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 March 31, 2014

 
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 (do not check if a smaller reporting company)   Smaller reporting company o

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 May 12, 2014 was 19,320,100.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP.
 
TABLE OF CONTENTS

 
  PAGE
PART I. FINANCIAL INFORMATION
        

Item 1.

Financial Statements

    1  
Consolidated Statements of Assets and Liabilities as of March 31, 2014 (unaudited) and December 31, 2013     1  
Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2014, and March 31, 2013     2  
Consolidated Statements of Changes in Net Assets (unaudited) for the three months ended March 31, 2014, and March 31, 2013     3  
Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2014, and March 31, 2013     4  
Consolidated Schedule of Investments as of March 31, 2014 (unaudited)     5  
Consolidated Schedule of Investments as of December 31, 2013     12  
Notes to the Consolidated Financial Statements as of March 31, 2014 (unaudited)     18  

Item 2.

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

    38  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    49  

Item 4.

Controls and Procedures

    49  
PART II. OTHER INFORMATION
        

Item 1.

Legal Proceedings

    50  

Item 1A.

Risk Factors

    50  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    50  

Item 3.

Defaults Upon Senior Securities

    50  

Item 4.

Mine Safety Disclosure

    50  

Item 5.

Other Information

    50  

Item 6.

Exhibits

    50  
Signatures     52  
 

i


 
 

TABLE OF CONTENTS

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

   
  March 31,
2014
  December 31,
2013
ASSETS
    (Unaudited)
          
Investments at fair value:
                 
Investments in controlled securities (cost of $7,033,130 and $0, respectively)   $ 8,012,556     $  
Investments in affiliated securities (cost of $63,818,718 and $64,912,527, respectively)     60,038,914       62,740,162  
Investments in non-control/non-affiliated securities (cost of $224,585,818 and $214,796,591, respectively)     299,972,346       292,643,491  
Investments owned and pledged (cost of $9,054,451 and $10,845,236, respectively)     9,089,805       10,865,200  
Investments in United States Treasury Bill (cost of $80,000,584 and $0, respectively)     79,999,900        
Total Investments (cost of $384,492,701 and $290,554,354, respectively)     457,113,521       366,248,853  
Cash     4,063,165       7,219,203  
Restricted cash     22,139       22,264  
Deposit with Broker     10,000,000        
Due from:
                 
GSV Asset Management(1)           3,039  
Portfolio companies     140,804       153,178  
Interest receivable     40,684       7,304  
Prepaid expenses     128,909       49,739  
Coupon interest receivable           11,141  
Dividend receivable           13,233  
Deferred credit facility fees     244,306       288,249  
Deferred debt issuance costs     3,201,159       3,378,121  
Deferred offering costs     228,285       184,710  
Other assets     334,575       368,524  
Total Assets     475,517,547       377,947,558  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     603,199       563,978  
Accounts payable     333,474       382,165  
Accrued incentive fees     11,493,204       10,523,552  
Accrued interest payable     171,063       1,056,563  
Accrued expenses     33,700        
Payable for securities purchased     80,000,584        
Net deferred tax liability     8,291,196       8,320,561  
Line of Credit     18,000,000        
Convertible senior notes embedded derivative liability     179,000       799,000  
Convertible senior notes payable 5.25% due September 15, 2018     68,365,979       68,335,295  
Total Liabilities     187,471,399       89,981,114  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 288,046,148     $ 287,966,444  
NET ASSETS
                 
Common stock, par value $0.01 per share
                 
(100,000,000 authorized; 19,320,100 issued and outstanding)   $ 193,201     $ 193,201  
Paid-in capital in excess of par     275,837,514       275,837,514  
Accumulated net investment loss     (21,987,215 )      (19,192,401 ) 
Accumulated net realized loss on investments     (8,967,092 )      (13,660,306 ) 
Accumulated net unrealized appreciation (depreciation) on investments     42,969,740       44,788,436  
Net Assets   $ 288,046,148     $ 287,966,444  
Net Asset Value Per Share   $ 14.91     $ 14.91  

(1) This balance is a related party transaction. Refer to Note 2 for more detail.

 
 
See notes to Consolidated Financial Statements.

1


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2014
  Three months
ended
March 31,
2013
INVESTMENT INCOME
                 
Interest income from affiliated securities   $ 39,928     $  
Dividend income from affiliated securities     887        
Dividend income from non-control/non-affiliated securities           4,535  
Total Investment Income     40,815       4,535  
OPERATING EXPENSES
                 
Investment management fees     1,756,196       1,283,599  
Accrued incentive fees     969,652        
Costs incurred under administration agreement     908,532       887,984  
Directors’ fees     65,000       65,250  
Professional fees     456,539       236,886  
Interest and credit facility expense     1,179,725        
Insurance expense     59,736       53,013  
Investor relations expense     54,912       43,562  
Other expenses     18,251       1,966  
Gain on fair value adjustment for embedded derivative     (620,000 )       
Total Operating Expenses     4,848,543       2,572,260  
Benefit for taxes on net investment loss     2,012,914        
Net Investment Loss     (2,794,814 )      (2,567,725 ) 
Net Realized Gain (Loss) on Investments     7,931,745       (3,346,892 ) 
Benefit/(Provision) for taxes on Net Realized Capital Gains/(Losses)     (3,238,531 )       
Net Change in Unrealized Depreciation on Investments     (3,073,679 )      (1,576,638 ) 
Benefit for taxes on Unrealized Depreciation of investments     1,254,983        
Net Increase (Decrease) in Net Assets Resulting From Operations   $ 79,704     $ (7,491,255 ) 
Net Increase (Decrease) in Net Assets Resulting From Operations Per Common Share — basic and diluted   $ 0.00     $ (0.38 ) 
Weighted Average Common Shares Outstanding:     19,320,100       19,320,100  

 
 
See notes to Consolidated Financial Statements.

2


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2014
  Three months
ended
March 31,
2013
Increase (Decrease) in Net Assets Resulting From Operations
                 
Net Investment Loss   $ (2,794,814 )    $ (2,567,725 ) 
Net Realized Gain (Loss) on Investments     7,931,745       (3,346,892 ) 
Benefit/(Provision) for taxes on Net Realized Capital Gains/(Losses)     (3,238,531 )       
Net Change in unrealized depreciation on Investments     (3,073,679 )      (1,576,638 ) 
Benefit for taxes on Unrealized Depreciation of investments     1,254,983        
Net Increase (Decrease) in Net Assets Resulting From Operations     79,704       (7,491,255 ) 
Total Increase (Decrease) in Net Assets     79,704       (7,491,255 ) 
Net Assets at Beginning of Period     287,966,444       252,582,801  
Net Assets at End of Period   $ 288,046,148     $ 245,091,546  
Capital Share Activity
                 
Shares Issued            
Shares Outstanding at Beginning of Period     19,320,100       19,320,100  
Shares Outstanding at End of Period     19,320,100       19,320,100  

 
 
See notes to Consolidated Financial Statements.

3


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2014
  Three months
ended
March 31,
2013
Cash Flows from Operating Activities
                 
Net increase (decrease) in net assets resulting from operations   $ 79,704     $ (7,491,255 ) 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
                 
Net realized (gain) loss on investments     (7,931,745 )      3,346,892  
Net change in unrealized depreciation (appreciation) on investments     3,073,679       1,576,638  
Gain on fair value adjustment for embedded derivative     (620,000 )       
Net deferred tax liability     (29,365 )       
Amortization of deferred credit facility fees     43,943        
Amortization of deferred debt issuance costs     207,646        
Purchases of investments in:
                 
Portfolio investments     (21,929,081 )      (3,466,394 ) 
Proceeds from sales or redemption of investments in:
                 
Portfolio investments     14,132,278       1,785,344  
United States treasury strips     1,790,785        
Change in operating assets and liabilities:
                 
Deposit with Broker     (10,000,000 )       
Due from GSV Asset Management(1)     3,039       (2,782 ) 
Due from portfolio companies     12,374       (6,664 ) 
Accrued interest     (33,380 )       
Prepaid expenses     (79,170 )      (1,788 ) 
Coupon interest receivable     11,141        
Dividend receivable     13,233       443  
Other assets     33,949       (21,344 ) 
Due to GSV Asset Management(1)     39,221       (12,182 ) 
Accounts payable     (48,691 )      32,266  
Accrued incentive fees     969,652        
Accrued interest payable     (885,500 )       
Accrued expenses     33,700       (239,320 ) 
Net Cash Used in Operating Activities     (21,112,588 )      (4,500,146 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     18,000,000        
Deferred offering costs     (43,575 )       
Change in restricted cash     125        
Net Cash Provided by Financing Activities     17,956,550        
Total Decrease in Cash Balance     (3,156,038 )      (4,500,146 ) 
Cash Balance at Beginning of Period     7,219,203       11,318,525  
Cash Balance at End of Period   $ 4,063,165     $ 6,818,379  
Non-Cash Operating Items
                 
Transactions in Investments in Portfolio Companies
                 
Structured notes converted to convertible notes   $ 517,755     $  
Preferred shares converted to common shares   $ 1,273,125     $  
Non-Cash Financing Items
                 
Payable for securities purchased   $ 80,000,584     $  

(1) This balance is a related party transaction. Refer to Note 2 Related Party Arrangements.

 
 
See notes to Consolidated Financial Statements.

4


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Twitter, Inc.(11)**
                                            
Common shares     San Francisco, CA
Social Communication
      1,900,600     $ 32,991,111     $ 80,717,912       28.02 % 
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      7,145,690       20,051,480       40,444,605       14.04 % 
Preferred shares, Series G           326,797       1,008,968       2,003,266       0.70 % 
Total                 21,060,448       42,447,871       14.74 % 
Dropbox, Inc.
                                            
Common share     San Francisco, CA
Online Storage
      760,000       8,641,153       14,516,000       5.04 % 
Preferred shares, Series A-1           552,486       5,015,333       10,552,483       3.66 % 
Total                 13,656,486       25,068,483       8.70 % 
2U, Inc. (f/k/a 2tor, Inc.)(13)**
                                            
Common shares     Landover, MD
Online Education
      1,319,233       10,031,837       14,856,213       5.16 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,443       14,517,296       5.04 % 
Control4 Corporation(8)**
                                            
Common shares     Salt Lake City, UT
Home Automation
      579,089       5,257,705       12,282,478       4.26 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,034,324       11,017,801       11,000,007       3.82 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
      1,899,799       6,799,392       8,183,904       2.84 % 
Preferred shares, Series E     Manager       373,134       1,500,522       2,323,925       0.81 % 
Total                 8,299,914       10,507,829       3.65 % 
Avenues Global Holdings, LLC(2)
                                            
Preferred shares, Junior Preferred Stock     New York, NY
Globally-focused Private
School
      10,014,270       10,151,854       10,220,061       3.55 % 
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       9,999,928       3.47 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,999,080       3.47 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      3,914,535       10,000,001       9,995,517       3.47 % 
Chegg, Inc.(12)**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792       14,022,863       7,617,180       2.64 % 

 
 
See notes to Consolidated Financial Statements.

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
StormWind, LLC(1)(5)(15)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
      3,279,629     $ 2,019,687     $ 3,797,810       1.32 % 
Preferred shares, Series C              2,132,824       3,000,030       3,000,030       1.04 % 
Preferred shares, Series A              366,666       110,000       110,000       0.04 % 
Preferred Unit Warrants $0.73 strike price, expire 7/24/14           1,215,063             51,705       0.02 % 
Total                 5,129,717       6,959,545       2.42 % 
General Assembly Space, Inc.
                                            
Common Stock     New York, NY
Online Education
      133,213       2,999,983       2,999,983       1.04 % 
Preferred Stock           126,552       2,999,978       2,999,978       1.04 % 
Total                 5,999,961       5,999,961       2.08 % 
ZocDoc Inc.
                                            
Preferred shares, Series A     New York, NY
Online Medical Scheduling
      200,000       3,563,178       3,622,977       1.26 % 
Common Stock           111,866       1,734,878       2,026,440       0.70 % 
Total                 5,298,056       5,649,417       1.96 % 
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Online Education
      375,985       4,999,999       5,000,149       1.74 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       4,999,991       4,995,027       1.73 % 
Violin Memory, Inc.(9)**
                                            
Common Shares     Mountain View, CA
Memory Flash
      1,247,498       14,820,178       4,989,992       1.73 % 
Fullbridge, Inc.(1)
                                            
Preferred shares, Series C     Cambridge, MA
Business Education
      1,728,724       3,193,444       3,089,842       1.07 % 
Convertible Promissory Note, 10%
Interest rate, February 16, 2015
           $ 1,813,904       1,818,075       1,813,904       0.63 % 
Common warrants,
$0.91 strike price, expire
3/22/2020
             186,170       67,021       59,574       0.02 % 
Common warrants,
$0.91 strike price, expire
10/09/2018
             82,418       9,901             % 
Common warrants,
$0.91 strike price, expire 12/10/2018
          82,418       9,799             % 
Total                 5,098,240       4,963,320       1.72 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       4,335,671       4,527,089       1.57 % 
Whittle Schools, LLC(1)(3)
                                            
Preferred shares, Series B     New York, NY
Globally-focused Private
School
      3,000,000       3,000,000       3,000,000       1.04 % 
Common shares           229       1,545,159       1,500,000       0.52 % 
Total                 4,545,159       4,500,000       1.56 % 

 
 
See notes to Consolidated Financial Statements.

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658     $ 3,598,472     $ 4,429,957       1.54 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,602       4,369,350       1.52 % 
Gilt Groupe, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,434       4,287,883       1.49 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       2,934,840       1.02 % 
Preferred shares, Series C           301,369       1,100,909       1,099,997       0.38 % 
Total                 3,164,265       4,034,837       1.40 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,862       4,027,933       1.40 % 
Ozy Media, Inc.(1)
                                            
Preferred shares, Series A     Mountain View, CA
Daily News and
Information Site
      1,090,909       3,000,000       3,000,000       1.04 % 
Preferred shares, Series Seed           500,000       500,000       865,000       0.30 % 
Total                 3,500,000       3,865,000       1.34 % 
Totus Solutions, Inc.(1)
                                            
Common shares     Carrollton, TX
LED Lighting
      11,307,348       2,840,391       576,675       0.20 % 
Preferred shares, Series A              8,692,652       2,183,582       2,173,163       0.75 % 
Preferred shares, Series B           11,111,110       1,000,000       877,494       0.30 % 
Total                 6,023,973       3,627,332       1.25 % 
Learnist Inc. (f/k/a Grockit, Inc.)(1)
                                            
Preferred shares, Series D     San Francisco, CA
Online Learning Platform
      2,728,252       2,005,945       2,073,472       0.72 % 
Preferred shares, Series E           1,731,501       1,503,670       1,499,999       0.52 % 
Total                 3,509,615       3,573,471       1.24 % 
CUX, Inc. (d/b/a CorpU)(1)
                                            
Common Stock     San Francisco, CA
Corporate Education
      615,763       2,006,077       2,484,026       0.86 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.27 % 
Preferred warrants, $4.59 strike price,
expire 02/25/2018
          16,903                   % 
Total                 2,784,684       3,259,887       1.13 % 
SharesPost, Inc.(6)
                                            
Preferred shares, Series B     San Bruno, CA
Online Marketplace Finance
      1,771,653       2,259,716       2,232,283       0.78 % 
Common warrants, $0.13 strike price,
expire 6/15/2018
          770,934       23,128       131,059       0.05 % 
Total                 2,282,844       2,363,342       0.83 % 

 
 
See notes to Consolidated Financial Statements.

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
TrueCar, Inc.
                                            
Common shares     Santa Monica, CA
Online Marketplace
      377,358     $ 2,015,023     $ 2,325,469       0.81 % 
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,536,388       0.53 % 
Preferred shares, Series A           3,579,610       758,017       768,194       0.27 % 
Total                 2,260,379       2,304,582       0.80 % 
Maven Research, Inc.(1)
                                            
Preferred shares, Series C     San Francisco, CA
Knowledge Networks
      318,979       2,000,447       1,999,998       0.69 % 
Preferred shares, Series B           49,505       217,206       249,703       0.09 % 
Total                 2,217,653       2,249,701       0.78 % 
NestGSV, Inc.(1)
                                            
Preferred shares, Series A     Redwood City, CA
Incubator
      1,000,000       1,021,778       1,106,120       0.39 % 
Preferred shares, Series B              450,000       605,500       553,060       0.19 % 
Promissory Notes           300,000       300,000       300,000       0.10 % 
Total                 1,927,278       1,959,180       0.68 % 
Dailybreak, Inc.(1)
                                            
Preferred shares, Series A-1     Boston, MA
Social Advertising
      1,878,129       2,430,950       1,333,472       0.46 % 
Preferred shares, Series A-2           347,666       450,000       448,489       0.16 % 
Total                 2,880,950       1,781,961       0.62 % 
Silver Spring Networks, Inc.**
                                            
Common shares     Redwood City, CA
Smart Grid
      102,028       5,145,271       1,773,247       0.62 % 
Circle Media (f.k.a. S3 Digital Corp. (d/b/a S3i)(1)
                                            
Preferred shares, Class A1     New York, NY
Sports Analytics
      1,033,452       989,058       1,205,005       0.42 % 
Term Loan, 12%, 09/30/15***            $ 250,000       261,081       250,000       0.09 % 
Preferred warrants, $1.166 strike price,
expire 09/30/2020
             500,000       31,354       175,000       0.06 % 
Preferred warrants, $1.00 strike price,
expire 11/21/2017
          160,806             56,282       0.02 % 
Total                 1,281,493       1,686,287       0.59 % 
Facebook, Inc.**
                                      
Common Shares, Class A     Menlo Park, CA
Social Networking
      25,000       775,544       1,506,000       0.52 % 
ePals Inc.**(1)(10)
                                            
Common shares     Herndon, VA
Online Education
      33,333,333       2,445,108       1,108,784       0.38 % 
Common warrants, 0.075 CAD strike price, expire 4/30/2014           11,111,111                   % 
Total                 2,445,108       1,108,784       0.38 % 

 
 
See notes to Consolidated Financial Statements.

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
AlwaysOn, Inc.(15)
                                            
Preferred shares, Series A-1     Woodside, CA
Social Media
      4,465,925     $ 876,023     $ 850,000       0.30 % 
Preferred shares, Series A              1,141,626       1,027,391       203,011       0.07 % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017              109,375                   % 
Preferred warrants Series A-1, $0.19 strike price, expire 12/31/2014           1,313, 508                   % 
Total                 1,903,414       1,053,011       0.37 % 
Strategic Data Command, LLC(1)(7)
                                            
Common shares     Sunnyvale, CA
Software Development
      800,000       1,001,650       1,000,000       0.35 % 
SinoLending Ltd.**
                                            
Preferred shares, Class A     Shanghai, China
Chinese P2P Lending
      6,414,368       503,235       577,293       0.20 % 
Preferred shares, Class B           2,333,108       250,491       247,076       0.09 % 
Total                 753,726       824,369       0.29 % 
The rSmart Group, Inc.(1)
                                            
Preferred shares, Series B     Scottsdale, AZ
Higher Education Learning Platform
      1,201,923       1,267,240       819,727       0.28 % 
AliphCom, Inc. (d/b/a Jawbone)
                                            
Common Stock     San Francisco, CA
Smart Device Company
      150,000       793,152       807,894       0.28 % 
NestGSV Silicon Valley, LLC(1)(4)
                                            
Common membership interest     Redwood City, CA
Incubator
    $ 500,000       500,000       622,577       0.22 % 
EdSurge, Inc.(1)
                                            
Preferred shares, Series A     Burlingame, CA
Education Media Platform
      494,365       500,001       500,001       0.17 % 
New Zoom, Inc
                                            
Preferred shares, Series A     San Francisco, CA
Retail Machines
      1,250,000       260,476       312,439       0.11 % 
Neuron Fuel, Inc.
                                            
Preferred shares, Series AAI     San Jose, CA
Computer Software
      250,000       262,530       263,097       0.09 % 
4C Insights (f.k.a The Echo Systems Corp.)
                                            
Preferred shares, Series A     Chicago, IL
Social Data Platform
      512,365       1,436,404       254,343       0.09 % 
Preferred warrants, $0.20 strike price,
expire 11/14/2016
          68,359       75,988             % 
Total                 1,512,392       254,343       0.09 % 
Odesk Corporation
                                            
Common Shares     Redwood City, CA
Online Workplace Platform
      30,000       183,269       217,800       0.08 % 
Total Portfolio Investments
                295,437,666       368,023,816       127.77 % 

 
 
See notes to Consolidated Financial Statements.

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
U.S. Treasury

                                            
U.S. Treasury Bill, 0%, due 4/4/2014            $ 80,000,000     $ 80,000,584     $ 79,999,900       27.77 % 
U.S. Treasury Strips(14)
                                            
United States Treasury Strip Coupon,
0.00% due 08/15/2016
           $ 1,851,000       1,811,111       1,823,457       0.63 % 
United States Treasury Strip Coupon,
0.00% due 02/15/2016
           $ 1,834,000       1,810,323       1,820,740       0.63 % 
United States Treasury Strip Coupon,
0.00% due 08/15/2015
           $ 1,823,000       1,811,205       1,818,315       0.63 % 
United States Treasury Strip Coupon,
0.00% due 02/15/2015
           $ 1,816,000       1,810,625       1,814,402       0.63 % 
United States Treasury Strip Coupon,
0.00% due 08/15/2014
        $ 1,813,000       1,811,187       1,812,891       0.63 % 
Total                 9,054,451       9,089,805       3.15 % 
Total Investments
              $ 384,492,701     $ 457,113,521       158.69 % 

* 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.
** 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.
*** Investment is income producing.
(1) 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.
(2) GSV Capital Corp.’s investment in Avenues Global Holdings, LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.
(3) GSV Capital Corp.’s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc. Whittle Schools, LLC is a derivative investment with economics linked to Avenues Global Holdings LLC.
(4) GSV Capital Corp.’s investment in NestGSV Silicon Valley, LLC is held through its wholly-owned subsidiary GSVC NG 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 SharesPost, Inc. is held through its wholly-owned subsidiary SPNPM Holdings, LLC.
(7) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly-owned subsidiary GSVC SVDS Holdings, Inc.
(8) 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 expired on January 29, 2014. At March 31, 2014, GSV Capital Corp. valued Control4 Corporation based on its March 31, 2014 closing price.
(9) 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 Violin Memory Inc. are subject to a lock-up agreement which expired on March 26, 2014. At March 31, 2014, GSV Capital Corp. valued Violin Memory Inc., based on its March 31, 2014 closing price.

 
 
See notes to Consolidated Financial Statements.

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2014
(Unaudited)
  

(10) On October 22, 2013, ePals, Inc. priced its initial public offering, selling 40,267,333 shares at a price of CAD $0.075 per share. GSV Capital Corp.’s shares in ePals, Inc. are subject to a lock-up agreement which expired on February 23, 2014. At March 31, 2014, GSV Capital Corp. valued ePals, Inc., based on its March 31, 2014 closing price less 8%. GSV Capital Corp.’s Chief Executive Officer, Michael Moe is a Board member of ePals, Inc., which subjects GSV Capital Corp. to insider trading restrictions under Canadian securities law. As such, the Company has applied an 8% discount to reflect the aforementioned trading restrictions.
(11) On November 6, 2013, Twitter, Inc. priced its initial public offering, selling 70,000,000 shares at a price of $26 per share. GSV Capital Corp.’s shares in Twitter, Inc. are subject to a lock-up agreement which expires on May 5, 2014. At March 31, 2014, GSV Capital Corp. valued Twitter, Inc., based on its March 31, 2014 closing price, adjusted for a discount due to lack of marketability of 9%.
(12) On November 12, 2013, Chegg, Inc. priced its initial public offering, selling 14,400,000 shares at a price of $12.50 per share. GSV Capital Corp.’s shares in Chegg, Inc. are subject to a lock-up agreement which expires on May 11, 2014. At March 31, 2014, GSV Capital Corp. valued Chegg, Inc., based on its March 31, 2014 closing price, adjusted for a discount due to lack of marketability of 8%.
(13) On March 28, 2014, 2U, Inc. (f/k/a 2tor, Inc.) priced its initial public offering, selling 9,175,000 shares at a price of $13 per share. GSV Capital Corp.’s shares in 2U, Inc. (f/k/a 2tor, Inc.) are subject to a lock-up agreement which expires on September 24, 2014. At March 31, 2014, GSV Capital Corp. valued 2U, Inc. (f/k/a 2tor, Inc.), based on its March 31, 2014 closing price, adjusted for a discount due to lack of marketability of 17.5%.
(14) Refer to Note 9 — Long Term Liabilities. In accordance with the terms of its Convertible Senior 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 March 31, 2014. As of March 31, 2014, 1 US Treasury Strip with a cost of $1,790,785 matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement.
(15) Denotes a Control Investment. “Control Investments” are investments in those companies that are “Controlled Companies” of GSV Capital Corp., as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Company” of GSV Capital Corp. if GSV Capital Corp. owns 25% or more of the voting securities of such company.

 
 
See notes to Consolidated Financial Statements.

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Twitter, Inc.(11)**
                                            
Common shares     San Francisco, CA
Social Communication
      1,900,600     $ 32,991,111     $ 102,822,460       35.71  
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      7,145,690       20,051,479       32,119,877       11.15  
Preferred shares, Series G           326,797       1,008,968       1,718,953       0.60  
Total                 21,060,447       33,838,830       11.75  
Dropbox, Inc.
                                            
Common share     San Francisco, CA
Online Storage
      760,000       8,641,153       9,181,012       3.19  
Preferred shares, Series A-1           552,486       5,015,333       6,674,185       2.32  
Total                 13,656,486       15,855,197       5.51  
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,443       14,519,443       5.04  
Control4 Corporation(8)**
                                            
Common shares     Salt Lake City, UT
Home Automation
      782,789       7,010,762       13,300,129       4.62  
2U, Inc. (f/k/a 2tor, Inc.)
                                            
Common shares     Landover, MD
Online Education
      1,151,802       8,758,193       9,875,206       3.43  
Preferred shares, Series A           167,431       1,273,125       1,435,503       0.50  
Total                 10,031,318       11,310,709       3.93  
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,034,324       11,017,561       11,286,628       3.92  
Avenues Global Holdings, LLC(2)
                                            
Preferred shares, Junior Preferred Stock     New York, NY
Globally Focused Private
School
      10,014,270       10,150,484       10,014,270       3.48  
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       10,000,003       3.47  
PayNearMe, Inc.(1)
             3,914,535       10,000,001       10,000,000       3.47  
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
                                     
Facebook, Inc.**                                             
Common Shares, Class A     Menlo Park, CA
Social Networking
      175,000       5,236,147       9,563,750       3.32  
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
Manager
      1,899,799       6,799,272       7,219,236       2.51  
Preferred shares, Series E           373,134       1,500,522       2,160,437       0.75  
Total                 8,299,794       9,379,673       3.26  

 
 
See notes to Consolidated Financial Statements.

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Chegg, Inc.(12)**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792     $ 14,022,863     $ 8,551,589       2.97  
ZocDoc Inc.
                                            
Preferred shares, Series A     New York, NY
Online Medical
Scheduling
      200,000       3,563,178       3,926,702       1.36  
Common Stock           111,866       1,734,878       2,196,322       0.76  
Total                 5,298,056       6,123,024       2.12  
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Education Technology
Company
      375,985       4,999,999       4,999,999       1.74  
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      36,720       4,999,964       4,999,964       1.74  
Whittle Schools, LLC(1)(3)
                                            
Preferred shares, Series B     New York, NY
Globally-focused Private
School
      3,000,000       3,000,000       3,000,000       1.04  
Common shares           229       1,531,734       1,500,000       0.52  
Total                 4,531,734       4,500,000       1.56  
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658       3,598,472       4,443,409       1.54  
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       4,335,671       4,338,009       1.51  
StormWind, LLC(1)(5)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
Platform
      3,279,629       2,019,687       4,205,142       1.46  
Violin Memory, Inc.(9)**
                                            
Common Shares     Mountain View, CA
Memory Flash
      1,247,498       14,819,618       4,204,068       1.46  
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       2,934,840       1.02  
Preferred shares, Series C           301,369       1,100,909       1,099,997       0.38  
Total                 3,164,265       4,034,837       1.40  
Gilt Groupe, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,433       4,024,389       1.40  
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,862       4,000,640       1.39  

 
 
See notes to Consolidated Financial Statements.

13


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Ozy Media, Inc.(1)
                                            
Preferred shares, Series A     Mountain View, CA
Daily News and
Information Site
      1,090,909     $ 3,000,000     $ 3,000,000       1.04  
Preferred shares, Series Seed           500,000       500,000       865,000       0.30  
Total                 3,500,000       3,865,000       1.34  
Totus Solutions, Inc.(1)
                                            
Common shares     Carrollton, TX
LED Lighting
      11,307,348       2,840,391       576,675       0.20  
Preferred shares, Series A              8,692,652       2,183,582       2,173,163       0.75  
Preferred shares, Series B           11.111,110       1,000,000       1,001,001       0.35  
Total                 6,023,973       3,750,839       1.30  
Fullbridge, Inc.(1)
                                            
Preferred shares, Series C     Cambridge, MA
Business Education
      1,728,724       3,193,444       3,114,120       1.08  
Term Loan, 10%, 3/31/14***            $ 250,000       262,612       250,000       0.09  
Term Loan, 10%, 3/31/14***            $ 250,000       241,239       250,000       0.09  
Common warrants, $0.91 strike price, expire 3/22/2020              186,170       67,021       126,362       0.04  
Common warrants, $0.91 strike price, expire 10/09/2018              82,418       9,901              
Common warrants, $0.91 strike price, expire 12/10/2018           82,418       9,799              
Total                 3,784,016       3,740,482       1.30  
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       3,731,264       1.30  
Learnist Inc. (f/k/a Grockit, Inc.)(1)(11)
                                            
Preferred shares, Series D     San Francisco, CA
Online Learning Platform
      2,728,252       2,005,945       2,073,472       0.72  
Preferred shares, Series E           1,731,501       1,503,670       1,499,999       0.52  
Total                 3,509,615       3,573,471       1.24  
CUX, Inc. (d/b/a CorpU)(1)
                                            
Common Stock     San Francisco, CA
Corporate Education
      615,763       2,006,077       2,229,678       0.77  
Convertible preferred shares, Series D              169,033       778,607       697,041       0.24  
Preferred warrants, $4.59 strike price, expire 02/25/2018           16,903                    
Total                 2,784,684       2,926,719       1.01  
SharesPost, Inc.(6)
                                      
Preferred shares, Series B     San Bruno, CA
Online Marketplace
Finance
      1,771,653       2,259,716       2,232,283       0.78  
Common warrants, $0.13 strike price, expire 6/15/2018           770,934       23,128       115,640       0.04  
Total                 2,282,844       2,347,923       0.82  
TrueCar, Inc.
                                            
Common shares     Santa Monica, CA
Online Marketplace
      377,358     $ 2,014,863     $ 2,299,997       0.80  
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,503,436       0.52  
Preferred shares, Series A           3,579,610       758,017       751,718       0.26  
Total                 2,260,379       2,255,154       0.78  

 
 
See notes to Consolidated Financial Statements.

14


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2013

         
Portfolio Investments*   Headquarters/Industry   Shares   Cost   Fair Value   % of Net Assets
Maven Research, Inc.(1)
                                            
Preferred shares, Series C     San Francisco, CA
Knowledge Networks
      318,979       2,000,447       1,999,998       0.69  
Preferred shares, Series B           49,505       217,206       249,505       0.09  
Total                 2,217,653       2,249,503       0.78  
Silver Spring Networks, Inc.**
                                            
Common shares     Redwood City, CA
Smart Grid
      102,028       5,145,271       2,142,588       0.74  
NestGSV, Inc.(1)