(Source: Business Wire)Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), the leading specialty finance company providing venture debt and equity to venture capital and private equity-backed technology and life science companies at all stages of development, today announced that a select group of its Life Sciences portfolio companies, Novasys Medical and AVEO Pharmaceuticals have each successfully raised additional equity capital. Additionally, Portola Pharmaceuticals and Merck & Co. entered into a worldwide license agreement. These three Life Sciences portfolio companies continue to show progress toward development milestones despite continued challenges within the current market.

"There is no question that we continue to experience a tough capital raising environment for many of our portfolio companies; however, we are also starting to see some very encouraging signs of improvements as evidenced by the successful capital raising and strategic partnerships from select portfolio companies, especially in the Life Sciences sector," said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. "We are still seeing a very long capital fund raising process for many of our portfolio companies, which we expect will continue through the remainder of 2009, adding funding uncertainty to a select group of our companies. That said, select Hercules' portfolio companies continue to successfully raise capital and reach significant milestones in the face of a myriad of challenges as a result of our distressed economic environment. We remain committed to supporting and working with many of our portfolio companies in the wake of a difficult economic environment especially those companies that demonstrate strength and quality in their business models," continued Henriquez.

Summary of Portfolio Companies Securing Additional Capital:

Novasys Medical, Inc., developer of the Renessa® treatment for female stress urinary incontinence, recently announced in July 2009, that it received $18.95 million in the second tranche of its previously announced Series D preferred stock financing. Hercules participated in the second tranche as well as the first tranche in May 2008.

AVEO Pharmaceuticals, Inc., a late-stage biopharmaceutical company focused on the discovery and development of novel, targeted cancer therapeutics, recently announced in July 2009, the expansion of a drug discovery and translational research collaboration alliance with OSI Pharmaceuticals, Inc. (NASDAQ:OSIP).