Fees of $1.8 million and $3 million were recognized as expenses for the three and nine months ended ~~March 31,~~September 30, 2018, ~~as the Company had not called capital during that period.~~

respectively.


8.	INTEREST RATE SWAP AND FLOOR AGREEMENT

On February 7, 2019, the Fund entered into an interest rate swap and floor ~~transaction~~agreement with MUFG Union Bank, N.A. ~~with a preliminary notional amount of $35.0 million to convert floating liabilities to fixed rates.~~ The ~~purpose of the~~Fund entered into an interest rate swap ~~and floor~~ agreement is to ~~protect~~manage the Fund’s exposure to changes in interest rates on its expected borrowings under its debt facility, as the Fund ~~against rising interest rates.~~originates fixed rate loans. The floor allows the Fund to match the swap with the terms of the variable rate index of the debt facility. The Fund ~~anticipates continuing to~~may adjust the notional principal amount asin order to remain in compliance with the ~~outstanding balance under~~hedging requirements of the Fund’s debt ~~facility changes.~~facility. As of ~~March 31,~~September 30, 2019, the total notional principal amount was ~~$35.0~~$57.0 million.

The following table presents the Fund’s fair value and its location in the Fund’s condensed statement of assets and liabilities:

There was no interest rate swap and floor agreement as of December 31, 2018.

The Fund pays a ~~fixed~~weighted average rate of ~~2.52%~~2.28% and receives from the counterparty a floating rate based upon ana 1-Month LIBOR rate. Payments are made ~~monthly~~monthly. The payments and interest rate swap agreement will terminate on December 20, 2021. Payments to or from the counterparty are recorded to Net realized gain (loss) from derivative instruments. As of ~~March 31,~~September 30, 2019, the 1-Month LIBOR rate was ~~2.4945%~~2.0156%.

~~As of March 31, 2019, the fair value of the Fund’s interest rate swap and floor was as follows:~~

Liability Derivatives
March 31, 2019
Derivatives: Location on Condensed Statements of Assets and Liabilities Fair Value
Interest rate swap Derivative liability - interest rate swap $ 303,362

~~There was no interest rate swap and floor agreement as of December 31, 2018.~~

For the three and nine months ended ~~March 31,~~September 30, 2019, the interest rate swap and floor had the following effect on the Fund’s Condensed Statements of Operations:


		For the Three Months Ended
Derivatives:	Location on Condensed Statements of Operations	March 31, 2019			Location on Condensed Statements of Operations	For the Three Months Ended September 30, 2019			For the Nine Months Ended September 30, 2019
Interest rate swap	Net change in unrealized loss from derivative instruments	$	(303,362	)
Interest rate swap	Net realized loss from derivative instruments	$	(919	)
Interest rate swap agreement					Net change in unrealized loss from derivative instruments	$	(113,664	)	$	(1,014,599	)
Interest rate swap agreement					Net realized loss from derivative instruments	$	(4,681	)	$	(9,595	)

There was no interest rate swap and floor agreement for the three and nine months ended ~~March 31,~~September 30, 2018.

9. TAX STATUS

The Fund ~~had no taxable income for the year ended December 31, 2018. The Fund anticipates electing~~has elected to be treated as a regulated investment company ~~(“RIC”~~("RIC") under Subchapter M of the Internal Revenue Code (the ~~“Code”~~"Code") and ~~anticipates operating~~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. As of September 30, 2019 the Fund has met the BDC and RIC requirements.

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

Below is a table summarizing the cost (on U.S. GAAP and tax basis) and the appreciation and depreciation of the investments reported on the Condensed Schedules of Investments and Condensed Statements of Assets and Liabilities as of ~~March 31, 2019.~~ September 30, 2019:



Asset	Cost		Unrealized Appreciation		Unrealized Depreciation			Net Appreciation (Depreciation)			Fair Value
Loans	$	169,122,313	$	—	$	(1,362,469	)	$	(1,362,469	)	$	167,759,844
Total	$	169,122,313	$	—	$	(1,362,469	)	$	(1,362,469	)	$	167,759,844

Derivative, Liability	Cost		Unrealized Appreciation		Unrealized Depreciation			Net Appreciation (Depreciation)			Fair Value
Derivative liability - interest rate swap	$	—	$	—	$	(1,014,599	)	$	(1,014,599	)	$	(1,014,599	)
Total	$	—	$	—	$	(1,014,599	)	$	(1,014,599	)	$	(1,014,599	)

There were no appreciation or depreciation of assets or liabilities as of December 31, 2018.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in

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

Asset Cost Unrealized Appreciation Unrealized Depreciation Net Appreciation (Depreciation) Fair Value
Loans $ 98,317,234
$ —
$ (12,314 ) $ (12,314 ) $ 98,304,920
Total $ 98,317,234
$ —
$ (12,314 ) $ (12,314 ) $ 98,304,920

Liability Cost Unrealized Appreciation Unrealized Depreciation Net Appreciation (Depreciation) Fair Value
Derivative liability - interest rate swap $ —
$ —
$ (303,362 ) $ (303,362 ) $ (303,362 )
Total $ —
$ —
$ (303,362 ) $ (303,362 ) $ (303,362 )
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 U.S. GAAP.

The Fund anticipates distributing all distributable earnings by the end of the year. Through September 30, 2019, the Fund had no undistributed earnings. The Fund may pay distributions in excess of its taxable net investment income. This excess would be a tax-free return of capital in the period and reduce the shareholder’s tax basis in its shares.

The Fund’s tax returns remain open for examination by the federal government for a period of three years and California tax authorities for a period of four years from when they are filed. As of September 30, 2019, the Fund had no uncertain tax positions and no capital loss carryforwards.

10. UNEXPIRED UNFUNDED COMMITMENTS

As of ~~March 31,~~September 30, 2019 and December 31, 2018, the Fund’s unexpired unfunded commitments to borrowers totaled ~~$42.4~~$59.8 million and $31.0 million, respectively. Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is the Manager’s experience that not all unexpired unfunded commitments will be used by the borrowers. Many credit agreements contain provisions which are milestone dependent and not all borrowers will achieve these milestones. Additionally, the Fund’s credit agreements contain provisions that give relief from funding obligations in the event the borrower has a material adverse change to its financial condition. Therefore, the unexpired unfunded commitments do not necessarily reflect future cash requirements or future investments for the Fund.

The tables below are the Fund’s unexpired unfunded commitments as of ~~March 31,~~September 30, 2019 and December 31, 2018:

~~As of March 31, 2019:~~

Borrower Industry Unexpired Unfunded Commitment Expiration Date
Aclima, Inc. Other Technology $ 875,000
05/31/2019
Antheia, Inc. Biotechnology 1,500,000
12/31/2019
Apollo Flight Research Inc. Other Technology 250,000
01/31/2020
AvantStay, Inc. Other Technology 500,000
07/31/2019
Brightside Benefit, Inc. Other Technology 1,000,000
05/31/2019
Callisto Media, Inc. Technology Services 12,500,000
12/31/2020
Caredox, Inc. Other Healthcare 625,000
04/30/2019
Dosh Holdings, Inc. Other Technology 5,000,000
07/31/2019
Invoice2Go, Inc. Software 3,000,000
12/31/2019
Ipolipo, Inc. Software 750,000
07/31/2019
Kogniz, Inc. Other Technology 375,000
04/30/2019
Metricly, Inc. Software 500,000
04/30/2019
OrderGroove, Inc. Software 2,500,000
09/30/2019
Osix Corporation Internet 150,000
07/31/2019
Plant Prefab, Inc. Other Technology 1,000,000
07/31/2019
Platform Science, Inc. Other Technology 1,750,000
10/31/2019
PlushCare, Inc. Software 750,000
07/31/2019
Relimetrics, Inc. Technology Services 375,000
04/15/2019
Skillshare, Inc. Software 1,000,000
04/30/2019
Stitch Labs, Inc. Software 1,500,000
07/31/2019



Borrower	Industry	Unexpired Unfunded Commitment as of September 30, 2019		Expiration Date
Ablacon, Inc.	Medical Devices	$	2,500,000	01/31/2020
Ainsly, Inc.	Internet	1,500,000		01/31/2020
Antitoxin Technologies Inc.	Other Technology	500,000		11/30/2019
Apollo Flight Research Inc.	Other Technology	250,000		01/31/2020
BW Industries, Inc.	Other Technology	2,000,000		07/31/2020
Callisto Media, Inc.	Technology Services	12,500,000		12/31/2020
Censia Inc.	Software	500,000		12/01/2019
Cesium, Inc.	Internet	500,000		03/31/2020
DOSH Holdings, Inc.	Other Technology	3,750,000		01/15/2020
GoForward, Inc.	Other Healthcare	12,500,000		07/01/2020
HumanAPI, Inc.	Other Healthcare	1,000,000		01/31/2020

Borrower Industry Unexpired Unfunded Commitment Expiration Date
Swivel, Inc. Software 250,000
04/30/2019
Talla, Inc. Software 500,000
12/31/2019
Therapydia, Inc. Other Healthcare 125,000
06/30/2019
Thras.io, Inc. Other Technology 1,487,500
01/01/2021
Venuetize, LLC Software 500,000
09/30/2019
Virtuix Holdings, Inc. Other Technology 250,000
07/31/2019
Visual Supply Company Internet 2,500,000
03/31/2020
Voodoo Manufacturing, Inc. Other Technology 375,000
02/28/2020
Wheels Labs, Inc. Other Technology 500,000
07/31/2019
Total $ 42,387,500



Borrower	Industry	Unexpired Unfunded Commitment as of September 30, 2019		Expiration Date
Invoice2Go, Inc.	Software	1,000,000		12/31/2019
Kids on 45th, Inc.	Internet	500,000		01/31/2020
Liftit, Inc.	Technology Services	500,000		01/30/2020
Masse, Inc.	Internet	375,000		10/01/2019
Noteleaf, Inc.	Other Technology	1,000,000		01/31/2020
OneLocal, Inc.	Internet	1,000,000		07/31/2020
OrderGroove, Inc.	Software	1,250,000		10/02/2019
Owl Cameras, Inc.	Software	3,000,000		01/01/2020
Percepto, Inc.	Other Technology	1,000,000		05/31/2020
Platform Science, Inc.	Other Technology	1,750,000		10/31/2019
Solugen, Inc.	Technology Services	2,500,000		01/31/2020
Stitch Labs, Inc.	Software	750,000		01/31/2020
Talla, Inc.	Software	500,000		12/31/2019
The Safe and Fair Food Company LLC	Other Technology	1,250,000		01/31/2020
Thrive Financial, Inc.	Technology Services	1,500,000		12/31/2019
Trendalytics Innovation Labs, Inc.	Software	450,000		01/31/2020
Truthset, Inc.	Software	375,000		11/30/2019
Visual Supply Company	Internet	2,500,000		03/31/2020
Voodoo Manufacturing, Inc.	Other Technology	375,000		02/28/2020
Workspot, Inc.	Software	750,000		10/31/2019
Total		$	59,825,000

~~As of December 31, 2018:~~

Borrower

Industry

Unexpired Unfunded Commitment

Expiration Date

Industry

Unexpired Unfunded Commitment as of December 31, 2018

Expiration Date

Aclima, Inc.

Other Technology

875,000

05/31/2019

Other Technology

875,000

05/31/2019

Antheia, Inc.

Biotechnology

1,500,000

12/31/2019

Biotechnology

1,500,000

12/31/2019

Blockdaemon, Inc.

Software

250,000

01/31/2019

Software

250,000

01/31/2019

Brightside Benefit, Inc.

Other Technology

1,000,000

05/31/2019

Other Technology

1,000,000

05/31/2019

Caredox, Inc.

Other Healthcare

625,000

04/30/2019

Other Healthcare

625,000

04/30/2019

CytoVale, Inc.

Medical Devices

1,125,000

02/28/2019

Medical Devices

1,125,000

02/28/2019

Discover Echo, Inc.

Other Healthcare

1,000,000

02/28/2019

Other Healthcare

1,000,000

02/28/2019

Fitplan, Inc.

Other Technology

250,000

01/31/2019

Other Technology

250,000

01/31/2019

Hometap Equity Partners LLC

Other Technology

2,000,000

03/31/2019

Other Technology

2,000,000

03/31/2019

Invoice2Go, Inc.

Software

4,000,000

12/31/2019

Software

4,000,000

12/31/2019

Ipolipo, Inc.

Software

750,000

07/31/2019

Software

750,000

07/31/2019

Keyo AI Inc.

Technology Services

500,000

01/31/2019

Technology Services

500,000

01/31/2019

Kogniz, Inc.

Other Technology

375,000

04/30/2019

Other Technology

375,000

04/30/2019

Metricly, Inc.

Software

500,000

04/30/2019

Software

500,000

04/30/2019

OrderGroove, Inc.

Software

2,500,000

09/30/2019

Software

2,500,000

09/30/2019

Osix Corporation

Internet

150,000

07/31/2019

Internet

150,000

07/31/2019

Plethora, Inc.

Other Technology

500,000

01/31/2019

Other Technology

500,000

01/31/2019

PlushCare, Inc.

Software

750,000

07/31/2019

Relimetrics, Inc.

Technology Services

375,000

04/15/2019

Skillshare, Inc.

Software

2,000,000

04/30/2019

SkyKick, Inc.

Other Technology

2,500,000

02/28/2019

SnapRoute, Inc.

Enterprise Networking

1,500,000

02/28/2019

Stitch Labs, Inc.

Software

1,500,000

07/31/2019

Venuetize, LLC

Software

500,000

09/30/2019

Virtuix Holdings, Inc.

Other Technology

250,000

07/31/2019

Workspot, Inc.

Software

1,000,000

01/31/2019

Zeel Networks, Inc.

Technology Services

2,750,000

03/31/2019

Total

31,025,000



Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2018		Expiration Date
PlushCare, Inc.	Software	750,000		07/31/2019
Relimetrics, Inc.	Technology Services	375,000		04/15/2019
Skillshare, Inc.	Software	2,000,000		04/30/2019
SkyKick, Inc.	Other Technology	2,500,000		02/28/2019
SnapRoute, Inc.	Enterprise Networking	1,500,000		02/28/2019
Stitch Labs, Inc.	Software	1,500,000		07/31/2019
Venuetize, LLC	Software	500,000		09/30/2019
Virtuix Holdings, Inc.	Other Technology	250,000		07/31/2019
Workspot, Inc.	Software	1,000,000		01/31/2019
Zeel Networks, Inc.	Technology Services	2,750,000		03/31/2019
Total		$	31,025,000

11. FINANCIAL HIGHLIGHTS

U.S. GAAP requires disclosure of financial highlights of the Fund for the three and nine months ended ~~March 31,~~September 30, 2019 and 2018.

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

The ratios of expenses and net investment income (loss) to average net assets, calculated below, are annualized and are computed based upon the aggregate weighted average net assets of the Fund for the periods presented. Net investment income (loss) is inclusive of all investment income net of expenses and excludes realized or unrealized gains and losses.

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

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

For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018

Total return** 1.46 % 16.95 %

Per share amounts:
Net asset value, beginning of period $ 740.89
$ (1.59 )
Net investment income (loss) 12.78
(0.27 )
Net realized and change in unrealized loss from loans and derivative instruments (3.17 ) —
Net increase (decrease) in net assets from operations 9.61
(0.27 )
Distributions of income to shareholder (12.77 ) —
Return of capital to shareholder (168.56 ) —
Contributions from shareholder 100.00
—

Net asset value, end of period $ 669.17
$ (1.86 )
Net assets, end of period $ 66,916,800
$ (186,138 )

Ratios to average net assets:
Expenses* 16.33 % (67.66 %)
Net investment income (loss)* 7.63 % 67.66 %
Portfolio turn-over rate 0%
0%
Average debt outstanding $ 30,500,000
$ —
*Annualized
**Total return amounts presented above are not annualized



	For the Three Months Ended September 30, 2019			For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2019			For the Nine Months Ended September 30, 2018

Total return**	2.00		%	(1.03		%)	6.56		%	157.97		%

Per share amounts:
Net asset value, beginning of period	$	758.94		$	512.65		$	740.89		$	(1.59	)
Net investment income (loss)	30.38			(5.37		)	69.62			(15.97		)
Net realized and change in unrealized loss from loans and derivative instruments	(14.80		)	—			(23.86		)	—
Net increase (decrease) in net assets resulting from operations	15.58			(5.37		)	45.76			(15.97		)
Distributions of income to shareholder	(30.34		)	—			(69.53		)	—
Return of capital to shareholder	(25.97		)	(31.29		)	(198.91		)	(51.45		)
Contributions from shareholder	145.00			90.00			345.00			635.00

Net asset value, end of period	$	863.21		$	565.99		$	863.21		$	565.99
Net assets, end of period	$	86,320,710		$	56,598,607		$	86,320,710		$	56,598,607

Ratios to average net assets:
Expenses*	15.69		%	15.62		%	16.08		%	21.59		%
Net investment income (loss)*	15.46		%	(4.12		%)	12.91		%	(10.32		)%
Portfolio turn-over rate	—		%	—		%	0.62		%	—		%
Average debt outstanding	$	74,675,000		$	—		$	52,070,000		$	—

*Annualized
**Total return amounts presented above are not annualized. Total return for the three and nine months ended September 30, 2018 reflect the start up of the investment operations and was not driven by the performance of the investment portfolio.

12. SUBSEQUENT EVENTS

The Fund evaluated subsequent events through the date the financial statements were issued ~~May 14, 2019,~~ and determined that no additional subsequent events had occurred that would require accrual or disclosure in the financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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

The reader of this Quarterly Report should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Fund’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, loan losses, expenses, rates charged on loans and earned on securities investments, competition and macro-economic changes including inflation, interest rate expectations, among other factors including those set forth in the section of this Quarterly Report titled “Risk Factors” and Item 1A - “Risk Factors” in the Fund’s 2018 Annual Report on Form 10-K. This entire Quarterly Report should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Fund’s business.

Overview

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

The Fund provides financing and advisory services to a variety of carefully selected venture-backed companies that have received equity funding from traditional sources of venture capital equity funding (i.e. a professionally managed venture capital firm), as well as non-traditional sources of venture capital equity funding (e.g. angel investors, strategic investors, family offices, crowdfunding investment platforms, etc.) (collectively, “Venture-Backed Companies”), primarily throughout the United States with a focus on growth-oriented companies. The Fund’s portfolio consists of companies in the communications, information services, media, technology (including software and technology-enabled business services), biotechnology, and medical devices industry sectors, among others. The Fund’s capital is generally used by its portfolio companies to finance acquisitions of fixed assets and working capital. On May 1, 2018, the Company called and received its first capital from investors. On May 2, 2018, the Fund made its first investment and became a non-diversified, closed-end investment company under the 1940 Act. While the Fund intends to operate as a non-diversified investment company within the meaning of Section 5(b)(2) of the 1940 Act, from time to time, the Fund may act as a diversified investment company within the meaning of Section 5(b)(1) of the 1940 Act.

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

ToThe Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a RIC under the ~~Code, the Fund is required to meet various ongoing requirements, including those for asset diversification.~~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 portfolio investments of the Fund primarily consist of debt financing to Venture-Backed Companies in the technology sector. The borrower’s ability to repay its loans may be adversely impacted by several factors, and as a result, the loan may not be fully repaid. Furthermore, the Fund’s security interest in any collateral over the borrower’s assets may be insufficient to make up any shortfall in payments.

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

The Manager also serves as manager for Fund VIII. The Fund’s Board of Directors determined that so long as Fund VIII has capital available to invest in loan transactions with final maturities earlier than December 31, 2025 (the date on which Fund VIII will be dissolved), the Fund may invest in each portfolio company in which Fund VIII invests (“Investments”). Generally, the amount of each Investment will be allocated 50% to the Fund and 50% to Fund VIII, or such other allocations as may be determined by the respective fund boards, so long as the Fund has capital available to invest. The ability of the Fund to co-invest with Fund VIII, and other clients advised by the Manager, is subject to the conditions (“Conditions”) with which the Funds are currently complying while seeking certain exemptive relief from the Securities and Exchange Commission (“SEC”) from the provisions of Sections 17(d) and 57 of the 1940 Act and Rule 17d-1 thereunder. After June 30, 2022, the Fund will no longer be permitted to enter into new commitments to borrowers; however, the Fund will be permitted to fund existing commitments, in which Fund VIII may also be invested. The Manager has exercised, and the Board of Directors ratified, its discretion to extend Fund VIII’s investment period for two additional quarters after September 30, 2020, thereby allowing Fund VIII to make new commitments through March 31, 2020 and to fund commitments through March 31, 2021, the end of Fund VIII’s investment period. The Manager is permitted to extend the Fund’s investment period by up to two (2) additional calendar quarters in its sole and absolute discretion. To the extent that clients, other than Fund VIII, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Critical Accounting Policies, Practices and Estimates

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

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

Critical judgments and inputs in determining the fair value of a loan include the estimated timing and amount

of future cash flows and probability of future payments, based on the assessment of payment history, available cash

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

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

Results of Operations - For the Three and Nine Months Ended ~~March 31,~~September 30, 2019 and 2018

The Fund commenced investment operations on May 2, 2018.

Total investment income for the three months ended ~~March 31,~~September 30, 2019 and 2018 was ~~$4.0~~$6.1 million and $1.5 million, respectively, which primarily consisted of interest on the venture loans outstanding. The remaining income consisted of interest and dividends on the temporary investment of cash. The average outstanding balance of both the performing and all loans calculated ~~on a monthly basis~~using the month-end balances was ~~$89.6~~$149.0 million and $34.8 million for the three months ended ~~March 31, 2019.~~September 30, 2019 and 2018, respectively. The weighted-average interest rate on both the performing and all loans for the same ~~period~~periods was ~~17.70%.~~16.35% and 16.24%, respectively. Both the increase in the average outstanding balance and interest rate contributed to the increase in investment income. 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.

Total investment income for the nine months ended September 30, 2019 and 2018 were $15.6 million and $1.7 million, respectively, which primarily consisted of interest on the venture loans outstanding. The average outstanding balance of both the performing and all loans calculated using the month-end balances was $118.0 million for the nine months ended September 30, 2019 and using the daily balances was $14.2 million for the nine months ended September 30, 2018. The weighted-average interest rate on both the performing and all loans for the same periods was 17.47% and 15.35%, respectively. The increase in the average outstanding balance was the primary reason for the increase in investment income. 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.

Management fees for both the three months ended September 30, 2019 and 2018 was $1.8 million. Management fees for the nine months ended September 30, 2019 and 2018 were $5.5 million and $3.0 million, respectively. For the three months ended ~~March 31,~~September 30, 2019, management fees were ~~$1.8 million. Management~~calculated at an annual rate of 1.600%. For the nine months ended September 30, 2019, management fees were calculated at an annual rate of 1.575% ~~of committed capital. There were no~~from January 1, 2019 through June 30, 2019, and 1.600% from July 1, 2019 through September 30, 2019. For both the three and nine months ended September 30, 2018, management fees ~~for the three months ended March 31, 2018 as the Company had not called capital.~~were calculated at an annual rate of 1.575%.

Organization costs were $0zero for both the three and nine months ended September 30, 2019. Organization costs were zero and less than $0.1 million for the three and nine months ended ~~March 31, 2019 and~~September 30, 2018, respectively. The organization costs were finalized by the end of the second quarter of 2018 as the Fund commenced investment operations at that time.

~~Banking~~Interest expense was $1.2 million and ~~professional fees were $0.2~~$2.8 million for the three and nine months ended March 31, 2019. Banking and professional fees were primarily comprised of legal fees associated with the documentation of loans and audit fees accrued for work completed on the 2018 year-end audit. There were no banking and professional fees for the three months ended March 31, 2018 because the Fund had not yet commenced investment operations.

~~Interest expense was $0.7 million for the three months ended March 31, 2019.~~September 30, 2019, respectively. Interest expense was comprised of amounts related to interest on debt amounts drawn down, unused credit line fees and amounts amortized from deferred fees incurred in conjunction with the debt facility. The average

debt outstanding for the three and nine months ended ~~March 31,~~September 30, 2019 was ~~$30.5 million.~~$74.7 million and $52.1 million, respectively. There was no debt facility for the three and nine months ended ~~March 31,~~September 30, 2018 as the Fund ~~had not yet commenced investment operations.~~entered into the debt facility in December 2018.

Banking and professional fees were less than $0.1 million and $0.2 million for the three months ended September 30, 2019 and 2018, respectively. Banking and professional fees were $0.3 million and $0.2 million for the nine months ended September 30, 2019 and 2018, respectively. Banking and professional fees were primarily comprised of legal fees associated with the documentation of loans and audit fees.

Other operating expenses were $0.1 million and less than $0.1 million for the three months ended ~~March 31,~~September 30, 2019 and 2018, respectively. Other operating expenses were ~~less than~~ $0.1 ~~million.~~million for both the nine months ended September 30, 2019 and 2018. These expenses included director fees, custody fees, tax fees and other expenses related to the ~~operation~~operations of the Fund.

Net investment income (loss) for the three months ended ~~March 31,~~September 30, 2019 and 2018 were ~~$1.3~~$3.0 million and ~~less than $(0.1)~~$(0.5) million, respectively. Net investment income (loss) for the nine months ended September 30, 2019 and 2018 were $7.0 million and $(1.6) million, respectively.

Net realized loss from derivative instruments was less than $0.1 million for both the three and nine months ended ~~March 31,~~September 30, 2019. The reason for the loss was due to interest paid by the Fund on the interest rate swap and floor agreement when

the fixed rate interest of the swap and floor was higher than the floating rate. There was no realized gain (loss) from derivative instruments for the three and nine months ended ~~March 31,~~September 30, 2018 as ~~the~~ the interest rate swap and floor agreement was established in February 2019.

Net change in unrealized loss from loans was ~~less than $0.1~~$1.4 million for both the three and nine months ended ~~March 31,~~September 30, 2019. The ~~loss~~net change in unrealized gain from loans consisted of fair value adjustments taken against loans resulting from the improvement or deterioration in certain portfolio companies’ performance. There was no net change in unrealized gain (loss) from loans for the three and nine months ended ~~March 31, 2018 as the Fund had not yet commenced investment operations.~~September 30, 2018.

Net change in unrealized loss from derivative instruments was ~~$0.3~~$0.1 million and $1.0 million for the three and nine months ended ~~March 31, 2019.~~September 30, 2019, respectively. The net change in unrealized loss from derivative instruments consisted of fair market value adjustments to the derivative interest rate swap and is a reflection of the market’s outlook on the economy and the future of interest rate changes. There was no net change in unrealized gain (loss) from derivative instruments for the three and nine months ended ~~March 31,~~September 30, 2018 as the Fund did not establish the interest rate swap and floor agreement until February 2019.

Net increase (decrease) in net assets resulting from operations for the three months ended ~~March 31,~~September 30, 2019 and 2018 ~~were $1.0~~was $1.6 millionand ~~less than $(0.1)~~$(0.5) million, respectively. On a per share basis, the net increase (decrease) in net assets resulting from operations for the three months ended ~~March 31,~~September 30, 2019 and 2018 ~~were $9.62~~was $15.58 and ~~$(0.27)~~$(5.37), respectively.

Net increase (decrease) in net assets resulting from operations for the nine months ended September 30, 2019 and 2018 was $4.6 millionand $(1.6) million, respectively. On a per share basis, the net increase (decrease) in net assets resulting from operations for the nine months ended September 30, 2019 and 2018 was $45.76 and $(15.97), respectively.

Liquidity and Capital Resources – ~~March 31,~~September 30, 2019 and December 31, 2018

The Fund is owned entirely by the Company. The Company is expected, but not required, to make further contributions to the capital of the Fund to the extent of the Company’s members’ capital commitment to the Company and excess cash balances of the Company. Total capital contributed to the Fund was ~~$92.5~~$117.0 million and $82.5 million as of ~~March 31,~~September 30, 2019 and December 31, 2018, respectively. As of both ~~March 31,~~September 30, 2019 and December 31, 2018, the Company had subscriptions for capital in the amount of $460.0 million, of which ~~$108.1~~$138.0 million and $96.6

million had been called and received, as of ~~March 31,~~September 30, 2019 and December 31, 2018, respectively. As of ~~March 31,~~September 30, 2019, ~~$351.9~~$322.0 million of capital remains uncalled and the uncalled capital expires on the Fund’s fifth anniversary of its first investment unless extended. Management is permitted to extend the Fund’s investment period by up to two (2) additional calendar quarters in its sole and absolute discretion. The Company has made ~~$16.0~~$18.7 million in recallable distributions to its investors, as permitted under its operating agreement between the Company’s managing member and members of the Company.

The change in cash for the ~~three~~nine months ended ~~March 31,~~September 30, 2019 and 2018 was as follows:


	For the Three Months Ended March 31, 2019			For the Three Months Ended March 31, 2018		For the Nine Months Ended September 30, 2019			For the Nine Months Ended September 30, 2018
Net cash used in operating activities	$	(20,074,077	)	$	—	$	(90,775,340	)	$	(57,335,013	)
Net cash provided by financing activities	21,999,081			—		94,790,405			63,500,000
Net increase in cash and cash equivalents	$	1,925,004		$	—	$	4,015,065		$	6,164,987

As of ~~March 31,~~September 30, 2019 and December 31, 2018, ~~2.7%~~2.8% and 1.0%, respectively, of the Fund’s total assets consisted of cash and cash equivalents.

Reference Rate Loan, a LIBOR Loan or a LIBOR Market Index Rate Loan. The Fund pays interest on its borrowings and also pays a fee on the unused portion of the facility. The facility terminates on December 20, 2021, but can be accelerated in the event of default, such as the failure by the Fund to make timely interest or principal payments. As of ~~March 31,~~September 30, 2019, ~~$34.0~~$85.0 million was outstanding under the facility.

For the ~~three~~nine months ended ~~March 31,~~September 30, 2019 and since the start of its investment operation in May 2018, the Fund invested its assets in venture loans. Amounts disbursed under the Fund’s loan commitments were ~~$25.4~~$109.9 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2019. Net loan amounts outstanding after amortization and valuation adjustments increased by ~~$19.3~~$88.8 million for the same period. Unexpired unfunded commitments totaled ~~approximately $42.4~~$59.8 million as of ~~March 31,~~September 30, 2019.



As of	Cumulative Amount Disbursed	Principal Reductions and Fair Market Adjustments	Balance Outstanding - Fair Value	Unexpired Unfunded Commitments
~~March 31,~~September 30, 2019	$~~112.5~~197.0 million	$~~14.2~~29.2 million	$~~98.3~~167.8 million	$~~42.4~~59.8 million
December 31, 2018	$87.1 million	$8.1 million	$79.0 million	$31.0 million

The following tables show the unexpired unfunded commitments by portfolio company as of ~~March 31,~~September 30, 2019 and December 31, 2018.

~~As of March 31, 2019:~~

Borrower Industry Unexpired Unfunded Commitment Expiration date
Aclima, Inc. Other Technology $ 875,000
05/31/2019
Antheia, Inc. Biotechnology 1,500,000
12/31/2019
Apollo Flight Research Inc. Other Technology 250,000
01/31/2020
AvantStay, Inc. Other Technology 500,000
07/31/2019
Brightside Benefit, Inc. Other Technology 1,000,000
05/31/2019
Callisto Media, Inc. Technology Services 12,500,000
12/31/2020
Caredox, Inc. Other Healthcare 625,000
04/30/2019
Dosh Holdings, Inc. Other Technology 5,000,000
07/31/2019
Invoice2Go, Inc. Software 3,000,000
12/31/2019
Ipolipo, Inc. Software 750,000
07/31/2019
Kogniz, Inc. Other Technology 375,000
04/30/2019
Metricly, Inc. Software 500,000
04/30/2019
OrderGroove, Inc. Software 2,500,000
09/30/2019
Osix Corporation Internet 150,000
07/31/2019
Plant Prefab, Inc. Other Technology 1,000,000
07/31/2019
Platform Science, Inc. Other Technology 1,750,000
10/31/2019
PlushCare, Inc. Software 750,000
07/31/2019
Relimetrics, Inc. Technology Services 375,000
04/15/2019
Skillshare, Inc. Software 1,000,000
04/30/2019
Stitch Labs, Inc. Software 1,500,000
07/31/2019
Swivel, Inc. Software 250,000
04/30/2019
Talla, Inc. Software 500,000
12/31/2019
Therapydia, Inc. Other Healthcare 125,000
06/30/2019
Thras.io, Inc. Other Technology 1,487,500
01/01/2021



Borrower	Industry	Unexpired Unfunded Commitment as of September 30, 2019		Expiration date
Ablacon	Medical Devices	$	2,500,000	01/31/2020

Venuetize, LLC

Software

500,000

09/30/2019

Virtuix Holdings, Inc.

Other Technology

250,000

07/31/2019

Borrower

Industry

Unexpired Unfunded Commitment as of September 30, 2019

Expiration date

Ainsly, Inc.

Internet

1,500,000

01/31/2020

Antitoxin Technologies Inc.

Other Technology

500,000

11/30/2019

Apollo Flight Research Inc.

Other Technology

250,000

01/31/2020

BW Industries, Inc.

Other Technology

2,000,000

07/31/2020

Callisto Media, Inc.

Technology Services

12,500,000

12/31/2020

Censia Inc.

Software

500,000

12/01/2019

Cesium, Inc.

Internet

500,000

03/31/2020

DOSH Holdings, Inc.

Other Technology

3,750,000

01/15/2020

GoForward, Inc.

Other Healthcare

12,500,000

07/01/2020

HumanAPI, Inc.

Other Healthcare

1,000,000

01/31/2020

Invoice2Go, Inc.

Software

1,000,000

12/31/2019

Kids on 45th, Inc.

Internet

500,000

01/31/2020

Liftit, Inc.

Technology Services

500,000

01/30/2020

Masse, Inc.

Internet

375,000

10/01/2019

Noteleaf, Inc.

Other Technology

1,000,000

01/31/2020

OneLocal, Inc.

Internet

1,000,000

07/31/2020

OrderGroove, Inc.

Software

1,250,000

10/02/2019

Owl Cameras, Inc.

Software

3,000,000

01/01/2020

Percepto Inc.

Other Technology

1,000,000

05/31/2020

Platform Science, Inc.

Other Technology

1,750,000

10/31/2019

Solugen, Inc.

Technology Services

2,500,000

01/31/2020

Stitch Labs, Inc.

Software

750,000

01/31/2020

Talla, Inc.

Software

500,000

12/31/2019

The Safe and Fair Food Company LLC

Other Technology

1,250,000

01/31/2020

Thrive Financial, Inc.

Technology Services

1,500,000

12/31/2019

Trendalytics Innovation Labs, Inc.

Software

450,000

01/31/2020

Truthset, Inc.

Software

375,000

11/30/2019

Visual Supply Company

Internet

2,500,000

03/31/2020

Internet

2,500,000

03/31/2020

Voodoo Manufacturing, Inc.

Other Technology

375,000

02/28/2020

Other Technology

375,000

02/28/2020

Wheels Labs, Inc.

Other Technology

500,000

07/31/2019

Workspot, Inc.

Software

750,000

10/31/2019

Total

42,387,500

59,825,000

~~As of December 31, 2018:~~

Borrower Industry Unexpired Unfunded Commitment Expiration date
Aclima, Inc. Other Technology $ 875,000
05/31/2019
Antheia, Inc. Biotechnology 1,500,000
12/31/2019
Blockdaemon, Inc. Software 250,000
01/31/2019
Brightside Benefit, Inc. Other Technology 1,000,000
05/31/2019
Caredox, Inc. Other Healthcare 625,000
04/30/2019
CytoVale, Inc. Medical Devices 1,125,000
02/28/2019
Discover Echo, Inc. Other Healthcare 1,000,000
02/28/2019
Fitplan, Inc. Other Technology 250,000
01/31/2019
Hometap Equity Partners LLC Other Technology 2,000,000
03/31/2019
Invoice2Go, Inc. Software 4,000,000
12/31/2019
Ipolipo, Inc. Software 750,000
07/31/2019
Keyo AI Inc. Technology Services 500,000
01/31/2019
Kogniz, Inc. Other Technology 375,000
04/30/2019
Metricly, Inc. Software 500,000
04/30/2019
OrderGroove, Inc. Software 2,500,000
09/30/2019
Osix Corporation Internet 150,000
07/31/2019
Plethora, Inc. Other Technology 500,000
01/31/2019
PlushCare, Inc. Software 750,000
07/31/2019
Relimetrics, Inc. Technology Services 375,000
04/15/2019
Skillshare, Inc. Software 2,000,000
04/30/2019
SkyKick, Inc. Other Technology 2,500,000
02/28/2019
SnapRoute, Inc. Enterprise Networking 1,500,000
02/28/2019
Stitch Labs, Inc. Software 1,500,000
07/31/2019
Venuetize, LLC Software 500,000
09/30/2019
Virtuix Holdings, Inc. Other Technology 250,000
07/31/2019
Workspot, Inc. Software 1,000,000
01/31/2019
Zeel Networks, Inc. Technology Services 2,750,000
03/31/2019
Total $ 31,025,000



Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2018		Expiration date
Aclima, Inc.	Other Technology	$	875,000	05/31/2019
Antheia, Inc.	Biotechnology	1,500,000		12/31/2019
Blockdaemon, Inc.	Software	250,000		01/31/2019
Brightside Benefit, Inc.	Other Technology	1,000,000		05/31/2019
Caredox, Inc.	Other Healthcare	625,000		04/30/2019
CytoVale, Inc.	Medical Devices	1,125,000		02/28/2019
Discover Echo, Inc.	Other Healthcare	1,000,000		02/28/2019



Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2018		Expiration date
Fitplan, Inc.	Other Technology	250,000		01/31/2019
Hometap Equity Partners LLC	Other Technology	2,000,000		03/31/2019
Invoice2Go, Inc.	Software	4,000,000		12/31/2019
Ipolipo, Inc.	Software	750,000		07/31/2019
Keyo AI Inc.	Technology Services	500,000		01/31/2019
Kogniz, Inc.	Other Technology	375,000		04/30/2019
Metricly, Inc.	Software	500,000		04/30/2019
OrderGroove, Inc.	Software	2,500,000		09/30/2019
Osix Corporation	Internet	150,000		07/31/2019
Plethora, Inc.	Other Technology	500,000		01/31/2019
PlushCare, Inc.	Software	750,000		07/31/2019
Relimetrics, Inc.	Technology Services	375,000		04/15/2019
Skillshare, Inc.	Software	2,000,000		04/30/2019
SkyKick, Inc.	Other Technology	2,500,000		02/28/2019
SnapRoute, Inc.	Enterprise Networking	1,500,000		02/28/2019
Stitch Labs, Inc.	Software	1,500,000		07/31/2019
Venuetize, LLC	Software	500,000		09/30/2019
Virtuix Holdings, Inc.	Other Technology	250,000		07/31/2019
Workspot, Inc.	Software	1,000,000		01/31/2019
Zeel Networks, Inc.	Technology Services	2,750,000		03/31/2019
Total		$	31,025,000

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

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

As of ~~March 31,~~September 30, 2019, the Fund had cash reserves of ~~$2.8~~$4.8 million and approximately ~~$37.8~~$64.1 million in scheduled loan receivable payments over the next twelve months. Additionally, the Fund has access to uncalled capital of ~~$351.9~~$322.0 million and recallable capital of ~~$16.0~~$18.7 million as a liquidity source, and a borrowing base that grows as it funds additional commitments. These amounts are sufficient to meet the current commitment backlog and operational

expenses of the Fund over the next year. The Fund regularly evaluates potential future liquidity resources and demands before making additional future commitments.

On April 24, 2019, the Fund’s sole shareholder, the Company, approved a reduced asset coverage ratio of 150% for the Fund as permitted in Section 61(a)(2) of the 1940 Act. Accordingly, the Fund is permitted to borrow in any amount so long as its asset coverage ratio, as defined in the 1940 Act, is at least 150% after giving effect to such borrowings. As of September 30, 2019, the Fund’s asset coverage ratio was 201%.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

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

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

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

The Fund’s exposure to interest rate sensitivity is regularly monitored and analyzed by measuring the characteristics of assets and liabilities. The Fund utilizes various methods to assess interest rate risk in terms of the potential effect on interest income net of interest expense, the value of net assets and the value at risk in an effort to ensure that the Fund is insulated from any significant adverse effects from changes in interest rates. At ~~March 31,~~September 30, 2019, the outstanding debt balance was ~~$34.0~~$85.0 million at a weighted-average floating interest rate of ~~2.50%~~2.03%, for which the Fund had ana weighted-average interest rate swap in place at ~~2.52%~~2.28% on ~~$35.0~~$57.0 million of the ~~debt.~~notional principal amount, leaving the Fund with exposure to interest rate changes on the un-hedged portion of the loan.

Because all of the Fund’s loans impose a fixed interest rate upon funding, changes in short-term interest rates will not directly affect interest income associated with the loan portfolio as of ~~March 31,~~September 30, 2019. However, those changes could have the potential to change the Fund’s ability to originate loan commitments, acquire and renew bank facilities, and engage in other investment activities. Further, changes in short-term interest rates could also affect interest rate expense, realized gain from investments and interest on the Fund’s short-term investments.

Based on the Fund’s Condensed Statements of Assets and Liabilities as of ~~March 31,~~September 30, 2019, the following table shows the approximate annualized increase (decrease) in components of net assets resulting from operations of

hypothetical base rate changes in interest rates, assuming no changes in investments, borrowings, cash balances and interest rate swap derivatives.


Effect of Interest Rate Change By	Other Interest and Other Income (Loss)			Gain (Loss) from Derivative Instruments			Interest Income (Expense)			Total Income (Loss)			Other Interest and Other Income (Loss)			Gain (Loss) from Derivative Instruments			Interest Income (Expense)			Total Income (Loss)
(0.50)%	$	(13,789	)	$	(175,000	)	$	170,000		$	(18,789	)	$	(24,239	)	$	(285,000	)	$	425,000		$	115,761
1%	$	27,578		$	350,000		$	(340,000	)	$	37,578		$	48,479		$	570,000		$	(850,000	)	$	(231,521	)
2%	$	55,156		$	700,000		$	(680,000	)	$	75,156		$	96,958		$	1,140,000		$	(1,700,000	)	$	(463,042	)
3%	$	82,735		$	1,050,000		$	(1,020,000	)	$	112,735		$	145,436		$	1,710,000		$	(2,550,000	)	$	(694,564	)
4%	$	110,313		$	1,400,000		$	(1,360,000	)	$	150,313		$	193,915		$	2,280,000		$	(3,400,000	)	$	(926,085	)
5%	$	137,891		$	1,750,000		$	(1,700,000	)	$	187,891		$	242,394		$	2,850,000		$	(4,250,000	)	$	(1,157,606	)

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

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

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

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

Item 4. Controls and Procedures

Disclosure Controls and Procedures:

At the end of the period covered by this report, the Fund carried out an evaluation under the supervision and with the participation of its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Fund’s disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934 (“Exchange Act”). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Fund’s disclosure controls and procedures were effective as of the end of the period in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and in providing reasonable assurance that information required to be disclosed by the Fund in such reports is accumulated and communicated to the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls:

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the Fund’s fiscal quarter ended ~~March 31,~~September 30, 2019 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

The following discussion point should be read in conjunction with Item 1A - “Risk Factors” in the Fund’s 2018 Annual Report on Form 10-K for a detailed description of the risks attendant to the Fund and its business. Except as set forth below, there have been no material changes to the risk factors reported in the Fund’s 2018 Annual Report on Form 10-K.

Brexit Risk. The risk of investing in portfolio companies based out of or related to Europe may be heightened due to the 2016 referendum in which the United Kingdom (“UK”) voted to exit the European Union (“EU”). There is significant uncertainty about how negotiations relating to the UK’s withdrawal will be resolved, as well as the potential consequences and precise timeframe for “Brexit.” On March 29, 2017, the UK formally notified the European Council of its intention to withdraw from the EU and triggered the two-year period set out for withdrawal discussions in the Treaty on European Union. ~~The UK was scheduled to exit~~Since then, the EU ~~on March 29, 2019, but that exit~~has extended the Brexit deadline ~~was extended by~~several times to allow the ~~EU pending ratification of the~~UK parliament to ratify a withdrawal agreement, by the ~~UK parliament.~~result and timing of which remain uncertain. The UK could also, in theory, cancel Brexit if the rest of the EU consents or if there is a second referendum reversing the UK’s withdrawal. If, however, the UK withdraws from the EU without ratifying an agreement, the resulting uncertainty regarding the trading and cross-border investment relationship between the UK and the EU could negatively impact investments across Europe.

Therefore, the ultimate effects of Brexit will depend on agreements the UK negotiates to retain access to EU markets either during a transitional period or more permanently. Brexit could lead to legal and tax uncertainty and potentially divergent national laws and regulations as the UK determines which EU laws to replace or replicate. While it is not possible to determine the precise impact these events may have on the Fund during this period and beyond, the impact on the UK and European economies and the broader global economy could be significant, including increased volatility and illiquidity, and potentially lower economic growth, on markets in the UK, Europe and globally, thereby adversely affecting the value of the Fund’s investments. In addition, if one or more other countries were to exit the EU or abandon the use of the euro as a currency, the value of investments tied to those countries or the euro could decline significantly and unpredictably.

Special risk considerations relating to China. The Fund may invest in portfolio companies that are based in China, have significant operations in China or are otherwise connected to China. Markets in China can be volatile due to uncertain social, economic, regulatory and political factors. The severity and duration of any adverse economic conditions may be driven by governmental or quasi-governmental policies; in particular the imposition of sanctions by outside governments could severely disrupt the Chinese economy and the value of securities tied to it. For example, Fund portfolio companies may be significantly impacted by the ongoing trade disputes between the United States and China that have resulted in the imposition of tariffs by both countries on certain goods entering their respective markets. Among other things, such disputes could prompt a portfolio company to reduce operations in China and/or suffer downward pricing pressure. Additionally, a portfolio company that relies on Chinese investors could experience challenges in securing additional capital investments. Whether these factors are mitigated or exacerbated remains uncertain and will depend, in part, on the outcome of negotiations between the United States and China to resolve their trade disputes.

LIBOR Phase-Out Risk. Many financial instruments, including the Fund’s credit facility and certain of its debt investments, utilize or are permitted to utilize a floating interest rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks.

Additionally, the Fund has derivative instruments that hedge by converting floating LIBOR based interest rates into fixed rates. On July 27, 2017, the head of the UK’s Financial Conduct Authority announced its intention to phase out the use of LIBOR by the end of 2021. There is thus uncertainty regarding what interest rate benchmark(s) will replace LIBOR in the debt capital markets, and the effect of a transition away from LIBOR on the Fund cannot yet be determined. Management continues to evaluate the Fund’s LIBOR exposure risks, including but not limited to the potential impact on the cost of credit, the Fund’s derivative instruments, the Fund’s holdings, and the extent to which the Fund’s debt investment instruments allow for the utilization of alternative rate(s) in the absence of LIBOR.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits



Exhibit Number	Description
3(i)	Amended and Restated Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on September 25, 2017, incorporated by reference to the Fund’s Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
3(ii)	Amended and Restated Bylaws of the Fund, incorporated by reference to the Fund’s Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
4.1	Form of Stock 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 October 18, 2017.
31.1	Chief Executive Officer (Principal Executive Officer) certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification).
31.2	Chief Financial Officer (Principal Financial Officer) certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification).
32.1	Chief Executive Officer (Principal Executive Officer) certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).
32.2	Chief Financial Officer (Principal Financial Officer) certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

VENTURE LENDING & LEASING IX, INC.

(Registrant)



By:	/s/ Maurice C. Werdegar	By:	/s/ ~~Martin D. Eng~~Judy N. Bornstein
Maurice C. Werdegar		~~Martin D. Eng~~Judy N. Bornstein
~~President and~~ Chief Executive Officer		Chief Financial Officer
(Principal Executive Officer)		(Principal Financial Officer)
Date:	~~May 14,~~November 13, 2019	Date:	~~May 14,~~November 13, 2019

3845



As of March 31, 2019
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	98,304,920	$	98,304,920
Cash equivalents	2,757,819		—		—		2,757,819
Total assets	$	2,757,819	$	—	$	98,304,920	$	101,062,739

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	34,000,000	$	—	$	34,000,000
Derivative liability - interest rate swap	—		303,362		—		303,362
Total liabilities	$	—	$	34,303,362	$	—	$	34,303,362



Roll-Over/Draw Date	Amount		Maturity Date*	All-In Interest Rate**
March 29, 2019	$	31,000,000	April 29, 2019	5.00%
March 15, 2019	3,000,000		Not applicable	Variable based on 1-Month LIBOR rate
Total Outstanding	$	34,000,000



	Liability Derivatives
	March 31, 2019
Derivatives:	Location on Condensed Statements of Assets and Liabilities	Fair Value
Interest rate swap	Derivative liability - interest rate swap	$	303,362

September 30, 2019

Derivatives:

Location on Condensed Statements of Assets and Liabilities

Fair Value

Interest rate swap agreement

Derivative liability - interest rate swap