FORM 10-Q





SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended June 30, 2005





[  ]

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 has (i) 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 (ii) has been subject to such filing requirements for the past 90 days.

Yes ÖNo __



Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)  Yes __No Ö





Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:



Class

Outstanding as of August 2, 2005

Common Stock, $.001 par value

100,000









VENTURE LENDING & LEASING IV, INC.



INDEX



PART I -- FINANCIAL INFORMATION



Item 1.

Financial Statements



Condensed Statements of Financial Position (Unaudited)



As of June 30, 2005 and December 31, 2004



Condensed Statements of Operations (Unaudited)



For the three and six months ended June 30, 2005 and 2004



Condensed Statements of Changes in Shareholder's Equity (Unaudited)



For the year ended December 31, 2004 and the six months ended June 30, 2005



Condensed Statements of Cash Flows (Unaudited)



For the six months ended June 30, 2005 and 2004



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.

Disclosure Controls and Procedures





PART II -- OTHER INFORMATION

Item 1.

Legal Proceedings





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





1









VENTURE LENDING & LEASING IV, INC.



CONDENSED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

AS OF JUNE 30, 2005 AND DECEMBER 31, 2004

|                                                              |  | June 30, 2005              |  | December 31, 2004        
|------------------------------------------------------------- |  | -------------------------- |  | -------------------------
|                                                              |  |                            |  |                          
|ASSETS                                                        |  |                           
|Loans at estimated fair value                                 |  |                            |  |                          
|(Cost of $155,063,715 and $85,358,153)                        |  | $            155,063,715   |  | $              85,358,153
|Cash and cash equivalents                                     |  | 21,069,027                 |  | 25,031,477               
|Other assets                                                  |  | 3,044,569                  |  | 2,109,855                
|                                                              |  |                            |  |                          
|Total assets                                                  |  | $            179,177,311   |  | $           112,499,485  
|                                                              |  |                            |  |                          
|LIABILITIES AND SHAREHOLDER'S EQUITY                          |  |                           
|Liabilities:                                                  |  |                            |  |                          
|Borrowings under debt facility                                |  | $               73,347,779 |  | $              31,450,194
|Accrued management fees                                       |  | 1,562,500                  |  | 1,562,500                
|Accounts payable and other accrued liabilities                |  | 1,181,291                  |  | 637,185                  
|                                                              |  |                            |  |                          
|Total liabilities                                             |  | 76,091,570                 |  | 33,649,879               
|                                                              |  |                            |  |                          
|Shareholder's equity:                                         |  |                            |  |                          
|Common stock: $0.001 par value, 10,000,000 shares authorized; |  |                            | 
|Issued and outstanding - 100,000 shares                       |  | 100                        |  | 100                      
|Capital in excess of par value                                |  | 104,524,900                |  | 82,524,900               
|Accumulated distributions                                     |  | (2,566,324)                |  | (1,629,686)              
|Accumulated earnings (deficit)                                |  | 1,127,065                  |  | (2,045,708)              
|Total shareholder's equity                                    |  | 103,085,741                |  | 78,849,606               
|                                                              |  |                            |  |                          
|Total liabilities and shareholder's equity                    |  | $            179,177,311   |  | $           112,499,485  
|                                                              |  |                            |  |                          

















See Notes to Condensed Financial Statements















VENTURE LENDING & LEASING IV, INC.



CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)



|                                                      |  | For the Three Months Ended |  | For the Three Months Ended |  | For the Six Months Ended |  | For the Six Months Ended
|----------------------------------------------------- |  | -------------------------- |  | -------------------------- |  | ------------------------ |  | ------------------------
|                                                      |  | June 30, 2005              |  | June 30, 2004              |  | June 30, 2005            |  | June 30, 2004           
|                                                      |  |                            |  |                            |  |                          |  |                         
|                                                      |  |                            |  |                            |  |                          |  |                         
|INVESTMENT INCOME:                                    |  |                            |  |                            |  |                          |  |                         
|Interest on loans                                     |  | $       4,565,778          |  | $           62,168         |  | $      7,913,640         |  | $           62,168      
|Interest on short-term investments                    |  |                            |  |                            |  |                          |  |                         
|and other income                                      |  | 196,436                    |  | -                          |  | 261,351                  |  | -                       
|Total investment income                               |  | 4,762,214                  |  | 62,168                     |  | 8,174,991                |  | 62,168                  
|                                                      |  |                            |  |                            |  |                          |  |                         
|EXPENSES:                                             |  |                            |  |                            |  |                          |  |                         
|Management fees                                       |  | 1,562,500                  |  | 582,192                    |  | 3,125,000                |  | 582,192                 
|Interest expense                                      |  | 704,690                    |  | -                          |  | 1,035,682                |  | -                       
|Organizational costs                                  |  | -                          |  | 109,153                    |  | -                        |  | 109,153                 
|Other operating expenses                              |  | 332,808                    |  | 69,826                     |  | 827,539                  |  | 69,826                  
|Total expenses                                        |  | 2,599,998                  |  | 761,171                    |  | 4,988,221                |  | 761,171                 
|Net investment income (loss)                          |  | 2,162,216                  |  | (699,003)                  |  | 3,186,770                |  | (699,003)               
|                                                      |  |                            |  |                            |  |                          |  |                         
|Net change in unrealized gain from hedging activities |  | (182,941)                  |  | -                          |  | (13,997)                 |  | -                       
|Net income (loss)                                     |  | $       1,979,275          |  | $       (699,003)          |  | $      3,172,773         |  | $       (699,003)       
|Net income (loss) per share                           |  | $              19.79       |  | $             (6.99)       |  | $             31.73      |  | $             (6.99)    
|Weighted average shares outstanding                   |  | 100,000                    |  | 100,000                    |  | 100,000                  |  | 100,000                 



















See Notes to Condensed Financial Statements

























VENTURE  LENDING & LEASING IV, INC.



CONDENSED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY  (UNAUDITED)

FOR THE YEAR ENDED DECEMBER 31, 2004 AND THE SIX MONTHS ENDED JUNE 30, 2005



|                           |              |                | Capital in          |                   |                           |                   
|-------------------------- | ------------ | -------------- | ------------------- | ----------------- | ------------------------- | ------------------
|                           | Common Stock | Excess of      |                     | Accumulated       |                          
|                           | Shares       | Par Value      | Par Value           | Distributions     | Earnings (Deficit)        | Total             
|                           |              |                |                     |                   |                           |                   
|                           |              |                |                     |                   |                           |                   
|                           |              |                |                     |                   |                           |                   
|                           |              |                |                     |                   |                           |                   
|BALANCE, December 31, 2003 | 100,000      | $          100 | $            24,900 | $               - | $                       - | $           25,000
|Contributions              |              |                | 82,500,000          |                   |                           | 82,500,000        
|Distributions              |              |                |                     | (1,629,686)       |                           | (1,629,686)       
|Net loss                   |              |                |                     |                   | (2,045,708)               | (2,045,708)       
|BALANCE, December 31, 2004 | 100,000      | $         100  | $     82,524,900    | $ (1,629,686)     | $        (2,045,708)      | $    78,849,606   
|Contributions              |              |                | 22,000,000          |                   |                           | 22,000,000        
|Distributions              |              |                |                     | (936,638)         |                           | (936,638)         
|Net income                 |              |                |                     |                   | 3,172,773                 | 3,172,773         
|BALANCE, June 30, 2005     | 100,000      | $         100  | $  104,524,900      | $ (2,566,324)     | $          1,127,065      | $  103,085,741    





































See Notes to Condensed Financial Statements





VENTURE LENDING & LEASING IV, INC.



CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004



|                                                                                   | For the Six Months Ended June 30, 2005 |  | For the Six Months Ended June 30, 2004
|---------------------------------------------------------------------------------- | -------------------------------------- |  | --------------------------------------
|                                                                                   |                                        |  |                                       
|                                                                                   |                                        |  |                                       
|CASH FLOWS FROM OPERATING ACTIVITIES:                                              |                                        |  |                                       
|Net income                                                                         | $                     3,172,773        |  | $                    (699,003)        
|Adjustments to reconcile net loss to net cash used in operating activities:        |                                        |  |                                       
|Net change in unrealized gain from hedging activity                                | 13,997                                 |  | -                                     
|Amortization of deferred costs                                                     | 111,126                                |  | -                                     
|Increase in other assets                                                           | (1,039,751)                            |  | (61,115)                              
|Net increase in accounts payable, accrued liabilities, and accrued management fees | 544,105                                |  | 778,691                               
|Acquisition of loans                                                               | (82,177,549)                           |  | (5,500,000)                           
|Principal payments on loans                                                        | 12,471,987                             |  | 359,204                               
|Acquisition of equity securities                                                   | (914,000)                              |  | (55,000)                              
|Net cash used in operating activities                                              | (67,817,312)                           |  | (5,177,223)                           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                              |                                        |  |                                       
|Deemed distribution to shareholder                                                 | (22,638)                               |  | (118,542)                             
|Borrowings under debt facility                                                     | 41,897,585                             |  | -                                     
|Payment of bank facility fees, costs, and other prepayments                        | (20,085)                               |  | -                                     
|Cash contributions from shareholder                                                | 22,000,000                             |  | 13,000,000                            
|Net cash provided by financing activities                                          | 63,854,862                             |  | 12,881,458                            
|Net increase (decrease) in cash and cash equivalents                               | (3,962,450)                            |  | 7,704,235                             
|CASH AND CASH EQUIVALENTS:                                                         |                                        |  |                                       
|Beginning of period                                                                | 25,031,477                             |  | 25,000                                
|End of period                                                                      | $                   21,069,027         |  | $                     7,729,235       
|CASH PAID DURING THE PERIOD FOR:                                                   |                                        |  |                                       
|Interest                                                                           | $                        921,214       |  | $                                 -   
|NON-CASH ACTIVITIES:                                                               |                                        |  |                                       
|Distributions of investment securities to shareholder                              | $                        914,000       |  | $                          55,000     







See Notes to Condensed Financial Statements





VENTURE LENDING & LEASING IV, INC.



NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2005



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.  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 Management'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. The interim results for the three and six months ended June 30, 2005 are not necessarily indicative of what the results would be for a full year.



2. SUMMARY OF INVESTMENTS



Loans generally are made to borrowers pursuant to commitments whereby the Fund agrees to finance assets and provide working capital up to a specified amount for the term of the commitments, upon the terms and subject to the conditions specified by such commitment. As of June 30, 2005, the Fund's investments in loans are to companies based within the United States and are diversified among borrowers in the industries shown below.  The percentage of shareholder's equity (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.  As each loan drawn under a commitment has a different maturity date and amount, the interest rate for the borrower changes each month.  For the three and six month period ended June 30, 2005, the weighted average interest rate on performing loans was 13.3%.  For the period from commencement of operations through June 30, 2004, the weighted average interest rate on performing loans was 14.5%.   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 June 30, 2005 consist of the following:





|                              | Percentage of | Estimated Fair | Final        
|----------------------------- | ------------- | -------------- | -------------
|Borrower                      | Net Assets    | Value6/30/05   | Maturity Date
|                              |               |                |              
|Biotechnology                 |               |                |              
|Athersys                      |               | $5,515,489     | 6/1/08       
|Miikana                       |               | 1,893,889      | 10/1/07      
|Raven Biotechnologies         |               | 4,868,582      | 6/1/08       
|Subtotal:                     | 11.9%         | $12,277,960    |              
|                              |               |                |              
|Carrier Networking            |               |                |              
|Arroyo Video Solutions        |               | $920,798       | 4/1/08       
|Skystream Networks            |               | 2,920,630      | 2/1/08       
|Subtotal:                     | 3.7%          | $3,841,428     |              
|                              |               |                |              
|Computers & Storage           |               |                |              
|CloudShield                   |               | $4,341,466     | 1/1/08       
|Kashya                        |               | 1,046,239      | 6/1/08       
|Subtotal:                     | 5.2%          | $5,387,705     |              
|                              |               |                |              
|Enterprise Networking         |               |                |              
|Envivio                       |               | $459,027       | 5/1/08       
|Tasman Networks               |               | 2,909,466      | 6/1/08       
|Subtotal:                     | 3.3%          | $3,368,493     |              
|                              |               |                |              
|Internet                      |               |                |              
|Cyclone Commerce              |               | $1,859,333     | 12/1/07      
|Goodmail Systems              |               | 576,498        | 6/1/08       
|Return Path                   |               | 3,096,299      | 5/1/08       
|SciQuest                      |               | 2,709,516      | 10/1/07      
|SnapJot                       |               | 291,157        | 7/1/08       
|TheFaceBook                   |               | 558,221        | 6/1/08       
|Subtotal:                     | 8.8%          | $9,091,024     |              
|                              |               |                |              
|Medical Devices               |               |                |              
|Ample Medical                 |               | $671,538       | 9/1/07       
|Aspire Medical                |               | 2,249,026      | 6/1/08       
|Cardio Focus                  |               | 1,692,802      | 2/1/08       
|Cardiva Medical               |               | 1,675,443      | 11/1/07      
|Emergent Respiratory Products |               | 278,443        | 2/1/08       
|EnteroMedics                  |               | 212,429        | 6/1/08       
|Inogen                        |               | 877,436        | 2/1/08       
|LipoScience                   |               | 3,718,900      | 10/1/07      
|Micromed Technology           |               | 1,701,213      | 3/1/07       
|SenoRx                        |               | 2,506,305      | 10/1/07      
|Vascular Architects           |               | 4,043,392      | 6/1/07       
|VeinRx                        |               | 1,604,195      | 9/1/07       
|Volcano Corporation           |               | 1,609,240      | 2/1/08       
|Subtotal:                     | 22.2%         | $22,840,362    |              
|                              |               |                |              
|Other Healthcare              |               |                |              
|Mdeverywhere                  |               | $855,818       | 12/1/07      
|MedManage Systems             |               | 1,949,283      | 1/1/08       
|Skylight Systems              |               | 2,508,965      | 2/1/08       
|Subtotal:                     | 5.2%          | $5,314,066     |              
|                              |               |                |              
|Other Technology              |               |                |              
|EoPlex                        |               | $499,444       | 9/1/07       
|Nanoconduction                |               | 666,171        | 5/1/08       
|NeoConix                      |               | 787,186        | 9/1/07       
|Triformix                     |               | 1,466,402      | 8/1/07       
|Subtotal:                     | 3.3%          | $3,419,203     |              
|                              |               |                |              
|Security                      |               |                |              
|BigFix                        |               | $2,943,880     | 5/1/08       
|Counterpane Internet Security |               | 5,374,352      | 5/1/08       
|Safend                        |               | 753,217        | 5/1/08       
|SNOCAP                        |               | 3,425,467      | 3/1/08       
|Subtotal:                     | 12.1%         | $12,496,916    |              
|                              |               |                |              
|Semiconductors & Equipment    |               |                |              
|Cswitch                       |               | $384,670       | 4/1/08       
|Discera                       |               | 1,606,297      | 3/1/08       
|Fyre Storm                    |               | 2,065,584      | 1/1/08       
|Insilica                      |               | 2,289,946      | 2/1/08       
|Integrated Materials          |               | 1,024,861      | 6/1/08       
|InvenSense                    |               | 172,371        | 12/1/07      
|Luxtera                       |               | 1,071,543      | 5/1/08       
|Molecular Imprints            |               | 4,267,529      | 1/1/08       
|Nazomi Communications         |               | 925,747        | 11/1/07      
|Oraxion Diagnostics           |               | 868,308        | 4/1/08       
|Raza Microelectronics         |               | 6,704,564      | 11/1/07      
|Universal Network Machines    |               | 3,865,574      | 5/1/08       
|Subtotal:                     | 24.5%         | $25,246,994    |              
|                              |               |                |              
|Software                      |               |                |              
|Accruent                      |               | $252,727       | 12/1/07      
|Aceva                         |               | 2,953,732      | 5/1/07       
|Adomo                         |               | 4,307,638      | 10/1/08      
|Arena Solutions               |               | 2,153,151      | 9/1/07       
|Avamar Technologies           |               | 663,363        | 7/1/08       
|Biz360                        |               | 1,850,345      | 10/1/07      
|Business Engine               |               | 3,566,297      | 9/1/08       
|CoWare                        |               | 4,643,464      | 12/1/07      
|Enkata Technologies           |               | 1,616,748      | 3/1/08       
|MetaCarta                     |               | 2,387,816      | 4/1/08       
|Pilot Software                |               | 911,737        | 6/1/08       
|Resolution EBS                |               | 913,792        | 5/1/08       
|Sabrix                        |               | 1,924,314      | 3/1/08       
|SOA Software                  |               | 2,625,639      | 9/1/07       
|Steelwedge                    |               | 951,830        | 5/1/08       
|Trados                        |               | 2,241,967      | 9/1/07       
|Subtotal:                     | 32.9%         | $33,964,560    |              
|                              |               |                |              
|Technology Services           |               |                |              
|EchoPass                      |               | $2,399,893     | 9/1/07       
|Jacent Technologies           |               | 513,499        | 4/1/08       
|Neutral Tandem                |               | 5,122,138      | 3/1/08       
|Subtotal:                     | 7.8%          | $8,035,530     |              
|                              |               |                |              
|Wireless                      |               |                |              
|Ethertronics                  |               | $425,119       | 3/1/08       
|IXI Mobile                    |               | 2,119,804      | 4/1/07       
|Kayak Interactive             |               | 2,671,892      | 9/1/07       
|TeleCIS Wireless              |               | 1,807,968      | 11/1/07      
|Wildseed                      |               | 2,754,691      | 10/1/07      
|Subtotal:                     | 9.5%          | $9,779,474     |              
|                              |               |                |              
|Total: (Cost of $155,063,715) | 150.4%        | $155,063,715   |              





As of June 30, 2005, no loans have been classified as non-accrual.





Loans as of December 31, 2004 consist of the following:



Percentage of      Estimated Fair           Final

Borrower                                                                      Net Assets

Value 12/31/04   Maturity Date



|Biotechnology                 |        |             |        
|----------------------------- | ------ | ----------- | -------
|Athersys                      |        | $5,505,428  | 6/1/08 
|Miikana                       |        | 1,879,067   | 10/1/07
|Raven Biotechnologies         |        | 4,826,758   | 6/1/08 
|Subtotal:                     | 15.5%  | $12,211,253 |        
|                              |        |             |        
|Carrier Networking            |        |             |        
|Arroyo Video Solutions        |        | $473,567    | 1/1/08 
|Subtotal:                     | 0.6%   | $473,567    |        
|                              |        |             |        
|Computers & Storage           |        |             |        
|Kashya                        |        | $943,407    | 1/1/08 
|Subtotal:                     | 1.2%   | $943,407    |        
|                              |        |             |        
|Internet                      |        |             |        
|Cyclone Commerce              |        | $926,281    | 9/1/07 
|SciQuest, Inc.                |        | 2,947,884   | 9/1/07 
|Subtotal:                     | 4.9%   | $3,874,165  |        
|                              |        |             |        
|Medical Devices               |        |             |        
|Ample Medical                 |        | $727,576    | 9/1/07 
|Aspire Medical                |        | 108,044     | 6/1/08 
|Cardiva Medical               |        | 954,290     | 10/1/07
|LipoScience                   |        | 3,957,445   | 10/1/07
|Micromed Technology           |        | 2,144,646   | 3/1/07 
|SenoRx                        |        | 2,462,500   | 10/1/07
|Vascular Architects           |        | 4,723,680   | 6/1/07 
|Volcano Therapeutics          |        | 1,356,061   | 10/1/07
|Subtotal:                     | 20.8%  | $16,434,242 |        
|                              |        |             |        
|Other Healthcare              |        |             |        
|Skylight Systems              |        | $1,293,327  | 9/1/07 
|Subtotal:                     | 1.6%   | $1,293,327  |        
|                              |        |             |        
|Other Technology              |        |             |        
|EoPlex                        |        | $585,025    | 9/1/07 
|Nanoconduction                |        | 232,748     | 12/1/07
|Triformix                     |        | 1,730,784   | 8/1/07 
|Subtotal:                     | 3.2%   | $2,548,557  |        
|                              |        |             |        
|Security                      |        |             |        
|Counterpane Internet Security |        | $1,620,694  | 11/1/07
|Subtotal:                     | 2.1%   | $1,620,694  |        
|                              |        |             |        
|Semiconductors & Equipment    |        |             |        
|Cswitch                       |        | $129,347    | 11/1/07
|Discera                       |        | 567,805     | 8/1/07 
|Fyre Storm                    |        | 1,193,791   | 10/1/07
|InvenSense                    |        | 193,345     | 12/1/07
|Luxtera                       |        | 573,107     | 12/1/07
|Molecular Imprints            |        | 3,749,544   | 11/1/07
|Raza Microelectronics         |        | 4,633,720   | 10/1/07
|Universal Network Machines    |        | 3,964,080   | 5/1/08 
|Subtotal:                     | 19.0%  | $15,004,739 |        
|                              |        |             |        
|Software                      |        |             |        
|Accruent                      |        | $282,574    | 12/1/07
|Aceva                         |        | 2,945,471   | 5/1/07 
|Adomo                         |        | 247,655     | 4/1/08 
|Arena Solutions               |        | 2,452,352   | 9/1/07 
|Biz360                        |        | 1,960,007   | 10/1/07
|Business Engine               |        | 4,001,961   | 5/1/08 
|CoWare                        |        | 1,280,552   | 12/1/07
|Digital Evolution             |        | 2,695,056   | 9/1/07 
|Trados                        |        | 2,428,380   | 9/1/07 
|Subtotal:                     | 23.2%  | $18,294,008 |        
|                              |        |             |        
|Technology Services           |        |             |        
|EchoPass                      |        | $1,319,427  | 9/1/07 
|Neutral Tandem                |        | 5,811,962   | 3/1/08 
|Subtotal:                     | 9.0%   | $7,131,389  |        
|                              |        |             |        
|Wireless                      |        |             |        
|IXI Mobile                    |        | $2,631,772  | 4/1/07 
|Wildseed                      |        | 2,897,035   | 10/1/07
|Subtotal:                     | 7.0%   | $5,528,807  |        
|                              |        |             |        
|Total:  (Cost of $85,358,153) | 108.3% | $85,358,153 |        



As of December 31, 2004, no loans were classified as non-accrual.

The Fund provides asset-based financing primarily to start-up and emerging growth venture-capital-backed companies.  These loans are generally secured by assets of the borrowers.  As a result, the Fund is subject to general credit risk associated with such companies. At June 30, 2005, the Fund had unexpired unfunded commitments to borrowers of $158.3 million.

3.

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net income (loss) by the weighted average common shares outstanding.  Diluted earnings (loss) per share are computed by dividing net income (loss) 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 (loss) per share are the same.

4.  CAPITAL STOCK

As of June 30, 2005 and December 31, 2004, 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 June 30, 2005 and December 31, 2004 was $112.5 million and $87.5 million, respectively, of which $104.5 million and $82.5 million, respectively, was contributed to the Fund.

For the six months ended June 30, 2005 and 2004, distributions of $936,638 and $173,542, respectively were made to the Funds shareholder.

During the three and six months ended June 30, 2005, the Fund made deemed distributions to its shareholder in the amount of $10,076 and $22,638, respectively.  During the three and six months ended June 30, 2005, the Fund made distributions of securities to its shareholder in the amount of $603,500 and $914,000, respectively.

5.   RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In December 2003, FASB issued FASB Interpretation No. 46R,Consolidation of Variable Interest Entities, an interpretation of ARB No. 51 (FIN 46R).  The effective date of FIN 46R for non-registered investment companies (such as the Fund) has been deferred pending a decision by the FASB concerning whether to exempt such entities from applying the provisions of FIN 46R.

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 and six months ended June 30, 2005 and 2004.  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 Fund did not commence operations until May 28, 2004.

The ratios of expenses and net investment income to average net assets, calculated below, are annualized and are computed based upon the aggregate weighted average net assets of the Fund for the periods presented.  Net investment income is inclusive of all investment income net of expenses, and excludes realized or unrealized gains and losses.

Beginning and ending net asset values per share are based on the beginning and ending number of shares outstanding. Other per share information is calculated based upon the aggregate weighted average net assets of the Fund for the periods presented.

The following per share data and ratios have been derived from the information provided in the financial statements:

|                                     | For the Three Months Ended June 30, 2005 |  | For the Three Months Ended June 30, 2004 |  | For the Six Months Ended June 30, 2005 |  | For the Six Months Ended June 30, 2004
|------------------------------------ | ---------------------------------------- |  | ---------------------------------------- |  | -------------------------------------- |  | --------------------------------------
|                                     |                                          |  |                                          |  |                                        |  |                                       
|                                     |                                          |  |                                          |  |                                        |  |                                       
|Total Return                         | 2.4%                                     |  | -11.2%                                   |  | 3.9%                                   |  | -11.2%                                
|                                     |                                          |  |                                          |  |                                        |  |                                       
|Per Share Amounts:                   |                                          |  |                                          |  |                                        |  |                                       
|Net Asset Value, Beginning of Period | $797.20                                  |  | $0.25                                    |  | $788.50                                |  | $0.25                                 
|Net Investment Income (loss)         | 21.62                                    |  | (6.99)                                   |  | 31.87                                  |  | (6.99)                                
|Net Change in Unrealized Gain        | (1.83)                                   |  | -                                        |  | (0.14)                                 |  | -                                     
|Total Income                         | 19.79                                    |  | (6.99)                                   |  | 31.73                                  |  | (6.99)                                
|Capital Contributions                | 220.00                                   |  | 130.00                                   |  | 220.00                                 |  | 130.00                                
|Capital Distributions                | (6.13)                                   |  | (1.74)                                   |  | (9.37)                                 |  | (1.74)                                
|                                     |                                          |  |                                          |  |                                        |  |                                       
|Net Asset Value, End of period       | $1,030.86                                |  | $121.52                                  |  | $1,030.86                              |  | $121.52                               
|                                     |                                          |  |                                          |  |                                        |  |                                       
|Net Assets, End of period            | $103,085,741                             |  | $12,152,455                              |  | $103,085,741                           |  | $12,152,455                           
|                                     |                                          |  |                                          |  |                                        |  |                                       
|Ratios to Average Net Assets:        |                                          |  |                                          |  |                                        |  |                                       
|                                     |                                          |  |                                          |  |                                        |  |                                       
|Expenses                             | 3%                                       |  | 12%                                      |  | 6%                                     |  | 12%                                   
|Net Investment Income                | 3%                                       |  | (11%)                                    |  | 4%                                     |  | (11%)                                 
|                                     |                                          |  |                                          |  |                                        |  |                                       
|                                     |                                          |  |                                          |  |                                        |  |                                       
|                                     |                                          |  |                                          |  |                                        |  |                                       
|                                     |                                          |  |                                          |  |                                        |  |                                       
|** Not Annualized                    |                                          |  |                                          |  |                                        |  |                                       









Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations





General



Venture Lending & Leasing IV, Inc, (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 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 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.  We determined the critical accounting principles by considering accounting policies that involve the most complex or subjective decisions or assessments.  We identified our only critical accounting policy to be that 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, 2004 (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. 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 and six months ended June 30, 2005 and 2004



The Fund did not commence operations until May 2004, so comparisons between periods will be limited.



Total investment income for the three months ended June 30, 2005 was $4.8 million and $8.2 million, respectively.  Total investment income for the three and six months ended June 30, 2004 was less than $0.1 million.  Investment income continues to increase as we fund additional loans and increase the outstanding balance of loans.



Almost all of the investment income consisted of interest on venture loans outstanding during the period, with only $0.2 million and $0.3 million related to interest income from short-term investment of cash for the three and six months ended June 30, 2005, respectively.



Total expenses were $2.6 million and $5.0 million for the three and six months ended June 30, 2005, respectively.   Total expenses were $0.8 million for the three and six months ended June 30, 2004.  Management fees were the largest expense.  Management fees for the three and six months ended June 30, 2005 were $1.6 million and $3.1 million, respectively.  Management fees for the three and six months ended June 30, 2004 were $0.6 million.  Management fees will continue to be based on committed capital of the Company until the second anniversary in May, 2006, at which time management fees will be based on assets under management.



Total interest expense was $0.7 million and $1.0 million for the three and six months ended June 30, 2005, respectively.  No interest expense was incurred for the three and six months ended June 30, 2004 because the debt facility had yet to be put in place.



Total organizational costs were $109.2 million for the three and six months ended June 30, 2004.  No organizational costs were incurred during the three and six months ended June 30, 2005.



Total other operating expenses for the three and six months ended June 30, 2005 were $0.3 million and $0.8 million, respectively.  Legal and banking costs comprised a majority of the other operating expenses for the three and six months ended June 30, 2005.  Total other operating expenses for the three and six months ended June 30, 2004 were $0.1 million.



Net investment income for the three and six months ended June 30, 2005 was $2.2 million and $3.2 million, respectively.  Net investment loss for the three and six months ended June 30, 2004 was $ (0.7 million).



Total unrealized loss for the three and six months ended June 30, 2005 was $0.2 million and less than $0.1 million, respectively.  This loss was the result of the Funds hedging transactions.



Net income for the three and six months ended June 30, 2005 was $2.0 million and $3.2 million, respectively.  Net income for the three and six months ended June 30, 2004 was $(0.7) million.  On a per share basis, net income was $19.79 and $31.73 for the three and six months ended June 30, 2005, respectively.  On a per share basis, net income for the three and six months ended June 30, 2004 was $(6.99).



Liquidity and Capital Resources  June 30, 2005 and December 31, 2004



Total capital contributed to the Fund was $104.5 million and $82.5 million at June 30, 2005 and December 31, 2004, respectively.  Committed capital to the Company at June 30, 2005 and December 31, 2004 was $250.0 million, of which $112.5 million has been called and received.  The remaining $137.5 million in committed capital is due to expire in May 2009 as the five year anniversary will have passed, at which time no further capital can be called.



On October 14, 2004, the Fund entered into agreements with Société Générale and Rabobank International that established a debt facility to provide the Fund up to $125.0 million of financing.  Borrowings by the Fund will be collateralized by receivables from loans advanced by the Fund in its ordinary course of business.  The Fund will pay 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 will terminate 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.  As of December 31, 2004, fees of $1,074,250 were incurred in order to procure the facility.  Additionally $17,000 was incurred in March, 2005 in conjunction with the facility.  Legal costs of $287,050 were incurred in negotiation of the facility. Both the bank fees and legal costs have been capitalized and are being amortized over the expected life of the facility.



At June 30, 2005 and December 31, 2004 the Fund had interest rate swap transactions outstanding with a total notional principal amount of $75.6 million and $29.6 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 June 30, 2005 and December 31, 2004, 12% and 22%, respectively, of the Fund's assets consisted of cash and cash equivalents.  The Fund continued to invest its assets in venture loans during the six months ended June 30, 2005. Amounts disbursed under the Fund's loan commitments totaled approximately $82.2 million during the period from December 31, 2004 through June 30, 2005. Net loan amounts outstanding after amortization increased by approximately $69.7 million for the same period. Unexpired, unfunded commitments totaled approximately $158.3 million as of June 30, 2005.





|As of             | Amount Disbursed | Principal Reductions | Balance Outstanding | Unexpired Unfunded Commitments
|----------------- | ---------------- | -------------------- | ------------------- | ------------------------------
|June 30, 2005     | $173.7 million   | $18.6 million        | $155.1 million      | $158.3 million                
|December 31, 2004 | $91.5 million    | $6.2 million         | $85.4 million       | $102.6 million                





Venture loans are privately negotiated transactions.  Investments in these assets are relatively illiquid.





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 distributes all equity securities upon receipt.



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% for the three and six months ended June 30, 2005. 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.   Disclosure 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 significant changes in the Fund's internal controls or in other factors that could significantly 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.



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 $104.5 million of paid in capital during the period from May 28, 2004 through June 30, 2005 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



The Fund held its annual meeting on May 11, 2005, and the shareholders approved all of the proposed directors nominated.   100% of the Funds outstanding shares are owned by the Company.  The Company in turn is owned by its members (the Company Members).



The Companys organizational documents require that the Companys Managing Member vote the shares owned by the Company in accordance with the instructions of the Company Members.  The total percentage of votes received from the Company Members was 93.52 percent in favor of the proposed directors and 0.00 percent against the proposed directors.  Votes for 6.48 percent of the Company's membership interests were not voted.



Item 5.  Other Information



On August 10, 2005, the board of directors named Martin D. Eng as CFO, Treasurer, Secretary and Chief Compliance Officer of the Fund effective August 16, 2005.  Mr. Eng will also serve in the same capacity for Westech Investment Advisors, Inc. (Westech Advisors), the Companys and the Funds Investment Manager.   Mr. Eng will be replacing Salvador O. Gutierrez as CFO and Treasurer and will be replacing Brian R. Best as Secretary and Chief Compliance Officer.  Mr. Gutierrez will remain with the Fund as President and Director.  Mr. Best will remain with the Fund as Vice President.



Mr. Eng, 53, had previously served as Corporate Vice President and Treasurer of PeopleSoft, Inc. since 2004.  Prior to that Mr. Eng served as Assistant Treasurer  Finance and Planning of CNF Inc. as well as other positions with the company since 1996.



Item 6.  Exhibits and Reports on Form 8-K



None













|Exhibit Number | Description                                                                                                                                                                                                               
|-------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3(i)           | Articles of Incorporation of the Fund 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 18 U.S.C. Section 1350                                                                                                                                                                         



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/ Salvador O. Gutierrez



Ronald W. Swenson

Salvador O. Gutierrez

Chairman and Chief Executive Officer

Chief Financial Officer

Date:

August 12, 2005

Date:

August 12, 2005





Exhibit 31.1

CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002



I, Salvador O. Gutierrez 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)) 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) 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



c) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and



5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions):



a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and



b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.



Date: August 12, 2005



/S/ Salvador O. Gutierrez



Salvador O. Gutierrez

Chief Financial Officer





Exhibit 31.2

CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002



I, Ronald W. Swenson, certify that:



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



2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;



4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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) 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



c) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the period covered by the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and



5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions):



a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and



b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.



Date: August 12, 2005



/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 June 30, 2005 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ronald W. Swenson, Chief Executive Officer of the Fund, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Fund.



/S/ Ronald W. Swenson



Ronald W. Swenson
Chief Executive Officer
August 12, 2005









Exhibit 32.2



CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Venture Lending & Leasing IV, Inc. (the "Fund") on Form 10-Q for the period ending June 30, 2005 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Salvador O. Gutierrez, 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/ Salvador O. Gutierrez



Salvador O. Gutierrez

Chief Financial Officer
August 12, 2005