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 March 31, 2008



[  ]

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)

|Maryland                                                        | 20-0372373                          
|--------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or  organization) | (I.R.S. Employer Identification No.)







|2010 North First Street, Suite 310       | San 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. YesxNo ̈

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 filerx        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 ̈Nox

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 May 14, 2008

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 March 31, 2008 and December 31, 2007



Condensed Statements of Operations (Unaudited)



For the three months ended March 31, 2008 and 2007



Condensed Statements of Changes in Net Assets (Unaudited)



For the three months ended March 31, 2008 and 2007



Condensed Statements of Cash Flows (Unaudited)



For the three months ended March 31, 2008 and 2007



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











VENTURE LENDING & LEASING IV, INC.



CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

AS OF MARCH 31, 2008 AND DECEMBER 31, 2007



|                                                                     |  | March 31, 2008 |  | December 31, 2007
|-------------------------------------------------------------------- |  | -------------- |  | -----------------
|ASSETS                                                               |  |                |  |                  
|Loans, at estimated fair value                                       |  |                |  |                  
|(Cost of $335,327,975 and $372,258,424)                              |  | $330,472,483   |  | $369,857,127     
|Cash and cash equivalents                                            |  | 29,048,238     |  | 14,671,135       
|Other assets                                                         |  | 4,811,321      |  | 5,222,139        
|                                                                     |  |                |  |                  
|Total assets                                                         |  | 364,332,042    |  | 389,750,401      
|                                                                     |  |                |  |                  
|LIABILITIES                                                          |  |                |  |                  
|Borrowings under debt facility                                       |  | 136,015,512    |  | 156,015,512      
|Accrued management fees                                              |  | 2,272,327      |  | 2,430,130        
|Accounts payable and other accrued liabilities                       |  | 3,872,360      |  | 2,449,253        
|                                                                     |  |                |  |                  
|Total liabilities                                                    |  | 142,160,199    |  | 160,894,895      
|                                                                     |  |                |  |                  
|Net assets                                                           |  | $222,171,843   |  | $228,855,506     
|                                                                     |  |                |  |                  
|Analysis of Net Assets:                                              |  |                |  |                  
|                                                                     |  |                |  |                  
|Capital paid in on shares of capital stock                           |  | $242,525,000   |  | $242,525,000     
|Return of capital distributions                                      |  | (13,629,686)   |  | (13,629,686)     
|Accumulated deficit                                                  |  | (6,723,471)    |  | (39,808)         
|Net assets (equivalent to $2,221.72 and $2,288.56 per share based on |  |                |  |                  
|100,000 shares of capital stock outstanding - See Note 5)            |  | $222,171,843   |  | $228,855,506     
|                                                                     |  |                |  |                  
|                                                                     |  |                |  |                  
|                                                                     |  |                |  |                  
|                                                                     |  |                |  |                  
|                                                                     |  |                |  |                  





See Notes to Condensed Financial Statements









VENTURE LENDING & LEASING IV, INC.



CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007





|                                                 |  | For the Three Months Ended |  | For the Three Months Ended | 
|------------------------------------------------ |  | -------------------------- |  | -------------------------- | 
|                                                 |  | March 31, 2008             |  | March 31, 2007             | 
|                                                 |  |                            |  |                            | 
|                                                 |  |                            |  |                            | 
|INVESTMENT INCOME:                               |  |                            |  |                            | 
|Interest on loans                                |  | $12,847,707                |  | $15,061,428                | 
|Other interest and other income                  |  | 250,455                    |  | $1,072,666                 | 
|Total investment income                          |  | 13,098,162                 |  | 16,134,094                 | 
|                                                 |  |                            |  |                            | 
|EXPENSES:                                        |  |                            |  |                            | 
|Management fees                                  |  | 2,277,075                  |  | 2,840,639                  | 
|Interest expense                                 |  | 1,968,494                  |  | 2,943,583                  | 
|Banking and professional fees                    |  | 538,179                    |  | 387,650                    | 
|Other operating expenses                         |  | 56,565                     |  | 34,218                     | 
|Total expenses                                   |  | 4,840,313                  |  | 6,206,090                  | 
|Net investment income                            |  | 8,257,849                  |  | 9,928,004                  | 
|                                                 |  |                            |  |                            | 
|Net realized gain (loss) from investment         |  |                            |  |                            | 
|transactions                                     |  | 14                         |  | (1,691,074)                | 
|Net change in unrealized loss from investments   |  |                            |  |                            | 
|and hedging activities                           |  | (3,985,852)                |  | (634,729)                  | 
|Net realized and unrealized loss from investment |  |                            |  |                            | 
|and hedging activities                           |  | (3,985,838)                |  | (2,325,803)                | 
|Net increase in net assets                       |  |                            |  |                            | 
|resulting from operations                        |  | $4,272,011                 |  | $7,602,201                 | 
|Net increase in net assets                       |  |                            |  |                            | 
|resulting from operations per share              |  | $42.72                     |  | $76.02                     | 
|Weighted average shares outstanding              |  | 100,000                    |  | 100,000                    | 
|                                                 |  |                            |  |                            | 
|                                                 |  |                            |  |                            | 





See Notes to Condensed Financial Statements











VENTURE  LENDING & LEASING IV, INC.



CONDENSED STATEMENTS OF CHANGES IN NET ASSETS  (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007





|                                         |  | For the Three  |  | For the Three  | 
|---------------------------------------- |  | -------------- |  | -------------- | 
|                                         |  | Months Ended   |  | Months Ended   | 
|                                         |  | March 31, 2008 |  | March 31, 2007 | 
|                                         |  |                |  |                | 
|                                         |  |                |  |                | 
|Increase in net assets from operations   |  |                |  |                | 
|Net investment income                    |  | $8,257,849     |  | $9,928,004     | 
|Net realized gain (loss) from investment |  |                |  |                | 
|transactions                             |  | 14             |  | (1,691,074)    | 
|Net change in unrealized loss from       |  |                |  |                | 
|investments and hedging activities       |  | (3,985,852)    |  | (634,729)      | 
|                                         |  |                |  |                | 
|Net increase in net assets resulting     |  |                |  |                | 
|from operations                          |  | 4,272,011      |  | 7,602,201      | 
|                                         |  |                |  |                | 
|Distributions of income to shareholder   |  | (10,955,674)   |  | (7,682,769)    | 
|Return of capital to shareholder         |  | -              |  | (6,000,000)    | 
|Capital share transactions               |  | -              |  | 4,000,000      | 
|                                         |  |                |  |                | 
|Total decrease                           |  | (6,683,663)    |  | (2,080,568)    | 
|                                         |  |                |  |                | 
|Net assets                               |  |                |  |                | 
|Beginning of period                      |  | 228,855,506    |  | 238,148,475    | 
|                                         |  |                |  |                | 
|End of period                            |  | $222,171,843   |  | $236,067,907   | 
|                                         |  |                |  |                | 
|                                         |  |                |  |                | 













See Notes to Condensed Financial Statements





VENTURE LENDING & LEASING IV, INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007



|                                                                      | For the Three Months Ended March 31, 2008 |  | For the Three Months Ended March 31, 2007 |  | 
|--------------------------------------------------------------------- | ----------------------------------------- |  | ----------------------------------------- |  | 
|                                                                      |                                           |  |                                           |  | 
|                                                                      |                                           |  |                                           |  | 
|CASH FLOWS FROM OPERATING ACTIVITIES:                                 |                                           |  |                                           |  | 
|Net increase in net assets resulting from operations                  | $4,272,011                                |  | $7,602,201                                |  | 
|Adjustments to reconcile net increase in net assets to net cash       |                                           |  |                                           |  | 
|provided by (used in) operating activities:                           |                                           |  |                                           |  | 
|Net realized loss (gain) from investment transactions                 | (14)                                      |  | 1,691,074                                 |  | 
|Net change in unrealized loss from investments and hedging activities | 3,985,852                                 |  | 634,729                                   |  | 
|Amortization of deferred costs related to borrowing facility          | 70,488                                    |  | 59,854                                    |  | 
|Net decrease (increase) in other assets                               | 346,183                                   |  | (701,933)                                 |  | 
|Net decrease in accounts payable, accrued liabilities, and accrued    |                                           |  |                                           |  | 
|management fees                                                       | (266,352)                                 |  | (789,556)                                 |  | 
|Origination of loans                                                  | (26,359,372)                              |  | (70,123,697)                              |  | 
|Principal payments on loans                                           | 62,503,829                                |  | 58,982,046                                |  | 
|Acquisition of equity securities                                      | (1,169,668)                               |  | (1,382,769)                               |  | 
|Net cash provided by (used in) operating activities                   | 43,382,957                                |  | (4,028,051)                               |  | 
|CASH FLOWS FROM FINANCING ACTIVITIES:                                 |                                           |  |                                           |  | 
|Distributions to shareholder                                          | (9,000,000)                               |  | (12,300,000)                              |  | 
|Borrowings under debt facility                                        | -                                         |  | 10,000,000                                |  | 
|Repayments of debt facility                                           | (20,000,000)                              |  | -                                         |  | 
|Payment of bank facility fees and costs                               | (5,854)                                   |  | -                                         |  | 
|Contributions from shareholder                                        | -                                         |  | 4,000,000                                 |  | 
|Net cash provided by (used in) financing activities                   | (29,005,854)                              |  | 1,700,000                                 |  | 
|Net increase (decrease) in cash and cash equivalents                  | 14,377,103                                |  | (2,328,051)                               |  | 
|                                                                      |                                           |  |                                           |  | 
|CASH AND CASH EQUIVALENTS:                                            |                                           |  |                                           |  | 
|Beginning of period                                                   | 14,671,135                                |  | 20,536,280                                |  | 
|End of period                                                         | $29,048,238                               |  | $18,208,229                               |  | 
|SUPPLEMENTAL DISCLOSURES:                                             |                                           |  |                                           |  | 
|CASH PAID DURING THE PERIOD FOR:                                      |                                           |  |                                           |  | 
|Interest                                                              | $2,237,662                                |  | $2,911,274                                |  | 
|NON-CASH ACTIVITIES:                                                  |                                           |  |                                           |  | 
|Receipt of equity securities as repayment of loan                     | $786,006                                  |  | $-                                        |  | 
|Distributions of equity securities to shareholder                     | $1,955,674                                |  | $1,382,769                                |  | 



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 months ended March 31, 2008 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, 2007.



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 resulting 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 March 31, 2008 and December 31, 2007, the financial statements include nonmarketable investments ($330,472,483 and $369,857,127 or approximately 91% and 95% of total assets, respectively), with fair values determined by 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.  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.

Debt securities held as Short-term Investments are valued based on current bid quotations of recognized dealers or, when market quotations are not readily available, based on appraisals received from a pricing service using a computerized matrix system, or based upon appraisals derived from information concerning the securities or similar securities received from recognized dealers in the securities.  Notwithstanding the foregoing, debt securities with remaining maturities of ninety (90) days or fewer generally are valued by amortizing the difference between their last available fair value and their par value, provided such amount is not materially different from quoted price.  As of March 31,2008 and December 31, 2007, the Fund held no short-term investments.

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 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 March 31, 2008 and December 31, 2007, loans with a cost basis of $9.3 million and $4.1 million and a fair value of $4.5 million and $1.7 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 Agreements

The Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended by SFAS No. 138, establishes accounting and reporting standards requiring that every derivative instrument (including certain 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 No. 133 requires that changes in the derivatives fair value be recognized currently in earnings.

The Fund enters into interest rate swap transactions to hedge its interest rate on its borrowings under its debt facility. The net interest received or paid on the transactions are included in interest expense. 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 investments and hedging activities.

Recently Issued Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS 157), which is effective for fiscal years beginning January 1, 2008.  This statement defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.  SFAS 157 does not require any new fair value measurements.  The Fund has adopted SFAS 157 as of January 1, 2008, and has provided additional disclosure in footnote 3 related to this standard.



In February 2007, the FASB issued SFAS No. 159 (SFAS 159), The Fair Value Option for Financial Assets and Financial LiabilitiesIncluding an amendment of FASB Statement No. 115. SFAS 159 permits companies to choose to measure at fair value many financial instruments and certain other items that are not currently required to be measured at fair value.  Entities choosing the fair value option would be required to recognize subsequent changes in the fair value of those instruments and other items directly in earnings.  This standard also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities.  SFAS 159 is effective beginning the first fiscal year that begins after November 15, 2007.  The Fund has adopted SFAS 159 as of January 1, 2008.  However, the Fund has not elected the fair value option for any eligible items.

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities(SFAS 161), an amendment of SFAS 133 Accounting for Derivative Instruments and Hedging Activities.  SFAS 161 is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on 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.  The Fund is currently evaluating the impact of the adoption of SFAS 161 on its financial statements.



Tax Status

As long as the Fund qualifies as a Regulated Investment Company (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 March 31, 2008, the Fund had no uncertain tax positions.





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 March 31, 2008, 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).



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 period ended March 31, 2008 and 2007, the weighted average interest rate on performing loans was 14.62% and 14.15%, 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.



Loans as of March 31, 2008 are in non-affiliates and consist of the following:



|                           | Percentage of | Estimated Fair | Par Value   | Final        
|-------------------------- | ------------- | -------------- | ----------- | -------------
|Borrower                   | Net Assets    | Value 3/31/08  | 3/31/08     | Maturity Date
|                           |               |                |             |              
|Biotechnology              |               |                |             |              
|Acumen Pharmaceuticals     |               | $501,270       | $501,270    | 8/1/10       
|Athersys                   |               | 762,746        | 762,746     | 6/1/08       
|Bioabsorbable Therapeutics |               | 558,335        | 558,335     | 6/1/11       
|Lightspeed Genomics        |               | 333,258        | 333,258     | 1/1/11       
|ProMetic                   |               | 6,616,672      | 6,616,672   | 8/1/09       
|Raven Biotechnologies      |               | 488,460        | 488,460     | 6/1/08       
|SanBio                     |               | 2,414,790      | 2,414,790   | 10/1/10      
|Serenex                    |               | 560,579        | 560,579     | 8/1/08       
|Trellis Bioscience         |               | 817,265        | 817,265     | 12/1/10      
|Subtotal:                  | 5.9%          | $13,053,375    | $13,053,375 |              
|                           |               |                |             |              
|Carrier Networking         |               |                |             |              
|Actelis                    |               | $1,524,486     | $1,524,486  | 12/1/08      
|Asoka USA Corporation      |               | 936,941        | 936,941     | 1/1/11       
|Ellacoya Networks          |               | 3,839,712      | 3,839,712   | 12/1/09      
|Kasenna                    |               | 1,267,259      | 1,267,259   | 9/1/09       
|Kodiak Networks            |               | 1,035,652      | 1,035,652   | 4/1/10       
|OnSite Systems             |               | 166,803        | 166,803     | 12/1/08      
|OpVista                    |               | 3,769,423      | 3,769,423   | 5/1/10       
|Overture Networks          |               | 2,414,698      | 2,414,698   | 2/1/10       
|Wavebender                 |               | 463,952        | 463,952     | 9/1/10       
|Subtotal:                  | 6.9%          | $15,418,926    | $15,418,926 |              
|                           |               |                |             |              
|Computers & Storage        |               |                |             |              
|CloudShield                |               | $2,765,422     | $2,765,422  | 4/1/11       





|D-Wave Systems                   |      | 364,500     | 364,500     | 7/1/10 
|-------------------------------- | ---- | ----------- | ----------- | -------
|Gear Six, Inc.                   |      | 847,228     | 847,228     | 7/1/10 
|Ncomputing                       |      | 1,213,515   | 1,213,515   | 9/1/10 
|Panta Systems                    |      | 233,574     | 923,574     | *      
|Powerfile                        |      | 393,369     | 393,369     | 6/1/08 
|Sanrad                           |      | 1,075,541   | 1,075,541   | 12/1/08
|Sepaton                          |      | 3,174,142   | 3,174,142   | 10/1/09
|Teneros                          |      | 1,667,779   | 1,667,779   | 10/1/09
|Vidyo                            |      | 3,206,939   | 3,206,939   | 10/1/10
|Subtotal:                        | 6.7% | $14,942,009 | $15,632,009 |        
|                                 |      |             |             |        
|Enterprise Networking            |      |             |             |        
|BlueSocket                       |      | $1,174,301  | $1,174,301  | 12/1/09
|Envivio                          |      | 3,362,128   | 3,362,128   | 1/1/11 
|GridNetworks                     |      | 99,517      | 99,517      | 3/1/11 
|Informative                      |      | 714,173     | 714,173     | 7/1/09 
|NeoPath Networks                 |      | 2,485,078   | 2,485,078   | 11/1/09
|NextHop Technologies             |      | 335,432     | 335,432     | 6/1/08 
|The Retail Equation              |      | 65,159      | 65,159      | 6/1/08 
|Vyatta                           |      | 1,444,743   | 1,444,743   | 2/1/11 
|Subtotal:                        | 4.4% | $9,680,531  | $9,680,531  |        
|                                 |      |             |             |        
|Internet                         |      |             |             |        
|Aggregate Knowledge              |      | $1,186,260  | $1,186,260  | 7/1/11 
|BuzzLogic                        |      | 541,885     | 541,885     | 5/1/11 
|Collarity                        |      | 842,675     | 842,675     | 3/1/11 
|Cuill                            |      | 3,200,272   | 3,200,272   | 4/1/12 
|Digital Railroad                 |      | 1,112,665   | 1,112,665   | 12/1/09
|Donnerwood Media                 |      | 711,557     | 711,557     | 8/1/10 
|EForce Media                     |      | 1,741,082   | 1,741,082   | 12/1/10
|FaceBook                         |      | 846,702     | 846,702     | 11/1/08
|Flock                            |      | 872,787     | 872,787     | 5/1/10 
|Genius                           |      | 1,324,953   | 1,324,953   | 8/1/10 
|Goodmail Systems                 |      | 1,165,445   | 1,165,445   | 2/1/09 
|iGroup Network                   |      | 165,952     | 165,952     | 8/1/10 
|Insider Guides                   |      | 1,359,495   | 1,359,495   | 2/1/11 
|Koders                           |      | 298,706     | 298,706     | 2/1/10 
|Kosmix                           |      | 259,044     | 259,044     | 9/1/08 
|Monitor110                       |      | 1,507,581   | 1,507,581   | 1/1/10 
|NetBase Solutions [Accelovation] |      | 989,565     | 989,565     | 1/1/11 
|Philotic                         |      | 134,539     | 134,539     | 10/1/10
|Plaxo                            |      | 960,195     | 960,195     | 12/1/10
|Popjax                           |      | 477,689     | 477,689     | 12/1/10
|ProQuo [Skoop Heavy Industries]  |      | 1,098,218   | 1,098,218   | 6/1/10 





|QuantCast                      |       | 578,709     | 578,709     | 4/1/11 
|------------------------------ | ----- | ----------- | ----------- | -------
|Radar Networks                 |       | 1,006,822   | 1,006,822   | 10/1/10
|Return Path Holdings           |       | 2,745,012   | 2,745,012   | 12/1/10
|Riya                           |       | 2,262,314   | 2,262,314   | 7/1/11 
|RPM Communications             |       | 593,165     | 593,165     | 12/1/10
|Sharpcast                      |       | 3,012,458   | 3,012,458   | 3/1/11 
|SnapJot                        |       | 112,391     | 112,391     | 10/1/08
|ThisNext                       |       | 404,824     | 404,824     | 6/1/10 
|Tribe                          |       | -           | 465,007     | *      
|Turn                           |       | 1,698,580   | 1,698,580   | 1/1/11 
|ultraRPM                       |       | 2,096,366   | 2,096,366   | 11/1/10
|UrthTV                         |       | 244,114     | 487,114     | *      
|uStream.TV                     |       | 220,480     | 220,480     | 10/1/10
|Vast.com                       |       | 120,495     | 120,495     | 12/1/08
|VetCentric                     |       | 3,288,902   | 3,288,902   | 11/1/09
|Subtotal:                      | 17.6% | $39,181,899 | $39,889,906 |        
|                               |       |             |             |        
|Medical Devices                |       |             |             |        
|Accuri Cytometers              |       | $981,388    | $981,388    | 9/1/10 
|AirXpanders                    |       | 87,348      | 87,348      | 1/1/11 
|Ample Medical                  |       | 212,025     | 212,025     | 12/1/10
|Aspire Medical                 |       | 2,200,076   | 2,200,076   | 12/1/09
|Emergent Respiratory Products  |       | 56,896      | 56,896      | 6/1/08 
|Emphasys Medical               |       | 7,294,837   | 7,294,837   | 1/1/11 
|EnteroMedics                   |       | 5,558,186   | 5,558,186   | 8/1/10 
|Evalve                         |       | 5,444,967   | 5,444,967   | 8/1/09 
|HandyLab                       |       | 2,397,234   | 2,397,234   | 12/1/10
|iBalance Medical               |       | 1,791,706   | 1,791,706   | 9/1/10 
|Inogen                         |       | 830,433     | 830,433     | 7/1/09 
|Myocor                         |       | 6,316,713   | 6,316,713   | 2/1/10 
|Myoscience                     |       | 1,412,975   | 1,412,975   | 6/1/11 
|Nellix                         |       | 457,896     | 457,896     | 4/1/11 
|NeoGuide Systems               |       | 2,298,592   | 2,298,592   | 7/1/10 
|Oculus Innovative Sciences     |       | 1,819,820   | 1,819,820   | 4/1/09 
|Percutaneous Systems           |       | 623,257     | 623,257     | 9/1/09 
|Softscope Medical Technologies |       | 234,779     | 234,779     | 12/1/10
|Subtotal:                      | 18.0% | $40,019,128 | $40,019,128 |        
|                               |       |             |             |        
|Other Healthcare               |       |             |             |        
|Advanced ICU Care              |       | $350,098    | $350,098    | 10/1/10
|Chakshu Research               |       | 3,494,685   | 3,494,685   | 12/1/09
|MedManage Systems              |       | 450,713     | 450,713     | 8/1/10 
|Nanosphere                     |       | 5,378,880   | 5,378,880   | 8/1/10 
|Pharmacy TV Network            |       | -           | 336,005     | *      





|Skylight Healthcare Systems |      | 3,500,241   | 3,500,241   | 1/1/11 
|--------------------------- | ---- | ----------- | ----------- | -------
|Subtotal:                   | 5.9% | $13,174,617 | $13,510,622 |        
|                            |      |             |             |        
|Other Technology            |      |             |             |        
|Building B                  |      | $2,148,275  | $2,148,275  | 1/1/11 
|EoPlex                      |      | 144,966     | 144,966     | 8/1/10 
|Nanoconduction              |      | 2,037,356   | 2,037,356   | *      
|NanoGram                    |      | 2,247,168   | 2,247,168   | 12/1/10
|Nanosolar                   |      | 919,139     | 919,139     | 5/1/10 
|Nanostellar                 |      | 1,123,196   | 1,123,196   | 7/1/09 
|ORYXE Energy International  |      | 1,256,425   | 1,256,425   | 5/1/10 
|Sub-One                     |      | 3,480,629   | 3,480,629   | 11/1/10
|Triformix                   |      | 214,210     | 214,210     | 3/1/09 
|Subtotal:                   | 6.1% | $13,571,364 | $13,571,364 |        
|                            |      |             |             |        
|Security                    |      |             |             |        
|Apere                       |      | $377,286    | $377,286    | 5/1/09 
|Assurz                      |      | 803,865     | 803,865     | 1/1/10 
|BigFix                      |      | 324,611     | 324,611     | 5/1/08 
|CipherOptics                |      | 2,087,694   | 2,087,694   | 3/1/10 
|Dragnet Solutions           |      | 116,400     | 116,400     | 4/1/09 
|Guardian Analytics          |      | 384,508     | 384,508     | 3/1/11 
|Ironkey                     |      | 512,488     | 512,488     | 4/1/10 
|Lancope                     |      | 657,496     | 657,496     | 10/1/08
|Mi5                         |      | 143,103     | 143,103     | 7/1/09 
|Nevis Networks              |      | 750,690     | 750,690     | 8/1/09 
|Safend                      |      | 1,858,402   | 1,858,402   | 12/1/09
|Secure Elements             |      | 299,318     | 299,318     | 10/1/08
|SNOCAP                      |      | 4,107,587   | 4,107,587   | 1/1/10 
|TrustedID                   |      | 1,336,270   | 1,336,270   | 11/1/09
|Vericept                    |      | 2,184,697   | 2,184,697   | 6/1/09 
|Voltage Security            |      | 3,691,627   | 3,691,627   | 6/1/09 
|Xactly                      |      | 313,605     | 313,605     | 6/1/10 
|Subtotal:                   | 9.0% | $19,949,647 | $19,949,647 |        
|                            |      |             |             |        
|Semiconductors & Equipment  |      |             |             |        
|Alereon                     |      | $1,695,143  | $1,695,143  | 7/1/10 
|Andigilog                   |      | 204,268     | 204,268     | *      
|Aristos Logic               |      | 3,637,987   | 3,637,987   | 4/1/10 
|Azuro                       |      | 2,361,381   | 2,361,381   | 2/1/10 
|Bitwave Semiconductor       |      | 768,620     | 768,620     | 12/1/09
|Celestial Semiconductor     |      | 1,339,782   | 1,339,782   | 6/1/09 
|Cswitch                     |      | 2,879,118   | 2,879,118   | 6/1/10 
|Discera                     |      | 618,757     | 618,757     | 1/1/11 





|Enigma Semiconductor                 |       | 692,816     | 692,816     | 12/1/08
|------------------------------------ | ----- | ----------- | ----------- | -------
|Gigafin Networks                     |       | 3,463,416   | 3,463,416   | 7/1/10 
|InSilica                             |       | 1,900,425   | 1,900,425   | 7/1/10 
|Integrated Materials                 |       | 1,677,718   | 1,677,718   | 6/1/10 
|Intelleflex                          |       | 367,260     | 367,260     | 11/1/08
|InvenSense                           |       | 1,875,400   | 1,875,400   | 1/1/11 
|KeyEye Communications                |       | 1,772,747   | 3,572,747   | *      
|Luminescent Technologies             |       | 1,732,268   | 1,732,268   | 7/1/09 
|Luxtera                              |       | 1,942,752   | 1,942,752   | 1/1/11 
|LV Sensors                           |       | 2,419,489   | 2,419,489   | 2/1/11 
|Montalvo Systems                     |       | 453,531     | 453,531     | 8/1/08 
|Netxen                               |       | 1,877,205   | 1,877,205   | 10/1/10
|RMI Corporation                      |       | 9,132,484   | 9,132,484   | 7/1/10 
|Silicon Optix                        |       | 5,613,503   | 5,613,503   | 3/1/11 
|Teknovus                             |       | 2,325,468   | 2,325,468   | 3/1/10 
|Tela Innovations                     |       | 458,132     | 458,132     | 10/1/10
|Xilient                              |       | 1,115,785   | 1,115,785   | 12/1/09
|Subtotal:                            | 23.6% | $52,325,455 | $54,125,455 |        
|                                     |       |             |             |        
|Software                             |       |             |             |        
|5SquareSystems                       |       | $1,095,154  | $1,095,154  | 7/1/09 
|Akimbo Systems                       |       | 572,762     | 572,762     | 2/1/09 
|Arena Solutions                      |       | 3,343,860   | 3,343,860   | 1/1/10 
|Athena Design Systems                |       | 482,676     | 482,676     | 4/1/10 
|Berkeley Design Automation           |       | 1,164,969   | 1,164,969   | 12/1/10
|Blackfoot                            |       | -           | 290,285     | *      
|BlueRoads                            |       | 3,437,445   | 3,437,445   | 3/1/10 
|Bocada                               |       | 1,262,115   | 1,262,115   | 10/1/09
|Canopy Financial                     |       | 482,714     | 482,714     | 11/1/10
|Cloudmark                            |       | 2,489,979   | 2,489,979   | 10/1/10
|Coghead                              |       | 712,119     | 712,119     | 10/1/10
|DemandBase                           |       | 727,219     | 727,219     | 11/1/10
|Emergent Game Technologies, Inc.     |       | 573,779     | 573,779     | 7/1/09 
|Enigma Information Retrieval Systems |       | 722,452     | 722,452     | 11/1/08
|Enkata Technologies                  |       | 313,282     | 313,282     | 4/1/10 
|Evincii                              |       | 255,618     | 255,618     | 10/1/10
|firstRain                            |       | 1,095,159   | 1,095,159   | 12/1/08
|Fusion Dynamic                       |       | -           | 686,486     | *      
|Future Point Systems                 |       | 234,414     | 234,414     | 1/1/11 
|Gizmo5 Technologies                  |       | 1,763,695   | 1,763,695   | 11/1/09
|Integrien                            |       | 3,430,703   | 3,430,703   | 7/1/10 
|IT Structures                        |       | 240,893     | 240,893     | 9/1/10 
|JasperSoft                           |       | 1,283,663   | 1,283,663   | 9/1/09 
|Kabira Technologies                  |       | 2,397,114   | 2,397,114   | 12/1/10





|Kareo               |       | 235,217     | 235,217     | 7/1/10 
|------------------- | ----- | ----------- | ----------- | -------
|KonaWare            |       | -           | 110,072     | *      
|Market6             |       | 1,105,967   | 1,105,967   | 7/1/10 
|MetaCarta           |       | 2,015,133   | 2,015,133   | 11/1/09
|NR2B Research       |       | 442,170     | 442,170     | 3/1/11 
|Nusym Technologies  |       | 391,211     | 391,211     | 4/1/09 
|Orb Networks        |       | 826,089     | 826,089     | 1/1/10 
|Perquest            |       | 228,332     | 228,332     | 3/1/09 
|Platform Solutions  |       | 5,511,579   | 5,511,579   | 9/1/09 
|Qlip Media          |       | 303,920     | 303,920     | 8/1/08 
|Siperian            |       | 2,663,989   | 2,663,989   | 10/1/09
|SOA Software        |       | 489,838     | 489,838     | 9/1/08 
|Solidcore Systems   |       | 2,668,884   | 2,668,884   | 10/1/09
|SoundFlavor         |       | 325,547     | 325,547     | 7/1/10 
|Steelwedge          |       | 1,371,063   | 1,371,063   | 5/1/09 
|Ultriva             |       | 1,096,951   | 1,096,951   | 12/1/09
|Universal Ad        |       | 945,866     | 945,866     | 10/1/10
|Visible World       |       | 3,312,093   | 3,312,093   | 12/1/10
|W&W Communications  |       | 229,054     | 229,054     | 12/1/08
|Xtime               |       | 446,728     | 446,728     | 1/1/11 
|Zoove               |       | 1,807,204   | 1,807,204   | 2/1/10 
|Subtotal:           | 24.5% | $54,498,619 | $55,585,462 |        
|                    |       |             |             |        
|Technology Services |       |             |             |        
|Fusepoint           |       | $1,433,260  | $1,433,260  | 10/1/08
|Jacent Technologies |       | -           | 234,637     | *      
|Neutral Tandem      |       | 6,796,031   | 6,796,031   | 3/1/10 
|OpSource            |       | 5,916,448   | 5,916,448   | 3/1/11 
|Subtotal:           | 6.4%  | $14,145,739 | $14,380,376 |        
|                    |       |             |             |        
|Wireless            |       |             |             |        
|AeroScout           |       | $266,338    | $266,338    | 6/1/08 
|Altierre            |       | 1,063,456   | 1,063,456   | 4/1/09 
|Cellfire            |       | 1,225,634   | 1,225,634   | 3/1/10 
|DeFi Mobile         |       | 238,597     | 238,597     | 12/1/10
|Digital Bridges     |       | 3,431,905   | 3,431,905   | 12/1/08
|HandsOn Mobile      |       | 2,728,485   | 2,728,485   | 5/1/10 
|July Systems        |       | 605,754     | 605,754     | 4/1/10 
|LimeLife            |       | 1,848,045   | 1,848,045   | 10/1/09
|Magnolia Broadband  |       | 2,388,022   | 2,388,022   | 7/1/09 
|Nextivity           |       | 430,058     | 430,058     | 11/1/09
|OOMA                |       | 925,481     | 925,481     | 5/1/09 
|Pontis              |       | 759,593     | 759,593     | 6/1/09 
|Quickoffice         |       | 1,864,464   | 1,864,464   | 7/1/10 





|S5 Wireless                   |        | 2,883,087    | 2,883,087    | 5/1/10 
|----------------------------- | ------ | ------------ | ------------ | -------
|Sandlinks                     |        | 896,966      | 896,966      | 6/1/10 
|ScanR                         |        | 2,004,273    | 2,004,273    | 4/1/11 
|SmartDrive                    |        | 1,535,198    | 1,535,198    | 6/1/10 
|Venturi Wireless              |        | 1,295,537    | 1,295,537    | 11/1/10
|Vivotech                      |        | 1,784,392    | 1,784,392    | 8/1/09 
|Wavion                        |        | 1,142,038    | 1,142,038    | 8/1/09 
|WiSpry                        |        | 1,193,851    | 1,193,851    | 4/1/10 
|Subtotal:                     | 13.7%  | $30,511,174  | $30,511,174  |        
|                              |        |              |              |        
|Total: (Cost of $335,327,975) | 148.7% | $330,472,483 | $335,327,975 |        





*As of March 31, 2008 loans with a cost basis of $9.3 million and a fair market value of $4.5 million have been classified as non-accrual.

Loans as of December 31, 2007 are in non-affiliates and consist of the following:

|                       | Percentage of | Estimated Fair | Par Value   | Final        
|---------------------- | ------------- | -------------- | ----------- | -------------
|Borrower               | Net Assets    | Value 12/31/07 | 12/31/07    | Maturity Date
|Biotechnology          |               |                |             |              
|Acumen Pharmaceuticals |               | $510,750       | $510,750    | 8/1/10       
|Athersys               |               | 1,347,813      | 1,347,813   | 6/1/08       
|ProMetic               |               | 7,572,937      | 7,572,937   | 8/1/09       
|Raven Biotechnologies  |               | 960,084        | 960,084     | 6/1/08       
|SanBio                 |               | 1,203,606      | 1,203,606   | 10/1/10      
|Serenex                |               | 813,248        | 813,248     | 8/1/08       
|Trellis Bioscience     |               | 897,359        | 897,359     | 12/1/10      
|Subtotal:              | 5.8%          | $13,305,797    | $13,305,797 |              
|                       |               |                |             |              
|Carrier Networking     |               |                |             |              
|Actelis                |               | $1,980,108     | $1,980,108  | 12/1/08      
|Asoka USA Corporation  |               | 957,308        | 957,308     | 1/1/11       
|Ellacoya Networks      |               | 5,567,331      | 5,567,331   | 12/1/09      
|Kasenna                |               | 1,444,029      | 1,444,029   | 9/1/09       
|Kodiak Networks        |               | 1,133,172      | 1,133,172   | 4/1/10       
|OnSite Systems         |               | 254,533        | 254,533     | 12/1/08      
|OpVista                |               | 4,513,154      | 4,513,154   | 5/1/10       
|Overture Networks      |               | 2,720,938      | 2,720,938   | 2/1/10       
|Wavebender             |               | 456,545        | 456,545     | 9/1/10       
|World Wide Packets     |               | 9,038,696      | 9,038,696   | 1/1/10       
|Subtotal:              | 12.3%         | $28,065,814    | $28,065,814 |              
|                       |               |                |             |              
|Computers & Storage    |               |                |             |              
|Calista Technologies   |               | $529,325       | $529,325    | 1/14/08      





|CloudShield           |      | 1,103,439   | 1,103,439   | 1/1/10 
|--------------------- | ---- | ----------- | ----------- | -------
|D-Wave Systems        |      | 405,924     | 405,924     | 7/1/10 
|Gear Six, Inc.        |      | 925,081     | 925,081     | 7/1/10 
|Ncomputing            |      | 1,209,935   | 1,209,935   | 9/1/10 
|Panta Systems         |      | 463,574     | 923,575     | *      
|Powerfile             |      | 697,799     | 697,799     | 6/1/08 
|Sanrad                |      | 1,366,738   | 1,366,738   | 12/1/08
|Sepaton               |      | 3,618,936   | 3,618,936   | 10/1/09
|Teneros               |      | 1,879,062   | 1,879,062   | 10/1/09
|Vidyo                 |      | 1,252,401   | 1,252,401   | 10/1/10
|Subtotal:             | 5.9% | $13,452,214 | $13,912,215 |        
|                      |      |             |             |        
|Enterprise Networking |      |             |             |        
|BlueSocket            |      | $1,322,903  | $1,322,903  | 12/1/09
|Envivio               |      | 3,766,972   | 3,766,972   | 1/1/11 
|Informative           |      | 854,407     | 854,407     | 7/1/09 
|NeoPath Networks      |      | 2,823,363   | 2,823,363   | 11/1/09
|NextHop Technologies  |      | 660,729     | 660,729     | 6/1/08 
|The Retail Equation   |      | 96,582      | 96,582      | 6/1/08 
|Vyatta                |      | 708,558     | 708,558     | 2/1/11 
|Subtotal:             | 4.5% | $10,233,514 | $10,233,514 |        
|                      |      |             |             |        
|Internet              |      |             |             |        
|Accelovation          |      | $1,045,181  | $1,045,181  | 1/1/11 
|Aggregate Knowledge   |      | 763,076     | 763,076     | 2/1/11 
|BuzzLogic             |      | 461,623     | 461,623     | 5/1/11 
|Collarity             |      | 486,040     | 486,040     | 3/1/11 
|Cuill                 |      | 3,194,680   | 3,194,680   | 2/1/12 
|Digital Railroad      |      | 1,390,073   | 1,390,073   | 1/1/10 
|Donnerwood Media      |      | 731,293     | 731,293     | 8/1/10 
|EForce Media          |      | 1,461,125   | 1,461,125   | 12/1/10
|FaceBook              |      | 1,161,223   | 1,161,223   | 11/1/08
|Feedster              |      | 1,051,305   | 1,051,305   | *      
|Flock                 |      | 954,423     | 954,423     | 5/1/10 
|Genius                |      | 1,528,322   | 1,528,322   | 8/1/10 
|Goodmail Systems      |      | 1,519,096   | 1,519,096   | 2/1/09 
|iGroup Network        |      | 164,783     | 164,783     | 8/1/10 
|Insider Guides        |      | 926,996     | 926,996     | 2/1/11 
|Koders                |      | 345,453     | 345,453     | 2/1/10 
|Kosmix                |      | 404,803     | 404,803     | 9/1/08 
|Monitor110            |      | 1,673,555   | 1,673,555   | 1/1/10 
|Philotic              |      | 146,312     | 146,312     | 10/1/10
|Plaxo                 |      | 1,123,721   | 1,123,721   | 12/1/10
|Popjax                |      | 474,045     | 474,045     | 12/1/10





|ProQuo [Skoop Heavy Industries] |       | 1,219,331   | 1,219,331   | 6/1/10 
|------------------------------- | ----- | ----------- | ----------- | -------
|QuantCast                       |       | 176,809     | 176,809     | 3/1/11 
|Radar Networks                  |       | 1,099,708   | 1,099,708   | 10/1/10
|Return Path                     |       | 3,360,084   | 3,360,084   | 12/1/10
|Riya                            |       | 2,427,058   | 2,427,058   | 7/1/11 
|ScanScout                       |       | 526,629     | 526,629     | 2/7/08 
|Sharpcast                       |       | 2,934,561   | 2,934,561   | 12/1/10
|SnapJot                         |       | 112,239     | 112,239     | 10/1/08
|ThisNext, Inc.                  |       | 442,289     | 442,289     | 6/1/10 
|Tribe                           |       | -           | 465,007     | *      
|Turn                            |       | 2,003,049   | 2,003,049   | 1/1/11 
|ultraRPM                        |       | 2,269,125   | 2,269,125   | 11/1/10
|uStream.TV                      |       | 216,296     | 216,296     | 10/1/10
|Vast.com                        |       | 155,941     | 155,941     | 12/1/08
|VetCentric                      |       | 3,726,339   | 3,726,339   | 11/1/09
|Subtotal:                       | 18.2% | $41,676,586 | $42,141,593 |        
|                                |       |             |             |        
|Medical Devices                 |       |             |             |        
|Ablation Frontiers              |       | $511,971    | $511,971    | 8/1/08 
|Accuri Cytometers               |       | 980,312     | 980,312     | 9/1/10 
|AirXpanders                     |       | 56,416      | 56,416      | 1/1/11 
|Aspire Medical                  |       | 2,548,978   | 2,548,978   | 12/1/09
|Emergent Respiratory Products   |       | 131,692     | 131,692     | 6/1/08 
|Emphasys Medical                |       | 4,830,563   | 4,830,563   | 1/1/11 
|EnteroMedics                    |       | 6,663,787   | 6,663,787   | 8/1/10 
|Evalve                          |       | 6,348,225   | 6,348,225   | 8/1/09 
|HandyLab                        |       | 2,315,064   | 2,315,064   | 12/1/10
|iBalance Medical                |       | 1,870,690   | 1,870,690   | 9/1/10 
|Inogen                          |       | 1,155,052   | 1,155,052   | 7/1/09 
|Myocor                          |       | 6,997,460   | 6,997,460   | 2/1/10 
|Myoscience                      |       | 1,426,025   | 1,426,025   | 6/1/11 
|Nellix                          |       | 402,930     | 402,930     | 1/1/11 
|NeoGuide Systems                |       | 2,427,927   | 2,427,927   | 7/1/10 
|Oculus Innovative Sciences      |       | 2,208,171   | 2,208,171   | 4/1/09 
|Percutaneous Systems            |       | 712,663     | 712,663     | 9/1/09 
|Softscope Medical Technologies  |       | 233,236     | 233,236     | 12/1/10
|Volcano Corporation             |       | 64,248      | 64,248      | 2/1/08 
|Subtotal:                       | 18.3% | $41,885,410 | $41,885,410 |        
|                                |       |             |             |        
|Other Healthcare                |       |             |             |        
|Advanced ICU Care               |       | $365,267    | $365,267    | 10/1/10
|Chakshu Research                |       | 3,932,189   | 3,932,189   | 12/1/09
|MedManage Systems               |       | 491,310     | 491,310     | 8/1/10 
|Nanosphere                      |       | 5,450,019   | 5,450,019   | 8/1/10 





|Pharmacy TV Network         |      | -           | 336,005     | *      
|--------------------------- | ---- | ----------- | ----------- | -------
|Skylight Healthcare Systems |      | 3,664,110   | 3,664,110   | 10/1/10
|Subtotal:                   | 6.1% | $13,902,895 | $14,238,900 |        
|                            |      |             |             |        
|Other Technology            |      |             |             |        
|Building B                  |      | $1,587,098  | $1,587,098  | 10/1/10
|EoPlex                      |      | 170,403     | 170,403     | 8/1/10 
|Nanoconduction              |      | 2,342,805   | 2,342,805   | 8/1/10 
|NanoGram                    |      | 2,508,051   | 2,508,051   | 12/1/10
|Nanosolar                   |      | 1,032,099   | 1,032,099   | 5/1/10 
|Nanostellar                 |      | 1,312,138   | 1,312,138   | 7/1/09 
|ORYXE Energy International  |      | 1,376,662   | 1,376,662   | 5/1/10 
|Sub-One                     |      | 3,787,625   | 3,787,625   | 11/1/10
|Tag Networks                |      | 2,563,331   | 2,563,331   | 9/1/09 
|Triformix                   |      | 259,880     | 259,880     | 3/1/09 
|Subtotal:                   | 7.4% | $16,940,092 | $16,940,092 |        
|                            |      |             |             |        
|Security                    |      |             |             |        
|Apere                       |      | $441,942    | $441,942    | 5/1/09 
|Assurz                      |      | 928,005     | 928,005     | 1/1/10 
|BigFix                      |      | 634,087     | 634,087     | 5/1/08 
|CipherOptics                |      | 2,348,319   | 2,348,319   | 3/1/10 
|Dragnet Solutions           |      | 140,815     | 140,815     | 4/1/09 
|Guardian Analytics          |      | 84,561      | 84,561      | 1/1/11 
|Ironkey                     |      | 572,774     | 572,774     | 4/1/10 
|Lancope                     |      | 880,091     | 880,091     | 10/1/08
|Mi5                         |      | 169,132     | 169,132     | 7/1/09 
|Nevis Networks              |      | 869,895     | 869,895     | 8/1/09 
|Safend                      |      | 2,170,741   | 2,170,741   | 12/1/09
|Secure Elements             |      | 396,777     | 396,777     | 10/1/08
|SNOCAP                      |      | 4,216,961   | 4,216,961   | 1/1/10 
|TrustedID                   |      | 1,514,227   | 1,514,227   | 11/1/09
|Vericept                    |      | 2,552,239   | 2,552,239   | 6/1/09 
|Voltage Security            |      | 4,366,051   | 4,366,051   | 6/1/09 
|Xactly                      |      | 346,551     | 346,551     | 6/1/10 
|Subtotal:                   | 9.9% | $22,633,168 | $22,633,168 |        
|                            |      |             |             |        
|Semiconductors & Equipment  |      |             |             |        
|Alereon                     |      | $1,687,479  | $1,687,479  | 7/1/10 
|Andigilog                   |      | 749,407     | 749,407     | 12/1/08
|Aristos Logic               |      | 4,076,413   | 4,076,413   | 4/1/10 
|Azuro                       |      | 2,620,137   | 2,620,137   | 2/1/10 
|Bitwave Semiconductor       |      | 863,394     | 863,394     | 12/1/09
|Celestial Semiconductor     |      | 1,571,745   | 1,571,745   | 6/1/09 





|Cswitch                              |       | 2,334,790   | 2,334,790   | 6/1/10 
|------------------------------------ | ----- | ----------- | ----------- | -------
|Discera                              |       | 794,732     | 794,732     | 1/1/11 
|Enigma Semiconductor                 |       | 855,049     | 855,049     | 12/1/08
|Gigafin Networks                     |       | 3,639,971   | 3,639,971   | 7/1/10 
|InSilica                             |       | 1,440,552   | 1,440,552   | 7/1/10 
|Integrated Materials                 |       | 1,927,725   | 1,927,725   | 6/1/10 
|Intelleflex                          |       | 554,103     | 554,103     | 11/1/08
|InvenSense                           |       | 1,825,316   | 1,825,316   | 11/1/10
|KeyEye Communications                |       | 4,102,928   | 4,102,928   | 3/1/10 
|Luminescent Technologies             |       | 2,004,298   | 2,004,298   | 7/1/09 
|Luxtera                              |       | 2,201,066   | 2,201,066   | 1/1/11 
|LV Sensors                           |       | 1,238,722   | 1,238,722   | 2/1/11 
|Molecular Imprints                   |       | 43,248      | 43,248      | 1/1/08 
|Montalvo Systems                     |       | 731,380     | 731,380     | 8/1/08 
|Netxen                               |       | 2,570,344   | 2,570,344   | 10/1/10
|RMI Corporation                      |       | 10,145,903  | 10,145,903  | 7/1/10 
|Silicon Optix                        |       | 4,618,229   | 4,618,229   | 3/1/11 
|Teknovus                             |       | 2,659,247   | 2,659,247   | 3/1/10 
|Tela Innovations                     |       | 241,145     | 241,145     | 7/1/10 
|Xilient                              |       | 1,246,465   | 1,246,465   | 12/1/09
|Subtotal:                            | 24.8% | $56,743,788 | $56,743,788 |        
|                                     |       |             |             |        
|Software                             |       |             |             |        
|5SquareSystems                       |       | $1,153,716  | $1,153,716  | 7/1/09 
|Adomo                                |       | 1,130,377   | 1,130,377   | 2/4/08 
|Akimbo Systems                       |       | 758,339     | 758,339     | 2/1/09 
|Arena Solutions                      |       | 3,764,551   | 3,764,551   | 1/1/10 
|Athena Design Systems                |       | 676,595     | 676,595     | 4/1/10 
|Berkeley Design Automation           |       | 1,270,361   | 1,270,361   | 12/1/10
|Blackfoot                            |       | -           | 290,284     | *      
|BlueRoads                            |       | 4,030,398   | 4,030,398   | 3/1/10 
|Bocada                               |       | 1,437,747   | 1,437,747   | 10/1/09
|Canopy Financial                     |       | 500,334     | 500,334     | 11/1/10
|Cloudmark                            |       | 2,861,973   | 2,861,973   | 10/1/10
|Coghead                              |       | 707,776     | 707,776     | 10/1/10
|DemandBase                           |       | 723,801     | 723,801     | 11/1/10
|Emergent Game Technologies, Inc.     |       | 662,001     | 662,001     | 7/1/09 
|Enigma Information Retrieval Systems |       | 975,697     | 975,697     | 11/1/08
|Enkata Technologies                  |       | 658,707     | 658,707     | 4/1/10 
|Evincii                              |       | 275,507     | 275,507     | 10/1/10
|firstRain                            |       | 1,383,761   | 1,383,761   | 12/1/08
|Fusion Dynamic                       |       | 75,486      | 775,486     | *      
|Gizmo5 Technologies                  |       | 1,978,967   | 1,978,967   | 11/1/09
|Integrien                            |       | 3,810,200   | 3,810,200   | 7/1/10 





|IT Structures       |       | 239,860     | 239,860     | 9/1/10 
|------------------- | ----- | ----------- | ----------- | -------
|JasperSoft          |       | 1,461,358   | 1,461,358   | 9/1/09 
|Kabira Technologies |       | 1,571,776   | 1,571,776   | 12/1/10
|Kareo               |       | 257,129     | 257,129     | 7/1/10 
|KonaWare            |       | 111,334     | 111,334     | 3/1/08 
|Market6             |       | 1,189,631   | 1,189,631   | 7/1/10 
|MetaCarta           |       | 2,505,100   | 2,505,100   | 11/1/09
|Nusym Technologies  |       | 490,152     | 490,152     | 4/1/09 
|Orb Networks        |       | 874,476     | 874,476     | 1/1/10 
|Perquest            |       | 275,169     | 275,169     | 3/1/09 
|Platform Solutions  |       | 5,957,438   | 5,957,438   | 9/1/09 
|Qlip Media          |       | 426,764     | 426,764     | 8/1/08 
|Sabrix              |       | 355,633     | 355,633     | 3/1/08 
|Siperian            |       | 3,017,033   | 3,017,033   | 10/1/09
|SOA Software        |       | 703,210     | 703,210     | 9/1/08 
|Solidcore Systems   |       | 3,020,162   | 3,020,162   | 10/1/09
|SoundFlavor         |       | 381,441     | 381,441     | 7/1/10 
|Steelwedge          |       | 1,453,424   | 1,453,424   | 4/1/09 
|Ultriva             |       | 1,224,458   | 1,224,458   | 12/1/09
|Universal Ad        |       | 475,791     | 475,791     | 7/1/09 
|Visible World       |       | 3,671,938   | 3,671,938   | 12/1/10
|W&W Communications  |       | 293,650     | 293,650     | 12/1/08
|Xtime               |       | 243,375     | 243,375     | 1/1/11 
|Zoove               |       | 2,014,305   | 2,014,305   | 2/1/10 
|Subtotal:           | 26.7% | $61,050,901 | $62,041,185 |        
|                    |       |             |             |        
|Technology Services |       |             |             |        
|Fusepoint           |       | $1,866,047  | $1,866,047  | 10/1/08
|Jacent Technologies |       | 84,637      | 234,637     | *      
|Neutral Tandem      |       | 8,133,422   | 8,133,422   | 3/1/10 
|OpSource            |       | 4,618,844   | 4,618,844   | 2/1/11 
|Subtotal:           | 6.4%  | $14,702,950 | $14,852,950 |        
|                    |       |             |             |        
|Wireless            |       |             |             |        
|AeroScout           |       | $655,881    | $655,881    | 6/1/08 
|Altierre            |       | 1,307,708   | 1,307,708   | 4/1/09 
|Cellfire            |       | 1,350,805   | 1,350,805   | 3/1/10 
|DeFi Mobile         |       | 237,323     | 237,323     | 12/1/10
|Digital Bridges     |       | 4,388,654   | 4,388,654   | 12/1/08
|HandsOn Mobile      |       | 2,988,139   | 2,988,139   | 5/1/10 
|July Systems        |       | 666,833     | 666,833     | 4/1/10 
|LimeLife            |       | 2,089,863   | 2,089,863   | 10/1/09
|Magnolia Broadband  |       | 2,791,916   | 2,791,916   | 7/1/09 
|Nextivity           |       | 486,669     | 486,669     | 11/1/09





|OOMA                          |        | 1,165,907    | 1,165,907    | 5/1/09 
|----------------------------- | ------ | ------------ | ------------ | -------
|Pontis                        |        | 880,150      | 880,150      | 6/1/09 
|Quickoffice                   |        | 2,168,956    | 2,168,956    | 7/1/10 
|S5 Wireless                   |        | 3,199,103    | 3,199,103    | 5/1/10 
|Sandlinks                     |        | 981,241      | 981,241      | 6/1/10 
|ScanR                         |        | 1,666,606    | 1,666,606    | 1/1/11 
|SmartDrive                    |        | 1,732,307    | 1,732,307    | 6/1/10 
|Venturi Wireless              |        | 1,403,010    | 1,403,010    | 11/1/10
|Vivotech                      |        | 2,066,752    | 2,066,752    | 8/1/09 
|Wavion                        |        | 1,587,870    | 1,587,870    | 3/1/09 
|WiSpry                        |        | 1,448,305    | 1,448,305    | 4/1/10 
|Subtotal:                     | 15.4%  | $35,263,998  | $35,263,998  |        
|                              |        |              |              |        
|Total: (Cost of $372,258,424) | 161.6% | $369,857,127 | $372,258,424 |        



* As of December 31, 2007, loans with a cost basis of $4.1 million and a fair value of $1.7 million have been classified as non-accrual.  These loans have been accelerated from original maturity and are due in their entirety.



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 March 31, 2008, the Fund had unexpired unfunded commitments to borrowers of $76.9 million.



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 is exchanged in an orderly transaction; it is not a forced liquidation or distressed sale.



Valuation Hierarchy



Under SFAS No. 157, Fair Value Measurements (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 1 |  | Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.     
|------- |  | --------------------------------------------------------------------------------------------------------------------------------
|Level 2 |  | Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
|Level 3 |  | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.              



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 Funds derivative is 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 following table presents the balances of assets and liabilities measured at fair value on a recurring basis:



|                             | Level 2    | Level 3      | Total       
|---------------------------- | ---------- | ------------ | ------------
|ASSETS:                      |            |              |             
|Loans to Borrowers           | $-         | $330,472,483 | $330,472,483
|                             |            |              |             
|Total assets                 | $-         | $330,472,483 | $330,472,483
|                             |            |              |             
|LIABILITIES:                 |            |              |             
|Interest Rate Swap Agreement | $2,717,495 | $-           | $2,717,495  
|                             |            |              |             
|Total liabilities            | $2,717,495 | $-           | $2,717,495  
|                             |            |              |             



No assets or liabilities which are measured at fair value on a recurring basis are classified as Level 1.

The fair value of the interest rate swap agreement as of March 31, 2008 and December 31, 2007 was ($2,717,495) and ($1,185,838), 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:



|                           | LEVEL 3 INPUTS    
|-------------------------- | ------------------
|                           |                   
|                           | Loans to Borrowers
|                           |                   
|Balance December 31, 2007  | $369,857,127      
|Additional acquisitions    | 26,359,372        
|Net principal reductions   | (63,289,835)      
|Mark to market adjustments | (2,454,195)       
|Realized Gains             | 14                
|Balance March 31, 2008     | $330,472,483      
|                           |                   



4.

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net increase in net assets resulting from operations by the weighted average common shares outstanding.  Diluted earnings per share are computed by dividing net increase 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 March 31, 2008 and December 31, 2007, 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 Company through March 31, 2008 and December 31, 2007 was $250.0 million, of which $242.5 million, respectively, was contributed to the Fund.

The chart below shows the distributions of the Fund for the three months ended March 31, 2008 and 2007.

|                                   | For the Three Months Ended |  | For the Three Months Ended | 
|---------------------------------- | -------------------------- |  | -------------------------- | 
|                                   | March 31, 2008             |  | March 31, 2007             | 
|Cash distributions                 | $9,000,000                 |  | $12,300,000                | 
|Distributions of securities        | 1,955,674                  |  | 1,382,769                  | 
|                                   |                            |  |                            | 
|Total distributions to shareholder | $10,955,674                |  | $13,682,769                | 
|                                   |                            |  |                            | 



During the quarter, the Fund made distributions as noted in the table above.  These distributions have been presented as distributions of income.  However, the 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.

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 months ended March 31, 2008 and 2007.  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 March 31, 2008 |  | For the Three Months Ended March 31, 2007 | 
|---------------------------------------------------- | ----------------------------------------- |  | ----------------------------------------- | 
|                                                     |                                           |  |                                           | 
|                                                     |                                           |  |                                           | 
|Total return*                                        | 7.70%                                     |  | 12.95%                                    | 
|                                                     |                                           |  |                                           | 
|Per share amounts:                                   |                                           |  |                                           | 
|Net asset value, beginning of period                 | $2,288.56                                 |  | $2,381.48                                 | 
|Net investment income                                | 82.58                                     |  | 99.28                                     | 
|Net change in unrealized loss from                   |                                           |  |                                           | 
|investments and hedging activity                     | (39.86)                                   |  | (23.25)                                   | 
|Net increase in net assets resulting from operations | 42.72                                     |  | 76.03                                     | 
|Capital contributions                                | -                                         |  | 40.00                                     | 
|Income distributions to shareholder                  | (109.56)                                  |  | (76.83)                                   | 
|                                                     |                                           |  |                                           | 
|Return of capital to shareholder                     | -                                         |  | (60.00)                                   | 
|                                                     |                                           |  |                                           | 
|Net asset value, end of period                       | $2,221.72                                 |  | $2,360.68                                 | 
|                                                     |                                           |  |                                           | 
|Net assets, end of period                            | $222,171,843                              |  | $236,067,907                              | 
|                                                     |                                           |  |                                           | 
|Ratios to average net assets:                        |                                           |  |                                           | 
|                                                     |                                           |  |                                           | 
|Expenses*                                            | 8.69%                                     |  | 10.46%                                    | 
|Net investment income *                              | 14.83%                                    |  | 16.74%                                    | 
|*  Annualized                                        |                                           |  |                                           | 





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 the Groups 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



The Fund is a financial services company primarily providing financing and advisory services to a variety of carefully selected venture-backed companies primarily 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 only critical accounting policy we identified was related to the valuation of 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, 2007 (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 net assets.

Results of Operations For the three months ended March 31, 2008 and 2007



Total investment income for the three months ended March 31, 2008 and 2007 was $13.1 million and $16.1 million, respectively, of which $12.8 million and $15.1 million consisted of interest on venture loans outstanding during the period.  The remaining income related to interest income from short-term investment of cash as well as other income from commitment fees, warrants received for loans that will never fund, and incentive fees received on a certain loan.  Performing loans declined from $428.6 million as of March 31, 2007 to $368.2 million as of December 31, 2007 and to $326.0 million as of March 31, 2008.  This was partially offset by the increasing interest rates, as average interest rates rose from 14.15% for the three months ended March 31, 2007 to 14.62% for the three months ended March 31, 2008.  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.



Total management fees for the three months ended March 31, 2008 and 2007 were $2.3 million and $2.8 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 $2.0 million and $2.9 million for the three months ended March 31, 2008 and 2007, respectively.  Interest expense decreased for the period because average borrowings outstanding under the debt facility increased from $204.6 million as of December 31, 2006 to $214.6 as of March 31, 2007.  The outstanding balance then decreased to $156.0 as of December 31, 2007 and to $136.0 million as of March 31, 2008.  Additionally, weighted average interest rates decreased from 5.62% to 5.34% for the three months ended March 31, 2007 and 2008, respectively as interest rates in general declined.  The commercial paper market continued to be volatile for the quarter





causing some increased interest expense.



Total banking and professional fees were $0.5 million and $0.4 million for the three months ended March 31, 2008 and 2007, respectively.  The increase for the period was primarily related to increased bank fees and to a lesser extent an increase in professional fees.  The banking fee increase was the result of paying down debt under the banking facility; which caused increased fees on the unused portion of the facility.



Net investment income for the three months ended March 31, 2008 and 2007 was $8.3 million and $9.9 million, respectively.



Total net realized gain (loss) from investment transactions was less than $0.1 million and $(1.7) million for the three months ended March 31, 2008 and 2007 respectively.  The realized losses consist of write offs and recoveries of previously written off uncollectible loans.



Total net change in unrealized loss from investment and hedging activities for the three months ended March 31, 2008 and 2007 was $(4.0) million and $(0.6) million respectively.  The net change in unrealized loss for the three months ended March 31, 2008 is composed of a $1.5 million decrease in the value of an interest rate swap transaction and a $2.5 million net decrease in the fair market valuation of loans.  The net change in unrealized loss for the three months ended March 31, 2007 is composed of a $0.3 million decrease in the value of an interest rate swap transaction and the $0.3 million net decrease in the fair market valuation of loans.



Net increase in net assets resulting from operations for the three months ended March 31, 2008 and 2007 was $4.3 million and $7.6 million, respectively.  On a per share basis, net increase in net assets resulting from operations was $42.72 and $76.02 for the three months ended March 31, 2008 and 2007, respectively.



Liquidity and Capital Resources  March 31, 2008 and December 31, 2007



Total capital contributed to the Fund was $242.5 million as of March 31, 2008 and December 31, 2007, respectively.  Committed capital to the Company at March 31, 2008 and December 31, 2007 was $250.0 million, all of which had been called.



The Fund had in place a $230.0 million securitization debt facility as March 31, 2008 and December 31, 2007.  Borrowings by the Fund are collateralized by receivables from loans advanced by the Fund in its ordinary course of business.  The Fund pays interest on its borrowings based on the secured facilitys cost of issuing commercial paper obligations.  The Fund typically will enter into hedge transactions to limit its interest rate risk, and thus the net interest expense will be based in a large part on the fixed rate negotiated on these transactions.  The facility terminates in May 2009, but can be accelerated under an event of default such as failure by the Fund to make timely interest or principal payments.  The first draw against this direct financial obligation of the Fund took place in October, 2004.  Both the bank fees and legal costs associated with this facility have been capitalized and are being amortized over the expected life of the facility.



At March 31, 2008 and December 31, 2007 the Fund had interest rate swap transactions outstanding with a total notional principal amount of $150.0 million and $156.0 million.  The effect of these swap transactions is to convert the floating rate bank debt into a fixed rate on the contract notional value.  The amortization schedule for each borrowing under the facility is expected to correspond to the amortization of the loans supporting each borrowing.







As of March 31, 2008 and December 31, 2007, 8% and 4%, 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 months ended March 31, 2008.  Amounts disbursed under the Fund's loan commitments totaled approximately $26.4 million during the period from January 1, 2008 through March 31, 2008.  Net loan amounts outstanding after amortization and reserves decreased by approximately $39.4 million for the same period.  Unexpired, unfunded commitments totaled approximately $76.9 million as of March 31, 2008.



|As of             | Amount Disbursed | Principal Reductions and Reserves | Balance Outstanding  Fair Value | Unexpired Unfunded Commitments
|----------------- | ---------------- | --------------------------------- | -------------------------------- | ------------------------------
|March 31, 2008    | $853.4 million   | $522.9 million                    | $330.5 million                   | $76.9 million                 
|December 31, 2007 | $827.0 million   | $457.1 million                    | $369.9 million                   | $61.0 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 bank loans.  The net interest received or paid on the transactions is included in interest expense.  The fair value of the 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 transactions.







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 less than $0.1 million.  This translates to less than 1% of income for the three months ended March 31, 2008.  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 2007 Annual Report on Form 10-K for a detailed description of the principal risks that attend to the Fund and its business.







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 $242.5 million of paid in capital during the period from May 28, 2004 through March 31, 2008 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



None





Item 6.  Exhibits



|Exhibit Number | Description                                                                                                                                                                                                                  
|-------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3(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)          | Bylaws of the Fund as of October 31, 2003, incorporated by reference to the Funds Registration Statement on Form 10 filed with the Securities and Exchange Commission on December 10, 2003.                                 
|4.1            | Form 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.               
|31.1-32.2      | Certifications pursuant to The Sarbanes-Oxley Act of 2002                                                                                                                                                                    











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:

May 14, 2008

Date:

May 14, 2008





EXHIBIT INDEX







|Exhibit Number | Description                                                                                                                                                                                                                  
|-------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3(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)          | Bylaws of the Fund as of October 31, 2003, incorporated by reference to the Funds Registration Statement on Form 10 filed with the Securities and Exchange Commission on December 10, 2003.                                 
|4.1            | Form 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.               
|31.1-32.2      | Certifications pursuant to The Sarbanes-Oxley Act of 2002                                                                                                                                                                    





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: May 14, 2008



/S/ Martin D. Eng



Martin D. Eng

Chief Financial Officer





Exhibit 31.2

CERTIFICATION PURSUANT TO 
RULE 13a-14



I, Ronald W. Swenson, certify that:



6.

I have reviewed this quarterly report on Form 10-Q of Venture Lending & Leasing IV, Inc.;



7.

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;



8.

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;



9.

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



10.

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: May 14, 2008



/S/ Ronald W. Swenson



Ronald W. Swenson

Chief Executive Officer







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 March 31, 2008 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

May 14, 2008







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 March 31, 2008 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
May 14, 2008