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 June 30, 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 August 11, 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 June 30, 2014 (unaudited) and December 31, 2013     1  
Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2014, and June 30, 2013     2  
Consolidated Statements of Changes in Net Assets (unaudited) for the six months ended June 30, 2014, and June 30, 2013     3  
Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2014, and June 30, 2013     4  
Consolidated Schedule of Investments as of June 30, 2014 (unaudited)     6  
Consolidated Schedule of Investments as of December 31, 2013     13  
Notes to the Consolidated Financial Statements as of June 30, 2014 (unaudited)     19  

Item 2.

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

    38  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    52  

Item 4.

Controls and Procedures

    52  
PART II. OTHER INFORMATION
        

Item 1.

Legal Proceedings

    53  

Item 1A.

Risk Factors

    53  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    53  

Item 3.

Defaults Upon Senior Securities

    53  

Item 4.

Mine Safety Disclosure

    53  

Item 5.

Other Information

    53  

Item 6.

Exhibits

    53  
Signatures     55  
                                      

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

   
  June 30,
2014
  December 31, 2013
ASSETS
    (Unaudited)
          
Investments at fair value:
                 
Investments in controlled securities (cost of $11,301,139 and $0,
respectively)
  $ 12,410,350     $  
Investments in affiliated securities (cost of $75,196,702 and $64,912,527, respectively)     67,776,900       62,740,162  
Investments in non-control/non-affiliated securities (cost of $196,466,367 and $214,796,591, respectively)     286,850,588       292,643,491  
Investments owned and pledged (cost of $9,082,226 and $10,845,236, respectively)     9,102,586       10,865,200  
Investments in United States Treasury Bill (cost of $80,000,445 and $0, respectively)(1)     80,000,000        
Total Investments (cost of $372,046,879 and $290,554,354, respectively)     456,140,424       366,248,853  
Cash     4,194,280       7,219,203  
Restricted cash     22,139       22,264  
Due from GSV Capital Service Company, LLC(1)     35,406       3,039  
Due from portfolio companies     122,251       153,178  
Interest receivable     102       7,304  
Prepaid expenses     61,944       49,739  
Coupon interest receivable           11,141  
Dividend receivable           13,233  
Deferred credit facility fees     189,940       288,249  
Deferred debt issuance costs     3,022,216       3,378,121  
Deferred offering costs     241,010       184,710  
Other assets     334,700       368,524  
Total Assets     464,364,412       377,947,558  
LIABILITIES
                 
Due to GSV Asset Management(1)     9,647       563,978  
Accounts payable     160,068       382,165  
Accrued incentive fees     12,337,837       10,523,552  
Accrued interest payable     1,187,693       1,056,563  
Accrued expenses     188,753        
Payable for securities purchased     72,000,667        
Net deferred tax liability     7,656,143       8,320,561  
Line of Credit     15,141,333        
Convertible senior notes embedded derivative liability     159,000       799,000  
Convertible senior notes payable 5.25% due September 15, 2018     68,397,429       68,335,295  
Total Liabilities     177,238,570       89,981,114  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 287,125,842     $ 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     (25,406,364 )      (19,192,401 ) 
Accumulated net realized loss on investments     (13,256,660 )      (13,660,306 ) 
Accumulated net unrealized appreciation on investments     49,758,151       44,788,436  
Net Assets   $ 287,125,842     $ 287,966,444  
Net Asset Value Per Share   $ 14.86     $ 14.91  

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

 
 
See notes to the Consolidated Financial Statements.

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

       
  Three Months Ended June 30,   Six Months Ended June 30,
     2014   2013   2014   2013
INVESTMENT INCOME
                                   
Interest income from control securities   $ 667     $     $ 5,733     $  
Interest income from affiliated securities     68,591             103,453        
Interest income from non-control/non-affiliated securities     27,775             27,775        
Dividend income from affiliated securities                        
Dividend income from non-control/non-affiliated securities           15,723       887       20,258  
Total Investment Income     97,033       15,723       137,848       20,258  
OPERATING EXPENSES
                                   
Investment management fees     1,933,663       1,246,378       3,689,859       2,529,977  
Accrued incentive fees     844,633             1,814,285        
Costs incurred under administration agreement     929,701       709,885       1,838,233       1,597,869  
Directors’ fees     65,000       65,000       130,000       130,250  
Professional fees     402,555       220,978       859,094       457,864  
Interest and credit facility expense     1,533,971             2,713,696        
Insurance expense     60,303       64,062       120,039       117,075  
Investor relations expense     103,384       72,943       158,296       116,505  
Other expenses     22,341       23,388       40,592       25,354  
Gain on fair value adjustment for embedded derivative     (20,000 )            (640,000 )       
Total Operating Expenses     5,875,551       2,402,634       10,724,094       4,974,894  
Benefit for taxes on net investment loss     2,359,369             4,372,283        
Net Investment Loss     (3,419,149 )      (2,386,911 )      (6,213,963 )      (4,954,636 ) 
Net Realized Gain (Loss) on Investments     (7,249,566 )      (6,327,632 )      682,179       (9,674,524 ) 
Benefit/(Provision) for taxes on Net Realized Capital (Gains)/Losses     2,959,998             (278,533 )       
Net Change in Unrealized Appreciation on Investments     11,472,725       12,230,246       8,399,046       10,653,608  
Provision for taxes on Unrealized Appreciation of Investments     (4,684,314 )            (3,429,331 )       
Net Increase (Decrease) in Net Assets Resulting from Operations   $ (920,306 )    $ 3,515,703     $ (840,602 )    $ (3,975,552 ) 
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share – basic and diluted   $ (0.05 )    $ 0.18     $ (0.04 )    $ (0.21 ) 
Weighted Average Common Shares Outstanding – basic and diluted     19,320,100       19,320,100       19,320,100       19,320,100  

 
 
See notes to the Consolidated Financial Statements.

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

   
  Six months
ended
June 30, 2014
  Six months
ended
June 30, 2013
Decrease in Net Assets Resulting From Operations
                 
Net Investment Loss   $ (6,213,963 )    $ (4,954,636 ) 
Net Realized Gain (Loss) on Investments     682,179       (9,674,524 ) 
Provision for taxes on Net Realized Capital Gains     (278,533 )       
Net Change in Unrealized Appreciation on Investments     8,399,046       10,653,608  
Provision for taxes on Unrealized Appreciation of Investments     (3,429,331 )       
Net Decrease in Net Assets Resulting From Operations     (840,602 )      (3,975,552 ) 
Total Decrease in Net Assets     (840,602 )      (3,975,552 ) 
Net Assets at Beginning of Period     287,966,444       252,582,801  
Net Assets at End of Period   $ 287,125,842     $ 248,607,249  
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 the Consolidated Financial Statements.

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GSV CAPITAL CORP. AND SUBSIDIARIES
  

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

   
  Six months
ended
June 30, 2014
  Six months
ended
June 30, 2013
Cash Flows from Operating Activities
                 
Net decrease in net assets resulting from operations   $ (840,602 )    $ (3,975,552 ) 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used in operating activities:
                 
Net realized (gain) loss on investments     (682,179 )      9,674,524  
Net change in unrealized appreciation on investments     (8,399,046 )      (10,653,608 ) 
Gain on fair value adjustment for embedded derivative     (640,000 )       
Net deferred tax liability     (664,418 )       
Amortization of deferred credit facility fees     98,309        
Amortization of deferred debt issuance costs     418,039        
Amortization of fixed income security premiums and discounts     (27,553 )       
Purchases of investments in:
                 
Portfolio investments     (35,548,349 )      (19,607,661 ) 
United States treasury bill     (160,001,251 )       
Proceeds from sales or redemption of investments in:
                 
Portfolio investments     32,975,438       17,785,344  
United States treasury strips     1,790,785        
United States treasury bill     80,000,584        
Change in operating assets and liabilities:
                 
Due from GSV Asset Management(1)     (32,367 )      3,117  
Due from portfolio companies     30,927       125,747  
Accrued interest     7,202        
Prepaid expenses     (12,205 )      (49,729 ) 
Coupon interest receivable     11,141        
Dividend receivable     13,233       (11,305 ) 
Other assets     33,824       20,890  
Due to GSV Asset Management(1)     (554,331 )      387,654  
Payable for securities purchased     72,000,667        
Accounts payable     (222,097 )      (112,139 ) 
Accrued incentive fees     1,814,285        
Accrued interest payable     131,130        
Accrued expenses     188,753       (271,697 ) 
Net Cash Used in Operating Activities     (18,110,081 )      (6,684,415 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     18,000,000        
Repayments under credit facility     (2,858,667 )       
Deferred offering costs     (56,300 )       
Change in restricted cash     125        
Net Cash Provided by Financing Activities     15,085,158        

 
 
See notes to the Consolidated Financial Statements.

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GSV CAPITAL CORP. AND SUBSIDIARIES
  

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

   
  Six months ended June 30, 2014   Six months ended
June 30, 2013
Total Decrease in Cash Balance     (3,024,923 )      (6,684,415 ) 
Cash Balance at Beginning of Period     7,219,203       11,318,525  
Cash Balance at End of Period   $ 4,194,280     $ 4,634,110  
Non-Cash Operating Items
                 
Transactions in Investments in Portfolio Companies
                 
Convertible notes converted to preferred shares   $ 3,064,135     $  
Term loan converted to preferred shares   $ 503,851     $  
Preferred shares converted to common shares   $ 1,273,125     $ 1,999,997  
Common shares converted to preferred shares   $ 2,006,077     $  
Common membership interest converted to preferred shares   $ 500,000     $  
Decrease in accounts payable   $ (222,097 )    $  
Non-Cash Financing Items
                 
Increase in deferred offering costs   $ 56,300     $  

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

 
 
See notes to the Consolidated Financial Statements.

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GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Twitter, Inc.(9)**
                                            
Common shares     San Francisco, CA
Social Communication
      1,900,600     $ 32,991,111     $ 77,867,582       27.12 % 
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      7,145,690       20,051,479       39,301,295       13.69 % 
Preferred shares, Series G           326,797       1,008,968       1,932,187       0.67 % 
Total                 21,060,447       41,233,482       14.36 % 
Dropbox, Inc.
                                            
Common shares     San Francisco, CA
Online Storage
      760,000       8,641,153       16,304,416       5.68 % 
Preferred shares, Series A-1           552,486       5,015,333       11,852,581       4.13 % 
Total                 13,656,486       28,156,997       9.81 % 
2U, Inc. (f/k/a 2tor, Inc.)(11)**
                                            
Common shares     Landover, MD
Online Education
      1,319,233       10,032,117       19,293,387       6.72 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,443       14,515,149       5.06 % 
Avenues Global Holdings, LLC(3)
                                            
Preferred shares, Junior Preferred Stock     New York, NY
Globally-focused Private
School
      10,014,270       10,151,854       11,258,690       3.92 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
      1,899,799       6,799,392       8,985,863       3.13 % 
Preferred shares, Series E     Manager       373,134       1,500,522       2,111,865       0.74 % 
Total                 8,299,914       11,097,728       3.87 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,034,324       11,017,801       11,000,012       3.83 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      3,914,535       10,000,000       10,000,000       3.48 % 
Declara, Inc.(1)
                                            
Preferred shares, Series A     Palo Alto, CA
Social Cognitive Learning
      5,358,195       9,999,999       9,999,999       3.48 % 
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       9,999,917       3.48 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,998,157       3.48 % 

 
 
See notes to the Consolidated Financial Statements.

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GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Chegg, Inc.(10)**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792     $ 14,022,863     $ 8,326,856       2.90 % 
ZocDoc Inc.
                                            
Preferred shares, Series A     New York, NY
Online Medical Scheduling
      200,000       3,563,178       5,000,000       1.74 % 
Common shares           111,866       1,734,878       2,796,650       0.97 % 
Total                 5,298,056       7,796,650       2.71 % 
StormWind, LLC(2)(5)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
      3,279,629       2,019,687       4,066,740       1.42 % 
Preferred shares, Series C              2,132,824       3,000,030       3,012,802       1.05 % 
Preferred shares, Series A              366,666       110,000       196,166       0.07 % 
Preferred Unit Warrants $1.55 strike price, expire 7/6/14              568,753             34,125       0.01 % 
Preferred Unit Warrants $1.76 strike price, expire 1/6/15           646,310                   % 
Total                 5,129,717       7,309,833       2.55 % 
General Assembly Space, Inc.
                                            
Common shares     New York, NY
Online Education
      133,213       2,999,983       2,999,977       1.06 % 
Preferred shares, Series C           126,552       2,999,978       3,035,279       1.04 % 
Total                 5,999,961       6,035,256       2.10 % 
Fullbridge, Inc.(1)
                                            
Preferred shares, Series C     Cambridge, MA
Business Education
      1,728,724       3,193,444       2,823,871       0.98 % 
Preferred shares, Series D              1,655,167       2,956,022       3,111,714       1.08 % 
Common warrants, $0.91 strike price, expire 3/22/2020              714,286       85,779             % 
Common warrants, $0.91 strike price, expire 12/11/2018              82,418       9,799             % 
Common warrants, $0.91 strike price, expire 12/11/2018              412,088       50,970             % 
Common warrants, $0.91 strike price, expire 5/16/2019              192,308       23,244             % 
Common warrants, $0.91 strike price, expire 3/22/2020              186,170       67,021             % 
Common warrants, $0.91 strike price, expire 10/09/2018           82,418       9,901             % 
Total                 6,396,180       5,935,585       2.06 % 
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Online Education
      375,985       4,999,999       5,000,300       1.74 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       5,003,631       4,999,054       1.74 % 

 
 
See notes to the Consolidated Financial Statements.

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GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 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     $ 4,814,292       1.68 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       4,335,671       4,600,727       1.60 % 
Whittle Schools, LLC(1)(4)
                                            
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       1,577,097       1,500,000       0.53 % 
Total                 4,577,097       4,500,000       1.57 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       4,470,054       1.56 % 
Gilt Groupe, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,433       4,338,580       1.51 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       3,040,723       1.06 % 
Preferred shares, Series C           301,369       1,100,912       1,144,627       0.40 % 
Total                 3,164,268       4,185,350       1.46 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,862       4,020,940       1.40 % 
Ozy Media, Inc.(1)
                                            
Preferred shares, Series A     Mountain View, CA
Daily News and
Information Site
      1,090,909       3,000,200       3,000,000       1.04 % 
Preferred shares, Series Seed           500,000       500,000       865,000       0.31 % 
Total                 3,500,200       3,865,000       1.35 % 
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 % 
NestGSV, Inc.(2)
                                            
Preferred shares, Series C     Redwood City, CA
Incubator
      1,561,625       2,005,730       2,082,161       0.73 % 
Preferred shares, Series A              1,000,000       1,021,778       806,000       0.28 % 
Preferred shares, Series B              450,000       605,500       443,700       0.15 % 
Preferred warrants, Series C – $1.33 strike price, expire 4/9/2019           187,500             54,375       0.02 % 
Total                 3,633,008       3,386,236       1.18 % 

 
 
See notes to the Consolidated Financial Statements.

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
CUX, Inc. (d/b/a CorpU)(1)
                                            
Convertible preferred shares, Series C     San Francisco, CA
Corporate Education
      615,763     $ 2,006,077     $ 2,484,026       0.87 % 
Convertible preferred shares, Series D              169,033       778,607       801,563       0.27 % 
Preferred warrants, $4.59 strike price, expire 02/25/2018           16,903             18,424       0.01 % 
Total                 2,784,684       3,304,013       1.15 % 
TrueCar, Inc.(12)
                                            
Common shares     Santa Monica, CA
Online Marketplace
      251,572       2,015,023       3,067,543       1.07 % 
SharesPost, Inc.(1)(6)
                                            
Preferred shares, Series B     San Bruno, CA
Online Marketplace
Finance
      1,771,653       2,259,717       2,232,283       0.77 % 
Common warrants, $0.13 strike price, expire 6/15/2018           770,934       23,128       192,734       0.07 % 
Total                 2,282,845       2,425,017       0.84 % 
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,584,894       0.55 % 
Preferred shares, Series A           3,579,610       758,017       792,447       0.28 % 
Total                 2,260,379       2,377,341       0.83 % 
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 % 
Circle Media (f.k.a. S3 Digital Corp. (d/b/a S3i)(1)
                                            
Preferred shares, Class A1     New York, NY
Sports Analytics
      1,110,639       1,079,058       1,295,005       0.45 % 
Term Loan, 12%, 09/30/15***            $ 272,500       283,901       272,500       0.09 % 
Preferred warrants, $1.166 strike price, expire 09/30/2020              500,000       31,354       185,000       0.07 % 
Preferred warrants, $1.00 strike price, expire 11/21/2017              160,806             69,147       0.02 % 
Preferred warrants, $1.16 strike price, expire 6/21/2021           38,594             14,280         % 
Total                 1,394,313       1,835,932       0.63 % 
Dailybreak, Inc.(1)
                                            
Preferred shares, Series A-1     Boston, MA
Social Advertising
      1,878,129       2,430,950       1,070,534       0.37 % 
Preferred shares, Series A-2           347,666       451,236       415,618       0.15 % 
Total                 2,882,186       1,486,152       0.52 % 

 
 
See notes to the Consolidated Financial Statements.

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Totus Solutions, Inc.(1)
                                            
Preferred shares, Series B     Carrollton, TX
LED Lighting
      11,111,110     $ 1,000,000     $ 1,000,400       0.35 % 
Convertible Promissory Note 6%, expire, 4/01/2016            $ 76,110       76,110       76,110       0.02 % 
Preferred shares, Series A              8,692,652       2,183,582       17,893       0.01 % 
Common Shares           11,307,348       2,840,591             % 
Total                 6,100,283       1,094,403       0.38 % 
AlwaysOn, Inc.(2)
                                            
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, $0.19 strike price, expire 12/31/2014              1,313,508             26,270       0.01 % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017           109,375                   % 
Total                 1,903,414       1,079,281       0.38 % 
Strategic Data Command, LLC(1)(7)
                                            
Common shares     Sunnyvale, CA
Software Development
      800,000       1,001,650       1,000,000       0.35 % 
AliphCom, Inc. (d/b/a Jawbone)
                                            
Common shares     San Francisco, CA
Smart Device Company
      150,000       793,152       900,000       0.31 % 
DianRong (fka 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       250,000       0.09 % 
Total                 753,726       827,293       0.29 % 
Cricket Media (fka ePals Inc.)**(1)(8)
                                            
Common shares     Herndon, VA
Online Education
      33,333,333       2,446,284       825,000       0.29 % 
GSV Sustainability Partners(2)
                                            
Preferred shares, Class A     Woodside, CA
Clean Technology
      1,250,000       625,000       625,000       0.22 % 
Common shares           100,000       10,000       10,000       % 
                635,000       635,000       0.22 % 
The rSmart Group, Inc.(1)
                                            
Preferred shares, Series B     Scottsdale, AZ
Higher Education Learning Platform
      1,201,923       1,267,240       580,386       0.20 % 
EdSurge, Inc.(1)
                                            
Preferred shares, Series A     Burlingame, CA
Education Media Platform
      494,365       500,801       503,356       0.18 % 
New Zoom, Inc
                                            
Preferred shares, Series A     San Francisco, CA
Retail Machines
      1,250,000       260,476       336,408       0.12 % 

 
 
See notes to the Consolidated Financial Statements.

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Neuron Fuel, Inc.
                                            
Preferred shares, Series AAI     San Jose, CA
Computer Software
      250,000     $ 262,530     $ 287,082       0.10 % 
4C Insights (f.k.a The Echo Systems Corp.)
                                            
Preferred shares, Series A     Chicago, IL
Social Data Platform
      512,365       1,436,404       245,423       0.09 % 
Earlyshares.com
                                            
Preferred shares, Series A     Miami, FL
Equity Crowd Funding
      149,144       234,159       224,999       0.08 % 
Odesk Corporation
                                            
Common Shares     Redwood City, CA
Online Workplace Platform
      30,000       183,269       174,223       0.06 % 
Total Portfolio Investments                 282,964,208       367,037,838       127.83 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 7/3/2014            $ 80,000,000       80,000,445       80,000,000       27.86 % 
U.S. Treasury Strips(13)
                                            
United States Treasury Strip Coupon, 0.00% due 08/15/2016            $ 1,851,000       1,821,805       1,830,233       0.64 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2016            $ 1,834,000       1,818,002       1,825,270       0.64 % 
United States Treasury Strip Coupon, 0.00% due 08/15/2015            $ 1,823,000       1,816,053       1,819,536       0.63 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2015            $ 1,816,000       1,813,612       1,814,692       0.63 % 
United States Treasury Strip Coupon, 0.00% due 08/15/2014         $ 1,813,000       1,812,754       1,812,855       0.63 % 
Total                 9,082,226       9,102,586       3.17 % 
Total Investments               $ 372,046,879     $ 456,140,424       158.86 % 

* 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) 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.
(3) GSV Capital Corp.’s investment in Avenues Global Holdings, LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.

 
 
See notes to the Consolidated Financial Statements.

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GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2014
(Unaudited)

(4) GSV Capital Corp.’s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc. Whittle Schools, LLC is an investment whose economics are derived from the value of Avenues Global Holdings LLC.
(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 October 22, 2013, Cricket Media (fka 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 Cricket Media (fka ePals Inc.), are subject to a lock-up agreement which expired on February 23, 2014. At June 30, 2014, GSV Capital Corp. valued Cricket Media (fka ePals Inc.), based on its June 30, 2014 closing price less 17.5%. GSV Capital Corp.’s Chief Executive Officer, Michael Moe is a Board member of Cricket Media (fka ePals Inc.), which subjects GSV Capital Corp. to insider trading restrictions under Canadian securities law. As such, the Company has applied a 17.5% discount to reflect the aforementioned trading restrictions.
(9) 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 expired on May 5, 2014. At June 30, 2014, GSV Capital Corp. valued Twitter, Inc., based on its June 30, 2014 closing price.
(10) 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 expired on May 11, 2014. At June 30, 2014, GSV Capital Corp. valued Chegg, Inc., based on its June 30, 2014 closing price.
(11) 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 June 30, 2014, GSV Capital Corp. valued 2U, Inc. (f/k/a 2tor, Inc.), based on its June 30, 2014 closing price, adjusted for a discount due to lack of marketability of 13.0%. Michael Moe is a Board member of 2U, Inc. (f/k/a 2tor, Inc.).
(12) On May 15, 2014, TrueCar, Inc. priced its initial public offering, selling 7,775,000 shares at a price of $14 per share. GSV Capital Corp.’s shares in TrueCar, Inc. are subject to a lock-up agreement which expires on Novemenber 11, 2014. At June 30, 2014, GSV Capital Corp. valued TrueCar, Inc., based on its June 30, 2014 closing price, adjusted for a discount due to lack of marketability of 17.5%.
(13) 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 June 30, 2014. On February 15, 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.

 
 
See notes to the Consolidated Financial Statements.

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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 the 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
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 the Consolidated Financial Statements.

14


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  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     $ 3,000,200     $ 3,000,000       1.04 %  
Preferred shares, Series Seed           500,000       500,000       865,000       0.30 %  
Total                 3,500,200       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 the Consolidated Financial Statements.

15


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  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