Slide 1: A National Leader in Growth Stage Lending: Second Quarter 2021 Investor Presentation
A National Leader in Growth Stage Lending Second Quarter 2021 Investor Presentation Exhibit 99.2
Slide 2: Forward-looking statements
© 2021 Trinity Capital Inc. | 2 Trinity Capital Inc. (the “Company”) cautions that this presentation may contain forward-looking statements that are based on current expectations and assumptions about future events, and which are not based in historical fact. The forward-looking statements in this p
Slide 3: Investor Presentation Agenda
© 2021 Trinity Capital Inc. | 3 Company & Strategic Overview Financial Highlights Portfolio Highlights Venture Capital and Lending Market 4 13 23 30 34 Supplemental Information 36 Analyst Coverage INVESTOR PRESENTATION | AGENDA
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Trinity Capital Overview
© 2021 Trinity Capital Inc. | 5 Business Secured loans and equipment financing to growth stage companies backed by technology banks, venture capital and private equity firms 13 Year Track Record(3) Market Capitalization $14.33(2) NAV per Share Portfolio(2) $108 Million Available Liquidity Liquidity(
Slide 6: Why Is Trinity Different
© 2021 Trinity Capital Inc. | 6 We understand the growth stage world and provide more than money to our portfolio company partners Deep Operating Experience ▪ Highly experienced executive team with startup experience ▪ Decades of in-depth high-tech experience ▪ Numerous U.S. and International patent
Slide 7: Trinity Investment Horizon: Execution Risk vs. Technology Risk
© 2021 Trinity Capital Inc. | 7 SEED SEED INVESTMENT PROFITABILITY EARLY GROWTH STAGE LATER TECHNOLOGY PROVEN PRODUCT DEVELOPED SALES DEVELOPMENT & REVENUE REVENUE GROWTH C O M P A N Y V A L U A T I O N COMPANY MILESTONES Trinity Investment Horizon Execution Risk vs. Technology Risk INVESTMENT HORIZ
Slide 8: Senior & Subordinated Term Loans
© 2021 Trinity Capital Inc. | 8 Term Loans Madison Reed is an American brand of hair care and hair color products. ▪ Investor Syndicate Norwest Venture Partners, True Ventures, Comcast Ventures ▪ Use of loan Extension of runway DailyPay is a fintech provider of earned income software that integrates
Slide 9: Equipment Financing
© 2021 Trinity Capital Inc. | 9 Equipment Financing Impossible Foods is a company that develops plant-based substitutes for meat products ▪ Investor Syndicate Khosla Ventures, Horizons Ventures ▪ Use of Equipment Financing Manufacturing equipment Happiest Baby, the parenting solutions company, has b
Slide 10: Current Market Conditions and Opportunities
© 2021 Trinity Capital Inc. | 10 Continued investment in our team and platform ▪ We’ve added to the team over the last nine months ▪ Robust Pipeline activity – 70% increase in opportunities compared to Q2’20 The VC ecosystem has been incredibly resilient ▪ Venture Capital funding continued to be str
Slide 11: Partnership with Top VCs and Technology Banks
© 2021 Trinity Capital Inc. | 11 Multiple shared portfolio companies with top Venture Capital Firms We have established inter-creditor agreements with the banks Combining with bank debt results in a lower blended cost to our customers We provide equipment financing and incremental debt capital Relat
Slide 12: Underwriting Approach and Risk Mitigation
© 2021 Trinity Capital Inc. | 12 Investor Syndicate Revenue & Gross Margins Business Model (1) Includes historical information of Trinity Capital's predecessor funds, the first of which was launched in 2008, through June 30, 2021. Past performance is not indicative of future results. No assurance ca
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Q2 2021 Highlights
© 2021 Trinity Capital Inc. | 14 ▪ Total Investment Income of $19.5M ▪ Net Investment Income (“NII”) of $10.1M ▪ Net Investment Margin (“NIM”) of $12.3% ▪ NII per share of $0.38 provides 131% distribution coverage ▪ Increased the second quarter dividend distribution to $0.29 per share Robust Earning
Slide 15: Statements of Operations
© 2021 Trinity Capital Inc. | 15 For the three months ended (In 000’s, except per share amounts) 06/30/2021 3/31/2021 12/31/2020 9/30/2020 06/30/2020 Total Investment Income $19,476 $17,320 $15,340 $13,529 $13,847 Interest expense and other debt financing costs 4,425 4,616 4,340 3,893 4,281 Compensa
Slide 16: Income Source & Portfolio Yield Trends
© 2021 Trinity Capital Inc. | 16 INCOME SOURCE & PORTFOLIO YIELD TRENDS $391 $390 $448 $464 $521 14.2% 13.1% 13.6% 14.6% 14.8% 14.6% 14.1% 14.5% 15.5% 15.9% 8% 9% 10% 11% 12% 13% 14% 15% 16% $200 $250 $300 $350 $400 $450 $500 $550 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 PORTFOLIO YIELDS Total Debt Investments
Slide 17: Net Investment Income per Share Bridge
© 2021 Trinity Capital Inc. | 17 NET INVESTMENT INCOME PER SHARE BRIDGE
Slide 18: Balance Sheet
© 2021 Trinity Capital Inc. | 18 (In 000’s, except per share amounts) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Assets Total Investments at fair value $597,696 $535,741 $493,651 $425,484 418,844 Cash and cash equivalents 19,124 36,026 44,656 36,323 21,849 Restricted cash 15,341 15,259 16,44
Slide 19: Growing Net Asset Value
© 2021 Trinity Capital Inc. | 19 GROWING NET ASSET VALUE Accretive NAV per Share Growth Net Asset Value – 4.7% increase this quarter Initial Public Offering in Q1 of 2021 $224.6 $228.6 $237.3 $238.7 $361.6 $379.7 $12.44 $12.61 $13.01 $13.03 $13.69 $14.33 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14
Slide 20: Net Asset Value per Share Bridge
© 2021 Trinity Capital Inc. | 20 NET ASSET VALUE (NAV) PER SHARE BRIDGE $10.0 $13.0 $13.5 $14.0 $14.5 $15.0 $12.5 $13.69 0.38 0.08 0.60 (0.12) (0.29) $14.33
Slide 21: Debt Capital Structure
© 2021 Trinity Capital Inc. | 21 Key borrowing types ($ in million) at 6/30/21 Funding Source Debt Commitment Outstanding Principle Undrawn Commitment Stated Maturity Interest Rate Notes: 2025 Unsecured Notes $125.0 $125.0 - January 16, 2025 7.0% Convertible Notes $50.0 $50.0 - December 11, 2025 6.0
Slide 22: Solid Shareholder Returns
© 2021 Trinity Capital Inc. | 22 $0.22 $0.49 $0.76 $1.03 $1.31 $1.60 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Cumulative Distributions per share Total Dividends Distributable Net Income covered dividends by 131% in Q2’2021 Strong Earnings and Divid
Slide 23: Portfolio Highlights
PORTFOLIO HIGHLIGHTS
Slide 24: Portfolio Diversification
(1) Based on Fair Market Value © 2021 Trinity Capital Inc. | 24 Industry Diversification(1) Geography Diversification(1) 28% 15% 13% 7% 6% 5% 5% 21% Professional, Scientific, and Technical Services Manufacturing Retail Trade Information Space Research and Technology Rental and Leasing Wholesale Trad
Slide 25: Portfolio Summary
© 2021 Trinity Capital Inc. | 25 PORTFOLIO SUMMARY (1) Based on Fair Market Value $128,021 $49,619 $22,438 Total Portfolio: By Type At Fair Value as of March 31, 2021 I n $ 0 0 0 Secured Loan Equipment Financing Equity Warrant $120,903 $52,515 $26,748 Total Portfolio: By Type At Fair Value as of Jun
Slide 26: Portfolio Trends
© 2021 Trinity Capital Inc. | 26 PORTFOLIO TRENDS (1) Based on outstanding principal (2) Based on Fair Market Value 91.9% 82.9% 74.6% 67.9% 50.7% 8.1% 17.1% 25.4% 32.1% 49.3% 2Q20 3Q20 4Q20 1Q21 2Q21 FIXED VS FLOATING DEBT INVESTMENTS (1) Fixed Floating 67.8% 64.3% 65.0% 62.6% 66.4% 25.3% 24.8% 23.9
Slide 27: Hypothetical Warrant Upside
© 2021 Trinity Capital Inc. | 27 HYPOTHETICAL WARRANT UPSIDE • Investment of $16.3 million (50%) • Proceeds of $32.6 million (2X) • Cost of $23.2 million • Potential gain of $9.4 million or $0.35 per share • Investment of $16.3 million (50%) • Proceeds of $48.8 million (3X) • Cost of $23.2 million •
Slide 28: Disciplined Credit Rating
© 2021 Trinity Capital Inc. | 28 $371 $380 $381 $443 $464 $518 2.9 3.2 3.2 3.2 3.2 3.1 1 1.5 2 2.5 3 3.5 $- $100 $200 $300 $400 $500 $600 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Total Debt Investments (FV, $ in million) Weighted Investment Credit Rating Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Very Stron
Slide 29: Diversified Portfolio
© 2021 Trinity Capital Inc. | 29 Select List of Current & Historical Investments DIVERSIFIED PORTFOLIO
Slide 30: Venture Capital and Lending Market
VENTURE CAPITAL AND LENDING MARKET
Slide 31: Venture Capital Market
Source: Pitchbook NVCA Venture Monitor Q2 2021 © 2021 Trinity Capital Inc. | 31 $30 $38 $37 $28 $32 $45 $42 $48 $74 $85 $82 $88 $143 $142 $164 $150 3,405 4,406 4,851 4,598 5,515 6,897 8,020 9,494 10,693 11,302 10,165 11,066 11,521 12,449 12,362 7,058 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 $-
Slide 32: Venture Capital Fundraising
© 2021 Trinity Capital Inc. | 32 $35 $32 $13 $19 $23 $25 $21 $38 $41 $49 $44 $72 $62 $81 $74 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q2 2021 Billions Capital Raised ($) US VC fundraising activity Source: Pitchbook NVCA Venture Moni
Slide 33: Venture Debt Market
© 2021 Trinity Capital Inc. | 33 (1) Pitchbook NVCA Venture Monitor Q1 2021 (2) Based on Management Estimates Opportunity in an underserved market There were about 10 significant venture debt lenders The top 3 largest players in the industry achieved < ~15% market share(2) $25 billion Market Opportu
Slide 34: Analyst Coverage
ANALYST COVERAGE
Slide 35: Extensive Industry Analyst Coverage
© 2021 Trinity Capital Inc. | 35 Followed by seven firms Trinity Capital is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Trinity Capital’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predict
Slide 36: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 37: Regulation & Structure
© 2021 Trinity Capital Inc. | 37 BUSINESS DEVELOPMENT COMPANY (BDC) REGULATED INVESTMENT COMPANY (RIC) Trinity Capital Inc. is an Internally Managed BDC under the 1940 Act and Intends to Elect be treated as a RIC for Federal Income Tax Purposes beginning with its Taxable Year ending December 31, 202
Slide 38: Thank You
We look forward to our growing partnership. THANK YOU