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May 8, 2018
GSV Capital Corp. Reports First Quarter 2018 Financial Results

Net Asset Value of $9.99 per Share as of March 31, 2018

Board of Directors Approves Additional $5.0 Million for Share Repurchase Program

WOODSIDE, Calif., May 08, 2018 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (Nasdaq:GSVC) today announced financial results for the quarter ended March 31, 2018.  Net assets totaled approximately $210.5 million, or $9.99 per share, at March 31, 2018, as compared to $9.64 per share at December 31, 2017 and $8.83 per share at March 31, 2017.

"We are pleased to report a strong first quarter for GSV Capital driven by successful public listings from two of our top positions, Dropbox and Spotify," said Michael Moe, Executive Chairman of GSV Capital. "We are encouraged by the outlook for the portfolio, and at the same time, we have continued to execute key initiatives to systematically enhance shareholder value, including notable expense and fee reductions in the first quarter."

"We are also happy to announce today that the GSV Capital Board of Directors has authorized the expansion of our current share repurchase program by $5 million to an aggregate of $15 million," Moe continued. "To date, we have repurchased an aggregate of approximately $6.2 million in shares of GSV Capital common stock under the program, including $1.2 million in the first quarter of 2018."

Investment Portfolio as of March 31, 2018

At March 31, 2018, GSV Capital held positions in 29 portfolio companies with an aggregate fair value of approximately $212.3 million. As a result of the Company's continued strategy to increase the size of its investments in individual portfolio companies, GSV Capital's investment portfolio has consolidated around top positions. For example, the Company's top five portfolio company investments accounted for 58.5% of the total portfolio at fair value as of March 31, 2018, compared to 39.0% as of March 31, 2017.

Top Five Investments at March 31, 2018

     
$ in millions (rounded) Fair Value % of Total Portfolio
Palantir Technologies, Inc.$35.9 16.9%
Spotify Technology S.A. 31.1 14.6 
Dropbox, Inc. 24.1 11.3 
Coursera, Inc. 18.3 8.6 
NestGSV, Inc. (d/b/a GSV Labs, Inc.) 14.8 7.0 
Total (rounded)$124.2 58.5%
      

First Quarter 2018 Portfolio Investment Activity

During the first three months of 2018, GSV Capital made the following new investment:

       
Portfolio Company Investment Transaction Date Gross Payments
Ozy Media, Inc. Promissory Note 10% Due 2/12/2018 1/12/2018 $100,000
        

During the quarter ended March 31, 2018, GSV Capital sold investments in the following portfolio companies:

         
Portfolio Company Shares Sold Average
Net Share Price (1)
 Net Proceeds (in millions) Realized Gain/(Loss)
(in millions)
Chegg, Inc. (2) 500,000  $18.89 $9.4 $3.4  
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(3) N/A N/A $0.6 $0.0  
Avenues Global Holdings, LLC 10,014,270  $0.59 $5.9 $(4.2


(1)The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2)As of February 22, 2018, all remaining shares of Chegg, Inc. held by the Company had been sold.
(3)Represents repayment of the 12% Unsecured Promissory Note Due 1/15/2018

First Quarter 2018 Financial Results

   
 Quarter Ended
March 31, 2018
Quarter Ended
March 31, 2017
$ in millionsper share 
$ in millions
 
per share
     
Net investment gain/(loss)$0.0 $0.00 $(4.8)$(0.22)
     
Net realized loss on investments (0.8) (0.04) (24.7) (1.11)
     
Net change in unrealized appreciation of investments 8.1  0.38  33.3  1.50 
     
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018 (0.4) (0.02) -  - 
     
Net increase in net assets resulting from operations - basic$7.0 $0.32 $3.8 $0.17 
     
Dividends distributed -  -  -  - 
     
Repurchase of common stock(1) (1.2) 0.03  -  - 
     
Increase/(decrease) in net asset value$5.7 $0.35 $3.8 $0.17 


(1)During the quarter ended March 31, 2018, the Company repurchased 179,807 shares of GSV Capital common stock for approximately $1.2 million in cash. The use of cash in connection with the repurchases decreased net asset value as of period end; however, the reduction in shares outstanding as of period end resulted in an increase in the net asset value per share.

Weighted-average common basic shares outstanding were approximately 21.2 million and 22.2 million for the quarters ended March 31, 2018 and 2017, respectively.

GSV Capital's liquid assets were $114.4 million as of March 31, 2018, consisting of $90.3 million of cash and $24.1 million of marketable securities subject to sales restrictions.

At quarter-end and as of May 8, 2018 GSV Capital did not have any borrowings outstanding under its $12.0 million credit facility.

Convertible Senior Notes

On December 15, 2017, we announced the commencement of a cash tender offer (the "Tender Offer") to purchase any and all of the $69.0 million aggregate principal amount our outstanding 5.25% Convertible Senior Notes due September 15, 2018 (the "5.25% Convertible Senior Notes due 2018").  As of the expiration of the Tender Offer on January 17, 2018, approximately $4.8 million aggregate principal amount of the 5.25% Convertible Senior Notes due 2018 representing approximately 7.0% of the outstanding 5.25% Convertible Senior Notes due 2018, were validly tendered and not validly withdrawn pursuant to the Tender Offer. On March 27, 2018, we repurchased an additional $14.2 million aggregate principal amount of the outstanding 5.25% Convertible Senior Notes due 2018.

On March 28, 2018, we issued $40.0 million aggregate principal amount of 4.75% Convertible Senior Notes due September 30, 2023 (the "4.75% Convertible Senior Notes due 2023"). The 4.75% Convertible Senior Notes due 2023 are convertible into shares of our common stock based on an initial conversion rate of 93.2836 shares of our common stock per $1,000 of principal amount of the 4.75% Convertible Senior Notes due 2023, which is equivalent to a conversion price of approximately $10.72 per share of common stock.

Share Repurchase Program

Under the publicly announced share repurchase program, as of March 31, 2018 the Company had repurchased 1,114,465 shares of its common stock for approximately $6.2 million. From April 1, 2018 through May 8, 2018, the Company did not repurchase any additional shares of its common stock.

As of May 8, 2018, in light of the Board of Directors' authorization to increase the amount of shares of Company common stock that may be repurchased under the share repurchase program, the dollar value of shares that may yet be purchased by the Company under the program is approximately $8.8 million.

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 877-856-1956, and the conference call access number for participants outside the U.S. is 719-325-2428. The conference ID number for both access numbers is 9225552.  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 May 15, 2018 by dialing 866-375-1919 (U.S.) or 719-457-0820 (International) and using conference ID number 9225552.

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. Led by industry veteran Michael Moe and CEO Mark Klein, the fund 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.

Contact

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

GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

    
March 31,
 2018
 December 31,
 2017
ASSETS 
Investments at fair value: 
Non-controlled/non-affiliate investments (cost of $121,367,679 and $137,526,726, respectively)$173,595,462  $179,908,234 
Non-controlled/affiliate investments (cost of $42,197,673 and $41,886,312, respectively)9,108,129  16,473,098 
Controlled investments (cost of $22,568,505 and $23,161,314, respectively)29,569,412  24,207,161 
Total Portfolio Investments212,273,003  220,588,493 
Investments in U.S. Treasury bills (cost of $99,970,444 and $99,985,833, respectively)99,987,000  99,994,000 
Total Investments (cost of $286,104,301 and $302,560,185, respectively)312,260,003  320,582,493 
Cash90,319,558  59,838,600 
Due from controlled investments  840 
Escrow proceeds receivable208,447  603,456 
Interest and dividends receivable67,042  35,141 
Prepaid expenses and other assets159,272  208,983 
Deferred financing costs31,163  413,023 
Total Assets403,045,485  381,682,536 
LIABILITIES 
Due to GSV Asset Management(1)471,390  231,697 
Accounts payable and accrued expenses788,154  458,203 
Accrued incentive fees, net of waiver of incentive fees(1)5,749,419  9,278,085 
Accrued management fees, net of waiver of management fees(1)374,730  424,447 
Accrued interest payable125,169  1,056,563 
Payable for securities purchased89,470,432  89,485,825 
Tax payable465,775   
Deferred tax liability7,258,786  7,602,301 
5.25% Convertible Senior Notes due September 15, 2018(2)49,690,992  68,382,549 
4.75% Convertible Senior Notes due March 28, 2023(2)38,162,904   
Total Liabilities192,557,751  176,919,670 
Commitments and contingencies (Notes 7 and 10) 
Net Assets$210,487,734  $204,762,866 
NET ASSETS 
Common stock, par value $0.01 per share (100,000,000 authorized; 21,066,538 and 21,246,345 issued and outstanding, respectively)$210,665  $212,463 
Paid-in capital in excess of par201,344,382  202,584,012 
Accumulated net investment loss(8,586,244) (8,593,717)
Accumulated net realized gains/(losses) on investments(1,034,471) 140,100 
Accumulated net unrealized appreciation of investments18,553,402  10,420,008 
Net Assets$210,487,734  $204,762,866 
Net Asset Value Per Share$9.99  $9.64 


(1)This balance references a related-party transaction.
(2)As of March 31, 2018 and December 31, 2017, the 5.25% Convertible Senior Notes due September 15, 2018 had a face value of $49,982,000 and $69,000,000, respectively. As of March 31, 2018 and December 31, 2017, the 4.75% Convertible Senior Notes due March 28, 2023 had a face value of $40,000,000 and $0, respectively.

GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

    
Three Months Ended
March 31, 2018
 Three Months Ended
March 31, 2017
INVESTMENT INCOME 
Non-controlled/non-affiliate investments: 
Interest income$1,680  $8,373 
Non-controlled/affiliate investments: 
Interest income234,082  95,677 
Controlled investments: 
Interest income13,573  59,409 
Dividend income  175,000 
Total Investment Income249,335  338,459 
OPERATING EXPENSES 
Management fees(1)1,323,576  1,454,421 
Incentive fees(1)1,471,334  1,717,308 
Costs incurred under Administration Agreement(1)424,145  531,484 
Directors' fees86,250  82,917 
Professional fees339,898  262,190 
Interest expense1,140,063  1,126,773 
Tax expense122,270  800 
Other expenses489,270  152,581 
Total Operating Expenses5,396,806  5,328,474 
Management fee waiver(1)(154,944) (181,803)
Incentive fee waiver(1)(5,000,000)  
Total operating expenses, net of waiver of management and incentive fees241,862  5,146,671 
Net Investment Gain/(Loss)7,473  (4,808,212)
Realized Losses on Investments: 
Non-controlled/non-affiliated investments(776,045) (22,785,753)
Non-controlled/affiliate investments(680) (1,903,414)
Net Realized Losses on Investments(776,725) (24,689,167)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018(397,846)  
Change in Unrealized Appreciation/(Depreciation) of Investments: 
Non-controlled/non-affiliated investments9,854,664  30,160,950 
Non-controlled/affiliate investments(7,676,330) 1,426,668 
Controlled investments5,955,060  1,692,647 
Net Change in Unrealized Appreciation/(Depreciation) of Investments8,133,394  33,280,265 
Net Increase in Net Assets Resulting from Operations$6,966,296  $3,782,886 
Net Increase in Net Assets Resulting from Operations per Common Share: 
Basic$0.33  $0.17 
Diluted(2)$0.30  $0.17 
Weighted-Average Common Shares Outstanding 
Basic21,150,662  22,181,003 
Diluted(2)26,713,656  22,181,003 


(1)This balance references a related-party transaction.
(2)For the three months ended March 31, 2017, 5,751,815 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.

GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS

  
Three Months Ended March 31,
 2018 2017
Per Basic Share Data(Unaudited) (Unaudited)
Net asset value at beginning of year$9.64  $8.66 
Net investment gain/(loss)(1)0.00  (0.22)
Net realized loss on investments(1)(0.04) (1.11)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018(1)(0.02)  
Net change in unrealized appreciation/(depreciation) of investments(1)0.38  1.50 
Repurchase of common stock(1)0.03   
Net asset value at end of period$9.99  $8.83 
Per share market value at end of period$7.54  $4.48 
Total return based on market value(2)38.35% (10.93)%
Total return based on net asset value(2)3.62% 1.96%
Shares outstanding at end of period21,066,538  22,181,003 
Ratios/Supplemental Data:   
Net assets at end of period$210,487,734  $195,911,696 
Average net assets$204,070,345  $191,439,679 
Ratio of gross operating expenses to average net assets(3)10.11% 10.90%
Ratio of net income tax provisions to average net assets(3)(0.24)% %
Ratio of management fee waiver to average net assets(3)(0.31)% %
Ratio of net operating expenses to average net assets(3)9.55% 10.90%
Ratio of net investment loss to average net assets(3)(10.03)% (10.19)%
Portfolio Turnover Ratio0.11% %


(1) Based on weighted-average number of shares outstanding for the relevant period.
(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 year. 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 the three months ended March 31, 2018 the Company excluded $352,667 of non-recurring expenses and $5.0 million of incentive fee waivers. For the three months ended March 31, 2017, 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.