Slide 1: A National Leader in Growth Stage Lending: Q4 and Full Year 2021
A National Leader in Growth Stage Lending Fourth Quarter and Full Year 2021 Investor Presentation
Slide 2: Forward-looking statements
© 2022 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
© 2022 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
© 2022 Trinity Capital Inc. | 5 Market Capitalization 14 Year Track Record(4) Annualized Dividend Yield Portfolio(2) $254.8 Million Available Liquidity Liquidity(2) 65 Companies Warrant Positions 17 Companies Equity Positions $27.7 Billion Opportunities $1.69 Billion Fundings 221 Investments 131 Exi
Slide 6: Why Is Trinity Different
© 2022 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
© 2022 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: Term Loans
© 2022 Trinity Capital Inc. | 8 Term Loans Axiom Space is developing the world’s first commercial space station. ▪ Investor Syndicate C5 Capital, TQS Advisors, Declaration Partners ▪ Use of Loan General corporate purposes Petal's aim is to bring financial innovation and opportunity to everyone, usin
Slide 9: Equipment Financing
© 2022 Trinity Capital Inc. | 9 Equipment Financing Select Examples EQUIPMENT FINANCING 01 COMPANIES WITH CAPEX REQUIREMENTS Manufacturing Equipment and Hard Assets 02 HARDWARE AS A SERVICE Equipment at Customer Location 03 INDUSTRY AGNOSTIC Nature’s Fynd is a food company creating versatile alterna
Slide 10: Current Market Conditions and Opportunities
© 2022 Trinity Capital Inc. | 10 Continued investment in our team and platform ▪ We’ve added to the team over the last year ▪ Robust Pipeline activity – 44% increase in opportunities compared to 2020 The VC ecosystem has been incredibly resilient ▪ Venture Capital funding nearly doubled in 2021 - $3
Slide 11: Partnership with Top VCs and Technology Banks
© 2022 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
© 2022 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 December 31, 2021. Past performance is not indicative of future results. Investment
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Q4 2021 Highlights
© 2022 Trinity Capital Inc. | 14 ▪ Total Investment Income of $23.6M ▪ Net Investment Income (“NII”) of $10.6M ▪ Net Interest Margin (“NIM”) of $10.6% ▪ NII per share of $0.39 provides 108% distribution coverage ▪ Increased the fourth quarter dividend distribution to $0.36 per share, an increase of
Slide 15: Quarterly Statements of Operations
© 2022 Trinity Capital Inc. | 15 For the three months ended (In 000’s, except per share amounts) 12/31/2021 09/30/2021 06/30/2021 3/31/2021 12/31/2020 Total Investment Income $23,607 $21,790 $19,476 $17,320 $15,340 Interest expense and other debt financing costs 6,241 5,112 4,425 4,616 4,340 Compens
Slide 16: Income Source and Portfolio Yield Trends
© 2022 Trinity Capital Inc. | 16 INCOME SOURCE & PORTFOLIO YIELD TRENDS $448 $464 $521 $578 $741 13.0% 13.7% 13.4% 13.1% 13.2% 14.5% 15.6% 15.9% 15.8% 15.2% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% $200 $300 $400 $500 $600 $700 $800 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 PORTFOLIO YIELDS Total Deb
Slide 17: Net Investment Income per Share Bridge
© 2022 Trinity Capital Inc. | 17 NET INVESTMENT INCOME PER SHARE BRIDGE
Slide 18: Balance Sheet
© 2022 Trinity Capital Inc. | 18 BALANCE SHEET
Slide 19: Growing Net Asset Value
© 2022 Trinity Capital Inc. | 19 GROWING NET ASSET VALUE Accretive NAV per Share Growth Net Asset Value – 11.9% increase this quarter Initial Public Offering in Q1 of 2021 $224.6 $228.6 $237.3 $238.7 $361.6 $379.7 $399.0 $446.5 $12.44 $12.61 $13.01 $13.03 $13.69 $14.33 $14.70 $16.40 $0.00 $2.00 $4.0
Slide 20: Net Asset Value per Share Bridge
© 2022 Trinity Capital Inc. | 20 NET ASSET VALUE (NAV) PER SHARE BRIDGE $13.0 $14.0 $15.0 $16.0 $17.0 $14.70 0.39 0.27 1.40 $16.40 (0.04) (0.36) 0.03
Slide 21: Debt Capital Structure
© 2022 Trinity Capital Inc. | 21 Diversified Borrowings ($ in million) at 12/31/21 Funding Source Debt Commitment Outstanding Principle Undrawn Commitment Stated Maturity Interest Rate Notes: 2025 Unsecured Notes $125 $125 - January 16, 2025(1) 7.0% Convertible Notes $50 $50 - December 11, 2025 6.0%
Slide 22: Solid Shareholder Returns
© 2022 Trinity Capital Inc. | 22 $0.22 $0.49 $0.76 $1.03 $1.31 $1.60 $1.93 $2.29 $- $0.50 $1.00 $1.50 $2.00 $2.50 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Cumulative Distributions per share Total Dividends Distributable Net Income covered dividends by 108% in Q4’2021 Strong Earnings and Divid
Slide 23: Portfolio Highlights
PORTFOLIO HIGHLIGHTS
Slide 24: Portfolio Diversification
(1) Based on Fair Market Value © 2022 Trinity Capital Inc. | 24 Industry Diversification(1) Geography Diversification(1) 25.4% 18.5% 12.3% 7.5% 5.1% 4.5% 4.7% 22.0% Professional, Scientific, and Technical Services Manufacturing Information Healthcare and Social Assistance Real Estate Retail Trade Sp
Slide 25: Portfolio Summary
© 2022 Trinity Capital Inc. | 25 PORTFOLIO SUMMARY (1) Based on Fair Market Value $468,869 $108,794 $72,066 $27,517 Total Portfolio: By Type At Fair Value as of September 30, 2021 I n $ 0 0 0 Secured Loan Equipment Financing Equity Warrant $551,894 $184,074 $100,732 $36,770 Total Portfolio: By Type
Slide 26: Portfolio Trends
© 2022 Trinity Capital Inc. | 26 PORTFOLIO TRENDS (1) Based on outstanding principal (2) Based on Fair Market Value 74.6% 67.9% 50.7% 40.0% 43.2% 25.4% 32.1% 49.3% 60.0% 56.8% 4Q20 1Q21 2Q21 3Q21 4Q21 FIXED VS FLOATING DEBT INVESTMENTS(1) Fixed Floating 65.0% 62.6% 66.4% 69.2% 63.2% 23.9% 20.2% 16.1
Slide 27: Hypothetical Warrant Upside
© 2022 Trinity Capital Inc. | 27 HYPOTHETICAL WARRANT UPSIDE • Investment of $19.1 million (50%) • Proceeds of $38.1 million (2X) • Cost of $26.5 million • Potential gain of $11.6 million or $0.43 per share • Investment of $19.1 million (50%) • Proceeds of $57.2 million (3X) • Cost of $26.5 million
Slide 28: Consistent and Disciplined Credit Risk Ratings
© 2022 Trinity Capital Inc. | 28 $371 $380 $381 $443 $464 $518 $578 $736 2.9 3.2 3.2 3.2 3.2 3.1 3.1 3.0 1 1.5 2 2.5 3 3.5 $- $100 $200 $300 $400 $500 $600 $700 $800 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Total Debt Investments (FV, $ in million) Weighted Investment Credit Rating Q4 2021 Q3
Slide 29: Diversified Portfolio: Select Investments
© 2022 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: US VC Deal Activity
© 2022 Trinity Capital Inc. | 31 US VC Deal Activity VENTURE CAPITAL MARKET Source: Pitchbook NVCA Venture Monitor Q4 2021 $30 $38 $37 $28 $32 $45 $42 $49 $75 $86 $83 $88 $144 $145 $167 $330 3,405 4,406 4,851 4,598 5,515 6,900 8,026 9,510 10,713 11,344 10,215 11,109 11,606 12,490 12,173 17,054 - 2,0
Slide 32: US VC Fundraising Activity
© 2022 Trinity Capital Inc. | 32 US VC Fundraising Activity VENTURE CAPITAL FUNDRAISING Source: Pitchbook NVCA Venture Monitor Q4 2021 $35 $32 $13 $19 $23 $25 $22 $39 $42 $50 $45 $74 $71 $87 $128 $- $20 $40 $60 $80 $100 $120 $140 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 33: Venture Debt Market
© 2022 Trinity Capital Inc. | 33 VENTURE DEBT MARKET $4 $8 $8 $11 $17 $15 $15 $25 $32 $33 $30 1,071 1,371 1,654 2,031 2,551 2,424 2,652 2,776 3,145 3,074 3,172 - 500 1,000 1,500 2,000 2,500 3,000 3,500 $- $5 $10 $15 $20 $25 $30 $35 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 # of Deals Do
Slide 34: Analyst Coverage
ANALYST COVERAGE
Slide 35: Extensive Industry Analyst Coverage
© 2022 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 and Structure
© 2022 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 has Elected to be treated as a RIC for Federal Income Tax Purposes beginning with its Taxable Year ending December 31, 2020
Slide 38: Thank You
We look forward to our growing partnership. THANK YOU