GSV Capital Corp. Reports Second Quarter 2017 Financial Results

August 8, 2017

Net Asset Value of $9.11 per Share as of June 30, 2017

Board of Directors Approves $5.0 Million Share Repurchase Program

WOODSIDE, Calif., Aug. 08, 2017 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (Nasdaq:GSVC) today announced financial results for the quarter ended June 30, 2017. Net assets totaled approximately $202.1 million, or $9.11 per share, at June 30, 2017, as compared to $8.83 per share at March 31, 2017 and $8.66 per share at December 31, 2016.

"We are pleased with the progress GSV Capital has made in the second quarter, as the overall portfolio continues to perform well, and concentrate on meaningful positions in leading private companies such as Palantir, Spotify, Dropbox, Coursera, and Lyft," said Michael Moe, Executive Chairman of GSV Capital.

"We are optimistic that a more robust IPO market and continued M&A activity will be a positive catalyst for our portfolio, but we remain determined to take proactive steps to maximize shareholder value," Moe continued. "To this end, we are assertively monetizing positions as opportunities arise, and our Board of Directors approved a $5.0 million discretionary share repurchase program. Additionally, we are pleased to announce that GSV Capital's lead director, Mark Klein, will transition to the role of CEO, effective August 11, 2017, where he will focus on enhancing shareholder value and the operations of the fund. Moving forward, I will continue to serve as Executive Chairman of GSV Capital's Board of Directors and will focus on investment strategy."

Investment Portfolio as of June 30, 2017

At June 30, 2017, GSV Capital held positions in 38 portfolio companies with an aggregate fair value of approximately $282.8 million. Excluding treasuries, the Company's top ten portfolio company investments accounted for 62.6% of the total portfolio at fair value.

Top Ten Investments at June 30, 2017

                               $ in millions (rounded) Fair Value % of Total
Portfolio
 
 Palantir Technologies, Inc. $37.0 13.1%
 Spotify Technology S.A.  27.0 9.6 
 JAMF Holdings, Inc.  20.6 7.3 
 Coursera, Inc.  18.4 6.5 
 Dropbox, Inc.  14.9 5.3 
 Chegg, Inc.  14.5 5.1 
 General Assembly Space, Inc.      13.0 4.6 
 Course Hero, Inc.  10.5 3.7 
 Lytro, Inc.  10.5 3.7 
 Ozy Media, Inc.  10.5 3.7 
 Total (rounded) $176.9 62.6%

Of the five key investment themes GSV Capital has identified in its portfolio as of June 30, 2017, Education Technology is its largest commitment, accounting for 36.7% of the total portfolio (excluding treasuries) at fair value. Cloud Computing and Big Data represents 32.7% of the total portfolio (excluding treasuries) at fair value, and Social Mobile, Marketplaces, and Sustainability represent 18.8%, 11.2% and 0.6% of the total portfolio (excluding treasuries) at fair value, respectively.

Second Quarter 2017 Portfolio Investment Activity

During the six months ended June 30, 2017, GSV Capital did not purchase or sell any investments.

Subsequent to quarter-end, through August 8, 2017, GSV Capital sold shares in the following portfolio company:

     Average      
   Shares Net Share Net Realized  
Portfolio Company  Sold Price 1 Proceeds Gains IRR
            
Chegg, Inc.  400,600 $14.33 $5,739,896 $990,491 3.2%

__________

(1)The average net share price is the net share price realized after deducting all commissions and fees on the sale(s).


Second Quarter 2017 Financial Results

              Quarter Ended
June 30, 2017
Quarter Ended
June 30, 2016
 $ in millions
(rounded)
 

per share
 $ in millions
(rounded)
 

per share
  

Net investment loss
$(5.9)$(0.27)$(1.5)$(0.07)
      
 Net realized gains/(losses)$(0.7)$(0.03)$1.1 $0.05 
      
      
 Net change in unrealized appreciation/(depreciation) of investments$12.8 $0.58 $(15.9)$(0.72)
      
      
 Net increase/(decrease) in net assets resulting from operations - basic$6.2 $0.28 $(16.3)$(0.74)
      

Weighted-average common basic shares outstanding were approximately 22.2 million for each of the quarters ended June 30, 2017 and 2016.

GSV Capital's liquid assets were $21.7 million as of June 30, 2017, consisting of $2.6 million of cash, $14.5 million of public securities not subject to lock-up agreements, and $4.6 million of public securities subject to a lock-up agreement, which lock-up period subsequently expired on July 31, 2017.

At quarter-end, GSV Capital had $8.0 million of borrowings outstanding and $4.0 million of borrowing capacity available under its $12.0 million credit facility.  As of August 8, 2017, GSV Capital has no borrowings outstanding and $12.0 million of borrowing capacity available to it under its credit facility.

Recent Developments

On August 8, 2017, GSV Capital announced Michael Moe's resignation as its Chief Executive Officer, effective August 11, 2017.  Mr. Moe will continue to serve as Chairman of GSV Capital's Board of Directors.  GSV Capital's Board of Directors has appointed Mark Klein, a member of GSV Capital's Board of Directors and a consultant to its adviser, GSV Asset Management, LLC, to serve as Chief Executive Officer, effective August 11, 2017.

Given the material discount between the share price and net asset value per share, on August 7, 2017, GSV Capital's Board of Directors authorized a new discretionary share repurchase program of shares of GSV Capital common stock of up to $5.0 million over 12 months, until the earlier of (i) August 6, 2018 or (ii) the repurchase of $5.0 million in aggregate amount of GSV Capital common stock. Under the discretionary repurchase program, the Company may, but is not obligated to, repurchase its outstanding common stock from time to time in the open market provided that the Company complies with the prohibitions under its insider trading policies and procedures and the applicable provisions of the Investment Company Act of 1940, as amended (the "1940 Act"), and the Securities Exchange Act of 1934, as amended.

The timing and number of shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. In addition, any repurchases will be conducted in accordance with the 1940 Act. The Company has not yet been active in the current repurchase program and there are no assurances that it will engage in repurchases, but if market conditions warrant, the Company now has the ability to take advantage of situations where the Company's management believes share repurchases would be advantageous to the Company and to its stockholders.

Conference Call and Webcast

Management will hold a conference call and webcast for investors today at 2:00 p.m. PT (5:00 p.m. ET). The conference call access number for U.S. participants is 888-395-3239, and the conference call access number for participants outside the U.S. is 719-457-2617. The conference ID number for both access numbers is 2952199. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of GSV Capital's website at http://investors.gsvcap.com/. An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on August 15, 2017 by dialing 866-375-1919 (U.S.) or 1 719-457-0820 (International) and using conference ID number 2952199.

About GSV Capital Corp.                                                                                              

GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Founded by industry veteran Michael Moe, the Company seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA. www.gsvcap.com

Follow GSV Capital on Twitter: @gsvcap

Forward-Looking Statements

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of our future performance, condition or results of operations and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein, unless required to do so by law.


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
    
 June 30, 2017 December 31, 2016 
ASSETS    
Investments at fair value:     
Investments in controlled securities (cost of $22,982,044 and $22,893,441, respectively) (1)$ 19,855,423  $ 19,037,566 
Investments in affiliated securities (cost of $49,197,923 and $51,773,388, respectively) (1)  39,608,382    42,444,690 
Investments in non-controlled/non-affiliated securities (cost of $181,314,446 and $204,101,445, respectively)  223,304,013    200,532,890 
Investments in treasury bill (cost of $99,988,000 and $29,998,750, respectively)  99,994,000    29,998,490 
Total Investments (cost of $353,482,413 and $308,767,024, respectively) 382,761,818   292,013,636 
      
Cash 2,602,570   8,332,634 
Interest and dividends receivable  337,100    92,946 
Prepaid expenses and other assets  72,556   213,942 
Deferred financing costs 446,018    311,268 
Total Assets 386,220,062   300,964,426 
      
LIABILITIES     
Due to:     
GSV Asset Management (1) 347,807   422,025 
Accounts payable and accrued expenses 243,058    335,611 
Accrued incentive fees (1)  6,274,577   2,126,444 
Accrued management fees (1)  396,428    524,054 
Accrued interest payable  1,061,729    1,056,563 
Payable for securities purchased  89,483,890    26,498,750 
Deferred tax liability  10,359,371    10,359,371 
Credit facility payable  8,000,000   - 
Convertible Senior Notes Payable 5.25% due September 15, 2018 (2) 67,943,431   67,512,798 
Total Liabilities 184,110,291   108,835,616 
      
Commitments and contingencies (Notes 6 and 9)     
      
Net Assets$202,109,771  $192,128,810 
      
NET ASSETS     
Common stock, par value $0.01 per share     
(100,000,000 authorized; 22,181,003 and 22,181,003 issued and outstanding, respectively)$ 221,810  $ 221,810 
Paid-in capital in excess of par  221,237,636    221,237,636 
Accumulated net investment loss (12,135,169)   (1,443,996)
Accumulated net realized losses on investments  (26,134,541)   (773,882)
Accumulated net unrealized appreciation/(depreciation) of investments  18,920,035    (27,112,758)
Net Assets$202,109,771  $192,128,810 
      
Net Asset Value Per Share$9.11  $8.66 
      

(1)   This balance is a related-party transaction.
(2)   The Convertible Senior Notes have a face value of $69,000,000.


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
        
   Three Months Ended June 30,  Six Months Ended June 30, 
   2017   2016   2017   2016  
INVESTMENT INCOME             
Interest income from controlled securities (1) $ 67,368  $ 15,528  $ 126,777  $ 20,417  
Interest income / (reversal of interest accrual) from affiliated securities (1) (3)   96,695     (73,894)   192,372     18,584  
Interest income from non-controlled/non-affiliated securities   8,434   4,247    16,807   9,532  
Dividend income from controlled securities (1)   125,000   -    300,000   -  
Other income from non-controlled/non-affiliated securities  73,096   -   73,096   -  
Total Investment Income  370,593     (54,119)  709,052   48,533  
              
OPERATING EXPENSES             
Management fees (1)  1,359,180    1,740,223   2,813,600    3,698,223  
Incentive fees/(Reversal of incentive fee accrual) (1)   2,430,825    (2,907,224)   4,148,133    (8,025,808) 
Costs incurred under administration agreement (1)   449,110     698,692     980,594     1,298,642   
Directors' fees   73,063    86,250    155,980    172,500  
Professional fees   702,808     388,375     964,998     1,025,503   
Interest expense   1,155,060    1,184,326    2,281,833    2,367,489  
Tax expense   45,690   -    46,490   -  
Other expenses   207,716    207,280    360,297    417,018  
Total Operating Expenses  6,423,452     1,397,922    11,751,925     953,567   
Management Fee Waiver  (169,898)  -   (351,700)  -  
Total operating expenses,             
net of waiver of management fees  6,253,554     1,397,922    11,400,225     953,567   
Net Investment Loss  (5,882,961)   (1,452,041)  (10,691,173)  (905,034) 
              
Net Realized Gains/(Losses):               
From affiliated securities   (675,495)  -    (2,578,909)  -  
From non-controlled/non-affiliated securities    4,003    1,104,361    (22,781,750)  (4,970,709) 
Net Realized Gains/(Losses) on investments   (671,492)  1,104,361    (25,360,659)  (4,970,709) 
              
Net Change in Unrealized Appreciation/             
 (Depreciation) on investments:             
From controlled securities   (963,393)   60,073    729,254    (206,655) 
From affiliated securities   (1,687,511)   (5,219,631)   (260,843)    (6,367,818) 
                  
From non-controlled/non-affiliated securities   15,403,432    (10,774,328)   45,564,382    (28,780,414) 
              
Total Change in Unrealized Appreciation/ (Depreciation) on investments  12,752,528    (15,933,886)  46,032,793    (35,354,887) 
              
              
Net Increase/(Decrease) in Net Assets Resulting from Operations $6,198,075  $ (16,281,566) $9,980,961  $(41,230,630 ) 
              
Net Increase/(Decrease) in Net Assets Resulting             
from Operations per Common Share             
Basic $0.28  $(0.74) $0.45  $(1.86) 
Diluted (2) $0.26  $(0.74) $0.44  $(1.86) 
              
Weighted-Average Common Shares Outstanding              
Basic  22,181,003   22,181,003   22,181,003   22,181,003  
Diluted (2)  27,932,818   22,181,003   27,932,818   22,181,003  

(1)   This balance is a related-party transaction.

(2)  For the three months ended June 30, 2016, 5,710,212 potentially dilutive common shares, respectively, were excluded from the weighted-average common shares outstanding for diluted net increase/(decrease) in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.

(3)   Interest income for each of the three and six months ended June 30, 2016 reflects the reversal of previously accrued interest from loans to Fullbridge, Inc.


GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited)
       
  Three months ended  Three months ended 
  June 30, 2017  June 30, 2016 
Per Basic Share Data:      
Net asset value at beginning of period$ 8.83 (1)$ 10.96 (1)
Net investment loss  (0.27)(1)  (0.07)(1)
Realized gain/(loss)  (0.03)(1)  0.05 (1)
Change in unrealized appreciation/(depreciation) 0.57 (1) (0.72)(1)
Net asset value at end of period $9.11 (1)$10.22 (1)
       
Per share market value at end of period$4.34  $5.02  
Total return based on market value (3.13)%(2) (10.36)%(2)
Total return based on net asset value 3.17 %(2) (6.75)%(2)
Shares outstanding at end of period 22,181,003   22,181,003  
       
Ratios / Supplemental Data:      
Net assets at end of period$  202,109,771  $ 226,780,315  
Average net assets$ 196,335,041  $ 240,846,901  
       
Annualized Ratios      
Ratio of operating expenses to average net assets (3) 12.78 % 2.33 %
Ratio of operating expenses to average net assets (3)      
(excluding effect of management fee waiver) 13.12 % 2.33 %
Ratio of net investment loss to average net assets (3) (12.02)% (2.42)%
Portfolio Turnover Ratio 0.00 % 0.61 %
       
  Six months ended  Six months ended 
  June 30, 2017  June 30, 2016 
Per Basic Share Data:      
Net asset value at beginning of period$8.66 (1)$12.08 (1)
Net investment loss  (0.48)(1)  (0.04)(1)
Realized gain/(loss)  (1.14)(1)  (0.22)(1)
Change in unrealized appreciation/(depreciation) 2.08 (1)  (1.59)(1)
Net asset value at end of period$9.11 (1)$ 10.22 (1)
       
Per share market value at end of period$4.34  $5.02  
Total return based on market value (13.72)%(2) (24.05)%(2)
Total return based on net asset value 5.20 %(2) (15.31)%(2)
Shares outstanding at end of period 22,181,003   22,181,003  
       
Ratio / Supplemental Data:      
Net assets at end of period$  202,109,771  $ 226,780,315  
Average net assets$  193,899,415  $ 262,765,462  
       
Annualized ratios      
Ratio of operating expenses to average net assets (3) 11.86 % 0.73 %
Ratio of operating expenses to average net assets (3)      
(excluding effect of management fee waiver) 12.22 % 0.73 %
Ratio of net investment loss to average net assets (3) (11.12)% (0.69)%
Portfolio Turnover Ratio 0.00 % 2.12 %
       

(1) The per-share figures noted are based on a weighted average of 22,181,003 basic common shares outstanding for the three and six months ended June 30, 2017 and 2016.
(2) Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the period. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share.
(3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For each of the three and six months ended June 30, 2017 and 2016, the Company did not incur any non-recurring expenses. Because the ratios are calculated for the Company's common stock taken as a whole, an individual investor's ratios may vary from these ratios.

Contact

GSV Capital Corp.
(650) 235-4769
IR@gsvam.com