FORM 10-Q  SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended June 30, 2009  [  ] 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 814-00640  Venture Lending & Leasing IV, Inc. (Exact Name of Registrant as specified in its charter) Maryland20-0372373(State or other jurisdiction of incorporation or  organization)(I.R.S. Employer Identification No.)  2010 North First Street, Suite 310San Jose, CA 95131(Address of principal executive offices)(Zip Code)  (408) 436-8577 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) 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. Yesx   No  ̈ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the  preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ̈   No  ̈ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer”, “accelerated filer”, and ‘smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ̈ Accelerated filer  ̈Non-accelerated filer   x        Smaller reporting company ̈ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ̈   No x APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.Yes ̈   No  ̈ 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 August 13, 2009 Common Stock, $.001 par value 100,000  VENTURE LENDING & LEASING IV, INC.  INDEX  PART I -- FINANCIAL INFORMATION  Item 1. Financial Statements  Condensed Statements of Assets and Liabilities (Unaudited) As of June 30, 2009 and December 31, 2008  Condensed Statements of Operations (Unaudited) For the three and six months ended June 30, 2009 and 2008  Condensed Statements of Changes in Net Assets (Unaudited) For the three and six months ended June 30, 2009 and 2008  Condensed Statements of Cash Flows (Unaudited) For the six months ended June 30, 2009 and 2008  Notes to Condensed Financial Statements (Unaudited)  Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations  Item 3. Quantitative & Qualitative Disclosures About Market Risk  Item 4. Controls and Procedures  Item 4T. 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. Submission of Matters to a Vote of Security Holders  Item 5. Other Information  Item 6. Exhibits  SIGNATURES  2


VENTURE LENDING & LEASING IV, INC.  CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) AS OF JUNE 30, 2009 AND DECEMBER 31, 2008  June 30, 2009December 31, 2008ASSETSLoans, at estimated fair value(Cost of $153,373,629 and $236,960,903)$           135,473,775$           225,801,890Cash and cash equivalents9,568,26553,634,366Other investment (Cost of $775,000)40,000-Other assets1,901,1113,919,063Total assets146,983,151283,355,319LIABILITIESBorrowings under debt facility-68,015,512Accrued management fees918,6451,760,033Accounts payable and other accrued liabilities228,6101,689,416Total liabilities1,147,25571,464,961NET ASSETS$           145,835,896$           211,890,358Analysis of Net Assets:Capital paid in on shares of capital stock$           245,025,000$           245,025,000Return of capital distributions(78,508,541)(19,026,404)Accumulated deficit(20,680,563)(14,108,238)Net assets (equivalent to $1,458.36 and $2,118.90 per share based on100,000 shares of capital stock outstanding - see Note 5)$           145,835,896$           211,890,358    See Notes to Condensed Financial Statements


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VENTURE LENDING & LEASING IV, INC.  CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008  For the Three Months EndedFor the Three Months EndedFor the Six Months EndedFor the Six Months EndedJune 30, 2009June 30, 2008June 30, 2009June 30, 2008INVESTMENT INCOME:Interest on loans$     5,662,326$   11,170,340$   12,806,919$    24,018,047Other interest and other income1,339136,554194,918387,009Total investment income5,663,66511,306,89413,001,83724,405,056EXPENSES:Management fees918,6452,087,9062,289,2504,364,981Interest expense534,9481,920,1971,744,5283,888,691Banking and professional fees154,201663,445313,1341,205,033Other operating expenses26,40940,88255,49494,039Total expenses1,634,2034,712,4304,402,4069,552,744Net investment income4,029,4626,594,4648,599,43114,852,312Net realized loss from investments(2,217,866)(260,284)(2,440,715)(260,270)Net change in unrealized loss frominvestments(2,139,214)(4,205,716)(7,475,842)(6,659,911)Net realized and unrealized gain (loss)from hedging activities(66,794)1,266,651(145,129)(265,005)Net realized and unrealized lossfrom investment and hedging activities(4,423,874)(3,199,349)(10,061,686)(7,185,186)Net increase (decrease) in net assetsresulting from operations$      (394,412)$     3,395,115$  (1,462,255)$      7,667,126Net increase (decrease) in net assetsresulting from operations per share$            (3.94)$            33.95$         (14.62)$            76.67Weighted average shares outstanding100,000100,000100,000100,000   See Notes to Condensed Financial Statements


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VENTURE LENDING & LEASING IV, INC.  CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008  For the ThreeFor the ThreeFor the SixFor the SixMonths EndedMonths EndedMonths EndedMonths EndedJune 30, 2009June 30, 2008June 30, 2009June 30, 2008Net increase (decrease) in net assets resultingfrom operations:Net investment income$        4,029,462$        6,594,464$        8,599,431$      14,852,312Net realized loss from investments(2,217,866)(260,284)(2,440,715)(260,270)Net change in unrealized loss frominvestments(2,139,214)(4,205,716)(7,475,842)(6,659,911)Net realized and unrealized gain (loss)from hedging activities(66,794)1,266,651(145,129)(265,005)Net increase (decrease) in net assetsresulting from operations(394,412)3,395,115(1,462,255)7,667,126Distributions of income to shareholder(1,253,513)(11,538,370)(5,110,070)(22,494,044)Return of capital to shareholder(36,499,635)(2,000,000)(59,482,137)(2,000,000)Capital share transactions-2,500,000-2,500,000Total decrease(38,147,560)(7,643,255)(66,054,462)(14,326,918)Net assetsBeginning of period183,983,456222,171,843211,890,358228,855,506End of period$    145,835,896$    214,528,588$    145,835,896$    214,528,588    See Notes to Condensed Financial Statements


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VENTURE LENDING & LEASING IV, INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008 For the Six Months Ended June 30, 2009For the Six Months Ended June 30, 2008CASH FLOWS FROM OPERATING ACTIVITIES:Net increase (decrease) in net assets resulting from operations$                  (1,462,255)$                      7,667,126Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activitiesNet realized loss from investments2,440,715260,270Net change in unrealized loss from investments7,475,8426,659,911Net unrealized loss (gain) from hedging activities(903,517)265,005Receipt of stock in lieu of fees(138,594)Amortization of deferred costs related to borrowing facility580,951141,147Net decrease in other assets1,438,019356,539Net decrease in accounts payable, otheraccrued liabilities, and accrued management fees(1,398,675)(623,495)Origination of loans(4,113,299)(73,726,386)Principal payments on loans79,866,431115,299,838Acquisition of equity securities(60,188)(3,931,167)Net increase in other investment(775,000)-Net cash provided by operating activities82,950,43052,368,788CASH FLOWS FROM FINANCING ACTIVITIES:Cash distribution to shareholder(59,000,000)(19,300,000)Contributions from shareholder-2,500,000Borrowings under debt facility-5,000,000Repayments of debt facility(68,015,512)(46,000,000)Payment of bank facility fees and costs(1,019)(5,854)Net cash used in financing activities(127,016,531)(57,805,854)Net decrease in cash and cash equivalents(44,066,101)(5,437,066)CASH AND CASH EQUIVALENTS:Beginning of period53,634,36614,671,135End of period$                      9,568,265$                       9,234,069SUPPLEMENTAL DISCLOSURES:CASH PAID DURING THE YEAR FOR:Interest$                     2,054,376$                       4,140,644NON-CASH ACTIVITIES:Distributions of equity securities to shareholder$                     5,592,207$                       5,194,044Receipt of equity securities as repayment of loan$                     5,393,426$                    1,262,877


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See Notes to Condensed Financial Statements VENTURE LENDING & LEASING IV, INC.  NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)  1. ORGANIZATION AND OPERATIONS OF THE FUND Venture Lending & Leasing IV, Inc., (the Fund), was incorporated in Maryland on October 31, 2003 as a nondiversified closed-end management investment company electing status as a business development company (BDC) under the Investment Company Act of 1940 and is managed by Westech Investment Advisors, Inc. (Manager or Management).  One hundred percent of the stock of the Fund is held by Venture Lending & Leasing IV, LLC (the Company).  Prior to commencing its operations on May 28, 2004, the Fund had no operations other than the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in November 2003.  This issuance of stock was a requirement in order to apply for a finance lender's license from the California Commissioner of Corporations.  In the Manager's opinion, the accompanying 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 accounting principles generally accepted in the United States of America 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 and six months ended June 30, 2009 are not necessarily indicative of what the results would be for a full year.  It is suggested that these financial statements 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, 2008.  Certain amounts in the prior period financial statements have been reclassified to conform to the current financial statement presentation.  These reclassifications had no impact on previously reported net increase in net assets resulting from operation or net assets.  2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interest Income Interest income on loans is recognized using the effective interest method including amounts from the amortization of discounts resulting from the allocation of amounts ascribed to equity securities received as part of the loan transaction.  Additionally, fees received as part of the transaction are added to the loan discount and amortized over the life of the loan.  Valuation Procedures  The Fund accounts for loans at fair value in accordance with the Valuation Methods below.  All valuations are determined under the direction of the Manager, in accordance with this Policy.  The Funds loans are valued in connection with the issuance of its periodic financial statements, the issuance or repurchase of the Funds shares at a price equivalent to the current net asset value per share, and at such other times as required by law.  On a quarterly basis, Management will submit to the Board of Directors (Board) a Valuation Report, which details the rationale for the valuation of investments.  Valuation Methods At June 30, 2009 and December 31, 2008, the financial statements include nonmarketable investments ($135,513,775 and $225,801,890 or approximately 92% and 80% of total assets, respectively), with fair values


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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. Venture loans are generally held to maturity as there is no secondary market for the loans and are recorded at estimated fair value.  The determination of fair value is based on the amount for which an investment could be exchanged in a current sale, which assumes an orderly disposition over a reasonable period other than in a forced sale. Management considers the fact that no ready market exists for substantially all of the investments held by the Fund. Management determines whether to adjust the estimated fair value of a loan based on a credit analysis of the borrower, which generally includes consideration of several factors, including but not limited to the borrowers payment history, available cash and burn rate, revenues, net income or loss, the likelihood that the borrower will be able to secure additional financing in the future, as well as an evaluation of the general interest rate environment.  The amount of any valuation adjustment is determined based upon 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. Money market funds and debt instruments held as Cash and Cash Equivalents are valued at their most recently posted net asset value, if available, or at amortized cost, provided such amount is not materially different from quoted price. Warrants and Stock Warrants and stock that are received in connection with loan transactions generally will be assigned a fair value at the time of acquisition.  These securities are then distributed by the Fund to the Company at the assigned value.  Warrants are valued based on a modified Black-Scholes option pricing model which takes into account underlying stock value, expected term, volatility, risk-free interest rate, among other factors.  Warrants are typically distributed immediately upon receipt to the Company. Nonaccrual Loans The Funds policy is to place a loan on nonaccrual status when the loan stops performing and management deems that it is unlikely that the loan will return to performing status.  When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed for the quarter in which the loan was placed on nonaccrual status.  Any uncollected interest related to quarters prior to when the loan was placed on nonaccrual 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. As of June 30, 2009 and December 31, 2008, loans with a cost basis of $29.2 million and $19.7 million and a fair value of $11.3 million and $8.6 million, respectively, have been classified as nonaccrual. 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 commitment fee less any applicable legal costs becomes recognized as other income after the commitment expires. Interest Rate Swap Agreement The Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133), as amended by SFAS No. 138, establishes accounting and reporting standards requiring that every derivative instrument (including certain


8


derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value.  For investment companies such as the Fund, SFAS 133 requires that changes in the derivatives fair value be recognized currently in earnings. The Fund had previously entered into an interest rate swap agreement to hedge its interest rate on its borrowings under its debt facility. Unrealized gains and losses from hedging activities have been separately reported from unrealized gains and losses from investments and are included in realized and unrealized gain (loss) from hedging activities in the condensed statement of operations.  Also included in realized and unrealized gain (loss) from hedging activities is the net interest received or paid on the interest rate swap transactions beginning with the quarter ended September 30, 2008 (amounts were previously included in interest expense and were not considered material). The fair value of the interest rate swap is recorded in other liabilities.  The valuation of the swap agreement is based on future expected interest rates on the notional principal balance remaining which is comparable to what a prospective acquirer would pay on the measurement date. On June 9, 2009, the Fund paid approximately $0.3 million in order to terminate its swap agreement in connection with the termination of the debt facility (see Note 6). This amount has been recorded in realized and unrealized gain (loss) from hedging activities in the condensed statement of operations. Deferred Bank Fees Deferred bank fees have been amortized over the estimated useful life of the facility. As of June 30, 2009, the deferred bank fees and costs associated with the debt facility have been fully amortized because of the termination of the debt facility (see Note 6). Recently Issued Accounting Pronouncements In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of SFAS 133(SFAS 161). SFAS No. 161 requires entities with derivative instruments to provide enhanced disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts and gains and losses on derivative instruments, and disclosures about credit risk related contingent features in derivative agreements.  The required information is intended to provide financial statement users an enhanced understanding of how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS No. 133) and how derivative instruments and related hedge items affect an entitys financial position, financial performance and cash flows. It is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.  This statement was effective for the Fund in the first quarter of fiscal 2009.  The adoption of this statement did not have a material effect on the Funds financial statements. In April 2009, the FASB issued FASB Staff Position (FSP) SFAS No. 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (SFAS 157-4).This FSP provides additional guidance for estimating fair value in accordance with FASB Statement No. 157, Fair Value Measurements(SFAS 157), when the volume and level of activity for the asset or liability have significantly decreased. This FSP also includes guidance on identifying circumstances that indicate a transaction is not orderly. This FSP emphasizes that even if there has been a significant decrease in the volume and level of activity for the asset or liability and regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This FSP is effective for interim and annual periods ending after June 15, 2009. The adoption of this statement did not have a material effect on the Funds financial statements.  In April 2009, the FASB issued FSP FAS 107-1 and Accounting Principles Board Opinion (APB) 28-1, Interim Disclosures about Fair Value of Financial Instruments. (FAS107-1). The FSP requires the fair


9


value disclosure of financial instruments mandated by SFAS No. 107, Disclosures about Fair Value of Financial Instruments to be reported for interim periods. The FSP, which applies only to disclosures, is effective for the quarter ending June 30, 2009 with earlier application permitted. The adoption of this statement did not have a material effect on the Funds financial statements.  In June 2009, the FASB issued guidance with the objective to replace original hierarchy of accounting principles and to establish the FASBAccounting Standards Codification as the source of authoritativeaccounting principles recognized by the FASB. This is to be applied by nongovernmentalentities in the preparation of financial statements in conformity with Generally Accepted Accounting Standards (GAAP). Rules andinterpretive releases of the Securities and Exchange Commission (SEC) under authorityof federal securities laws are also sources of authoritative GAAP for SEC registrants. The guidance is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Fund is currently evaluating the impact, if any, that the adoption of the guidance will have on the Funds financial statements.  Tax Status The Fund plans on qualifying as a Regulated Investment Company (RIC) and elected RIC treatment when it filed its tax return in 2005.  As long as the Fund qualifies as a RIC, it will not pay any federal or state corporate income tax on income that is distributed to its shareholder (pass-through status).  Should the Fund not qualify as a RIC or lose its qualification as a RIC, it could be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to its shareholder), and all distributions out of its earnings and profits will be taxable to its shareholder as ordinary income.  As of June 30, 2009, the Fund had no uncertain tax positions. The Fund's tax years open to examination by major jurisdictions are 2004 and forward.  3. SUMMARY OF INVESTMENTS Loans generally are made to borrowers pursuant to commitments whereby the Fund agrees to finance assets and provide working capital up to a specified amount for the term of the commitments, upon the terms and subject to the conditions specified by such commitment.  As of June 30, 2009, the Fund's investments in loans are primarily to companies based within the United States and are diversified among borrowers in the industries shown below.  The percentage of net assets that each industry group represents is shown with the industry totals below  (the sum of the percentages does not equal 100 percent because the percentages are based on net assets as opposed to total loans).  Effective January 1, 2008, the Fund adopted SFAS 157, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale.  Loan balances are summarized by borrower.  Typically a borrower's balance will be composed of several loans drawn under a commitment made by the Fund with the interest rate on each loan fixed at the time each loan is funded.  Each loan drawn under a commitment has a different maturity date and amount.  For the three month periods ended June 30, 2009 and 2008, the weighted average interest rate on performing loans was 15.75% and 14.07%, respectively.   For the six month periods ended June 30, 2009 and 2008, the weighted average interest rate on performing loans was 15.17% and 14.30%, respectively.  Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including volatility, early payoffs, and recovery of interest from non-performing assets.


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Loans as of June 30, 2009 are in non-affiliates and consist of the following:  Percentage ofEstimated FairPar ValueFinalBorrowerNet AssetsValue 6/30/096/30/09Maturity DateBiotechnologyAcumen Pharmaceuticals, Inc.$215,867$215,8676/1/10Bioabsorbable Therapeutics, Inc.488,657988,657*Prometic Bio Therapeutics Inc.897,275897,2758/1/09SanBio, Inc.997,003997,0036/1/10Trellis Bioscience, Inc.373,457373,45712/1/10Subtotal:2.0%$2,972,259$3,472,259Carrier NetworkingAsoka, Inc.$379,493$379,4931/1/11Demi Energy, Inc.96,16196,161*Kodiak Networks, Inc.467,007467,0074/1/10Opvista, Inc.807,3501,607,350*Overture Networks, Inc.735,555735,5552/1/10Wavebender, Inc.105,643105,6431/1/11Subtotal:1.8%$2,591,209$3,391,209Computers & StorageCloudshield, Inc.$1,278,264$1,278,2644/1/11D-Wave Systems, Inc.133,850133,8507/1/10Gear Six, Inc.398,331398,3317/1/10NComputing, Inc.683,576683,5769/1/10Panta Systems, Inc.78,693808,693*Sepaton, Inc.724,508724,50810/1/09Teneros, Inc.486,947486,94710/1/09Vidyo, Inc.1,248,5991,248,59910/1/10Subtotal:3.5%$5,032,768$5,762,768Enterprise NetworkingBluesocket, Inc.$353,351$353,35112/1/09Envivio, Inc.2,197,9682,197,9681/1/11Informative, Inc.29,99929,9997/1/09NeoPath Networks, Inc.615,311615,31111/1/09PacketMotion, Inc.1,054,3231,054,3233/1/11Vyatta, Inc.1,170,2321,170,2322/1/11Subtotal:3.7%$5,421,184$5,421,184InternetAggregate Knowledge, Inc.$1,015,216$1,015,21612/1/11


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Blekko, Inc.382,313382,31312/1/11BuzzLogic Inc.694,164694,1648/1/11Collarity, Inc.715,820715,82012/1/10Cuil, Inc.4,158,7094,158,70912/1/12Delve Networks, Inc.403,342403,3427/1/11Digital Railroad, Inc.6,965756,965*Donnerwood Media, Inc.584,881584,8815/1/11EForce Media, Inc.762,4321,512,432*Flock, Inc.423,404423,4045/1/10Genius, Inc.168,941168,9418/1/10iGroup Network, Inc.90,58190,5818/1/10Inigral, Inc.119,579119,5798/1/11Insider Guides, Inc.1,115,9811,115,9814/1/11Koders, Inc.204,704204,7045/1/11Like.com65,64865,64811/1/09Loomia, Inc.430,699430,69912/1/11Multiply, Inc.722,173722,1739/1/11Philotic,  Inc.125,280125,2807/1/11ProQuo, Inc.40,02180,021*Quantcast Corporation4,525,5284,525,5286/1/12Radar Networks, Inc.488,976488,97610/1/10RPM Communications, Inc.62,632222,632*Sharpcast, Inc.1,636,0121,636,0125/1/11SnapJot, Inc.102,040102,04010/1/09TheFind, Inc.957,531957,53112/1/11ThisNext, Inc.541,908541,9085/1/11Tribe Networks, Inc.-465,007*Ustream.TV, Inc.127,995127,99510/1/10VetCentric, Inc.1,508,5901,508,59010/1/11Videojax, Inc.323,719323,71911/1/11Wholelife Connect, Inc.79,174497,174*Youku.com, Inc.3,580,7833,580,7831/1/12Subtotal:17.9%$26,165,741$28,748,748Medical DevicesAccuri Cytometers, Inc.$530,834$530,8349/1/10AirXpanders, Inc.519,364519,3649/1/11Ample Medical, Inc.144,398144,39812/1/10Biomerix Corporation1,194,2051,194,20512/1/11Broncus Technologies, Inc.4,051,2424,051,2428/1/11CyberHeart, Inc.1,240,5261,240,5268/1/11Emphasys Medical, Inc.12,7301,637,730*Evalve, Inc.531,809531,8098/1/09Evera Medical, Inc.554,032554,0329/1/11HandyLab, Inc.1,436,5821,436,58212/1/10


12


iBalance Medical, Inc.972,852972,8529/1/10Intellidx, Inc.1,504,2141,504,2144/1/11Myocor, Inc.15,991165,991*MyoScience, Inc.793,136793,1366/1/11Nellix, Inc.340,777340,7777/1/11Percutaneous Systems, Inc.128,858128,8589/1/09Softscope Medical Technologies, Inc.355,638355,6386/1/11Varix Medical Corporation207,717207,7174/1/11VasoNova, Inc.245,882245,8826/1/11Subtotal:10.1%$14,780,787$16,555,787Other HealthcareAdvanced ICU Care, Inc.$186,075$186,07510/1/10Chakshu Research, Inc.449,454949,454*NanoSphere, Inc.3,022,4123,022,4128/1/10Pharmacy TV Network, Inc.-336,005*Skylight Healthcare Systems, Inc.3,525,3823,525,38210/1/11Subtotal:4.9%$7,183,323$8,019,328Other TechnologyEoPlex Tehcnologies, Inc.$712,985$712,9856/1/11Integrity Block, Inc.105,567105,56712/1/11Nanoconduction, Inc.831,360931,360*Nanogram Corporation800,585800,58512/1/10Nanosolar, Inc.299,511299,5115/1/10Nanostellar, Inc.76,29976,2997/1/09Oryxe Energy International, Inc.636,385636,38512/1/10Sezmi Corporation2,528,6882,528,6882/1/12Solaria Corporation3,489,6423,489,6423/1/11Sub-One Technology, Inc.2,319,6482,319,64812/1/11Subtotal:8.1%$11,800,670$11,900,670SecurityCipherOptics, Inc.$646,302$646,3023/1/10Dragnet Solutions, Inc.742,608742,6086/1/11Guardian Analytics, Inc.815,920815,9208/1/11Nevis Networks, Inc.153,762333,762*Safend, Inc.555,942555,94212/1/09TrustedID, Inc.1,128,2991,128,2996/1/11Vericept Corporation840,046840,046*Subtotal:3.3%$4,882,879$5,062,879Semiconductors & Equipment


13


Alereon, Inc.$1,071,891$1,071,8917/1/10Azuro, Inc.950,358950,3582/1/10Bitwave Semiconductor, Inc.242,673242,67312/1/09Celestial Semiconductor, Inc.277,3981,177,398*Cswitch Corporation350,426480,426*Discera, Inc.308,398308,3981/1/11Gigafin Networks, Inc.73,4141,773,414*Insilica, Inc.756,307756,3077/1/10Intergrated Materials, Inc.522,640522,6403/1/10Intelleflex Corporation561,1861,131,186*InvenSense, Inc.457,622457,6221/1/11KeyEye Communications, Inc.749,7473,326,650*Luminescent Technologies, Inc.226,628226,6287/1/09RMI Corporation3,515,1313,515,1317/1/10Siport, Inc.1,192,6501,192,6507/1/11Teknovus, Inc.422,461422,4613/1/10Tela Innovations, Inc.248,591248,59110/1/10Zenverge, Inc.1,711,0791,711,0797/1/11Subtotal:9.4%$13,638,600$19,515,503Software5Square Systems Corporation$-$1,043,939*Anchor Intelligence, Inc.822,005822,00512/1/11Arena Solutions, Inc.1,012,9371,012,9371/1/10Athena Design Systems, Inc.184,614184,614*Berkeley Design Automation, Inc.821,071821,0714/1/11BlueRoads Corporation176,6492,446,649*Bocada, Inc.289,359289,35910/1/09Canopy Financial, Inc.1,291,7581,291,7587/1/11Cloudmark, Inc.1,220,6171,220,6173/1/11Demandbase, Inc.434,353434,35311/1/10Emergent Game Technologies, Inc.81,56281,5627/1/09Enkata Technologies, Inc.90,71290,7124/1/10Evincii, Inc.128,015128,01510/1/10Future Point Systems, Inc.180,696180,6964/1/12Gazillion, Inc.1,777,2441,777,2443/1/11Gizmo5 Technologies, Inc.933,4761,398,476*Integrien, Inc.1,468,8831,468,8837/1/10IT Structures, Ltd.131,246131,2469/1/10JasperSoft, Inc.1,430,5971,430,5975/1/11Kabira Technologies, Inc.1,548,7861,548,78612/1/10Kareo, Inc.123,976123,97612/1/10Market6, Inc.550,738550,7387/1/10MetaCarta, Inc.401,613401,61311/1/09Orb Networks, Inc.231,924231,9248/1/10


14


RingCube Technologies, Inc.873,274873,27410/1/11Steelwedge Software, Inc.1,288,2591,288,259*Ultriva, Inc.393,869393,86912/1/09Universal Ad, Inc.406,405406,40511/1/10Xtime, Inc.270,038270,0381/1/11Zoove Corporation797,556797,5567/1/11Subtotal:13.3%$19,362,232$23,141,171Technology ServicesNeutral Tandem, Inc.$2,043,802$2,043,8023/1/10OpSource, Inc.3,621,5333,621,53312/1/11SG Micro, Inc.518,973518,9734/1/11Subtotal:4.2%$6,184,308$6,184,308WirelessCellfire, Inc.$1,609,368$1,609,3684/1/11DeFi Mobile, Ltd.240,953240,9532/1/11Dilithium Networks, Inc.1,961,4481,961,4486/1/11Emotive Communications, Inc.481,236481,2361/1/11Hands-On Mobile, Inc.1,287,5631,287,5635/1/10July Systems, Inc.523,480523,480*Magnolia Broadband, Inc.161,558161,5587/1/09Nextivity, Inc.1,487,9042,227,904*Ortiva Wireless, Inc.1,313,0581,313,0585/1/11Quickoffice, Inc.243,641243,6417/1/10S5 Wireless, Inc.1,445,3941,445,3941/1/12SandLinks, Inc.431,485431,4856/1/10Send Me, Inc.1,931,8281,931,8284/1/12SmartDrive Systems, Inc.476,614476,6146/1/10Venturi Wireless, Inc.663,103663,10311/1/10Vivotech, Inc.227,279227,2798/1/09Wavion Inc.779,494779,4947/1/10WiSpry, Inc.192,409192,4094/1/10Subtotal:10.6%$15,457,815$16,197,815Total: (Cost of $153,373,629)92.9%$135,473,775$153,373,629  * As of June 30, 2009 loans with a cost basis of $29.2 million and a fair value of $11.3 million have been classified as nonaccrual. These loans have been accelerated from original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.  Loans as of December 31, 2008 are in non-affiliates and consist of the following: Percentage ofEstimated FairPar ValueFinal


15


BorrowerNet AssetsValue 12/31/0812/31/08Maturity DateBiotechnologyAcumen Pharmaceuticals, Inc.$416,309$416,3098/1/10Bioabsorbable Therapeutics, Inc.988,657988,657*LightSpeed Genomics, Inc.267,043267,0436/1/11Prometic Bio Therapeutics, Inc.3,387,8003,387,8008/1/09SanBio, Inc.1,859,3761,859,37610/1/10Trellis Bioscience, Inc.560,046560,04612/1/10Subtotal:3.5%$7,479,231$7,479,231Carrier NetworkingAsoka, Inc.$546,096$546,0963/1/10Demi Energy, Inc.121,702121,7024/1/11Kodiak Networks, Inc.711,785711,7854/1/10Opvista, Inc.1,695,8641,695,8646/1/10Overture Networks, Inc.1,438,0221,438,0222/1/10Wavebender, Inc.345,666345,6669/1/10Subtotal:2.3%$4,859,135$4,859,135Computers & StorageCloudshield, Inc.$1,815,027$1,815,0274/1/11D-Wave Systems, Inc.231,049231,0497/1/10Gear Six, Inc.586,852586,8527/1/10NComputing, Inc.906,331906,3319/1/10Panta Systems, Inc.218,693808,693*Sepaton, Inc.1,751,4381,751,43810/1/09Teneros, Inc.985,398985,39810/1/09Vidyo, Inc.2,099,7302,099,73010/1/10Subtotal:4.1%$8,594,518$9,184,518Enterprise NetworkingBluesocket, Inc.$698,014$698,01412/1/09Envivio, Inc.3,159,2313,159,2311/1/11GridNetworks, Inc.964,148964,1486/1/11Informative, Inc.266,132266,1327/1/09NeoPath Networks, Inc.1,400,4831,400,48311/1/09PacketMotion, Inc.1,292,2881,292,2883/1/11Vyatta, Inc.1,214,3151,214,3152/1/11Subtotal:4.2%$8,994,611$8,994,611InternetAggregate Knowledge, Inc.$1,274,160$1,274,16012/1/11Blekko, Inc.448,609448,60912/1/11BuzzLogic Inc.887,555887,5558/1/11


16


Collarity, Inc.911,221911,2215/1/11Cuil, Inc.4,717,5194,717,51912/1/12Delve Networks, Inc.480,435480,4357/1/11Digital Railroad, Inc.23,121773,121*Donnerwood Media, Inc.583,387583,3875/1/11EForce Media, Inc.780,4361,530,436*Flock, Inc.611,751611,7515/1/10Genius, Inc.644,609644,6098/1/10Goodmail Systems, Inc.236,198236,1982/1/09iGroup Network, Inc.124,789124,7898/1/10Inigral, Inc.141,574141,5748/1/11Insider Guides, Inc.1,411,8651,411,8654/1/11Koders, Inc.247,948247,9485/1/11Like.com1,774,4641,774,4647/1/11Loomia, Inc.478,763478,76312/1/11Multiply, Inc.863,958863,9589/1/11NetBase Solutions, Inc.785,612785,6129/1/11Philotic,  Inc.163,269163,2697/1/11ProQuo, Inc.698,842698,8426/1/10Quantcast Corporation2,272,4732,272,47312/1/11Radar Networks, Inc.707,334707,33410/1/10Return Path Holdings, Inc.1,742,9451,742,94512/1/10RPM Communications, Inc.482,272482,27212/1/10Sharpcast, Inc.1,622,9101,622,9108/1/10SnapJot, Inc.88,49788,49710/1/09TheFind, Inc.1,140,5601,140,56012/1/11ThisNext, Inc.696,777696,7775/1/11Tribe Networks, Inc.-465,007*UrthTV, Inc.124,174492,174*Ustream.TV, Inc.167,964167,96410/1/10VetCentric, Inc.1,583,0991,583,09910/1/11Videojax, Inc.397,400397,40012/1/10Youku.com, Inc.4,065,3284,065,32812/1/11Subtotal:15.8%$33,381,818$35,714,825Medical DevicesAccuri Cytometers, Inc.$719,964$719,9649/1/10AirXpanders, Inc.568,885568,8859/1/11Ample Medical, Inc.182,100182,10012/1/10Aspire Medical, Inc.1,541,8111,541,81112/1/09Biomerix Corporation1,440,3091,440,30912/1/11Broncus Technologies, Inc.4,776,0064,776,0068/1/11CyberHeart, Inc.1,446,1251,446,1258/1/11Emphasys Medical, Inc.5,798,6385,798,6381/1/11Evalve, Inc.2,556,6632,556,6638/1/09


17


Evera Medical, Inc.652,304652,3043/1/11HandyLab, Inc.1,891,3771,891,37712/1/10iBalance Medical, Inc.1,130,2351,130,2359/1/10Intellidx, Inc.1,821,1661,821,1664/1/11Myocor, Inc.15,991165,991*MyoScience, Inc.1,052,3491,052,3496/1/11Nellix, Inc.436,173436,1737/1/11NeoGuide Systems, Inc.1,668,8731,668,8737/1/10Oculus Innovative Sciences, Inc.574,060574,0604/1/09Percutaneous Systems, Inc.336,520336,5209/1/09Softscope Medical Technologies, Inc.441,834441,8346/1/11Varix Medical Corporation272,577272,5774/1/11VasoNova, Inc.296,167296,1676/1/11Subtotal:14.0%$29,620,127$29,770,127Other HealthcareAdvanced ICU Care, Inc.$257,271$257,27110/1/10Chakshu Research, Inc.2,092,8452,092,84512/1/09MedManage Systems, Inc.320,609320,6098/1/10NanoSphere, Inc.4,040,5654,040,5658/1/10Pharmacy TV Network, Inc.-336,005*Skylight Healthcare Systems, Inc.4,631,7294,631,72910/1/11Subtotal:5.4%$11,343,019$11,679,024Other TechnologyEoPlex Tehcnologies,  Inc.$874,681$874,6816/1/11Integrity Block, Inc.123,197123,19712/1/11Nanoconduction, Inc.1,220,1241,320,124*Nanogram Corporation1,417,5131,417,51312/1/10Nanosolar, Inc.558,784558,7845/1/10Nanostellar, Inc.516,437516,4377/1/09Oryxe Energy International, Inc.868,850868,8505/1/10Sezmi Corporation2,447,6722,447,6725/1/11Solaria Corporation4,319,9354,319,9353/1/11Sub-One Technology, Inc.3,125,8343,125,83412/1/11Triformix, Inc.66,75866,7583/1/09Subtotal:7.3%$15,539,785$15,639,785SecurityApere, Inc.$164,988$164,9885/1/09CipherOptics, Inc.1,251,7611,251,7613/1/10Dragnet Solutions, Inc.930,103930,1036/1/11Guardian Analytics Inc.999,191999,1918/1/11Mi5, Inc.60,27960,2797/1/09Nevis Networks, Inc.177,023357,023*


18


Safend, Inc.1,077,2591,077,25912/1/09TrustedID, Inc.1,704,2821,704,2826/1/11Vericept Corporation1,006,0071,006,0076/1/09Voltage Security, Inc.1,543,1301,543,1306/1/09Subtotal:4.2%$8,914,023$9,094,023Semiconductors & EquipmentAlereon, Inc.$1,230,053$1,230,0537/1/10Azuro, Inc.1,539,1251,539,1252/1/10Bitwave Semiconductor, Inc.463,960463,96012/1/09Celestial Semiconductor, Inc.577,3981,177,398*Cswitch Corporation1,610,1181,610,1186/1/10Discera, Inc.408,041408,0411/1/11Gigafin Networks, Inc.73,4141,773,414*Insilica, Inc.1,239,0941,239,0947/1/10Intergrated Materials, Inc.949,757949,7573/1/10Intelleflex Corporation1,368,9501,368,9504/1/11InvenSense, Inc.847,866847,8661/1/11KeyEye Communications, Inc.525,4203,325,420*Luminescent Technologies, Inc.859,300859,3007/1/09LV Sensors, Inc.2,525,4552,525,4556/1/11NetXen, Inc.931,779931,77910/1/10RMI Corporation5,877,2815,877,2817/1/10Siport, Inc.1,419,6271,419,6277/1/11Teknovus, Inc.1,258,7621,258,7623/1/10Tela Innovations, Inc.339,674339,67410/1/10Zenverge, Inc.1,814,5411,814,5413/1/11Subtotal:12.2%$25,859,615$30,959,615Software5Square Systems Corporation$653,939$1,043,939*Anchor Intelligence, Inc.957,600957,60012/1/11Arena Solutions, Inc.1,999,0341,999,0341/1/10Athena Design Systems, Inc.195,504195,504*Berkeley Design Automation, Inc.1,195,1121,195,1124/1/11BlueRoads Corporation865,8122,595,816*Bocada, Inc.698,243698,24010/1/09Canopy Financial, Inc.1,576,9891,576,9897/1/11Cloudmark, Inc.1,881,8611,881,8613/1/11Coghead, Inc.729,763979,763*Demandbase, Inc.566,045566,04511/1/10Emergent Game Technologies, Inc.289,170289,1707/1/09Enkata Technologies, Inc.140,433140,4334/1/10Evincii, Inc.181,982181,98210/1/10Future Point Systems, Inc.434,897434,8974/1/11


19


Gizmo5 Technologies, Inc.1,398,4761,398,476*Integrien, Inc.2,214,7032,214,7037/1/10IT Structures, Ltd.177,483177,4839/1/10JasperSoft, Inc.2,085,1352,085,1355/1/11Kabira Technologies, Inc.1,993,8451,993,84512/1/10Kareo, Inc.164,801164,8017/1/10Market6, Inc.784,091784,0917/1/10MetaCarta, Inc.1,067,9541,067,95411/1/09NR2B Research, Inc.2,210,7422,210,7423/1/11Nusym Technologies, Inc.83,62783,6274/1/09Orb Networks, Inc.269,315269,3158/1/10RingCube Technologies, Inc.1,118,3491,118,3494/1/11Siperian, Inc.1,535,6451,535,64510/1/09Solidcore Systems, Inc.1,548,8551,548,85510/1/09Steelwedge Software, Inc.903,812903,8124/1/09Ultriva, Inc.688,783688,78312/1/09Universal Ad, Inc.572,500572,50010/1/10Visible World, Inc.2,129,0732,129,07312/1/10Xtime, Inc.356,586356,5861/1/11Zoove Corporation1,300,6171,300,6177/1/11Subtotal:16.5%$34,970,776$37,340,777Technology ServicesNeutral Tandem, Inc.$3,715,046$3,715,0463/1/10OpSource, Inc.5,495,4885,495,48812/1/11SG Micro, Inc.645,515645,5154/1/11Subtotal:4.7%$9,856,049$9,856,049WirelessAltierre Corporation$279,422$279,4224/1/09Cellfire, Inc.2,140,0002,140,0004/1/11DeFi Mobile, Ltd.308,247308,2472/1/11Dilithium Networks, Inc.2,357,3762,357,3766/1/11Emotive Communications, Inc.604,789604,7891/1/11Hands-On Mobile, Inc.1,893,7881,893,7885/1/10July Systems, Inc.484,935484,9355/1/10LimeLife, Inc.1,074,8811,074,88110/1/09Magnolia Broadband, Inc.1,095,3411,095,3417/1/09Nextivity, Inc.2,592,7132,592,7135/1/11Ooma, Inc.190,681190,6815/1/09Ortiva Wireless, Inc.1,587,3221,587,3225/1/11Quickoffice, Inc.845,931845,9317/1/10S5 Wireless, Inc.1,872,2641,872,2645/1/10SandLinks, Inc.626,890626,8906/1/10ScanR, Inc.1,893,6011,893,6017/1/11


20


Send Me, Inc.2,276,1352,276,13512/1/11SmartDrive Systems, Inc.904,650904,6506/1/10Venturi Wireless, Inc.929,810929,81011/1/10Vivotech, Inc.880,460880,4608/1/09Wavion, Inc.1,059,5661,059,5667/1/10WiSpry, Inc.490,381490,3814/1/10Subtotal:12.5%$26,389,183$26,389,183Total: (Cost of $ 236,960,903)106.6%$225,801,890$236,960,903  * As of December 31, 2008, loans with a cost basis of $19.7 million and a fair value of $8.6 million have been classified as non-accrual.  These loans have been accelerated from original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.  The Fund provides asset-based financing primarily to start-up and emerging growth venture-capital-backed companies.  These loans are generally secured by assets of the borrowers.  As a result, the Fund is subject to general credit risk associated with such companies.  At June 30, 2009, the Fund had one unexpired unfunded commitment of $0.1 million to a borrower, which is due to expire in December 2009.   Valuation Hierarchy  Under SFAS 157, the Fund categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Funds valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:  Level 1Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.Level 2Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.Level 3Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.   The Funds cash equivalents were valued at the net asset value of the money market fund. As a result, these measurements are classified as Level 1. The Funds derivative was valued using pricing models that are widely accepted in the financial services industry with inputs that can be derived from or corroborated by observable market data.  These models reflect the contractual terms of the derivative, including the period to maturity, and market observable inputs such as yield and option volatility. As a result, these measurements are classified as Level 2.The Fund uses estimated exit values when determining the value of its investments.  Because these transactions are individually negotiated and unique, and there is no market in which these assets trade, the inputs for these assets, which are discussed in the Valuation Methods listed above, are classified as Level 3.  The following table presents the balances of assets and liabilities as of June 30, 2009 and December 31, 2008 measured at fair value on a recurring basis:  As of June 30, 2009Level 1Level 2Level 3TotalASSETS:Loans to borrowers$              -$               -$   135,473,775$    135,473,775


21


Other investment--40,00040,000Cash equivalents9,568,265--9,568,265Total assets$  9,568,265$               -$    135,513,775$    145,082,040As of December 31, 2008Level 1Level 2Level 3TotalASSETS:Loans to borrowers$               -$               -$   225,801,890225,801,890Cash equivalents53,634,366--53,634,366Total assets$  53,634,366$               -$   225,801,890$    279,436,256LIABILITIES:Interest rate swap agreement$               -$       903,517$                  -$           903,517Total liabilities$               -$       903,517$                  -$           903,517  The fair value of the interest rate swap agreement as of June 30, 2009 and December 31, 2008 was zero and $(903,517), respectively and is included in other accrued liabilities.  The following table provides a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:  For the SixFor the SixMonths EndedMonths EndedJune 30, 2009June 30, 2008Loans to borrowersOther investmentLoans to borrowersOther investmentBeginning balance$  225,801,890$                 -$ 369,857,127Additional acquisitions4,113,299875,00073,726,386$             -Principal reductions(85,259,857)(100,000)(116,562,715)-Net change in the unrealized lossfrom investments(6,740,842)(735,000)(6,659,911)-Net realized loss from investments(2,440,715)-(260,269)-Ending balance$  135,473,775$       40,000$ 320,100,618$              -      4. EARNINGS PER SHARE


22


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 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 per share are the same. 5. CAPITAL STOCK As of June 30, 2009 and December 31, 2008, there were 10,000,000 shares of $0.001 par value common stock authorized, and 100,000 shares issued and outstanding.  Total committed capital of the Company is $250.0 million.  Total contributed capital to the Fund as of June 30, 2009 and December 31, 2008 was $245.0 million. The chart below shows the distributions of the Fund for the six months ended June 30, 2009 and 2008. For the Six MonthsFor the Six MonthsEnded June 30, 2009Ended June 30, 2008Cash distributions$                 59,000,000$               19,300,000Distributions of equity securities5,592,2075,194,044Total distributions to shareholder$                 64,592,207$               24,494,044  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 During the quarter, the Fund fully paid off all of its borrowing under the debt facility and incurred a realized loss of $0.3 million as a result in terminating the interest rate swap agreement associated with the facility. 7. OTHER INVESTMENT In May 2009 the Fund repossessed the collateral from a borrower who was having financial difficulties.  At the time of the repossession, the loan from the borrower had a cost basis of $2,433,298 and a book value of $1,213,298.  The repossessed assets were immediately contributed to a newly formed LLC (Sensors Licensing, LLC) in conjunction with a licensing agreement between Sensors Licensing, LLC and a potential acquirer.  The Fund and Venture Lending & Leasing V, Inc each have a 50% ownership interest in Sensors Licensing, LLC.  At the time the assets were contributed to Sensors Licensing, LLC they were valued at $1,750,000 based on expectations of cash flows from the licensing arrangement.  The Fund took a realized loss on the loan in the amount of $1,558,298 at the time the transaction was consummated.  The realized loss is the difference between the Funds portion of the value of the assets repossessed and the book value of $2,433,298.  Sensors Licensing, LLC was able to collect $200,000 and distributed $100,000 to the Fund prior to the licensee cancelling the agreement.  The licensee cancelled the agreement because it decided to discontinue operations in the industry segment due to macro-economic issues.  Because the collateral is highly customized and no current buyer or lessee has been identified, the Fund has taken a


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$735,000 fair market reduction, which represents the difference between the previously determined fair value, the collections to date, and the expected liquidation value of the assets should no buyer or lessee be found.The Funds portion of the expected liquidation value of the asset is $40,000.  8. FINANCIAL HIGHLIGHTS  Accounting principles generally accepted in the United States of America require disclosure of financial highlights of the Fund for the periods presented, the three and six months ended June 30, 2009 and 2008.  The total rate of return is defined as the return based on the change in value during the period of a theoretical investment made at the beginning of the period.  The total rate of return assumes a constant rate of return for the Fund during the period reported and weights each cash flow by the amount of time held in the Fund.  This required methodology differs from an internal rate of return. The ratios of expenses and net investment income to average net assets, calculated below, are annualized and are computed based upon the aggregate weighted average net assets of the Fund for the periods presented.  Net investment income is inclusive of all investment income net of expenses, and excludes 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 June 30, 2009For the Three Months Ended June 30, 2008For the Six Months Ended June 30, 2009For the Six Months Ended June 30, 2008Total return *(0.86)%6.24%(1.44)%7.03%Per share amounts:Net asset value, beginning of period$1,839.83$2,221.72$2,118.90$2,288.56Net investment income40.2965.9485.99148.52Net realized and change in unrealized lossfrom investments and hedging activities(44.22)(31.99)(100.61)(71.85)Net increase (decrease) in net assetsresulting from operations(3.93)33.95(14.62)76.67Capital contributions-25.00-25.00Income distributions to shareholder(12.54)(115.38)(51.10)(224.94)Return of capital to shareholder(365.00)(20.00)(594.82)(20.00)Net asset value, end of period$1,458.36$2,145.29$1,458.36$2,145.29Net assets, end of period$145,835,896$214,528,588$145,835,896$214,528,588Ratios to average net assets:


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Expenses*3.56%8.62%4.46%8.66%Net investment income*8.78%12.06%8.71%13.46%*  Annualized  9.  SUBSEQUENT EVENTS In May 2009, the FASB issued guidance which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. In particular, the guidance sets forth (i) the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. The guidance is effective for interim or annual financial periods ending after June 15, 2009, and shall be applied prospectively. The Fund adopted the subsequent events guidance on June 30, 2009, and adoption did not have an impact on the Funds financial statements. Subsequent events have been reviewed through August 13, 2009. Effective August 11, 2009, Bernard J. Angelo has resigned from the Funds Board of Directors. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations  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 Venture Lending & Leasing IV, Inc. (the Fund) with respect to future events and financial performance and are subject to a number of risks and uncertainties, many of which are beyond the Funds control.  All statements, other than statements of historical facts included in this report, regarding 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 as a result of new information, future events or otherwise.  General  The Fund is 100% owned by Venture Lending & Leasing IV, LLC (the Company).  The Fund's shares of Common Stock, $.001 par value were sold to its shareholder under a stock purchase agreement.  The Fund has issued 100,000 of the Funds 10,000,000 authorized shares.  The Fund's shareholder may make additional capital contributions to the Fund.  In addition to the historical information contained herein, this Quarterly Report on Form 10-Q contains certain forward-looking statements.  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 and competition.  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


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The Fund is a financial services company primarily providing financing and advisory services to a variety of carefully selected venture-backed companies primarily located throughout the United States with a focus on growth oriented companies.  The Funds portfolio is well diversified and consists of companies in the communications, information services, media, and technology, including software and technology-enabled business services, bio-technology, and medical devices industry sectors, among others.  The Funds capital is generally used by our portfolio companies to finance acquisitions of fixed assets and/or for working capital.  On May 28, 2004, the Fund completed its first closing of capital, made its first investments, and became a non-diversified, closed-end investment company that elected to be treated as a business development company under the Investment Company Act of 1940.  The Fund elected to be treated for federal income tax purposes as a regulated investment company under the Internal Revenue Code with the filing of its federal corporate income tax return for 2004.  Pursuant to this election, the Fund generally will not have to pay corporate-level taxes on any income it distributes to the stockholder as dividends, allowing the Funds shareholder to substantially reduce or eliminate its corporate-level tax liability.  The Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a Regulated Investment Company (RIC) under the Internal Revenue Code.  If the Fund fails to meet these requirements, it will be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to the Company) and all distributions out of its earnings and profits will be taxable to the Members of the Company as ordinary income; thus, such income will be subject to a double layer of tax.  There is no assurance that the Fund will meet the ongoing requirements to qualify as a RIC for tax purposes.  The Fund's investment objective is to achieve a high total return.  The Fund seeks to achieve its investment objective by providing debt financing to portfolio companies.  Since inception, the Fund's investing activities have focused primarily on private debt securities.  The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments.  The Fund generally distributes these warrants to its shareholder upon receipt.  The Fund also has guidelines for the percentages of total assets which will be invested in different types of assets.  The portfolio investments of the Fund consist of debt financing to early and late stage venture capital backed technology companies.  The borrowers ability to repay its loans may be adversely impacted by a number of factors, and as a result, the loan may not fully be repaid.  Furthermore, the Funds security interest in any collateral over the borrowers assets may be insufficient to make up any shortfall in payments.  Critical Accounting Policies We identified the most critical accounting principles upon which our financial statements depend and determined the critical accounting principles by considering accounting policies that involve the most complex or subjective decisions or assessments.  The two critical accounting policies relate to the valuation of loans and treatment of non-accrual loans.  Loans are held at estimated fair value as determined by management, in accordance with the valuation methods described in the valuation of loans section of  Note 2 of the Funds Annual Report on Form 10-K for the year ended December 31, 2008 (Summary of Significant Accounting Policies).  Critical factors in determining the fair value of a loan include payment history, collateral position, financial strength of the borrower, prospects for the borrower's raising future equity rounds, likelihood of sale or acquisition of the borrower, and length of expected holding period of the loan, as well as an evaluation of the general interest rate environment.  The actual value of the loans may differ from management's estimates which would affect net income as well as assets. Results of Operations For the three and six months ended June 30, 2009 and 2008


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Total investment income for the three months ended June 30, 2009 and 2008 was $5.7 million and $11.3 million, respectively, which primarily consisted of interest on venture loans outstanding during the period. Total investment income for the six months ended June 30, 2009 and 2008 was $13.0 million and $24.4 million, respectively, of which $12.8 million and $24.0 million, respectively, consisted of interest on venture loans outstanding during the period.  The remaining income consisted of interest and dividends on the temporary investment of cash, the forfeiture of deposits from prospective borrowers, late fees from borrowers, other income from commitment fees, and warrants received for loans that will never be funded. The decrease in investment income is caused mainly by the decline in performing loans from $217.2 million as of December 31, 2008, to $124.0 as of June 30, 2009.  This was partially offset by increasing interest rates, as average interest rates increased from 14.07% for the three months ended June 30, 2008 to 15.75% for the three months ended June 30, 2009; and 14.30% for the six months ended June 30, 2008 to 15.17% for the six months ended June 30, 2009.  Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including volatility, early payoffs, and recovery of interest from non-performing assets. Management fees for the three months ended June 30, 2009 and 2008 were $0.9 million and $2.1 million, respectively. Management fees for the six months ended June 30, 2009 and 2008 were $2.3 million and $4.4 million, respectively.  Management fees are based on assets under management, and decreased due to the decrease in assets under management relative to the previous year.  Total interest expense was $0.5 million and $1.9 million for the three months ended June 30, 2009 and 2008, respectively. Interest expense decreased for the period because average borrowings outstanding under the debt facility decreased from $120.5 million for the three months ended June 30, 2008 to $15.3 million for the three months ended June 30, 2009 and the debt facility was settled as of June 9, 2009.  Total interest expense was $1.7 million and $3.9 million for the six months ended June 30, 2009 and 2008, respectively. Interest expense decreased for the period because average borrowings outstanding under the debt facility decreased from $133.7 million for the six months ended June 30, 2008 to $33.6 million for the six months ended June 30, 2009.  Total banking and professional fees was $0.2 million and $0.7 million for the three months ended June 30, 2009 and 2008, respectively. Total banking and professional fees was $0.3 million and $1.2 million for the six months ended June 30, 2009 and 2008, respectively. The decrease for the period was primarily related to a decrease in credit insurance fees and banking fees.  The decrease in the credit insurance fees and banking fees was the result of decreasing the facility size and principal reductions under the banking facility.  The total other operating expenses for the three and six months ended June 30, 2009 and 2008 were less than $0.1 million, respectively.  Net investment income for the three months ended June 30, 2009 and 2008 was $4.0 million and $6.6 million, respectively.  Net investment income for the six months ended June 30, 2009 and 2008 was $8.6 million and $14.9 million, respectively.  Total net realized loss from investments was $(2.2) million and $(0.3) million for the three months ended June 30, 2009 and 2008, respectively. Total net realized loss from investments was $(2.4) million and $(0.3) million for the six months ended June 30, 2009 and 2008, respectively.  The realized losses consist of write offs, net of recoveries of previously written off uncollectible loans.  Net change in unrealized loss from investments for the three months ended June 30, 2009 and 2008 was $(2.1) million and $(4.2) million, respectively. Net change in unrealized loss from investments for the six months ended June 30, 2009 and 2008 was $(7.5) million and $(6.7) million, respectively. The unrealized losses consist of fair market value adjustments taken against loans.


27


The net realized and unrealized gain (loss) from hedging activities for the three months ended June 30, 2009 and 2008 was $(0.1) million and $1.3 million, respectively.The net realized and unrealized loss from hedging activities for the six months ended June 30, 2009 and 2008 was $(0.1) million and $(0.3) million, respectively.  The realized and unrealized gain (loss) consist of the unrealized gains and losses from hedging activities and the net interest received or paid on the interest rate swap transaction beginning with the quarter ended September 30, 2008.  Net increase (decrease) in net assets resulting from operations for the three months ended June 30, 2009 and 2008 was $(0.4) million and $3.4 million, respectively. Net increase (decrease) in net assets resulting from operations for the six months ended June 30, 2009 and 2008 was $(1.5) million and $7.7 million, respectively.  On a per share basis, net increase (decrease) in net assets resulting from operations was $(3.94) and $33.95 for the three months ended June 30, 2009 and 2008, respectively. On a per share basis, net increase (decrease) in net assets resulting from operations was $(14.62) and $76.67 for the six months ended June 30, 2009 and 2008, respectively.  Liquidity and Capital Resources  June 30, 2009 and December 31, 2008  Total capital contributed to the Fund was $245.0 million, prior to the distribution of capital, as of June 30, 2009 and December 31, 2008, respectively.  Committed capital to the Company at June 30, 2009 and December 31, 2008 was $250.0 million, all of which had been called.  On June 10, 2009, the Fund fully paid off all of its borrowing under the debt facility and terminated the facility and incurred a realized loss of $0.3 million as a result in terminating the interest rate swap agreement associated with the facility. The Fund entered into an interest rate swap agreement to hedge its interest rate on its borrowings under its debt facility. Unrealized gains and losses from hedging activities have been separately reported from unrealized gains and losses from investments and are included in realized and unrealized gain (loss) from hedging activities in these financial statements.  Also included in realized and unrealized gain (loss) from hedging activities is the net interest received or paid on the interest rate swap transactions beginning with the quarter ended September 30, 2008 (amounts were previously included in interest expense and were not considered material). As of December 31, 2008, the fair value of the interest rate swap was recorded in other liabilities.  Valuation of the swap agreement was based on future expected interest rates on the notional principal balance remaining which is comparable to what a prospective acquirer would pay on the measurement date. On June 9, 2009, the Fund paid approximately $0.3 million in order to terminate its swap agreement in connection with the repayment of borrowings under the Funds debt facility (see Note 6). This amount has been recorded in realized and unrealized gain (loss) from hedging activities in the condensed statement of operations. As of June 30, 2009 and December 31, 2008, 7% and 19%, respectively, of the Fund's assets consisted of cash and cash equivalents. The Fund continued to invest its assets in venture loans during the three and six months ended June 30, 2009.  Amounts disbursed under the Fund's loan commitments totaled approximately $4.1 million during the period from December 31, 2008 through June 30, 2009.  Net loan amounts outstanding after amortization and fair market adjustment decreased by approximately $90.3 million for the same period.  Unexpired, unfunded commitments totaled less than $0.1 million as of June 30, 2009.


28


As ofCumulative Amount DisbursedPrincipal Reductions and Fair Market AdjustmentBalance Outstanding  Fair ValueUnexpired Unfunded CommitmentsJune 30, 2009$934.5 million$799.0 million$135.5 million$0.1 millionDecember 31, 2008$930.3 million$704.6 million$225.8 million$11.8 million  Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid.  It is the Funds experience that not all unfunded commitments will be used by borrowers.  The Fund seeks to meet the requirements to qualify for the special pass-through status available to RICs under the Internal Revenue Code, and thus to be relieved of federal income tax on that part of its net investment income and realized capital gains that it distributes to its shareholder.  To qualify as a RIC, the Fund must distribute to its shareholder for each taxable year at least 90% of its investment company taxable income (consisting generally of net investment income and net short-term capital gain) (Distribution Requirement).  To the extent that the terms of the Funds venture loans provide for the receipt by the Fund of additional interest at the end of the loan term or provide for the receipt by the Fund of a purchase price for the asset at the end of the loan term (residual income), the Fund would be required to accrue such residual income over the life of the loan, and to include such accrued income in its gross income for each taxable year even if it receives no portion of such residual income in that year.  Thus, in order to meet the Distribution Requirement and avoid payment of income taxes or an excise tax on undistributed income, the Fund may be required in a particular year to distribute as a dividend an amount in excess of the total amount of income it actually receives.  Those distributions will be made from the Fund's cash assets, from amounts received through amortization of loans or from borrowed funds.   Item 3.  Quantitative and Qualitative Disclosures About Market Risk  The Fund's business activities contain elements of risk.  The Fund considers the principal types of market risk to be interest rate risk and credit risk.  The Fund considers the management of risk essential to conducting its business and to maintaining profitability.  Accordingly, the Fund's risk management procedures are designed to identify and analyze the Fund's risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.  The Fund anticipates managing its credit risk by maintaining a portfolio that is diverse by industry, size of investment, stage of development, and borrower.  The Fund has limited exposure to public market price fluctuations as the Fund primarily invests in private business enterprises and the Fund generally distributes all equity securities upon receipt to the Company.  The Fund enters into interest rate swap transactions to hedge its interest rate on its borrowings under its debt facility. Unrealized gains and losses from hedging activities are separately reported from unrealized gains and losses from investments and are included in realized and unrealized gain (loss) from hedging activities in these financial statements.  Also included in realized and unrealized gain (loss) from hedging activities is the net interest received or paid on the interest rate swap transactions beginning with the quarter ended September 30, 2008 (amounts were previously included in interest expense and were not considered material). The fair value of the interest rate swap is recorded in other assets or other liabilities and the change in the fair value is recorded as a change in unrealized gain (loss) from investment and hedging activities.


29


The Fund's sensitivity to changes in interest rates is regularly monitored and analyzed by measuring the characteristics of assets and liabilities.  The Fund utilizes various methods to assess interest rate risk in terms of the potential effect on interest income net of interest expense, the value of net assets and the value at risk in an effort to ensure that the Fund is insulated from any significant adverse effects from changes in interest rates.  Based on the model used for the sensitivity of interest income net of interest expense, if the balance sheet were to remain constant and no actions were taken to alter the existing interest rate sensitivity, a hypothetical immediate 100 basis point change in interest rates would have affected net income by $0.1 million.  This translates to less than  1% of income for the six months ended June 30, 2009.  Although management believes that this measure is indicative of the Fund's sensitivity to interest rate changes, it makes estimates to adjust for potential changes in credit quality, size and composition of the balance sheet and other business developments that could affect net income.  Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by these estimates.  Item 4.  Controls and Procedures  See response to Item 4T.   Item 4T.  Controls and Procedures  Evaluation of Disclosure Controls and Procedures:  As of the end of the period covered by this quarterly report on Form 10-Q, the Fund's chief executive officer and chief financial officer conducted an evaluation of the Fund's disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934).  Based upon this evaluation, the Fund's chief executive officer and chief financial officer concluded that the Fund's disclosure controls and procedures were effective in timely alerting them of any material information relating to the Fund that is required to be disclosed by the Fund in the reports it files or submits under the Securities Exchange Act of 1934.  Changes in Internal Controls:  There were no changes in the Fund's internal controls or in other factors that could materially affect these controls during the period covered by this quarterly report on Form 10-Q.    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 these legal proceedings cannot at this time be predicted with certainty, the Fund does not expect these 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.  Item 1A. Risk Factors  See item 1A  Risk Factors in the Funds 2008 Annual Report on Form 10-K for a detailed description of the risks attendant to the Fund and its business.


30


Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds  Prior to the Funds commencement of operations on May 28, 2004, the Fund sold 100,000 shares to the Funds sole shareholder, Venture Lending & Leasing IV, LLC for $25,000 in November 2003.  No other shares of the Fund have been sold; however the Fund received an additional $245.0 million of paid in capital during the period from May 28, 2004 through June 30, 2009 which is expected to be used to acquire venture loans and fund operations. Item 3.  Defaults Upon Senior Securities Not applicable  Item 4. Submission of Matters to a Vote of Security Holders  None  Item 5.  Other Information  Bernard J. Angelo, a director of the Fund, resigned from such position effective August 11, 2009.    Item 6.  Exhibits  Exhibit NumberDescription3(i)Articles of Amendment and Restatement as filed with the Maryland Secretary of State on October 14, 2004, incorporated by reference to the Funds Form 10-Q filed with the Securities and Exchange Commission on May 13, 2005.3(ii)Amended and Restated Bylaws of the Fund, incorporated by reference to the Funds Form 10-Q filed with the Securities and Exchange Commission on November 13, 2008.4.1Form of Purchase Agreement between the Fund and the Company, incorporated by reference to the Funds Registration Statement on Form 10 filed with the Securities and Exchange Commission on December 10, 2003.31.1-32.2Certifications pursuant to The Sarbanes-Oxley Act of 2002


31


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 duly authorized.  VENTURE LENDING & LEASING IV, INC. (Registrant)  By: /S/ Ronald W. Swenson By: /S/ Martin D. Eng Ronald W. Swenson Martin D. Eng Chairman and Chief Executive Officer Chief Financial Officer Date: August 13, 2009 Date: August 13, 2009


32


EXHIBIT INDEX    Exhibit NumberDescription3(i)Articles of Amendment and Restatement as filed with the Maryland Secretary of State on October 14, 2004, incorporated by reference to the Funds Form 10-Q filed with the Securities and Exchange Commission on May 13, 2005.3(ii)Amended and Restated Bylaws of the Fund, incorporated by reference to the Funds Form 10-Q filed with the Securities and Exchange Commission on November 13, 2008.4.1Form of Purchase Agreement between the Fund and the Company, incorporated by reference to the Funds Registration Statement on Form 10 filed with the Securities and Exchange Commission on December 10, 2003.31.1-32.2Certifications pursuant to The Sarbanes-Oxley Act of 2002


33


Exhibit 31.1 CERTIFICATION PURSUANT TO 
RULE 13a-14  I, Martin D. Eng certify that:  1. I have reviewed this quarterly report on Form 10-Q of Venture Lending & Leasing IV, Inc.;  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and  5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions):  a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.  Date: August 13, 2009  /S/ Martin D. Eng Martin D. Eng Chief Financial Officer


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Exhibit 31.2 CERTIFICATION PURSUANT TO 
RULE 13a-14  I, Ronald W. Swenson, certify that:  1. I have reviewed this quarterly report on Form 10-Q of Venture Lending & Leasing IV, Inc.;  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and  5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions):  a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.  Date: August 13, 2009  /S/ Ronald W. Swenson Ronald W. Swenson Chief Executive Officer


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Exhibit 32.1 CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Venture Lending & Leasing IV, Inc. (the "Fund") on Form 10-Q for the period ending June 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ronald W. Swenson, Chief Executive Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Fund.  /S/ Ronald W. Swenson Ronald W. Swenson Chief Executive Officer August 13, 2009


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Exhibit 32.2  CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Venture Lending & Leasing IV, Inc. (the "Fund") on Form 10-Q for the period ending June 30, 2009 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Martin D. Eng, Chief Financial Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Fund.  /S/ Martin D. Eng Martin D. Eng Chief Financial Officer
August 13, 2009


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