HSDC has adopted an indirect investment policy whereby the corporation invests in venture capital limited partnerships. The managers, or general partners, of these partnerships are private venture capitalists who pool the funds of a number of investors and make the portfolio investment decisions. In this manner, HSDC is able to leverage its public funds with those from the private sector and the federal government. Co-investors with HSDC include major venture capital firms from California, New York, and Singapore.

HSDC has committed $16 million to ten limited partnerships, which provide equity and/or debt financing to companies ranging from seed stage to later stage in their business development. It has also formed a diversified venture capital Fund of Funds.