UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



 

FORM 10-Q



 

 
(Mark One)     
x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2013

 
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00852



 

GSV Capital Corp.

(Exact name of registrant as specified in its charter)



 

 
Maryland   27-4443543
(State of incorporation)   (I.R.S. Employer Identification No.)

 
2925 Woodside Road
Woodside, CA
  94062
(Address of principal executive offices)   (Zip Code)

(650) 235-4769

(Registrant’s telephone number, including area code)



 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes x No o

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 o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

o

 

Accelerated filer

x

Non-accelerated filer

o

 

Smaller reporting company

o

(do not check if a smaller reporting company)     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No x

The number of shares of the issuer’s Common Stock, $0.01 par value, outstanding as of November 12, 2013 was 19,320,100.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

TABLE OF CONTENTS

 
  PAGE
PART I.  FINANCIAL INFORMATION
        

Item 1.

Financial Statements

    1  
Consolidated Statements of Assets and Liabilities as of September 30, 2013 (unaudited) and December 31, 2012     1  
Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2013, and September 30, 2012     2  
Consolidated Statements of Changes in Net Assets (unaudited) for the nine months ended September 30, 2013, and September 30, 2012     3  
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2013, and September 30, 2012     4  
Consolidated Schedule of Investments as of September 30, 2013 (unaudited)     5  
Consolidated Schedule of Investments as of December 31, 2012     10  
Notes to the Consolidated Financial Statements as of September 30, 2013 (unaudited)     15  

Item 2.

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

    34  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    44  

Item 4.

Controls and Procedures

    45  
PART II.  OTHER INFORMATION
        

Item 1.

Legal Proceedings

    46  

Item 1A.

Risk Factors

    46  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    51  

Item 3.

Defaults Upon Senior Securities

    51  

Item 4.

Mine Safety Disclosure

    51  

Item 5.

Other Information

    51  

Item 6.

Exhibits

    52  
Signatures     53  

i


 
 

TABLE OF CONTENTS

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

   
  September 30, 2013   December 31, 2012
     (Unaudited)     
ASSETS
                 
Investments at fair value:
                 
Investments in affiliated securities (cost of $32,625,999 and $38,210,753, respectively)   $ 30,321,787     $ 34,648,363  
Investments in non-control/non-affiliated securities (cost of $212,562,385 and $198,936,982, respectively)     222,661,659       190,748,722  
Investments in money market funds (cost of $28,000,000 and $16,000,000, respectively)     28,000,000       16,000,000  
Investments owned and pledged (cost of $10,845,236 and $0, respectively)     10,845,236        
Total Investments (cost of $284,033,620 and $253,147,735, respectively)     291,828,682       241,397,085  
Cash     28,443,204       11,318,525  
Restricted Cash     22,264        
Due from:
                 
GSV Asset Management     15,067       5,723  
Portfolio companies     209,559       316,377  
Interest receivable     2,256        
Prepaid expenses     358,324       63,953  
Dividend receivable     13,384       1,920  
Deferred credit facility fees     58,998        
Deferred debt issuance costs     3,209,462        
Deferred offering costs     365,873        
Other assets     3,607       27,145  
Total Assets     324,530,680       253,130,728  
LIABILITIES
                 
Due to:
                 
GSV Asset Management     33,803       51,194  
Accounts payable     268,601       204,093  
Accrued offering costs     253,100        
Accrued credit facility fees     3,078        
Accrued interest payable     191,188        
Accrued expenses     36,915       292,640  
Convertible senior notes embedded derivative liability     1,121,000        
Convertible senior notes payable 5.25% due September 15, 2018     68,300,000        
Total Liabilities     70,207,685       547,927  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 254,322,995     $ 252,582,801  
NET ASSETS
                 
Common stock, par value $0.01 per share
(100,000,000 authorized; 19,320,100 and 19,320,100 issued and outstanding, respectively)
  $ 193,201     $ 193,201  
Paid-in capital in excess of par     275,837,514       275,837,514  
Accumulated net investment loss     (18,285,170 )      (10,316,745 ) 
Accumulated net realized loss on investments     (11,217,612 )      (1,380,519 ) 
Accumulated net unrealized appreciation (depreciation) on investments     7,795,062       (11,750,650 ) 
Net Assets   $ 254,322,995     $ 252,582,801  
Net Asset Value Per Share   $ 13.16     $ 13.07  

 
 
See Notes to the Consolidated Financial Statements.

1


 
 

TABLE OF CONTENTS

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

       
  Three Months Ended September 30,   Nine Months Ended
September 30,
     2013   2012   2013   2012
INVESTMENT INCOME
                                   
Interest income from affiliated
securities
  $     $ 2,418     $     $ 200,195  
Interest income from non-control/non-affiliated securities     2,256       4,645       2,256       21,852  
Dividend income from non-control/non-affiliated securities                 7,638        
Dividend income from affiliated
securities
    388       6,865       13,008       20,040  
Total Investment Income     2,644       13,928       22,902       242,087  
OPERATING EXPENSES
                                   
Investment management fees     1,298,858       1,351,169       3,828,835       3,099,186  
Costs incurred under administration agreement     678,283       543,171       2,276,152       1,490,966  
Directors’ fees     65,000       65,000       195,250       172,500  
Professional fees     198,932       242,683       656,796       597,089  
Interest expense     191,188             191,188        
Insurance expense     62,732       56,133       179,807       158,287  
Investor relations expense     54,760       34,698       171,265       143,986  
Other expenses     45,680       55,642       71,034       88,762  
Loss on fair value adjustment for embedded derivative     421,000             421,000        
Total Operating Expenses     3,016,433       2,348,496       7,991,327       5,750,776  
Net Investment Loss     (3,013,789 )      (2,334,568 )      (7,968,425 )      (5,508,689 ) 
Net Realized Loss on Investments     (162,569 )            (9,837,093 )      (1,380,519 ) 
Net Change in Unrealized Appreciation (Depreciation) on Investments     8,892,104       (4,665,272 )      19,545,712       (5,668,589 ) 
Net Increase (Decrease) in Net Assets Resulting from Operations   $ 5,715,746     $ (6,999,840 )    $ 1,740,194     $ (12,557,797 ) 
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share – basic and
diluted
  $ 0.29     $ (0.36 )    $ 0.09     $ (0.84 ) 
Weighted Average Common Shares Outstanding     19,320,100       19,320,100       19,320,100       15,013,896  

 
 
See Notes to the Consolidated Financial Statements.

2


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)

   
  Nine months ended September 30, 2013   Nine months ended September 30, 2012
Decrease in Net Assets Resulting From Operations
                 
Net Investment Loss   $ (7,968,425 )    $ (5,508,689 ) 
Net Realized Loss on Investments     (9,837,093 )      (1,380,519 ) 
Net Change in Unrealized Appreciation (Depreciation) on Investments     19,545,712       (5,668,589 ) 
Net Increase (Decrease) in Net Assets Resulting From Operations     1,740,194       (12,557,797 ) 
Capital Share Transactions
                 
Net Proceeds from Common Shares Issued           201,652,500  
Offering Costs           (738,697 ) 
Net Capital Share Transactions           200,913,803  
Total Increase (Decrease) in Net Assets     1,740,194       188,356,006  
Net Assets at Beginning of Period     252,582,801       71,503,248  
Net Assets at End of Period   $ 254,322,995     $ 259,859,254  
Capital Share Activity
                 
Shares Issued           13,800,000  
Shares Outstanding at Beginning of Period     19,320,100       5,520,100  
Shares Outstanding at End of Period     19,320,100       19,320,100  

 
 
See Notes to the Consolidated Financial Statements.

3


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

   
  Nine months ended September 30, 2013   Nine months ended September 30, 2012
Cash Flows from Operating Activities
                 
Net increase (decrease) in net assets resulting from operations   $ 1,740,194     $ (12,557,797 ) 
Adjustments to reconcile net change in net assets resulting from operations to net cash used in operating activities:
                 
Net realized loss on investments     9,837,093       1,380,519  
Net change in unrealized (appreciation) depreciation on investments     (19,545,712 )      5,668,589  
Loss on fair value adjustment for embedded derivative     421,000        
Amortization of deferred debt issuance costs     28,371        
Purchases of investments in:
                 
Portfolio investments     (24,736,663 )      (160,411,324 ) 
Money market funds     (28,000,000 )      (19,999,128 ) 
United States treasury strips     (10,845,236 )      (10,000,000 ) 
Proceeds from sales of investments in:
                 
Portfolio investments     6,858,921       0  
Money market funds     16,000,000       19,998,872  
United States treasury strips           1,000,000  
Change in operating assets and liabilities:
                 
Due from GSV Asset Management     (9,344 )      10,155  
Due from portfolio companies     106,818       (282,305 ) 
Accrued interest     (2,256 )      158,389  
Prepaid expenses     (294,371 )      (43,346 ) 
Dividend receivable     (11,464 )      (1,127 ) 
Other assets     23,538       (100,154 ) 
Due to GSV Asset Management     (17,391 )      (37,230 ) 
Due to other affiliates           (9,865 ) 
Accounts payable     64,508       143,004  
Accrued offering costs     253,100        
Accrued credit facility fees     3,078        
Accrued interest payable     191,188        
Accrued expenses     (255,725 )      114,432  
Net Cash Used in Operating Activities     (48,190,353 )      (174,968,316 ) 
Cash Flows from Financing Activities
                 
Net proceeds from common shares issued           201,652,500  
Offering costs           (738,697 ) 
Deferred credit facility fees     (58,998 )       
Deferred debt issuance costs     (3,237,833 )       
Deferred offering costs     (365,873 )       
Change in restricted cash     (22,264 )       
Gross proceeds from convertible senior notes issued     69,000,000        
Net Cash Provided by Financing Activities     65,315,032       200,913,803  
Total Increase (Decrease) in Cash Balance     17,124,679       25,945,487  
Cash Balance at Beginning of Period     11,318,525       385,995  
Cash Balance at End of Period   $ 28,443,204     $ 26,331,482  
Non-Cash Operating Items
                 
Investments in structured notes converted to preferred shares   $     $ 924,651  
Investments in structured notes converted to common shares   $     $ 3,002,665  
Investments in preferred shares converted to common shares   $ 1,999,997     $  
Investments in common shares converted to preferred shares   $ 12,481,883     $  
Investments in warrants exercised for preferred shares   $     $ 53,665  
Non-Cash Financing Items
                 
Fair value of make-whole derivative resulting from issuance of convertible debt   $ 700,000     $  

 
 
See Notes to the Consolidated Financial Statements.

4


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2013
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Twitter, Inc.     San Francisco, CA                                      
Common shares     Social Communication       1,835,600     $ 31,755,821     $ 43,242,147       17.00 % 
Preferred shares, Series A           65,000       1,235,290       1,531,238       0.60 % 
Total                 32,991,111       44,773,385       17.60 % 
Palantir Technologies, Inc.     Palo Alto, CA                                      
Common shares, Class A     Cyber Security       7,145,690       20,051,479       25,081,372       9.86 % 
Preferred shares, Series G           326,797       1,008,968       1,147,057       0.45 % 
Total                 21,060,447       26,228,429       10.31 % 
Dropbox, Inc.     San Francisco, CA                                      
Common share     Online Storage       760,000       8,641,153       8,740,000       3.44 % 
Preferred shares, Series A-1           552,486       5,015,333       6,353,589       2.50 % 
Total                 13,656,486       15,093,589       5.94 % 
Chegg, Inc.(16)     Santa Clara, CA                                      
Common shares     Textbook Rental       849,462       10,014,248       9,580,153       3.77 % 
Preferred shares, Series F           333,333       4,008,654       4,555,431       1.79 % 
Total                 14,022,902       14,135,584       5.56 % 
Control4 Corporation(9)(10)     Salt Lake City, UT                                      
Common shares     Home Automation       782,821       7,011,025       12,473,776       4.90 % 
Solexel, Inc.     Milpitas, CA                                      
Preferred shares, Series C     Solar Power       5,034,324       11,017,224       10,999,997       4.33 % 
2U, Inc. (f/k/a 2tor, Inc.)     Landover, MD                                      
Common shares     Online Education       1,151,802       8,757,668       9,472,352       3.72 % 
Preferred shares, Series A           167,431       1,273,125       1,376,943       0.54 % 
Total                 10,030,793       10,849,295       4.26 % 
Avenues World Holdings LLC(3)     New York, NY                                      
Preferred shares, Class A-1     Globally-focused Private School       5,000,000       10,028,361       10,423,016       4.10 % 
Coursera, Inc.     Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,039,609       9,999,999       9,999,998       3.93 % 
Facebook, Inc.(7)     Menlo Park, CA                                      
Common shares, Class A     Social Networking       175,000       5,236,147       8,790,250       3.46 % 
Violin Memory, Inc.(11)     Mountain View, CA                                      
Common Shares     Memory Flash       1,233,333       14,819,618       8,158,498       3.21 % 
SugarCRM, Inc.     Cupertino, CA                                      
Common shares     Customer Relationship Manager       1,480,131       5,193,947       5,602,296       2.20 % 
Preferred shares, Series E           373,134       1,500,522       1,857,408       0.73 % 
Total                 6,694,469       7,459,704       2.93 % 
ZocDoc Inc.     New York, NY                                      
Preferred shares, Series A     Online Medical Scheduling       200,000       3,563,178       3,317,091       1.30 % 
Common Stock           111,866       1,734,878       1,855,348       0.73 % 
Total                 5,298,056       5,172,439       2.03 % 
Whittle Schools, LLC(4)     New York, NY                                      
Preferred shares, Series B     Globally-focused Private School       3,000,000       3,000,000       3,000,000       1.18 % 
Common shares           100       1,530,000       1,500,000       0.59 % 
Total                 4,530,000       4,500,000       1.77 % 

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
September 30, 2013
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Bloom Energy Corporation     Sunnyvale, CA                                      
Common shares     Fuel Cell Energy       201,589     $ 3,855,601     $ 4,456,420       1.75 % 
Spotify Technology S.A.(7)     Stockholm, Sweden                                      
Common shares     Music Streaming Service       3,658       3,598,472       4,247,411       1.67 % 
Dataminr, Inc.     New York, NY                                      
Preferred shares, Series B     Social Media Analytics       904,977       2,063,356       2,936,650       1.15 % 
Preferred shares, Series C           301,369       1,100,567       1,099,997       0.43 % 
Total                 3,163,923       4,036,647       1.58 % 
StormWind, LLC(2)(5)     Scottsdale, AZ                                      
Preferred shares, Series B     Interactive Learning Platform       3,279,629       2,019,687       3,955,872       1.56 % 
Gilt Groupe, Inc.     New York, NY                                      
Common shares     e-Commerce Flash Sales       248,600       6,594,433       3,783,860       1.49 % 
Learnist Inc, (f/k/a Grockit, Inc.)(2)(12)     San Francisco, CA                                      
Preferred shares, Series D     Online Test Preparation       2,728,252       2,005,945       2,073,472       0.82 % 
Preferred shares, Series E           1,731,501       1,503,670       1,501,601       0.59 % 
Total                 3,509,615       3,575,073       1.41 % 
Fullbridge, Inc.(2)     Cambridge, MA                                      
Preferred shares, Series C     Business Education       1,728,724       3,193,444       3,378,542       1.33 % 
Warrants           186,170       67,021       67,021       0.03 % 
Total                 3,260,465       3,445,563       1.36 % 
CUX, Inc. (d/b/a CorpU)(1)(2)     San Francisco, CA                                      
Common Stock     Corporate Education       615,763       2,006,077       2,472,902       0.97 % 
Convertible preferred shares, Series D              169,033       778,607       773,195       0.30 % 
Warrants           16,903                   % 
Total                 2,784,684       3,246,097       1.27 % 
Parchment, Inc.     Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       2,400,384       3,000,000       3,237,736       1.27 % 
Totus Solutions, Inc.(2)     Carrollton, TX                                      
Common shares     LED Lighting       12,000,000       3,014,384       720,000       0.28 % 
Preferred shares, Series A              8,000,000       2,009,589       2,000,000       0.79 % 
Preferred shares, Series B           4,444,444       400,000       400,000       0.16 % 
Total                 5,423,973       3,120,000       1.23 % 
Global Education Learning (Holdings) Ltd.(2)(7)     Hong Kong                                      
Preferred shares, Series A     Education Technology       1,472,175       2,999,998       3,003,237       1.18 % 
SharesPost, Inc.(14)     San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,232,283       0.88 % 
Common warrants,
$0.13 strike price, expire 6/15/2018
          770,934       23,128       323,792       0.13 % 
Total                 2,282,844       2,556,075       1.01 % 

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
September 30, 2013
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Dailybreak, Inc.(2)     Boston, MA                                      
Preferred shares, Series A-1     Social Advertising       1,878,129     $ 2,430,950     $ 2,429,540       0.96 % 
TrueCar, Inc.     Santa Monica, CA                                      
Common shares     Online Marketplace       377,358       2,014,863       2,414,826       0.95 % 
Kno, Inc.     Santa Clara, CA                                      
Preferred shares, Series C     Digital       440,313       2,262,006       450,000       0.18 % 
Preferred shares, Series C-1     Textbooks       1       7,510,334       1,500,000       0.59 % 
Common shares              50,000       214,681             % 
Term Loan           225,000       232,744       225,000       0.09 % 
Total                 10,219,765       2,175,000       0.86 % 
Maven Research, Inc.(2)     San Francisco, CA                                      
Preferred shares, Series C     Knowledge       318,979       2,000,447       1,854,523       0.73 % 
Preferred shares, Series B     Networks       49,505       217,206       231,386       0.09 % 
Total                 2,217,653       2,085,909       0.82 % 
NestGSV, Inc.(2)     Redwood City, CA                                      
Preferred shares, Series A     Incubator       1,000,000       1,021,778       1,200,000       0.47 % 
Preferred shares, Series B           450,000       605,500       600,000       0.24 % 
Total                 1,627,278       1,800,000       0.71 % 
Silver Spring Networks, Inc.(8)     Redwood City, CA                                      
Common shares     Smart Grid       102,028       5,145,271       1,768,145       0.70 % 
S3 Digital Corp. (d/b/a S3i)(2)     New York, NY                                      
Preferred shares, Class A1     Sports Analytics       1,033,452       989,058       1,138,441       0.45 % 
Preferred warrants,
$1.00 strike price, expire 11/21/2017
          500,000       31,354       200,000       0.08 % 
Total                 1,020,412       1,338,441       0.53 % 
Strategic Data Command, LLC(15)     Sunnyvale, CA                                      
Common shares     Software Development       800,000       1,001,650       1,000,000       0.39 % 
SinoLending Ltd.(7)     Shanghai, China                                      
Preferred shares, Class A     Chinese P2P       6,414,368       503,235       604,859       0.24 % 
Preferred shares, Class B     Lending       2,333,108       250,263       250,000       0.10 % 
Total                 753,498       854,859       0.34 % 
The rSmart Group, Inc.     Scottsdale, AZ                                      
Preferred shares, Series B     Higher Education Learning Platform       1,201,923       1,267,240       840,112       0.33 % 
DreamBox Learning, Inc.     Bellevue, WA                                      
Preferred shares, Series A     Education Technology       3,579,610       758,017       825,095       0.32 % 
AlwaysOn, Inc.(2)     Woodside, CA                                      
Preferred shares, Series A     Social Media       1,066,626       1,027,391       203,011       0.09 % 
Preferred shares, Series A-1           3,152,417       624,783       600,000       0.24 % 
Total                 1,652,174       803,011       0.33 % 
AliphCom, Inc. (d/b/a Jawbone)     San Francisco, CA                                      
Common Stock     Smart Device Company       150,000       793,152       792,600       0.31 % 

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
September 30, 2013
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Capital Transactions/Principal
  Cost   Fair Value   % of Net Assets
Ozy Media, Inc.     Mountain View, CA                                      
Preferred shares, Series Seed     Social Media       500,000     $ 500,000     $ 546,224       0.21 % 
NestGSV Silicon Valley, LLC(2)(6)     Redwood City, CA                                      
Common membership interest     Incubator
  
    $ 500,000       500,000       519,045       0.20 % 
The Echo System Corp.     New York, NY                                      
Preferred shares, Series A     Social Analytics       512,365       1,436,404       373,535       0.15 % 
Preferred warrants,
$0.20 strike price, expire 11/14/2016
          68,359       75,988             % 
Total                 1,512,392       373,535       0.15 % 
NewZoom, Inc. (d/b/a ZoomSystems)     San Francisco, CA                                      
Preferred shares, Series A     Smart e-tail (Retail)       1,250,000       260,476       262,500       0.10 % 
Neuron Fuel, Inc.     San Jose, CA                                      
Preferred shares, Series AAI     Computer Software       250,000       262,530       243,658       0.10 % 
Odesk Corporation     Redwood City, CA                                      
Common Stock     Online Workplace Platform       30,000       183,269       188,995       0.07 % 
Starfish Holdings, Inc. (d/b/a YourOffers)(2)     Beverly Hills, CA                                      
Preferred shares, Series A     Marketing Platform       43,878,894       2,177,461             % 
Common warrants, $0.00001 strike price, expire 11/13/2019           144,800,351                   % 
Total                 2,177,461             % 
Total Portfolio Investments                 245,188,384       252,983,446       99.49 % 
Money Market Funds(1)
                                            
Fidelity Institutional Money Market Funds                                             
Money Market Portfolio              7,000,000       7,000,000       7,000,000       2.75 % 
Prime Money Market Portfolio              7,000,000       7,000,000       7,000,000       2.75 % 
JPMorgan Prime Money Market Fund              7,000,000       7,000,000       7,000,000       2.75 % 
U.S. Bank Money Market Fund           7,000,000       7,000,000       7,000,000       2.75 % 
Total Money Market Funds                 28,000,000       28,000,000       11.00 % 
U.S Treasury Strips(13)
                                            
United States Treasury Strip 02/15/2014            $ 1,791,000       1,790,785       1,790,785       0.71 % 
United States Treasury Strip 02/15/2015            $ 1,816,000       1,810,625       1,810,625       0.71 % 
United States Treasury Strip 02/15/2016            $ 1,834,000       1,810,323       1,810,323       0.71 % 
United States Treasury Strip 08/15/2014            $ 1,813,000       1,811,187       1,811,187       0.71 % 
United States Treasury Strip 08/15/2015            $ 1,823,000       1,811,205       1,811,205       0.71 % 
United States Treasury Strip 08/15/2016         $ 1,851,000       1,811,111       1,811,111       0.71 % 
Total                 10,845,236       10,845,236       4.26 % 
Total Investments               $ 284,033,620     $ 291,828,682       114.75 % 

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
September 30, 2013
(Unaudited)

* All portfolio investments are non-control/non-affiliated and non-income producing, unless identified. Equity investments are subject to lock-up restrictions upon their initial public offering.
 (1) Investment is income producing.
 (2) Denotes an Affiliate Investment. “Affiliate Investments” are investments in those companies that are “Affiliated Companies” of GSV Capital Corp., as defined in the Investment Company Act of 1940. A company is deemed to be an “Affiliate” of GSV Capital Corp. if GSV Capital Corp. owns 5% or more of the voting securities of such company.
 (3) GSV Capital Corp.’s investment in Avenues WorldHoldings LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.
 (4) GSV Capital Corp.’s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc.
 (5) GSV Capital Corp.’s investment in StormWind, LLC is held through its wholly-owned subsidiary GSVC SW Holdings, Inc.
 (6) GSV Capital Corp.’s investment in NestGSV Silicon Valley, LLC is held through its wholly-owned subsidiary GSVC NG Holdings, Inc.
 (7) Indicates assets that GSV Capital Corp. believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended. Qualifying assets must represent at least 70% of GSV Capital Corp.’s total assets at the time of acquisition of any additional non-qualifying assets.
 (8) On March 12, 2013, Silver Spring Networks, Inc. priced its initial public offering, selling 4,750,000 shares at a price of $17 per share. GSV Capital Corp.’s shares in Silver Spring Networks, Inc. are subject to a lock-up agreement that expired on September 8, 2013. At September 30, 2013, GSV Capital Corp. valued Silver Spring Networks, Inc based on its September 30, 2013 closing price.
 (9) On July 22, 2013, Control4 Corporation completed a 1:5.2 reverse stock split which has been reflected above.
(10) On August 2, 2013, Control4 Corporation priced its initial public offering, selling 4,000,000 shares at a price of $16 per share. GSV Capital Corp.’s shares in Control4 are subject to a lock-up agreement which expires on January 29, 2014. At September 30, 2013, GSV Capital Corp. valued Control4 Corporation based on its September 30, 2013 closing price, adjusted for a discount due to lack of marketability of 8%.
(11) On September 27, 2013, Violin Memory Inc. priced its initial public offering, selling 18,000,000 shares at a price of $9 per share. GSV Capital Corp.’s shares in Control4 are subject to a lock-up agreement which expires on March 26, 2014. At September 30, 2013, GSV Capital Corp. valued Violin Memory Inc. based on its September 30, 2013 closing price, adjusted for a discount due to lack of marketability of 10%.
(12) On July 31 2013, Grockit, Inc. changed its name to Learnist, Inc.
(13) Refer to Note 9 — Long Term Liabilities. In accordance with the terms of its Convertible Notes payable, the Company deposited $10,867,500 in an escrow account with the trustee. These funds were used to purchase $10,845,236 of government securities. The cost of the US Treasury Strips approximates their fair value at September 30, 2013.
(14) GSV Capital Corp.’s investment in SharesPost Inc. is held through its wholly-owned subsidiary SPNPM Holdings, LLC.
(15) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly-owned subsidiary GSVC SVDS Holdings, Inc.
(16) On September 3, 2013, Chegg Inc. completed a 2:3 reverse stock split which has been reflected above.

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2012

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Twitter, Inc.     San Francisco, CA                                      
Common shares     Social Communication       1,835,600     $ 31,755,821     $ 34,876,400       13.81 % 
Preferred shares, Series A           65,000       1,235,290       1,235,000       0.49 % 
Total                 32,991,111       36,111,400       14.30 % 
Palantir Technologies, Inc.     Palo Alto, CA                                      
Common shares, Class A     Cyber Security       7,145,690       20,051,479       20,150,846       7.98 % 
Preferred shares, Series G           326,797       1,008,968       921,568       0.36 % 
Total                 21,060,447       21,072,414       8.34 % 
Violin Memory, Inc.     Mountain View, CA                                      
Preferred shares, Series B     Flash Memory       800,000       4,800,798       4,800,000       1.90 % 
Preferred shares, Series D           1,666,666       10,018,045       9,999,996       3.96 % 
Total                 14,818,843       14,799,996       5.86 % 
Dropbox, Inc.     San Francisco, CA                                      
Common share     Online Storage       760,000       8,641,153       8,360,000       3.31 % 
Preferred shares, Series A-1           552,486       5,015,333       6,077,346       2.41 % 
Total                 13,656,486       14,437,346       5.72 % 
Chegg, Inc.     Santa Clara, CA                                      
Common shares     Textbook Rental       1,274,193       10,012,543       10,193,544       4.03 % 
Preferred shares, Series F           500,000       4,008,654       4,000,000       1.58 % 
Total                 14,021,197       14,193,544       5.61 % 
Avenues World Holdings LLC(5)     New York, NY                                      
Preferred shares, Class A-1     Globally-focused Private School       5,000,000       10,025,123       10,000,000       3.96 % 
Solexel, Inc.     Milpitas, CA                                      
Preferred shares, Series C     Solar Power       4,576,659       10,016,559       10,000,000       3.96 % 
2U, Inc. (f/k/a 2tor, Inc.)     Landover, MD                                      
Common shares     Online Education       1,151,802       8,757,599       8,730,659       3.46 % 
Preferred shares, Series A           167,431       1,273,125       1,269,127       0.50 % 
Total                 10,030,724       9,999,786       3.96 % 
Kno, Inc.     Santa Clara, CA                                      
Preferred shares, Series C     Digital Textbooks       440,313       2,262,006       2,249,999       0.89 % 
Preferred shares, Series C-1              1       7,510,334       7,500,000       2.97 % 
Common shares           50,000       214,681       178,850       0.07 % 
Total                 9,987,021       9,928,849       3.93 % 
Facebook, Inc.(3)(10)     Menlo Park, CA                                      
Common shares, Class B     Social Networking       350,000       10,472,294       9,317,000       3.69 % 
Control4 Corporation(14)     Salt Lake City, UT                                      
Common shares     Home Automation       782,821       7,011,025       7,123,667       2.82 % 
Totus Solutions, Inc.(2)     Carrollton, TX                                      
Common shares     LED Lighting       20,000,000       5,023,748       5,000,000       1.98 % 
Learnist Inc, (f/k/a Grockit, Inc.)(2)(13)     San Francisco, CA                                      
Preferred shares, Series D     Online Test Preparation       2,728,252       2,005,945       2,373,579       0.94 % 
Preferred shares, Series E           1,731,501       1,503,670       1,506,406       0.60 % 
Total                 3,509,615       3,879,985       1.54 % 

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
December 31, 2012

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
SugarCRM, Inc.     Cupertino, CA                                      
Common shares     Customer Relationship Manager       1,086,047     $ 3,813,378     $ 3,801,165       1.50 % 
Gilt Groupe, Inc.     New York, NY                                      
Common shares     e-Commerce Flash Sales       248,600       6,594,346       3,637,329       1.44 % 
Spotify Technology S.A.(10)     Stockholm, Sweden                                      
Common shares     Music Streaming Service       3,658       3,598,472       3,589,669       1.42 % 
ZocDoc Inc.     New York, NY                                      
Preferred shares, Series A     Online Medical Scheduling       200,000       3,563,178       3,500,000       1.38 % 
Bloom Energy Corporation     Sunnyvale, CA                                      
Common shares     Fuel Cell Energy       201,589       3,855,601       3,225,424       1.28 % 
Global Education Learning (Holdings) Ltd.(2)(10)     Hong Kong                                      
Preferred shares, Series A     Education Technology       1,472,175       2,999,998       3,003,237       1.19 % 
Parchment, Inc.     Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       2,400,384       3,000,000       3,000,480       1.19 % 
Whittle Schools, LLC(2)(6)     New York, NY                                      
Preferred shares, Series B     Globally-focused Private School       3,000,000       3,000,000       3,000,000       1.19 % 
StormWind, LLC(2)(7)     Scottsdale, AZ                                      
Preferred shares, Series B     Interactive Learning Platform       3,279,629       2,019,687       2,545,812       1.01 % 
SharesPost, Inc.     San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace (Finance)       1,771,653       2,257,984       2,249,999       0.89 % 
Common warrants, $0.13 strike price, expire 6/15/2018           770,934       23,128       123,349       0.05 % 
Total                 2,281,112       2,373,348       0.94 % 
Maven Research, Inc.(2)     San Francisco, CA                                      
Preferred shares, Series B     Knowledge Networks       49,505       217,206       310,396       0.12 % 
Preferred shares, Series C           318,979       1,999,998       1,999,998       0.79 % 
Total                 2,217,204       2,310,394       0.91 % 
Fullbridge, Inc.(2)     Cambridge, MA                                      
Preferred shares, Series C     Business Education       1,196,809       2,250,001       2,250,001       0.89 % 
Starfish Holdings, Inc. (d/b/a YourOffers)(2)(12)     Beverly Hills, CA                                      
Preferred shares, Series A     Marketing Platform       43,878,894       2,012,103       2,193,945       0.87 % 
Common warrants, $0.00001 strike price, expire 11/13/2019           144,800,351                   % 
Total                 2,012,103       2,193,945       0.87 % 
TrueCar, Inc.     Santa Monica, CA                                      
Common shares     Online Marketplace (Cars)       377,358       2,014,863       2,011,318       0.79 % 
Dataminr, Inc.     New York, NY                                      
Preferred shares, Series B     Social Media Analytics       904,977       2,060,602       1,999,999       0.79 % 
CUX, Inc. (d/b/a CorpU)(2)     San Francisco, CA                                      
Preferred shares, Series C     Corporate Education       246,305       2,006,077       1,999,997       0.79 % 
Dailybreak, Inc.(2)     Boston, MA                                      
Preferred shares, Series A-1     Social Advertising       1,545,181     $ 2,000,000     $ 1,993,283       0.79 % 

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
December 31, 2012

         
Portfolio Investments*   Headquarters/Industry   Shares/Capital Transactions   Cost   Fair Value   % of Net Assets
Silver Spring Networks, Inc.     Redwood City, CA                                      
Common shares(11)     Smart Grid       510,143       5,145,271       1,976,804       0.78 % 
The Echo System Corp.(2)     New York, NY                                      
Preferred shares, Series A     Social Analytics       512,365       1,436,404       1,639,568       0.65 % 
Preferred warrants, $0.20 strike price, expire 11/14/2016           68,359       75,988       68,359       0.03 % 
Total                 1,512,392       1,707,927       0.68 % 
AltEgo, LLC(2)(8)     Santa Monica, CA                                      
Preferred shares, Series B-2     Social Media Customer Acquisition
Platform
      1,400,000       1,420,406       1,400,000       0.55 % 
Zynga, Inc.(10)     San Francisco, CA                                      
Common shares     Social Gaming       533,333       3,003,462       1,258,666       0.50 % 
The rSmart Group, Inc.     Scottsdale, AZ                                      
Preferred shares, Series B     Higher Education Learning Platform       1,201,923       1,266,940       1,250,000       0.49 % 
S3 Digital Corp.
(d/b/a S3i)
(2)
    New York, NY                                      
Preferred shares, Class A1     Sports Analytics       1,033,452       989,058       1,033,452       0.41 % 
Preferred warrants, $1.00 strike price, expire 11/21/2017           500,000       31,354       31,354       0.01 % 
Total                 1,020,412       1,064,806       0.42 % 
NestGSV, Inc.(2)     Redwood City, CA                                      
Preferred shares, Series A     Incubator       1,000,000       1,021,778       1,000,000       0.40 % 
DreamBox Learning, Inc.     Bellevue, WA                                      
Preferred shares, Series A     Education Technology       3,579,610       758,017       751,718       0.30 % 
SinoLending Ltd.(2)(10)     Shanghai, China                                      
Preferred shares, Class A     Chinese P2P Lending       6,414,368       501,998       500,321       0.20 % 
Ozy Media, Inc.     Mountain View, CA                                      
Preferred shares, Series Seed     Social Media       500,000       500,000       500,000       0.20 % 
NestGSV Silicon Valley, LLC(2)(9)     Redwood City, CA                                      
Common membership interest     Incubator
  
    $ 500,000       500,000       500,000       0.20 % 
Groupon, Inc.(4)(10)     Chicago, IL                                      
Common shares     Online Deals       80,000       2,128,774       388,800       0.15 % 
AlwaysOn, Inc.(2)     Woodside, CA                                      
Preferred shares, Series A     Social Media       1,066,626       1,027,391       298,655       0.12 % 
NewZoom, Inc.
(d/b/a ZoomSystems)
    San Francisco, CA                                      
Preferred shares, Series A     Smart e-tail (Retail)       1,250,000       260,476       250,000       0.10 % 
Neuron Fuel, Inc.     San Jose, CA                                      
Preferred shares, Series AAI     Computer Software       250,000       262,530       250,000       0.10 % 

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
December 31, 2012

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Serious Energy, Inc.(10)     Sunnyvale, CA                                      
Common shares     Green Materials       178,095     $ 739,130     $       % 
Top Hat 430, Inc.(2)(10)     Shakopee, MN                                      
Preferred shares, Series A     Jewelry Retailing Technology       1,844,444       4,167,943