FORM 10-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the year ended December 31, 2013



[ ]	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 814-00731

VENTURE LENDING & LEASING V, INC.

(Exact name of registrant as specified in its charter)



Maryland	14-1974295
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

104 LA Mesa Drive, Suite 102, Portola Valley, CA 94028

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (408) 436-8577

Securities Registered Pursuant to Section 12(b) of the Act: None

Securities Registered Pursuant to Section 12(g) of the Act: Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

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 and 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 [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part II of this Form 10-K or any amendment to this Form 10-K: [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):



Large accelerated filer [ ]	Accelerated filer [ ]	Non-accelerated filer [x]	Smaller reporting company [ ]

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [ ] No [X]

As the registrant's shares are not publicly-traded, the aggregate market value of the voting stock held by non-affiliates of the registrant cannot be determined.

The number of shares outstanding of each of the issuer's classes of common stock, as of March 21, 2014 was 100,000.

Documents Incorporated by Reference



Document Description		10-K Part
Specifically Identified Portions of the Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held	May 7, 2014	III

PART I.


ITEM 1.	BUSINESS

Introduction.

Venture Lending & Leasing V, Inc. (the “Fund”) was incorporated in Maryland on August 21, 2006, as a non-diversified, closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940 (“1940 Act”). The Fund is a wholly owned subsidiary of Venture Lending & Leasing V, LLC, a Delaware limited liability company (the “Company”). The purpose of the Fund is to provide asset-based financing to venture-capital-backed companies, in the form of secured loans. Additionally, the Fund may provide debt financing to public and late-stage private companies. Prior to commencing its operations on February 21, 2007, the Fund had no operations other than the sale of 100,000 shares of common stock, $0.001 par value to the Company for $25,000 in September 2006. As of December 31, 2013, the Fund meets the requirements, including diversification requirements, to qualify as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986.

The Fund's shares of Common Stock, at $0.001 par value (“Shares”) are held entirely by the Company. As capital is required to finance the acquisition of loans, additional capital is provided by the Company.

Investment Program.

General. As a BDC, the Fund is required to invest in eligible portfolio companies and (with certain exceptions) make available to them significant managerial assistance. Generally, an eligible portfolio company is a U.S. company (i.e., is organized and has its principal place of business in the U.S.) that is not an investment company (or excepted from the definition of investment company pursuant to Section 3(c) of the 1940 Act) that meets one of the following tests: (1) it has not issued a class of margin securities that is eligible for margin loans; (2) does not have any class of securities listed on a national securities exchange; (3) it is a very small and solvent company ($4 million or less in total assets and capital and surplus of not less than $2 million); or (4) it is controlled by a BDC or group of companies including a BDC and the BDC exercises a controlling influence over the portfolio company and has an affiliated person who is a director of the portfolio company.

BDCs cannot acquire any assets other than those described in subparagraphs (1) through (8) below (“Qualifying Assets”) unless, at the time of the acquisition, the assets described in subparagraphs (1) through (8) below represent 70% of the value of the BDC's total assets (the “70% basket”). Below is a general summary of Qualifying Assets:

1. Securities issued in transactions not involving a public offering from issuers which are “eligible portfolio companies” (including affiliated persons or persons that have been affiliated persons within the preceding 13 months) or from any other person, subject to such rules and regulations as the Commission may prescribe;

2. Securities purchased in transactions not involving any public offering from an issuer, or from any person who is an officer or employee of the issuer, if the issuer is a U.S. company that is not an investment company, but the issuer is not an eligible portfolio company because it has issued a class of margin securities that is eligible for margin loans, and at the time of purchase the BDC owns at least 50% of (i) the greatest number of equity securities (on a fully diluted basis) of the issuer and (ii) the greatest amount of such issuer's debt securities held by the BDC at any point in time during the period when such issuer was an eligible portfolio company, and, (iii) the BDC is one of the 20 largest holders of the issuer's outstanding voting securities.

3. Securities of any eligible portfolio company that is controlled by the BDC (either alone or as part of a group acting together) and the BDC exercises a controlling influence over the management or policies, and has an affiliated person who is a director of, the eligible portfolio company;

4. Securities issued in transactions not involving a public offering from U.S. non-investment company issuers subject to bankruptcy, reorganization, insolvency or similar proceeding or otherwise unable to meet their obligations without assistance (purchase may be made from affiliated persons or persons that have been affiliated persons within the preceding 13 months or in limited circumstances other persons);

5. Securities of an eligible portfolio company purchased from any person in transactions not involving a public offering when no public market for the securities exists and the BDC owned at least 60% of the outstanding equity (on a fully diluted basis) of the issuer immediately prior to the purchase;

6. Securities received in exchange for or distributed with respect to the foregoing securities (including securities obtained pursuant to the exercise of options, warrants or rights relating to such securities);

7. Cash, cash items, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment; or

8. Office furniture and equipment, interests in real estate, deferred organization and operating expenses, and other non-investment assets necessary and appropriate to the BDC's operations.

"Making available significant managerial assistance" is defined under the 1940 Act, in relevant part, as (i) an arrangement whereby the business development company, through its officers, directors, employees or general partners, offers to provide and, if accepted, does provide, significant guidance and counsel concerning the management, operations or business objectives of a portfolio company; or (ii) the exercise by a business development company of a controlling influence over the management or polices of the portfolio company by the business development company acting individually or as part of a group acting together which controls the portfolio company. The officers of the Fund intend to offer to provide managerial assistance, including advice on equipment acquisition and financing, cash flow and expense management, general financing opportunities, acquisition opportunities and opportunities to access the public securities markets, to the great majority of companies to whom the Fund provides venture loans. In some instances, directors of the Fund might serve on the Board of Directors or as officers of borrowers.

Venture Loans. Venture loans generally consist of a promissory note secured by the equipment or other assets of the borrower. The Fund generally obtains a security interest in the assets financed and receives periodic payments of interest and principal, and may receive a final payment constituting additional interest at the end of the transaction's term. The interest rate and amortization terms of venture loans are individually negotiated between the Fund and each borrower.

Typically, loans are structured as commitments by the Fund to finance assets of the borrower over a specified period of time. The commitment of the Fund to finance future asset acquisitions is typically subject to the absence of any default under the loan and compliance by the borrower with requirements relating to, among other things, the type of assets to be financed. Although the Fund's commitments generally provide that the Fund is not required to continue to fund additional loans if there is a material adverse change in the borrower's financial condition, it is possible that a borrower's financial condition will not be as strong at the time the Fund finances an asset acquisition as it was at the time the commitment was entered into.

Warrants and Equity Securities. The Fund generally acquires warrants to purchase equity securities of the borrower in connection with asset financings. The terms of the warrants, including the expiration date, exercise price and terms of the equity security for which the warrant may be exercised, are negotiated individually with each borrower. Substantially all the warrants and underlying equity securities are restricted securities under the Securities Act of 1933 (“1933 Act”) at the time of issuance; the Fund generally negotiates registration rights with the borrower that may provide (i) "piggyback" registration rights, which permit the Fund under certain circumstances to include some or all of the securities owned by it in a registration statement filed by the borrower or (ii) under rare circumstances, "demand" registration rights permitting the Fund under certain circumstances to require the borrower to register the securities under the 1933 Act (in some cases at the Fund's expense).

Investment Policies. For purposes of these investment policies and unless otherwise specified, references to the percentage of the Fund's total assets "invested" in securities of a company will be deemed to refer, in the case of financings in which the Fund commits to provide financing prior to funding the commitment, to the amount of the Fund's total assets represented by the value of the maximum amount of securities to be issued by the borrower of the Fund pursuant to such commitment; the Fund will not be required to divest securities in its portfolio or decline to fund an existing commitment because of a subsequent change in the value of securities the Fund has previously acquired or committed to purchase.

Diversification Standards. The Fund is classified as a "non-diversified" closed-end investment company under the 1940 Act. However, the Fund seeks to qualify as a RIC, and therefore must meet diversification standards under the Internal Revenue Code.

To qualify as a RIC, the Fund must meet the issuer diversification standards under the Internal Revenue Code that require that, at the close of each quarter of the Fund's taxable year, (i) not more than 25% of the market value of its total assets is invested in the securities of a single issuer and (ii) at least 50% of the market value of its total assets is represented by cash, cash items, government securities, securities of other RICs and other securities (with each investment in such other securities limited so that not more than 5% of the market value of the Fund's total assets is invested in the securities of a single issuer and the Fund does not own more than 10% of the outstanding voting securities of a single issuer). For purposes of the diversification requirements under the Internal Revenue Code, the percentage of the Fund's total assets "invested" in securities of a company will be deemed to refer, in the case of financings in which the Fund commits to provide financing prior to funding the commitment, to the amount of the Fund's total assets represented by the value of the securities issued by the borrower to the Fund at the time each portion of the commitment is funded.

The Fund will generally invest no more than 30% of its total assets in securities of companies in any single industry. The broad industry categories in which the Fund anticipates that most of its investments will fall (and within each of which there may be several "industries" for purposes of the industry diversification policy) include computers and storage, semiconductor and equipment, medical devices, software, and several other categories.

Investment Guidelines. In selecting investments for the Fund's portfolio, Westech Investment Advisors LLC (the “Manager”) will endeavor to meet the investment guidelines established by the Fund's Board of Directors. The Fund may, however, make investments that do not conform to one or more of these guidelines when deemed appropriate by the Manager. Such investments might be made if the Manager believes that a failure to conform in one area is offset by exceptional strength in another or is compensated for by a higher yield, favorable warrant issuance or other attractive transaction terms or features.

Leverage. The Fund is permitted to borrow money from and issue debt securities to banks, insurance companies and other lenders to obtain additional funds to originate venture loans. Under the 1940 Act, the Fund may not incur borrowings unless, immediately after the borrowing is incurred, such borrowings would have "asset coverage" of at least 200 percent. "Asset coverage" means the ratio which the value of the Fund's total assets, less all liabilities not represented by the borrowings and any other liabilities constituting "senior securities" under the 1940 Act, bears to the aggregate amount of such borrowings and senior securities. The practical effect of this limitation is to limit

the Fund's borrowings and other senior securities to 50% of its total assets less its liabilities other than the borrowings and other senior securities.

The use of leverage increases investment risk. The Fund's lenders require that the Fund pledge portfolio assets as collateral for loans. If the Fund is unable to service the borrowings, the Fund may risk the loss of such pledged assets. Lenders also require that the Fund agree to loan covenants limiting the Fund's ability to incur additional debt or otherwise limiting the Fund's flexibility, and loan agreements may provide for acceleration of the maturity of the indebtedness if certain financial tests are not met.

Temporary Investments. Pending investment in asset financing transactions and pending distributions, the Fund invests excess cash in (i) securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, (ii) repurchase agreements fully collateralized by U.S. government securities or (iii) short-term high-quality debt instruments of U.S. corporations. All such investments will mature in one year or less. The U.S. government securities in which the Fund may invest include U.S. government securities backed by the full faith and credit of the U.S. government (such as Treasury bills, notes and bonds) as well as securities backed only by the credit of the issuing agency. Corporate securities in which the Fund may invest include commercial paper, bankers' acceptances and certificates of deposit of domestic or foreign issuers.

The Fund also may enter into repurchase agreements that are fully collateralized by U.S. government securities with banks or recognized securities dealers, in which the Fund purchases a U.S. government security from the institution and simultaneously agrees to resell it to the seller at an agreed-upon date and price. The repurchase price is related to an agreed-upon market rate of interest rather than the coupon of the debt security and, in that sense, these agreements are analogous to secured loans from the Fund to the seller. Repurchase agreements carry certain risks not associated with direct investments in securities, including possible declines in the market value of the underlying securities and delays and costs to the Fund if the other party to the transaction defaults.

Other Investment Policies. The Fund will not sell securities short, purchase securities on margin (except to the extent the Fund's permitted borrowings are deemed to constitute margin purchases), purchase or sell commodities or commodity contracts or purchase or sell real estate. The Fund will not underwrite the securities of other companies, except to the extent the Fund may be deemed an underwriter upon the disposition of restricted securities acquired in the ordinary course of the Fund's business.

On May 11, 2011, the Fund's Board of Directors resolved that the Fund is authorized to write puts and calls as a hedge for equity investments to increase return through a covered call. Such ability provides the Fund with an additional tool to pursue its fundamental investment objective of achieving a high total return.

The Fund's investment objective, investment policies and investment guidelines (other than its status as a BDC) are not fundamental policies and may be changed by the Fund's Board of Directors at any time without shareholder approval.

Regulation. As a BDC, the Fund is required to invest in eligible portfolio companies and (with certain exceptions) make available to them significant managerial assistance. Eligible portfolio companies, and the regulations governing assets a BDC can acquire, are described under the heading “Investment Program” above.

The Fund, as a BDC, may sell its securities at a price that is below its net asset value per share, provided that a majority of the Fund's disinterested directors has determined that such sale would be in the best interests of the Fund and its shareholder and upon the approval by the holders of a majority of its outstanding voting securities, including a majority of the voting securities held by non-affiliated persons, of such policy or practice within one year of such sale. A majority of the disinterested directors also must determine in good faith, in consultation with the underwriters of the offering if the offering is underwritten, that the price of the securities being sold is not less than a price which closely approximates market value of the securities, less any distribution discounts or commissions. As defined in the 1940 Act, the term "majority of the outstanding voting securities" of the Fund means the vote of (i) 67% or more of the Fund's Shares present at a meeting, if the holders of more than 50% of the outstanding Shares are present or represented by proxy, or (ii) more than 50% of the Fund's outstanding Shares, whichever is less.

Many of the transactions involving a company and its affiliates (as well as affiliates of those affiliates) which were prohibited without the prior approval of the SEC under the 1940 Act prior to its amendment by the 1980 provisions are permissible for BDCs, including the Fund, upon the prior approval of a majority of the Fund's disinterested directors and a majority of the directors having no financial interest in the transactions. However, certain transactions involving certain persons related to the Fund, including its directors, officers, and the Managers, may still require the prior approval of the SEC. In general, (i) any person who owns, controls, or holds power to vote, more than 5% of the Fund's outstanding Shares; (ii) any director, executive officer, or general partner of that person; and (iii) any person who directly or indirectly controls, is controlled by, or is under common control with, that person, must obtain the prior approval of a majority of the Fund's disinterested directors, and, in some situations, the prior approval of the SEC, before engaging in certain transactions involving the person or any company controlled by the Fund. The 1940 Act generally does not restrict transactions between the Fund and its eligible portfolio companies. While a BDC may change the nature of its business so as to cease being a BDC (and in connection therewith withdraw its election to be treated as a BDC) only if authorized to do so by a majority vote (as defined by the 1940 Act) of its outstanding voting securities, shareholder approval of changes in other fundamental investment policies of a BDC is not required (in contrast to the general 1940 Act requirement, which requires shareholder approval for a change in any fundamental investment policy).

Dividends and Distributions. The Fund intends to distribute to its shareholder substantially all of its net investment income and net realized capital gains, if any, as determined for income tax purposes less appropriate reserves. Applicable law, including provisions of the 1940 Act, may limit the amount of dividends and other distributions payable by the Fund. Income dividends will generally be paid quarterly to shareholders of record on the last day of each preceding calendar quarter end. Substantially all of the Fund's net capital gain (the excess of

net long-term capital gain over net short-term capital loss) and net short-term capital gain, if any, will be distributed annually, or on a more frequent basis as determined by the Manager.

Until February 21, 2011, the Fund made loan commitments in new loans, reinvesting the proceeds of matured, repaid or resold investments, net of required distributions to its shareholder, principal payments on borrowings and expenses or other obligations of the Fund. Following that date, the Fund distributes to investors all proceeds received from principal payments and sales of investments, net of reserves and expenses, principal repayments on the Fund's borrowings, amounts required to fund financing commitments entered into before such date, and any amounts paid on exercise of warrants. Distributions of such amounts are likely to cause annual distributions to exceed the earnings and profits of the Fund available for distribution, in which case such excess will be considered a tax free return of capital to a shareholder to the extent of the shareholder's adjusted basis in its shares and then as capital gain. The Fund may borrow money to fund shareholder distributions, to the extent consistent with the 1940 Act and a prudent capital structure.

Competition. Other entities and individuals compete for investments similar to those proposed to be made by the Fund, some of whom may have greater resources than the Fund. Furthermore, the Fund's need to comply with provisions of the 1940 Act pertaining to BDCs and provisions of the Internal Revenue Code pertaining to RICs might restrict the Fund's flexibility as compared with its competitors. The need to compete for investment opportunities may make it necessary for the Fund to offer borrowers more attractive transaction terms than otherwise might be the case.

Employees. The Fund has no employees; all of its officers are officers and employees of the Manager, and all of its required services are performed by officers and employees of the Manager.


ITEM 1A.	RISK FACTORS.

GENERAL

Reliance on Management. The Fund is wholly dependent for the selection, structuring, closing and monitoring of its investments on the diligence and skill of the Manager, acting under the supervision of the Fund's Board of Directors. Although the principals of the Manager have over several decades of combined experience in investing in venture lending transactions and equity investments, there can be no assurance that the Fund will attain its investment objective. Furthermore, the Manager does not have substantial experience investing in special situations such as convertible and subordinated debt of public and late-stage private companies. The officers of the Manager have primary responsibility for the selection of the companies in which the Fund invests, the negotiation of the terms of such investments and the monitoring of such investments after they are made. Although the officers of the Manager intend to devote such time as is necessary to the affairs of the Fund, they are not required to devote full time to the management of the Fund. Furthermore, there can be no assurance that any officer will remain associated with the Manager or that, if an officer ceased to be associated with the Manager, the Manager would be able to find a qualified person or persons to fill their positions.

Long-Term Investment. After the fourth anniversary following the first closing of the Company's offering of membership interests, the Fund will cease to make new equity investments as well as investments in venture loans (except pursuant to commitments made before the fourth anniversary following the first closing of the Company's offering of membership interest) and will distribute to its shareholder all proceeds received from principal payments and sales of: (i) reserves and expenses; (ii) principal repayments on the Fund's borrowings; (iii) amounts required to fund financing commitments entered into before such fourth anniversary; and (iv) any amounts paid on exercise of warrants or otherwise paid to protect the value of existing investments (including, for example, pay-to-play provisions and purchases of equity securities in “down rounds” to avoid dilution). The Fund's Articles of Incorporation provide that, on December 31, 2015, the Fund will automatically be dissolved without any action by its shareholder. From and after such dissolution, the Fund's activities will be limited to the winding-up of its affairs, the liquidation of its remaining assets and the distribution of the net proceeds thereof to its shareholder. Although the Fund generally would not make any loan with a stated maturity date later than December 31, 2015, it is possible that, due to a default by a borrower or a transaction restructuring due to a borrower's financial difficulties, such a loan may remain outstanding in whole or in part beyond its original maturity date. Furthermore, the Fund may not be able to sell warrants it receives from borrowers, or the equity securities (including those received upon exercise of warrants or conversion of debt instruments or in connection with restructuring of a troubled loan), to the extent those investments were retained by the Fund and not distributed earlier to its shareholder, for a significant period of time due to legal or contractual restrictions on resale or the absence of a liquid secondary market. As a result, the liquidation process might not be completed for a significant period after the Fund's dissolution. In addition, it is possible that, if certain of the Fund's assets are not liquidated within a reasonable time after the Fund's dissolution, the Fund may elect to make a distribution in kind of all or part of such assets to its shareholders. In such case, the shareholders would bear any expenses attendant to the liquidation of such assets.

Competition. Other entities and individuals compete for investments similar to those made by the Fund, some of whom, with respect to investments in the form of loans, and many of whom, with respect to the equity investments and convertible and subordinated debt, have greater resources than the Fund. Competition could increase given the low barriers to entry in the industry. Additionally, the Fund's need to comply with provisions of the Investment Company Act of 1940 Act (the “1940 Act”) pertaining to BDCs and, if the Fund qualifies as a RIC, provisions of the Internal Revenue Code pertaining to RICs, might restrict the Fund's flexibility as compared with its competitors. The need to compete for investment opportunities may make it necessary for the Fund to offer borrowers or companies in which it makes equity investments more attractive terms than otherwise might be the case.

Convertible Debt. Convertible debt instruments issued by public and late-stage private companies comprise some of the special situations in which the Fund invests. Convertible debt generally offers lower interest yields than non-convertible debt of similar quality. The market value of convertible debt tends to decline as interest rates increase and, conversely, to increase as interest rates decline. However, the market value of convertible debt often reflects the market price of common stock of the issuing company when that stock price is greater than the conversion price of the convertible debt. The conversion price is the predetermined price at which the debt instrument could be exchanged for the associated stock. As the market price of the underlying common stock declines, the price of the convertible debt tends to be influenced more by the yield of the debt instrument. Thus, it may not decline in price to the same extent as the underlying common stock.

Subordinated Debt. Part of the special situations in which the Fund invests consist of subordinated debt instruments, which tend to be predominantly high-yield non-convertible debt securities. Investments in high-yield securities involve substantial risk of loss. Sub-investment grade non-convertible debt securities, or comparable unrated securities, are commonly referred to as "junk debt" and are considered speculative with respect to the issuer's ability to pay interest and principal, and are susceptible to default or decline in market value due to adverse economic or business developments. The market values for high-yield securities tend to be very volatile, and these securities are less liquid than investment grade debt securities.

Leverage. The Fund borrows money from and issues debt securities to banks, insurance companies and other lenders to obtain additional funds to originate venture loans. Under the 1940 Act, the Fund may not incur borrowings unless, immediately after the borrowing is incurred, such borrowings would have "Asset Coverage" of at least 200%. "Asset Coverage" means the ratio which the value of the Fund's total assets, less all liabilities not represented by (i) the borrowings and (ii) any other liabilities constituting "senior securities" under the 1940 Act, bears to the aggregate amount of such borrowings and senior securities. The practical effect of this limitation is to limit the Fund's borrowings and other senior securities to 50% of its total assets less its liabilities other than the borrowings and other senior securities. The 1940 Act also requires that, if the Fund borrows money, provision be made to prohibit the declaration of any dividend or other distribution on the shares (other than a dividend payable in shares), or the repurchase by the Fund of shares, if, after payment of such dividend or repurchase of shares, the Asset Coverage of such borrowings would be below 200%. If the Fund is unable to pay dividends or distributions in the amounts required under the Internal Revenue Code, it might not be able to qualify for the pass-through status as a RIC or, if qualified, to continue to so qualify.

The use of leverage increases investment risk. The Fund's use of leverage is premised upon the expectation that the Fund's all-in borrowing costs will be lower than the return the Fund achieves on its investments. To the extent the income or capital gains derived from investments purchased with borrowed funds exceeds the cost of borrowing, the Fund's overall return will be greater than if leverage had not been used. Conversely, if the income or capital gain from the investments purchased with borrowed funds is not sufficient to cover the cost of borrowing, or if the Fund incurs capital losses, the return to the Fund will be less than if leverage had not been used, and therefore the amount available for distribution will be reduced or potentially eliminated. Furthermore, since the calculation of the investment management fee paid to the Manager is based in part on a percentage of the managed assets, such fee will be higher if the Fund utilizes leverage than if no borrowings were incurred. Lenders have required that the Fund pledge portfolio assets as collateral for borrowings, and have required that the Company provide guarantees of the debt facility. If the Fund is unable to service the borrowings, the Fund may risk the loss of such pledged assets.

Lenders have also required that the Fund agree to loan covenants limiting the Fund's ability to incur additional debt or otherwise limiting the Fund's flexibility, and loan agreements provide for acceleration of the maturity of the indebtedness if certain financial tests are not met. To minimize risks associated with lending money at fixed rates, the Fund enters into interest rate hedging transactions with respect to all or any portion of the Fund's investments. There can be no assurance that such interest rate hedging transactions will be available in forms acceptable to the Fund. The variable interest rate that the Fund's lenders charge cannot be perfectly hedged, and there may be a divergence between the interest rate obtained by the Fund on its interest rate hedging transactions and the interest rate charged to the Fund by its lenders. In addition, entering into interest rate hedging transactions raises costs to the Fund. Finally, it is possible that the Fund could incur losses from being “over-hedged” which would result if the loan that was hedged is repaid faster than expected.

Regulation. The Fund has elected to be treated as a BDC under the Small Business Incentive Act of 1980, which modified the 1940 Act. Although BDCs are now exempt from registration under the 1940 Act and are relieved from compliance with many provisions of the 1940 Act, there are now greater restrictions in some respects on permitted types of investments for BDCs. Moreover, the applicable provisions of the 1940 Act continue to impose numerous restrictions on the activities of the Fund, including restrictions on leverage and on the nature of its investments. While the Fund is not aware of any judicial rulings under, and is aware of only a few administrative interpretations of, the Small Business Incentive Act of 1980, there can be no assurance that such Act will be interpreted or administratively implemented in a manner consistent with the Fund's objectives or manner of operation.

Litigation. The Fund could be subject to litigation by borrowers, based on theories of “breach of contract to lend” or "lender liability" or otherwise, in connection with its loan and investment transactions. The defense of such a lawsuit, even if ultimately determined to be without merit, could be costly and time-consuming.

Tax Status. The Fund must meet a number of requirements, described under "Federal Income Taxation," to qualify for the pass-through status as a RIC and, if qualified, to continue to so qualify. For example, the Fund must meet specified asset diversification standards under the Internal Revenue Code which might be difficult to meet if the borrowers under some loans draw down their committed financing at a faster rate than other borrowers, particularly during the early periods of the Fund's operations. If the Fund experiences difficulty in meeting the diversification requirement for any quarter of its taxable year, it might accelerate capital calls or borrowings in order to increase the portion of the Fund's total assets represented by cash, cash items and U.S. government securities as of the close of the following fiscal quarter and thus attempt to meet the diversification requirement. However, the Fund would incur additional interest and other expenses in

connection with any such accelerated borrowings, and increased investments by the Fund in cash, cash items and U.S. government securities (whether the funds to make such investments are derived from called equity capital or from accelerated borrowings) are likely to reduce the Fund's return. Furthermore, there can be no assurance that the Fund would be able to meet the diversification requirements through such actions. Failure to qualify as a RIC would deny the Fund pass-through status and, in a year in which the Fund has taxable income, would have a significant adverse effect on the return of the Fund.

Allocation of Expenses. If the Fund is not deemed to be engaged in a trade or business, individuals and certain other persons who are members of the Company will be required to include in their gross income an amount of certain Fund expenses relating to the production of gross income that are allocable to the Company. These members, therefore, will be deemed to receive gross income from the Fund in excess of the distributions they actually receive. Such allocated expenses may be deductible by an individual Member as a miscellaneous itemized deduction, subject to the limitation on miscellaneous itemized deductions not exceeding 2% of adjusted gross income to the extent the Fund is not engaged in a trade or business.

Calculation of Investment Management Fee. Subsequent to the second anniversary of the first closing of the offering of membership interests in the Company, the Management Fee is computed and paid quarterly, at an annual rate of 2.5% of the total value of the assets of the Fund (including amounts derived from borrowed funds), as of the last day of each such fiscal quarter.

INVESTMENT RISKS

International Investments. The Fund could invest up to, but not more than, 30% of its total assets in foreign based companies. Foreign investments are subject to most of the same risks as domestic investments, as well as the political, economic and other uncertainties associated with foreign activities, including the risk of war and political unrest, the impact of laws and policies of foreign governments and the United States affecting foreign investment, and the possibility of being subject to the jurisdiction of foreign courts in connection with legal disputes and the possible inability to subject foreign persons to the jurisdiction of courts in the United States. Additionally, as discussed under “Remedies Upon Default” below, there may be practical and local law impediments to cost-effective recovery against collateral located in a foreign country.

Credit Risks. Most of the companies with which the Fund enters into financing transactions have not achieved profitability, experience substantial fluctuations in their operating results or, in some cases, do not have significant operating revenues. The ability of these companies to meet their obligations to the Fund, therefore, depends to a significant extent on the willingness of a borrower's equity venture capital investors or outside investors to provide additional equity financing, which in turn depends on the borrower's success in meeting its business plan, the market climate for venture capital investments and many other factors. The companies to which the Fund provides financing frequently engage in the development of new products or technologies, and the success of these efforts, or the ability of the companies to successfully manufacture or market products or technologies developed, cannot be assured. These companies frequently face intense competition, including competition from companies with greater resources, and may face risks of product or technological obsolescence, non-acceptance in the market, or rapidly changing regulatory environments, any of which could adversely affect their prospects. The success of such companies often depends on the management talents and efforts of one person or small group of persons whose death, disability or resignation would adversely affect the company.

Remedies Upon Default. In the event of a default on a portfolio loan, the available remedies to the Fund include legal action against the borrower and foreclosure or repossession of collateral given by the borrower. The Fund can experience significant delays in exercising its rights as a secured lender, and might incur substantial costs in taking possession of and liquidating its collateral and in taking other steps to protect its investment. The Fund generally will require that it have a first priority security interest in any equipment of a borrower financed with the proceeds of the Fund's loans, although that security interest may extend to the borrower's other assets in which another lender might have a senior or parity security interest. On occasion, the Fund will make loans to a borrower that has one or more other secured lenders (including the Fund's immediate predecessor, Venture Lending & Leasing IV, LLC (“Fund IV”) and the Fund's immediate successor, Venture Lending & Leasing VI, LLC ("Fund VI")). In such circumstances, the Fund may share all or a portion of its collateral with the other lender(s) and will enter into intercreditor agreements governing the respective rights of the Fund and such other lender(s), which could limit the Fund's flexibility in pursuing its remedies as a secured creditor, and reduce the proceeds realized from foreclosing or taking possession of the collateral. In the case of growth capital or working capital loans (where the loan proceeds can be used by the company for general corporate purposes), the Fund will typically receive a broader lien on substantially all of the borrower's assets, including its intellectual property.

The Fund utilizes certain of its funds in investments that involve the financing of equipment assets. Equipment assets are often subject to rapid depreciation or obsolescence such that it is likely the value of the assets underlying a loan to finance such assets will depreciate during the term of the loan transaction below the amount of the borrower's obligations. In addition, although borrowers are required under the transaction documents to provide customary insurance for the assets underlying a loan, and are prohibited from disposing of the assets without the Fund's consent, compliance with these covenants cannot be assured and, in the event of non-compliance, the assets could become unavailable to the Fund due to destruction, theft, sale or other circumstances. Realization of value from intellectual property collateral can also be time consuming and present special challenges, given the often unique nature and limited market for such assets. The Fund's ability to obtain payment beyond the collateral underlying the loan from the borrower might be limited by bankruptcy or similar laws affecting creditors' rights. In limited instances where the Fund takes security interests in a borrower's assets located in a foreign country, there may be practical and local law impediments to cost-effective recovery against such collateral. Therefore, there can be no assurance that the Fund would ultimately collect the full amount owed on a defaulted loan.

Emerging Company Risks. The possibility that the companies in which the Fund invests will not be able to commercialize their technology or product concept presents significant risk to the Fund. Additionally, although some of such companies may already have a commercially successful product or product line at the time of investment, technology products and services often have a more limited market or life span than products in other industries. Thus, the ultimate success of these companies may depend on their ability to continually innovate in increasingly competitive markets. Most of the companies in which the Fund invests will require substantial additional equity financing to satisfy their continuing growth and working capital requirements. Each round of venture financing is typically intended to provide a company with enough capital to reach the next stage of development. The circumstances or market conditions under which such companies will seek additional capital is unpredictable. It is possible that one or more of such companies will not be able to raise additional financing or may be able to do so only at a price or on terms which are unfavorable.

Privately-held Company Risks. The Fund invests primarily in privately-held companies. Generally, very little public information exists about these companies and the Fund is required to rely on the ability of the Manager to obtain adequate information to evaluate the potential returns from investing in these companies. Moreover, these companies typically depend upon the management talents and efforts of a small group of individuals and the loss of one or more of these individuals could have a significant impact on the investment returns from a particular company. Also, these companies frequently have less diverse product lines and smaller market presence than larger companies. They are thus generally more vulnerable to economic downturns and may experience substantial variations in operating results.

Global Economic Risks. The ability of the Fund to provide an acceptable return may be adversely affected by economic and business factors to which the U.S. marketplace is subject. These factors, which generally are beyond the control of the Manager, include: general economic conditions, such as inflation and fluctuations in general business conditions; the impact of further terrorist attacks against the United States; the effects of strikes, labor disputes and foreign political unrest; and uncertainty of the recovery of the U.S. economy.

Speculative Nature of Warrants and Equity Investments. The value of the warrants that the Fund generally receives in connection with its financing investments is dependent on the value of the equity securities for which the warrants can be exercised. The value of such warrants, direct equity investments, and equities received upon conversion of debt instruments is dependent primarily on the success of the company's business strategy and the growth of its earnings, but also depends on general economic and equity market conditions. The prospects for achieving consistent profitability in the case of many companies in which the Fund invests are speculative. The warrants, equity securities for which the warrants can be exercised, direct equity investments, and equities received upon conversion of debt instruments generally are restricted securities that cannot readily be sold for some period of time. If the value of the equity securities underlying a warrant does not increase above the exercise price during the life of the warrant, the Fund would permit the warrant to expire unexercised and the warrant would then have no value.

Illiquidity of Investments. Substantially all of the Fund's portfolio investments (other than short-term investments) consist of securities that, at the time of acquisition, are subject to restrictions on sale and for which no ready market will exist. Restricted securities cannot be sold publicly without prior agreement with the issuer to register the securities under the 1933 Act, or by selling such securities under Rule 144 or other provisions of the 1933 Act which permit only limited sales under specified conditions. Venture loans and equity investments are privately negotiated transactions, and there is no established trading market in which such loans and equity investments can be sold. Convertible and subordinated debt investments may also be privately negotiated transactions. In the case of warrants or equity securities, the Fund generally will realize the value of such securities only if the issuer is able to make an initial public offering of its shares, or enters into a business combination with another company which purchases the Fund's warrants or equity securities or exchanges them for publicly-traded securities of the acquirer. The feasibility of such transactions depends upon the entity's financial results as well as general economic and equity market conditions. Furthermore, even if the restricted warrants or equity securities owned become publicly-traded, the Fund's ability to sell such securities may be limited by the lack (or limited nature) of a trading market for such securities. When restricted securities are sold to the public, the Fund, under certain circumstances, may be deemed an "underwriter" or a controlling person with respect thereto for the purposes of the 1933 Act, and be subject to liabilities as such under that Act.

Because of the illiquidity of the Fund's investments, a substantial portion of its assets are carried at fair value as determined by the Manager in accordance with the Fund's policy as approved by the Board of Directors. This value will not necessarily reflect the value of the assets which may be realized upon a sale.

Non-Diversified Status. The Fund is classified as a “non-diversified” investment company under the 1940 Act. The Fund qualifies as a RIC under the Internal Revenue Code and will thereafter seek to continually meet the diversification standards there-under. Nevertheless, the Fund's assets may be subject to a greater risk of loss than if its investments were more widely diversified.

Challenges in Financial Markets. The ability of the Fund to provide an acceptable return may be adversely affected by economic factors to which the marketplace is subject. Volatility in the global financial markets reached unprecedented levels during the year ended 2008 and 2009 and these conditions may return . The Fund's estimates of fair value are based on the best information available to the Manager as of the date of valuation. Restrictions on the availability of financing as well as the current economic environment have resulted in a low volume of purchase and sale transactions for certain investments, limiting the number of observable input available to management in making their estimates of fair value. This market turmoil could have a material adverse effect on the Fund's business and operations.

Market conditions could also adversely impact the ability of the Fund's borrowers to meet their obligations to the Fund and the value of the Fund's direct investments in companies. Most of the companies in which the Fund invests have not achieved profitability and require substantial equity financing to satisfy their continuing growth and working capital requirements. A weak economy could hinder and possibly decrease the demand for such borrower's products and technology, thereby impairing such borrower's financial condition and ability to raise additional equity financing from outside investors. This could result in an increase in borrower defaults under their obligations to the

Fund, or a decrease in the value of the Fund's direct equity investments. U.S. and global economic conditions could deteriorate and beweak for an extended period of time. Additionally, it is possible that market conditions could decrease the demand for venture loans.

CONFLICTS OF INTEREST

Transactions with Venture Lending & Leasing IV, LLC, formerly Venture Lending & Leasing IV, Inc.. The Manager also serves as investment manager for Fund IV. The Fund's board of directors determined that so long as Fund IV has capital available to invest in loan transactions with final maturities earlier than December 31, 2012 (the date on which Fund IV was dissolved), the Fund would invest in each portfolio company in which Fund IV invests (“Investments”). The amount of each Investment was allocated 50% to the Fund and 50% to Fund IV so long as Fund IV had capital available to invest. Since May 2008, Fund IV was no longer permitted to enter into new commitments to borrowers; however, Fund IV was permitted to fund existing commitments. While investing the Fund's capital in the same companies in which Fund IV was also investing provided the Fund with greater diversification and access to larger transactions, it could have also resulted in a slower pace of investment than would be the case if the Fund were investing in companies by itself.

Transactions with Venture Lending & Leasing VI, Inc. (“Fund VI”). The Manager also serves as investment manager for Fund VI. Initially the amount of each Investment had been allocated 50% to the Fund and 50% to Fund VI so long as the Fund had capital available to invest. This percentage may have been changed after the final close of capital at which time a determination of the percentage allocation will have been made. After February 2011, the Fund was no longer permitted to enter into new commitments to borrowers; however, the Fund is permitted to fund existing commitments. While investing the Fund's capital in the same companies in which Fund VI is also investing could provide the Fund with greater diversification and access to larger transactions, it could also result in a slower pace of investment than would be the case if the Fund were investing in companies by itself.

To the extent that clients, other than Fund VI, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with procedures approved by the Fund's Board of Directors (including a majority of the disinterested directors).

Intercreditor Agreements. In transactions in which both the Fund and Fund IV or Fund VI invest, it is expected that the Fund and Fund IV or Fund VI, as applicable, will enter into an intercreditor agreement pursuant to which the parties will cooperate in pursuing their remedies following a default by the common borrower. Generally, under such intercreditor agreements, each party agrees that its security interest would be treated in parity with the security interest of the other party, regardless of which security interest would have priority under applicable law. Accordingly, proceeds realized from the sale of any collateral or the exercise of any other creditor's rights will be allocated between the parties pro rata in accordance with the amounts of their respective investments. An exception to the foregoing arrangement would occur in situations where, for example, one of the lenders financed specific items of equipment collateral; in that case, usually the lender who financed the specific assets will have a senior lien on that asset, and the other lender will have a junior priority lien (even though they may ratably share liens of equal priority on other assets of the common borrower). As a result of such intercreditor agreements, the Fund may have less flexibility in pursuing its remedies following a default than it would have had there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and Fund IV or Fund VI, as applicable, invest at the same time in the same borrower, such borrower would be required to service two loans rather than one. Any additional administrative costs or burdens resulting there from may make the Fund a less attractive lender, and may make it more difficult for the Fund to acquire such loans.

Effect of Borrowings. During the first two years of the Fund's investment operations, the Management Fee was calculated with reference to the committed equity capital of the Company, regardless of when or if all of such capital is called. Thereafter, the Management Fee is computed and paid quarterly, at an annual rate equal to 2.5% of the total value of the Fund's assets (including amounts derived from borrowed funds) as of the last day of each such fiscal quarter. Therefore, decisions by the Manager to cause the Fund to borrow additional funds may increase the quarterly fees payable to the Manager. The Fund's overall borrowing limits, however, are set by the Fund's Board of Directors in light of its fiduciary obligations.

Indemnification and Exculpation. The Articles of Incorporation of the Fund provide for indemnification of directors, officers, employees, and agents (including the Manager) of the Fund to the full extent permitted by applicable state law and the 1940 Act, including the advance of expenses and reasonable counsel fees. The Articles of Incorporation of the Fund also contain a provision eliminating personal liability of a Fund director or officer to the Fund or its shareholder for monetary damages for certain breaches of their duty of care. Furthermore, the Fund has entered into an indemnification agreement with each of its directors and officers, and its controller. A successful claim for such indemnification would deplete the Fund's assets by the amount paid.


ITEM 1B.	UNRESOLVED STAFF COMMENTS.

Not applicable.


ITEM 2.	PROPERTIES.

All of the Fund's office space is provided by the Manager.


ITEM 3.	LEGAL PROCEEDINGS.

The Fund is not a party to any material legal proceedings.


ITEM 4.	MINE SAFETY ISSUES.

Not applicable.

PART II.


ITEM 5.	MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER MATTERS.

The Fund's Common Stock is not listed on any securities exchange, and all holders of the Fund's Common Stock are subject to agreements significantly restricting the transferability of their shares.

The number of holders of record of the Fund's Common Stock at March 21, 2014 was 1.

The Fund has a policy of distributing securities as acquired. The Fund values these securities at fair value at the time of acquisition in accordance with the Fund's policy on valuation detailed in Note 2 to the financial statements. In addition, some expenses of the Company may be paid by the Fund, and will be deemed as distributions to the Company. The Fund has established a policy of declaring dividends on a quarterly basis to the extent that taxable income of the fund less applicable reserves exceeds warrant distributions and deemed distributions. As of December 31, 2013, the Fund had distributed $232.0 million to date to its shareholders, of which $201.0 million was in cash.


ITEM 6.	SELECTED FINANCIAL DATA.

The following table summarizes certain financial data and should be read in conjunction with the “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto included elsewhere in this Form 10-K. The selected financial data set forth below have been derived from the audited financial statements.



	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2013			December 31, 2012			December 31, 2011			December 31, 2010			December 31, 2009
Statement of Operations Data:
Investment income:
Interest on loans	$	4,003,262		$	11,934,017		$	24,379,796		$	23,418,920		$	24,298,202
Other interest and other income	799			255,650			18,744			225,699			99,861
Total investment income	4,004,061			12,189,667			24,398,540			23,644,619			24,398,063
Expenses:
Management fees	710,445			1,762,508			3,582,723			4,227,766			4,798,290
Interest expense	—			—			40,745			267,804			237,677
Banking and professional fees	314,274			264,342			263,660			354,706			415,853
Other operating expenses	96,757			136,329			138,176			137,869			148,819
Total expenses	1,121,476			2,163,179			4,025,304			4,988,145			5,600,639
Net investment income	2,882,585			10,026,488			20,373,236			18,656,474			18,797,424

Net realized loss from investments	(1,636,209		)	(4,188,925		)	(3,726,282		)	(2,935,277		)	(4,122,957		)
Net change in unrealized gain (loss) from investments	122,425			2,922,841			4,326,947			(3,680,278		)	(4,803,944		)
Net realized and unrealized gain (loss) from investment and hedging activities	(1,513,784		)	(1,266,084		)	600,665			(6,615,555		)	(8,926,901		)
Net increase in net assets resulting from operations	$	1,368,801		$	8,760,404		$	20,973,901		$	12,040,919		$	9,870,523

AMOUNTS PER COMMON SHARE:
Net increase in net assets resulting from operations	$	13.69		$	87.60		$	209.74		$	120.41		$	98.71
Weighted Average Shares Outstanding	100,000			100,000			100,000			100,000			100,000

	As of			As of			As of			As of			As of
	December 31, 2013			December 31, 2012			December 31, 2011			December 31, 2010			December 31, 2009
Balance Sheet Data:
Loans	$	9,262,163		$	42,029,457		$	105,250,110		$	137,614,630		$	141,980,642
Net assets	$	22,480,474		$	44,744,587		$	113,519,812		$	163,720,540		$	175,761,560


ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Overview

The Fund is a financial services company 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 February 21, 2007, the Fund completed its first closing of capital, made its first investment, and became a non-diversified, closed-end investment company that elected to be treated as a business development company (a "BDC") under the Investment Company Act of 1940. The Fund elected to be treated for federal income tax purposes as a regulated investment company (a "RIC") under the Internal Revenue Code with the filing of its federal corporate income tax return for 2007. Pursuant to this election, the Fund generally will not have to pay corporate-level taxes on any income distributed to our shareholder as dividends, allowing the Fund 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 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. The Fund's investing activities focus 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 percentage 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 their loans may be adversely impacted by a number of factors, and as a result the loan may not be fully 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

The Manager has identified the most critical accounting estimates upon which the financial statements depend and determined the critical accounting estimates by considering accounting policies that involve the most complex or subjective decisions or assessments. The two critical accounting policies relate to the valuation of loans and treatment of nonaccrual loans.

Loans are held at fair value as determined by management, in accordance with the valuation methods described in the valuation of loans section of Note 2 to the financial statements (Summary of Significant Accounting Policies). Critical factors in determining the fair value of a loan include payment history, collateral position, financial strength of borrower, prospects for the borrower's raising of 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 increase (decrease) in net assets resulting from operations as well as assets.

Results of Operations – For the years ended December 31, 2013, 2012, and 2011

Total investment income for the years ended December 31, 2013, 2012, and 2011 was $4.0 million, $12.2 million and $24.4 million, respectively, which primarily consisted of interest on venture loans outstanding. The remaining income consisted of interest and dividends on the temporary investment of cash, commitment fees and non-cash consideration. The decline in investment income was primarily due to the decrease in the average loans outstanding from $123.6 million for the year ended December 31, 2011 to $66.3 million for the year ended December 31, 2012, to $18.4 million for the year ended December 31, 2013. Additionally, the average interest rate decreased from 18.90% for the year ended December 31, 2011, to 17.36% for the year ended December 31, 2012, and increased to 19.27% for the year ended December 31, 2013. The decrease in the average loans outstanding for the year ended December 31, 2013 was marginally offset by the increase in the average interest rate during the year. Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs and volatility of values ascribed to warrants during the year.

Expenses for the years ended December 31, 2013, 2012, and 2011 were $1.1 million and $2.2 million, and $4.0 million, respectively. Management fees were calculated based on a percentage of Fund assets. Management fees for the Fund were $0.7 million, $1.8 million, and $3.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. Management fees decreased in 2013, 2012 and 2011 due to the decrease in assets in 2013, 2012, and 2011, respectively.

Interest expense was $0, $0 and less than $0.1 million for the years ended December 31, 2013, 2012, and 2011. Borrowings under the debt facility were $0 as of December 31, 2013, 2012, and 2011. The interest expense was comprised of fees on the unused portion of the debt facility and amortization of prepaid bank facility fee and legal fee pertaining to the debt facility. On February 20, 2009, the Fund entered into agreements with Union Bank, N.A. that established a secured revolving loan facility in an initial amount of up to $30,000,000. On June 11, 2009, the Fund borrowed $1.0 million under the new debt facility and on September 11, 2009, the Fund fully paid its borrowing under the debt facility. As of December 31, 2013, 2012 and 2011, the Fund had no debt.

Banking and professional fees were $0.3 million for each of the years ended December 31, 2013, 2012, and 2011. Banking and professional fees fees remained relatively stable for the years presented.

Other operating expenses were $0.1 million, for each of the years ended December 31, 2013, 2012, and 2011. These expenses included director fees, custody fee, tax fees, and other expenses related to the operation of the Fund. Other operating expenses remained relatively stable for the years presented.

The net realized loss from investments was $1.6 million, $4.2 million, and $3.7 million for the years ended December 31, 2013, 2012, and 2011 respectively. The realized losses consist of write offs, net of recoveries of previously written off uncollectible loans.

Net change in unrealized gain from investments was $0.1 million, $2.9 million, and $4.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. The unrealized loss consists of fair market value adjustments of loans.

Net increase in net assets resulting from operations for the years ended December 31, 2013, 2012, and 2011 was $1.4 million, $8.8 million, and $21.0 million, respectively. On a per share basis, for the years ended December 31, 2013, 2012, and 2011, there was a net increase in net assets resulting from operations of $13.69, $87.60, and $209.74, respectively.

Liquidity and Capital Resources -- December 31, 2013 and 2012

The Fund is owned entirely by the Company. The Company was expected, but not required, to make further contributions to the capital of the Fund to the extent of the Company’s members’ capital commitment to the Company and excess cash balances. As of December 31, 2013 and 2012 the Company had received subscriptions for capital in the amount of $270.0 million, of which $202.5 million had been called and received. As of December 31, 2013 and 2012, $67.5 million of capital remained uncalled. On December 9, 2011, the Fund's board resolved that no future capital calls would be made; thus the Fund no longer has access to additional capital from investors.

On February 20, 2009, the Fund entered into agreements with Union Bank, N.A. that established a secured revolving loan facility in an initial amount of up to $30,000,000. Borrowings by the Fund were collateralized by the personal property and other assets of the Fund. Loans under the facility were, at the option of the Fund, either Reference Rate loans or LIBOR loans. The Fund paid interest on its borrowings and also paid a fee on the unused portion of the facility. On September 11, 2009, the Fund fully paid its borrowing under the debt facility and the facility terminated on February 18, 2011. As of December 31, 2013 and 2012, 59% and 6%, respectively of the Fund’s assets consisted of cash and cash equivalents. The Fund invested its assets in venture loans during 2013 and 2012. Amounts disbursed under the Fund’s loan commitments was $0 for the year ended December 31, 2013. Net loan amounts outstanding after amortization and valuation adjustments were approximately $9.3 million as of December 31, 2013. Unexpired unfunded commitments as of December 31, 2013 were approximately $0.



Year Ended	Cumulative Amount Disbursed	Principal Amortization and Fair Market Adjustment	Balance Outstanding– Fair Value	Unexpired Unfunded Commitments
December 31, 2013	$450.7 million	$441.4 million	$9.3 million	$—
December 31, 2012	$450.7 million	$408.7 million	$42.0 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 7A .	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 valuation 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 manages its market 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 investments upon receipt to the Company.

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 increase in net assets resulting from operations by less than 1% for the year ended December 31, 2013.

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 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Quarterly Results

This information has been derived from unaudited financial statements that, in the opinion of management, include all normal recurring adjustments necessary for a fair presentation of such information. The operating results for any quarter are not necessarily indicative of results for any future year. The format of the statements have been modified, thus certain numbers have been combined in order to fit the format of the statements.

December 31, 2013 (Unaudited)



	Quarterly Information for the Three Months Ended
	March 31, 2013			June 30, 2013			September 30, 2013			December 31, 2013
Investment Income:
Interest on loans	$	1,372,534		$	1,389,489		$	1,021,575		$	219,664
Other interest and other income	74			166			204			355
Total investment income	1,372,608			1,389,655			1,021,779			220,019
Expenses:
Management fees	213,222			213,174			142,477			141,572
Banking and professional fees	62,034			97,123			50,643			104,474
Other operating expenses	19,184			23,628			16,474			37,471
Total expenses	294,440			333,925			209,594			283,517
Net investment income	1,078,168			1,055,730			812,185			(63,498		)
Net realized gain (loss) from investments	(176,379		)	(1,004,344		)	(526,843		)	71,357
Net change in unrealized gain (loss) from investments	(471,937		)	171,362			533,000			(110,000		)
Net realized and change in unrealized gain (loss) from investments	(648,316		)	(832,982		)	6,157			(38,643		)
Net increase (decrease) in net assets resulting from operations	$	429,852		$	222,748		$	818,342		$	(102,141	)
Amount per common share:
Net increase (decrease) in net assets resulting from operations	$	4.30		$	2.23		$	8.18		$	(1.02	)
Weighted average shares outstanding	100,000			100,000			100,000			100,000

December 31, 2012 (Unaudited)



	Quarterly Information for the Three Months Ended
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012
Investment Income:
Interest on loans	3,834,836			$	3,692,922		$	2,733,057		1,673,202
Other interest and other income	250,623			51			4,924			52
Total investment income	4,085,459			3,692,973			2,737,981			1,673,254
Expenses:
Management fees	628,761			490,758			361,461			281,528
Banking and professional fees	114,779			36,137			46,106			67,320
Other operating expenses	23,958			37,075			25,768			49,528
Total expenses	767,498			563,970			433,335			398,376
Net investment income	3,317,961			3,129,003			2,304,646			1,274,878
Net realized loss from investments	—			(476,958		)	(412,631		)	(3,299,336		)
Net change in unrealized gain(loss) from investments	(583,360		)	(477,575		)	1,498,129			2,485,647
Net realized and unrealized gain (loss) from investment activities	(583,360		)	(954,533		)	1,085,498			(813,689		)
Net increase in net assets resulting from operations	$	2,734,601		$	2,174,470		$	3,390,144		$	461,189
Amount per common share:
Net increase in net assets resulting from operations	$	27.35		$	21.74		$	33.90		$	4.61
Weighted average shares outstanding	100,000			100,000			100,000			100,000

December 31, 2011 (Unaudited)



	Quarterly Information for the Three Months Ended
	March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011
Investment Income:
Interest on loans	$	5,909,010		$	7,685,472		$	6,171,612		$	4,613,702
Other interest and other income	18,482			7			2			253
Total investment income	5,927,492			7,685,479			6,171,614			4,613,955
Expenses:
Management fees	1,005,425			979,820			882,149			715,329
Interest expense	40,745			—			—			—
Banking and professional fees	75,274			27,650			88,872			71,864
Other operating expenses	28,520			21,818			41,470			46,368
Total expenses	1,149,964			1,029,288			1,012,491			833,561
Net investment income	4,777,528			6,656,191			5,159,123			3,780,394
Net realized loss from investments	(132,849		)	(317,337		)	(2,531,752		)	(744,344		)
Net change in unrealized gain from investments	1,386,488			314,345			2,062,643			563,471
Net realized and unrealized gain (loss) from investment activities	1,253,639			(2,992		)	(469,109		)	(180,873		)
Net increase in net assets resulting from operations	$	6,031,167		$	6,653,199		$	4,690,014		$	3,599,521
Amount per common share:
Net increase in net assets resulting from operations	$	60.31		$	66.53		$	46.90		$	36.00
Weighted average shares outstanding	100,000			100,000			100,000			100,000


ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.


ITEM 9A.	CONTROLS AND PROCEDURES.

At the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of our Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Fund’s disclosure controls and procedures were effective in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and in providing reasonable assurance that information required to be disclosed by the Fund in such reports is accumulated and communicated to the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with Management’s Report that occurred during the Fund’s fiscal quarter ended December 31, 2013 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control — Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2013.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements and even when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

This report of management on internal control over financial reporting shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

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 fiscal year ended December 31, 2013.


ITEM 9.B.	OTHER INFORMATION

Not applicable.

PART III


ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The following are the executive officers of the Fund. All officers serve at the pleasure of the Fund's Board.



Name and Position With Fund	Age	Occupation During Past Five Years
Ronald W. Swenson, Chairman, and Director	69	Chairman, CEO, Director, and other positions for Westech Investment Advisors since 1994
Maurice C. Werdegar, President and Chief Executive Officer	49	COO, Director and other positions for Westech Investment Advisors since 2001
Jay L. Cohan, Vice President, Assistant Secretary	49	Vice President, Assistant Secretary and other positions for Westech Investment Advisors since 1999
Martin D. Eng, Vice President, CFO, Treasurer, and Secretary	62	Vice President, CFO, Treasurer and Secretary for Westech Investment Advisors since 2005.
David R. Wanek, Vice President	41	Vice President and other positions for Westech Investment Advisors since 2001

The information required by this item concerning the directors of the Fund and Section 16(a) compliance will be contained in the Fund's Proxy Statement filed in connection with the Annual Meeting of Shareholders to be held on May 7, 2014 (“Proxy Statement”) under the captions “Proposal 1 -- To Elect Five Directors of the Fund” and “Section 16(a) Beneficial Ownership Reporting Compliance” and is incorporated herein by reference.

The Fund has adopted a Code of Ethics that is applicable to all of its officers. A free copy of the Code of Ethics may be requested by contacting the Chief Financial Officer of the Fund.


ITEM 11.	EXECUTIVE COMPENSATION

The information required by this item will be contained in the Fund's Proxy Statement under the caption “Proposal 1 -- To Elect Five Directors of the Fund” and is incorporated herein by reference.


ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS

The information required by this item will be contained in the Fund's Proxy Statement under the caption “Annex A -- Beneficial Ownership of Fund Shares” and is incorporated herein by reference.


ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item will be contained in the Fund's Proxy Statement under the captions: “Other Information -- Managers” and is incorporated herein by reference.


ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item will be contained in the Fund's Proxy Statement under the captions: “Other Information - Independent Registered Public Accounting Firm” and is incorporated herein by reference.

PART IV.


ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES


(a)	1. Index to Financial Statements and Financial Statement Schedules

Report of Independent Registered Public Accounting Firm

Statements of Assets and Liabilities as of December 31, 2013 and 2012

Statements of Operations for the years ended December 31, 2013, 2012 and 2011

Statements of Changes in Net Assets for the years ended December 31, 2013, 2012 and 2011

Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011

Notes to Financial Statements for the years ended December 31, 2013 and 2012. No schedules are required because the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the required information is included in the financial statements and the notes thereto.


(a)	2. Exhibits



Exhibit	Exhibit Title

3(i)	Articles of Incorporation of the Fund filed with the Maryland Secretary of State on August 21, 2006, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 10, 2006.

3(ii)	Amended and Restated Bylaws of the Fund, incorporated by reference to the Fund's Form 10-K filed with the Securities and Exchange Commission on March 25, 2010.

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 October 10, 2006.

10.1	Form of Custodian Agreement between the Fund and Union Bank of California, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 10, 2006.

10.3	Form of Management Agreement between the Fund and the Manager, incorporated by reference to the Fund's Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 10, 2006.

10.4	First Amendment to Management Agreement between the Fund and the Manager, incorporated by reference to the Fund's Form 10-K filed with the Securities and Exchange Commision on March 15, 2012

31.1 - 32.2	Certifications pursuant to The Sarbanes-Oxley Act of 2002

Note:	The form of the Fund's Intercreditor Agreement was attached to the Fund's Registration Statement on Form 10 for information purposes and is not being incorporated by reference herein since it is entered into in the ordinary course of the Fund's business.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VENTURE LENDING & LEASING V, INC.

(Registrant)



By:	/S/Maurice C. Werdegar		By:	/S/Martin D. Eng
	Maurice C. Werdegar			Martin D. Eng
	President and Chief Executive Officer			Chief Financial Officer
	Date:	March 21, 2014		Date:	March 21, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



	NAME	TITLE	DATE

By:	/S/ Scott Taylor	Director	March 21, 2014
	Scott Taylor

By:	/S/ Arthur C. Spinner	Director	March 21, 2014
	Arthur C. Spinner

By:	/S/ Ronald W. Swenson	Chairman	March 21, 2014
	Ronald W. Swenson

By:	/S/ George Von Gehr	Director	March 21, 2014
	George Von Gehr

By:	/S/ Maurice C. Werdegar	President, CEO & Director	March 21, 2014
	Maurice C. Werdegar

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholder of

Venture Lending & Leasing V, Inc.:

We have audited the accompanying statements of assets and liabilities of Venture Lending & Leasing V, Inc. (the "Fund") as of December 31, 2013 and 2012, and the related statements of operations, cash flows, and changes in net assets for each of the three years in the period ended December 31, 2013. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of loans owned as of December 31, 2013, by correspondence with the borrowers; where replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Venture Lending & Leasing V, Inc. as of December 31, 2013 and 2012, and the results of its operations, its cash flows, and changes in its net assets for each of the three years in the period ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 2, the financial statements include investments valued at $9.3 million (40.9% of total assets) and $42.0 million (93.3% of total assets) as of December 31, 2013 and 2012, respectively, whose fair values have been estimated by management in the absence of readily determinable fair values. Also discussed in Note 2 is the information used by management in making these estimates.

/s/ Deloitte & Touche LLP

March 21, 2014

San Francisco, California

VENTURE LENDING & LEASING V, INC.

Statements of Assets and Liabilities

As of December 31, 2013 and 2012



	December 31, 2013			December 31, 2012
ASSETS
Loans, at estimated fair value
(Cost of $12,129,171 and $45,018,891)	$	9,262,163		$	42,029,457
Cash and cash equivalents	13,305,445			2,490,774
Other assets	83,981			524,169

Total assets	22,651,589			45,044,400

LIABILITIES
Accrued management fees	141,572			281,528
Accounts payable and other accrued liabilities	29,543			18,285

Total liabilities	171,115			299,813

NET ASSETS	$	22,480,474		$	44,744,587

Analysis of Net Assets:

Capital paid in on shares of capital stock	$	193,525,000		$	193,525,000
Return of capital distributions	(167,280,510		)	(144,893,971		)
Accumulated deficit	(3,764,016		)	(3,886,442		)
Net assets (equivalent to $224.80 and $447.45 per share based on 100,000 shares of capital stock outstanding - See Note 5)	$	22,480,474		$	44,744,587

See notes to financial statements.

VENTURE LENDING & LEASING V, INC.

Statements of Operations

For the Years Ended December 31, 2013, 2012 and 2011



	For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2013			December 31, 2012			December 31, 2011
INVESTMENT INCOME:
Interest on loans	$	4,003,262		$	11,934,017		$	24,379,796
Other interest and other income	799			255,650			18,744
Total investment income	4,004,061			12,189,667			24,398,540

EXPENSES:
Management fees	710,445			1,762,508			3,582,723
Interest expense	—			—			40,745
Banking and professional fees	314,274			264,342			263,660
Other operating expenses	96,757			136,329			138,176
Total expenses	1,121,476			2,163,179			4,025,304
Net investment income	2,882,585			10,026,488			20,373,236

Net realized loss from investments	(1,636,209		)	(4,188,925		)	(3,726,282		)
Net change in unrealized gain from investments	122,425			2,922,841			4,326,947
Net realized and change in unrealized gain (loss) from investments	(1,513,784		)	(1,266,084		)	600,665

Net increase in net assets resulting from operations	$	1,368,801		$	8,760,404		$	20,973,901
Net increase in net assets resulting from operations per share	$	13.69		$	87.60		$	209.74
Weighted average shares outstanding	100,000			100,000			100,000

See notes to financial statements.

VENTURE LENDING & LEASING V, INC.

Statements of Changes in Net Assets

For the Years Ended December 31, 2013, 2012 and 2011



	For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2013			December 31, 2012			December 31, 2011
Net increase in net assets resulting from operations:
Net investment income	$	2,882,585		$	10,026,488		$	20,373,236
Net realized loss from investments	(1,636,209		)	(4,188,925		)	(3,726,282		)
Net change in unrealized gain from investments	122,425			2,922,841			4,326,947
Net increase in net assets resulting from operations	1,368,801			8,760,404			20,973,901
Distributions of income to shareholder	(1,246,375		)	(5,837,563		)	(16,646,954		)
Return of capital to shareholder	(22,386,539		)	(71,698,066		)	(54,527,675		)
Total decrease	(22,264,113		)	(68,775,225		)	(50,200,728		)

Net assets
Beginning of year	44,744,587			113,519,812			163,720,540

End of year	$	22,480,474		$	44,744,587		$	113,519,812

See notes to financial statements.

VENTURE LENDING & LEASING V, INC.

Statements of Cash Flows

For the Years Ended December 31, 2013, 2012 and 2011



	For the Year Ended			For the Year Ended			For the Year Ended
	December 31, 2013			December 31, 2012			December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	1,368,801		$	8,760,404		$	20,973,901
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Net realized loss from investments	1,636,209			4,188,925			3,726,282
Net change in unrealized gain from investments	(122,425		)	(2,922,841		)	(4,326,947		)
Receipt of equity securities as payment for waiver	(65,282		)	(183,758		)	—
Amortization of deferred costs related to borrowing facility	—			—			24,412
Net decrease in other assets	440,188			991,144			555,177
Payments for other investment	—			(6,542		)	—
Proceeds from other investments	—			381,999			—
Net decrease in accounts payable, other accrued
liabilities, and accrued management fees	(128,697		)	(632,895		)	(1,112,560		)
Origination of loans	—			(531,197		)	(46,799,679		)
Principal payments on loans	30,685,877			61,805,660			78,200,475
Acquisition of equity securities	—			(17,709		)	(2,558,645		)
Net decrease in other investment	—			—			3,689
Net cash provided by operating activities	33,814,671			71,833,190			48,686,105
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distribution to shareholder	(23,000,000		)	(77,000,000		)	(66,800,000		)
Net cash used in financing activities	(23,000,000		)	(77,000,000		)	(66,800,000		)
Net increase (decrease) in cash and cash equivalents	10,814,671			(5,166,810		)	(18,113,895		)
CASH AND CASH EQUIVALENTS:
Beginning of year	2,490,774			7,657,584			25,771,479
End of year	$	13,305,445		$	2,490,774		$	7,657,584
SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE YEAR FOR:
Interest	$	—		$	—		$	46,667
NON-CASH ACTIVITIES:
Receipt of equity securities as repayment of loan	$	567,633		$	334,162		$	962,229
Distributions of equity securities to shareholder	$	632,915		$	535,629		$	4,374,629
Conversion of receivable to stock	$	—		$	—		$	1,595
Conversion of note to stock	$	—		$	—		$	250,000

See notes to financial statements.

VENTURE LENDING & LEASING V, INC.

Notes to Financial Statements for the Years Ended December 31, 2013 and 2012

1. ORGANIZATION AND OPERATIONS OF THE FUND

Venture Lending & Leasing V, Inc. (the “Fund”) was incorporated in Maryland on August 21, 2006 as a non-diversified closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940, as amended ("1940 Act") and is managed by Westech Investment Advisors, LLC, formerly known as Westech Investment Advisors, Inc. (“Manager” or “Management”). The Fund will be dissolved on December 31, 2015 unless an election is made to dissolve earlier by the Board of Directors of the Fund (the "Board"). One hundred percent of the stock of the Fund is held by Venture Lending & Leasing V, LLC (the “Company”). Prior to commencing its operations on February 21, 2007, 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 September 2006. This issuance of stock was a requirement in order to apply for a finance lender's license from the California Commissioner of Corporations, which was obtained by the Fund on January 10, 2007.

Until February 21, 2011, the Fund made loan commitments, reinvesting the proceeds of matured, repaid or resold investments, net of required distributions to shareholders, principal payments on borrowings and expenses or other obligations of the Fund, in new loans. Following that date, the Fund distributes to investors all proceeds received from principal payments and sales of investments, net of reserves and expenses, principal repayments on the Fund's borrowings, amounts required to fund financing commitments entered into before such date, and any amounts paid on exercise of warrants. Distributions of such amounts are likely to cause annual distributions to exceed the earnings and profits of the Fund available for distribution, in which case such excess will be considered a tax free return of capital to a shareholder to the extent of the shareholder's adjusted basis in its shares and then as capital gain. The Fund may borrow money to fund shareholder distributions, to the extent consistent with the 1940 Act and a prudent capital structure.

On December 9, 2011, the Board decided that no new capital calls will be made, thus the Fund no longer has access to additional capital from investors

The portfolio investments of the Fund consist of debt financing to early and late stage venture capital backed technology companies.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and money market mutual funds with maturities of 90 days or less. Money market mutual funds held as cash equivalents are valued at their most recently traded net asset value.

Interest Income

Interest income on loans is recognized using the effective interest method including amounts resulting from the amortization of discounts attributable 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 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 a “Valuation Report,” which details the rationale for the valuation of investments.

As of December 31, 2013 and 2012, the financial statements include nonmarketable investments of $9.3 million and $42.0 million (or approximately 40.9% and 93.3% of the total assets) with fair values determined by the Manager in the absence of readily determinable market values. Because of the illiquidity of the Fund's investments, a substantial portion of its assets are carried at fair value as determined

by the Manager in accordance with the Fund's policy as approved by the Board. 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.

Loans

The Fund defines fair value as the price that would be received to sell an asset or paid to lower a liability in

an orderly transaction between market participants at the measurement date. There is no secondary market for the loans made by the Fund to borrowers; hence Management determines fair value based on hypothetical markets. Venture loans are generally held to maturity and are recorded at estimated fair value. The determination of fair value is based on a number of factors including the amount for which an investment could be exchanged in a current sale, which assumes an orderly disposition over a reasonable

period other than in a forced sale. Management considers the fact that no ready market exists for substantially all of the investments held by the Fund. Management determines whether to adjust the estimated fair value of a loan based on a number of 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 considers liquidation analysis and is determined based upon a credit analysis of the borrower and 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. Management has evaluated these factors and has concluded that the effect of deterioration in the quality of the underlying collateral, increase in the size of the loan and

increase in the estimated time to recovery would have the effect of lowering the value of the current portfolio of loans.

Nonaccrual Loans

The Fund's policy is to place a loan on non-accrual 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 non-accrual status, all interest previously accrued but not collected is reversed for the quarter in which the loan was placed on non-accrual status. Any uncollected interest related to quarters prior to when the loan was placed on non-accrual 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 in determining Management's best estimate of fair value. Interest received by the Fund on non-accrual loans will be recorded on a cash basis.

If a borrower of a non-accrual loan resumes making regular payments and Management deems that the borrower has

sufficient resources that it is unlikely the loan will return to non-accrual status, the loan is re-classified back to accrual or performing status. Interest that would have been accrued during the non-accrual status will be added back to the remaining payment schedule, and thus changing the effective interest rate.

As of December 31, 2013 and 2012, loans with a cost basis of $7.8 million and $9.4 million and a fair value of $4.9 million and $6.4 million, respectively, have been classified as non-accrual.

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, unless a market price is available. These securities are then distributed by

the Fund to the Company at the assigned value. Warrants are valued based on a modified Black-Scholes

option pricing model which takes into account underlying stock value, expected term, volatility, and riskfree

interest rate, among other factors.

Underlying asset value is estimated based on information available, including information regarding recent rounds of funding of the portfolio company, or the publicly-quoted stock price at the end of the financial reporting period for warrants for comparable publicly-quoted securities.

Volatility, or the amount of uncertainty or risk about the size of the changes in the warrant price, is based on an

index of publicly traded companies grouped by industry and which are similar in nature to the underlying client companies issuing the warrant (“Industry Index”). The volatility assumption for each Industry Index is based on the average volatility for individual public companies within the client company's industry for a period of time approximating the expected life of the warrants. For the year ended December 31, 2013, the Fund used the volatility rates ranging from 36% to 77%. A hypothetical increase in the estimated initial term of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

The remaining expected lives of warrants are based on historical experience of the average life of the warrants, as

warrants are often exercised in the event of acquisitions, mergers, or initial public offerings, and terminated due to events such as bankruptcies, restructuring activities, or additional financings. These events cause the expected term to be less than the remaining contractual term of the warrants. The remaining expected lives of warrants may be adjusted from time to time to reflect new facts and circumstances. For the year ended December 31, 2013, the Fund assumed the average duration of a warrant is 3 years. The effect of a hypothetical increase in the estimated initial term of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

The risk-free interest rate is derived from the constant maturity tables issued by the U.S. Treasury Department. During the year ended December 31, 2013, the Fund used a monthly risk-free rate ranging from 0.31% to 0.66%. The effect of a hypothetical increase in the estimated risk-free rate used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

On an annual basis, the Fund engages an independent valuation company to provide valuation assistance. This company evaluates the Fund's valuation methodology and assumptions of reasonableness. The independent third party also calculates several of the inputs used such as volatility and risk-free rate. Upon the receipt of such data, a sample test is performed to ensure the accuracy of the third party calculations and that the source of data is reliable and consistent with the way in which the calculations were made in prior periods. Such inputs are entered into the database with a second review to ensure the accuracy of the input information. All calculations of warrant values are performed by one employee and reviewed by a second party. The inputs of the modified Black-Scholes option pricing model are reevaluated every quarter.

Other Assets and Liabilities

As of December 31, 2013 and 2012, the fair values of Other Assets and Liabilities are estimated at their carrying values because of their short-term nature.

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 forfeited commitment fee less any applicable legal costs becomes recognized as other income after the commitment expires.

Credit Risks

Most of the companies with which the Fund enters into financing transactions have not achieved profitability, experience substantial fluctuations in their operating results or, in some cases, do not have significant operating revenues. The ability of these companies to meet their obligations to the Fund, therefore, depends to a significant extent on the willingness of a borrower's equity venture capital investors or outside investors to provide additional equity financing, which in turn depends on the borrower's success in meeting its business plan, the market climate for venture capital investments generally and many other factors. The companies to which the Fund provides financing frequently engage in the development of new products or technologies, and the success of these efforts, or the ability of the companies to successfully manufacture or market products or technologies developed, cannot be assured. These companies frequently face intense competition, including competition from companies with greater resources, and may face risks of product or technological obsolescence, non-acceptance in the market, or rapidly changing regulatory environments, any of which could adversely affect their prospects. The success of such companies often depends on the management talents and efforts of one person or small group of persons whose death, disability or resignation would adversely affect the company.

Emerging Company Risks

The possibility that the companies in which the Fund invests will not be able to commercialize their technology or product concept presents significant risk to the Fund. Additionally, although some of such companies may already have a commercially successful product or product line at the time of investment, technology products and services often have a more limited market or life span than products in other industries. Thus, the ultimate success of these companies may depend on their ability to continually innovate in increasingly competitive markets. Most of the companies in which the Fund invests will require substantial additional equity financing to satisfy their continuing growth and working capital requirements. Each round of venture financing is typically intended to provide a company with enough capital to reach the next stage of development. The circumstances or market conditions under which such companies will seek additional capital is unpredictable. It is possible that one or more of such companies will not be able to raise additional financing or may be able to do so only at a price or on terms which are unfavorable.

Challenges in Financial Markets

The ability of the Fund to provide an acceptable return may be adversely affected by economic factors to which the marketplace is subject. Volatility in the global financial markets reached unprecedented levels during the year ended 2008 and 2009, and these conditions may return. The Fund's estimates of fair value are based on the best information available to the Manager as of the date of valuation. Restrictions on the availability of financing as well as the current economic environment have resulted in a low volume of purchase and sale transactions, limiting the number of observable inputs available to Management in making their estimates of fair value. This market turmoil could have a material adverse effect on the Fund's business and operations.

Tax Status

The Fund has elected to be treated as a Regulated Investment Company ("RIC") under Subchapter M of the Internal

Revenue Code (the "Code") and operates in a manner so as to qualify for the tax treatment applicable to RICs.

In order to qualify for favorable tax treatment as a RIC, the Fund is required to distribute annually to its shareholder at least 90% of its investment company taxable income, as defined by the Code. To avoid federal excise taxes, the Fund must distribute annually at least 98% of our ordinary income and 98.2% of net capital gains from the current year and any undistributed ordinary income and net capital gains from the preceding years. The Fund, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If the Fund chooses to do so, all other things being equal, this would increase expenses and reduce the amount available to be distributed to its shareholder. The Fund will accrue excise tax on estimated undistributed taxable income as required.

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"). These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Temporary and permanent differences are primarily attributable to differences in the tax treatment of certain loans and the tax characterization of income and non-deductible expenses. These differences are generally determined in conjunction with the preparation of the Fund's annual RIC tax return.

Book and tax basis differences relating to shareholder dividends and distributions and other permanent book and tax differences are reclassified among the Fund's capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP.

The Fund may pay distributions in excess of its taxable net investment income. This excess would be a tax-free return of capital in the period and reduce the shareholder's tax basis in its shares. The cumulative amount is disclosed on the Statements of Assets and Liabilities as return of capital distributions. Cumulative return of capital distributions were $167.3 million and $144.9 million as of December 31, 2013 and 2012, respectively. As of December 31, 2013, the Fund had no uncertain tax positions.

The Fund's tax years open to examination by major jurisdictions are 2010 and forward.

3. SUMMARY OF INVESTMENTS

Loans generally are made to borrowers pursuant to commitments whereby the Fund agrees to finance assets and/or provide working or growth capital up to a specified amount for the term of the commitment, upon the terms and subject to the conditions specified by such commitment. As of December 31, 2013, the Fund's investments in loans were primarily to companies based within the United States and were 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).

The Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale.

Loan balances are summarized by borrower. Typically a borrower's balance will be composed of several loans drawn under a commitment made by the Fund with the interest rate on each loan fixed at the time each loan is funded. Each loan drawn under a commitment has a different maturity date and amount. For the years ended December 31, 2013 and 2012, the weighted-average interest rate on performing loans was 19.27% and 17.36%, respectively. These rates were inclusive of both cash and non-cash interest income. For the years ended December 31, 2013 and 2012, the weighted-average interest rate on the cash portion of the interest income was 14.45% and 13.65%, respectively. Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs volatility of values ascribed to warrants, and loans funded during the year.

profile is consistent with the original underwriting, which is primarily the case for this loan portfolio, the par value of the loan approximates fair value.

The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and loan as discussed in the Fund’s loan accounting policy. Such changes result in the fair value being adjusted from par value of the individual loan. Where the risk profile is consistent with the original underwriting, which is primarily the case for this loan portfolio, the par value of the loan approximates fair value.

Loans as of December 31, 2013 were to non-affiliates and consisted of the following:



	Percentage of	Estimated Fair		Par Value		Final
Borrower	Net Assets	Value 12/31/13		12/31/13		Maturity Date
Biotechnology
Stem CentRx, Inc.		$	18,433	$	18,433	1/1/2014
Subtotal:	0.1%	$	18,433	$	18,433

Computers & Storage
D-Wave Systems, Inc.		$	44,621	$	44,621	1/1/2014
Subtotal:	0.2%	$	44,621	$	44,621

Internet
CloudTalk, Inc.		$	5,001	$	124,009	*
LOLapps, Inc.		18,961		18,961		1/1/2014
MeetMe, Inc.		240,653		240,653		9/1/2014
Mojo Motors, Inc.		45,389		45,389		6/1/2014
Quantcast Corp.		212,751		212,751		4/1/2014
Radius Intelligence, Inc.		1,143		1,143		3/1/2014
Rivet Games, Inc.		226,275		293,275		*
Subtotal:	3.3%	$	750,173	$	936,181

Medical Devices
ConforMIS, Inc.		$	950,224	$	950,224	5/1/2014
CyberHeart, Inc.		282,114		562,114		*
Xlumena, Inc.		153,758		153,758		5/1/2014
Subtotal:	6.2%	$	1,386,096	$	1,666,096

Other Technology
Solaria Corp.		$	580,037	$	1,060,037	*
ZeaChem, Inc.		232,936		902,936		*
Subtotal:	3.6%	$	812,973	$	1,962,973

Software
AcousticEye, Ltd.		$	287,569	$	287,569	12/1/2015
Athena Design Systems, Inc.		12,300		12,300		*
ClearPath, Inc.		287,797		287,797		11/1/2014
Corduro, Inc.		65,238		155,238		*
Future Point Systems, Inc.		45,267		91,267		*
gloStream, Inc.		1,256,866		1,256,866		6/1/2016
Image Vision Labs, Inc.		67,450		67,450		6/1/2014
Intalio, Inc.		582,873		582,873		6/1/2015
Verix, Inc.		554,528		1,104,528		*



XOS Technologies, Inc.		990,373		1,100,373		*
Subtotal:	18.5%	$	4,150,261	$	4,946,261

Technology Services
DigitalPath, Inc.		$	128,113	$	128,113	10/1/2014
Subtotal:	0.6%	$	128,113	$	128,113

Wireless
GPShopper, LLC		$	22,250	$	22,250	2/1/2014
Nextivity, Inc.		1,708,472		1,898,472		*
Silent Communication, Ltd.		240,771		505,771		*
Subtotal:	8.7%	$	1,971,493	$	2,426,493

Total (Cost of $12,129,171):	41.2%	$	9,262,163	$	12,129,171

*As of December 31, 2013, loans with a cost basis of $7.8 million and fair value of $4.9 million have been classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

Loans as of December 31, 2012 were to non-affiliates and consisted of the following:



	Percentage of	Estimated Fair		Par Value		Final
Borrower	Net Assets	Value 12/31/12		12/31/2012		Maturity Date
Biotechnology
Stem CentRx, Inc.		$	396,153	$	396,153	1/1/2014
Subtotal:	0.9%	$	396,153	$	396,153

Computers & Storage
D-Wave Systems, Inc.		$	395,930	$	395,930	1/1/2014
Subtotal:	0.9%	$	395,930	$	395,930

Internet
Akademos, Inc.		$	311,300	$	311,300	12/1/2013
Blekko, Inc.		227,869		227,869		2/1/2013
CloudTalk, Inc.		4,882		128,753		*
Genius.com, Inc.		77,586		77,586		8/1/2013
Insider Guides, Inc.		1,426,487		1,426,487		9/1/2014
LOLapps, Inc.		423,796		423,796		1/1/2014
Mojo Motors, Inc.		171,364		171,364		6/1/2014
Philotic, Inc.		44,453		44,453		8/1/2013
Quantcast Corp.		1,546,171		1,546,171		4/1/2014
Queryable Corp.		190,707		190,707		4/1/2014
Radius Intelligence, Inc.		14,062		14,062		3/1/2014
Rivet Games, Inc.		398,500		998,500		*
Rocket Fuel, Inc.		112,839		112,839		3/1/2013
Sittercity, Inc.		1,062,435		1,062,435		2/1/2014
Topsy Labs, Inc.		1,169,135		1,169,135		5/1/2015
WeddingWire, Inc.		404,507		404,507		2/1/2014



Worktopia, Inc.		10,000		15,000		*
Youku.com, Inc.		596,782		596,782		7/1/2013
Subtotal:	18.3%	$	8,192,875	$	8,921,746

Medical Devices
ConforMIS, Inc.		$	2,964,771	$	2,964,771	5/1/2014
CyberHeart, Inc.		282,114		562,114		*
iBalance Medical, Inc.		94,417		94,417		*
Oculus Innovative Sciences, Inc.		962,931		962,931		11/1/2013
Spinal Kinetics, Inc.		453,933		453,933		10/1/2013
Suneva Medical, Inc.		399,202		399,202		6/1/2013
Xlumena, Inc.		596,038		596,038		5/1/2014
Subtotal:	12.9%	$	5,753,406	$	6,033,406


Other Healthcare
Pathway Genomics Corp.		$	104,860	$	104,860	7/1/2013
Subtotal:	0.2%	$	104,860	$	104,860

Other Technology
Ampulse Corp.		$	239,362	$	979,362	*
Daylight Solutions, Inc.		146,894		146,894		8/1/2013
EcoSMART Technologies, Inc.		864,821		864,821		10/1/2013
Lehigh Technologies, Inc.		2,204,908		2,204,908		2/1/2015
PlantSense, Inc.		94,534		183,044		*
Solaria Corp.		2,141,003		2,141,003		9/1/2014
Svaya Nanotechnologies, Inc.		176,376		176,376		6/1/2014
The Climate Corp.		792,165		792,165		4/1/2013
ZeaChem, Inc.		1,273,088		1,273,088		7/1/2013
Subtotal:	17.7%	$	7,933,151	$	8,761,661

Security
TrustedID, Inc.		$	221,937	$	233,937	*
Subtotal:	0.5%	$	221,937	$	233,937

Software
AcousticEye, Ltd.		$	608,301	$	608,301	9/1/2015
Athena Design Systems, Inc.		16,400		16,400		*
ClearPath, Inc.		789,980		789,980		11/1/2014
Corduro, Inc.		168,707		258,707		*
D Software, Inc.		12,387		12,387		1/1/2013
Future Point Systems, Inc.		98,948		98,948		*
gloStream, Inc.		1,239,502		1,239,502		4/1/2015
Image Vision Labs, Inc.		212,671		212,671		6/1/2014
Intalio, Inc.		705,242		705,242		6/1/2015
Kareo, Inc.		169,775		169,775		2/1/2014
KIT Digital, Inc.		1,701,982		1,891,982		*
Lending Stream, Ltd.		6,476,266		6,476,266		12/1/2014
Palantir Technologies, Inc.		889,686		889,686		6/1/2013
SoundHound, Inc.		356,955		356,955		9/1/2013
Validare, Inc.		—		92,053		*
Verix, Inc.		828,028		1,108,028		*
XOS Technologies, Inc.		1,531,914		1,531,914		10/1/2014



Subtotal:	35.3%	$	15,806,744	$	16,458,797

Technology Services
DigitalPath, Inc.		$	625,926	$	625,926	10/1/2014
Subtotal:	1.4%	$	625,926	$	625,926

Wireless
GPShopper, LLC		$	118,402	$	118,402	2/1/2014
July Systems, Inc.		210,553		210,553		9/1/2013
Nextivity, Inc.		1,708,472		1,898,472		*
Silent Communication, Ltd.		258,522		523,522		*
Venturi Wireless, Inc.		302,526		335,526		*
Subtotal:	5.8%	$	2,598,475	$	3,086,475

Total (Cost of $45,018,891):	93.9%	$	42,029,457	$	45,018,891

*As of December 31, 2012, loans with a cost basis of $9.4 million and fair value of $6.4 million have been classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no interest income has been recognized.

The Fund provides asset-based financing primarily to start-up and emerging growth venture-capital-backed companies. These loans are generally secured by assets of the borrowers. As a result, the Fund is subject to general credit risk associated with such companies. As of December 31, 2013 and 2012, the Fund had no unexpired unfunded commitments to borrowers.

Valuation Hierarchy

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.

Transfers of investments between levels of the fair value hierarchy are recorded on the actual date of the event or change in circumstances that caused the transfer. There were no transfers in and out of Level 1, 2, and 3 during the year ended December 31, 2013.

The Fund's cash equivalents were valued at the traded net asset value of the money market fund. As a result, these measurements are classified as Level 1. The Fund uses estimated exit values when determining the value of its investments. Because loan transactions are individually negotiated and unique, and there is no market in which these assets trade, the inputs for these assets, which are discussed in the Valuation Methods listed above, are classified as Level 3.

The following table provides quantitative information about the Fund's Level 3 fair value measurements of the Fund's investments as of December 31, 2013. In addition to the techniques and inputs noted in the table below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements. The below table is not intended to be all-inclusive, but rather provides

information on the significant Level 3 inputs as they relate to the Fund's fair value measurements.



Investment Type - Level 3	Fair Value at	Valuation Techniques/		Weighted Average/
Debt Investments	December 31, 2013	Methodologies	Unobservable Input	Range
Internet	$750,173	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	13%
		Liquidation	Investment Collateral	$5,001 - $226,275
Medical Devices	$1,386,096	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	17%
		Liquidation	Investment Collateral	$282,114
Software	$4,150,261	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	16%
		Liquidation	Investment Collateral	$12,300 - $990,373
Wireless	$1,971,493	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	21%
		Liquidation	Investment Collateral	$240,771 - $1,708,472
Other*	$1,004,140	Hypothetical Market Analysis	Hypothetical Market Coupon Rate	15%
		Liquidation	Investment Collateral	$ 232,936 - $580,037
	$9,262,163

* As of December 31, 2013, other loans were comprised of companies in the Biotechnology, Computers & Storage, Other Technology, and Technology Services industries.

The following table presents the balances of assets as of December 31, 2013 and 2012, measured at fair value on a recurring basis:



As of December 31, 2013	Level 1		Level 3		Total
ASSETS:
Loans to borrowers*	$	—	$	9,262,163	$	9,262,163
Cash equivalents	13,305,445		—		13,305,445
Total assets	$	13,305,445	$	9,262,163	$	22,567,608

As of December 31, 2012	Level 1		Level 3		Total
ASSETS:
Loans to borrowers*	$	—	$	42,029,457	$	42,029,457
Cash equivalents	2,490,774		—		2,490,774
Total assets	$	2,490,774	$	42,029,457	$	44,520,231

*For a detailed listing of borrowers comprising this amount please refer to Note 3, Summary of Investments.

The following table provides a summary of changes in Level 3 assets measured at fair value on a recurring basis:



	For the Year Ended
	December 31, 2013
	Loans			Warrants			Stocks
Beginning balance	$	42,029,457		$	—		$	—
Acquisitions and originations	—			125,142			507,773
Principal reductions	(31,253,510		)	—			—
Distribution to shareholder	—			(125,142		)	(507,773		)
Net change in unrealized gain from investments	122,425			—			—
Net realized loss from investments	(1,636,209		)	—			—
Ending balance	$	9,262,163		$	—		$	—

Net change in unrealized loss on investments relating to investments still held at December 31, 2013	$	(1,038,138	)



	For the Year Ended
	December 31, 2012
	Loans			Other investments			Warrants
Beginning balance	$	105,250,110		$	29,513		$	—
Acquisitions and originations	531,197			—			535,629
Additional investments	—			6,542			—
Principal reductions	(62,139,822		)	(381,999		)	—
Distribution to shareholder	—			—			(535,629		)
Net change in unrealized loss from investments	2,187,841			735,000			—
Net realized loss from investments	(3,799,869		)	(389,056		)	—
Ending balance	$	42,029,457		$	—		$	—

Net change in unrealized loss on investments relating to investments still held at December 31, 2012	$	(1,270,076	)

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 increase in net assets resulting from operation by the weighted average common shares outstanding, including the dilutive effects of potential common shares (e.g., stock options). The Fund held no instruments that would be potential common shares; thus, reported basic and diluted earnings per share are the same.

5. CAPITAL STOCK

As of December 31, 2013 and 2012, 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 $270.0 million. Total contributed capital to the Company through December 31, 2013 and 2012 was $202.5 million, of which $193.5 million was contributed to the Fund.

For the years ended December 31, 2013, 2012 and 2011, distributions of $23.6 million, $77.5 million, and $71.2 million, respectively, were made to the Fund's shareholder, and were comprised of the following:



	2013	2012	2011
Cash distributions	$23,000,000	$77,000,000	$66,800,000
Distributions of equity securities	632,915	535,629	4,374,629

Total distributions to shareholder	$23,632,915	$77,535,629	$71,174,629

6. MANAGEMENT AND RELATED PARTIES

Management

As compensation for its services to the Fund, the Manager receives a management fee (“Management Fee”) computed and paid at the end of each quarter at an annual rate of 2.5 percent of the Company's committed equity capital (regardless of when or if the capital is called) as of the last day of each fiscal quarter in a two-year period commencing with the first capital closing, which took place on February 21, 2007. Following this two-year period, Management Fees are calculated and paid at the end of each quarter at an annual rate equal to 2.5% of the total value of the assets of the Fund (including amounts derived from borrowed funds), as of the last day of each such fiscal quarter. Management fees of $0.7 million, $1.8 million and $3.6 million were recognized as expenses for the years ended December 31, 2013, 2012 and 2011, respectively.

Related Parties

Certain officers and directors of the Company also serve as officers and directors of the Manager. The Articles of Incorporation of the Fund provide for indemnification of directors, officers, employees, and agents (including the Manager) of the Fund to the full extent permitted by applicable state law and the 1940 Act, including the advance of expenses and reasonable counsel fees. The Articles of Incorporation of the Fund also contain a provision eliminating personal liability of a Fund director or officer to the Fund or its shareholder for monetary damages for certain breaches of their duty of care. For this reason, the Fund has acquired the Directors & Officers policy.

Transactions with Venture Lending & Leasing VI, Inc. (“Fund VI”)

The Manager also serves as investment manager for Fund VI. Initially the amount of each investment had been allocated 50% to the Fund and 50% to Fund VI so long as the Fund had capital available to invest. After February 2011, the Fund was no longer permitted to enter into new commitments to borrowers; however, the Fund is permitted to fund existing commitments. While investing the Fund's capital in the same companies in which Fund VI is also investing could provide the Fund with greater diversification and access to larger transactions, it could also result in a slower pace of investment than would be the case if the Fund were investing in companies by itself.

Intercreditor Agreements

In transactions in which both the Fund and Fund VI, or other Funds managed by the Manager, invest, it is expected that the applicable Funds will enter into an intercreditor agreement pursuant to which the parties will cooperate in pursuing their remedies following a default by the common borrower. Generally, under such intercreditor agreements, each party agrees that its security interest would be treated in parity with the security interest of the other party, regardless of which security interest would have priority under applicable law. Accordingly, proceeds realized from the sale of any collateral or the exercise of any other creditor's rights will be allocated between the parties pro rata in accordance with the amounts of their respective investments. An exception to the foregoing arrangement would occur in situations where, for example, one of the lenders financed specific items of equipment collateral; in that case, usually the lender who financed the specific assets will have a senior lien on that asset, and the other lender will have a junior priority lien (even though they may ratably share liens of equal priority on other assets of the common borrower). As a result of such intercreditor agreements, the Fund may have less flexibility in pursuing its remedies following a default than it would have had there been no intercreditor agreement, and the Fund may realize fewer proceeds. In addition, because the Fund and Fund VI or other Funds, as applicable, invest at the same time in the same borrower, such borrower would be required to service two loans rather than one. Any additional administrative costs or burdens resulting there from may make the Fund a less attractive lender, and may make it more difficult for the Fund to acquire such loans.

7. 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 years ended December 31, 2013, 2012, and 2011. 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 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 net 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 Year Ended		For the Year Ended		For the Year Ended
	December 31, 2013		December 31, 2012		December 31, 2011

Total return	4.97	%	11.90	%	15.05	%

Per share amounts:
Net asset value, beginning of year	$447.45		$1,135.20		$1,637.21
Net investment income	28.83		100.26		203.73
Net change in unrealized and realized gain (loss) from investments	(15.14	)	(12.66	)	6.01
Net increase in net assets from operations	13.69		87.60		209.74
Distributions of income to shareholder	(12.47	)	(58.37	)	(166.47	)
Return of capital to shareholder	(223.87	)	(716.98	)	(545.28	)


Net asset value, end of year	$224.80		$447.45		$1,135.20

Net assets, end of year	$22,480,474		$44,744,587		$113,519,812

Ratios to average net assets:

Expenses	3.75	%	2.82	%	2.75	%
Net investment income	9.64	%	13.09	%	13.91	%

8. SUBSEQUENT EVENTS

The Fund evaluated subsequent events through the date the financial statements were issued and determined that no additional subsequent events had occurred that would require accrual or disclosure in the financial statements.

Venture Lending & Leasing V, Inc. 10-K