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



 

FORM 10-Q



 

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

        FOR THE QUARTERLY PERIOD ENDED September 30, 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 November 10, 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 September 30, 2014 (unaudited) and December 31, 2013     1  
Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2014, and September 30, 2013     2  
Consolidated Statements of Changes in Net Assets (unaudited) for the nine months ended September 30, 2014, and September 30, 2013     3  
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2014, and September 30, 2013     4  
Consolidated Schedule of Investments as of September 30, 2014 (unaudited)     5  
Consolidated Schedule of Investments as of December 31, 2013     12  
Notes to the Consolidated Financial Statements as of September 30, 2014 (unaudited)     18  

Item 2.

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

    39  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    53  

Item 4.

Controls and Procedures

    54  

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    55  

Item 1A.

Risk Factors

    55  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    55  

Item 3.

Defaults Upon Senior Securities

    55  

Item 4.

Mine Safety Disclosure

    55  

Item 5.

Other Information

    55  

Item 6.

Exhibits

    55  
Signatures     57  

i


 
 

TABLE OF CONTENTS

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

   
  September 30,
2014
  December 31,
2013
ASSETS
    (Unaudited)
          
Investments at fair value:
                 
Investments in controlled securities (cost of $13,153,112 and $0,
respectively)
  $ 14,333,474     $  
Investments in affiliated securities (cost of $73,333,331 and $64,912,527, respectively)     61,962,467       62,740,162  
Investments in non-controlled/non-affiliated securities (cost of $194,419,794 and $214,796,591, respectively)     289,950,095       292,643,491  
Investments owned and pledged (cost of $7,277,896 and $10,845,236, respectively)     7,293,864       10,865,200  
Investments in United States Treasury Bill (cost of $100,001,483 and $0, respectively)     99,999,944        
Total Investments (cost of $388,185,616 and $290,554,354, respectively)     473,539,844       366,248,853  
Cash     6,517,389       7,219,203  
Restricted cash     48,889       22,264  
Due from GSV Capital Service Company, LLC(1)     18,834       3,039  
Due from Portfolio companies     107,874       153,178  
Interest receivable     12,584       7,304  
Prepaid expenses     242,194       49,739  
Coupon interest receivable     896       11,141  
Dividend receivable           13,233  
Deferred credit facility fees     141,586       288,249  
Deferred debt issuance costs     2,841,316       3,378,121  
Deferred offering costs           184,710  
Other assets     333,820       368,524  
Total Assets     483,805,226       377,947,558  
LIABILITIES
                 
Due to GSV Asset Management(1)     48,898       563,978  
Accounts payable     101,747       382,165  
Accrued incentive fees     16,022,137       10,523,552  
Accrued interest payable     235,255       1,056,563  
Accrued expenses     155        
Payable for securities purchased     94,001,484        
Net deferred tax liability     11,809,330       8,320,561  
Line of Credit            
Convertible senior notes embedded derivative liability     12,000       799,000  
Convertible senior notes payable 5.25% due September 15, 2018     68,429,665       68,335,295  
Total Liabilities     190,660,671       89,981,114  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 293,144,555     $ 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     (30,287,651 )      (19,192,401 ) 
Accumulated net realized loss on investments     (3,102,606 )      (13,660,306 ) 
Accumulated net unrealized appreciation on investments     50,504,097       44,788,436  
Net Assets   $ 293,144,555     $ 287,966,444  
Net Asset Value Per Share   $ 15.17     $ 14.91  

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

 
 
See notes to the Consolidated Financial Statements.

1


 
 

TABLE OF CONTENTS

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

       
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
     2014   2013   2014   2013
INVESTMENT INCOME
                                   
Interest income from controlled securities   $ 4,083     $     $ 9,816     $  
Interest income from affiliated securities     9,294             112,747        
Interest income from non-controlled/non-affiliated securities     8,594       2,256       36,369       2,256  
Dividend income from affiliated securities           388             13,008  
Dividend income from non-controlled/non-affiliated securities                 887       7,638  
Total Investment Income     21,971       2,644       159,819       22,902  
OPERATING EXPENSES
                                   
Investment management fees     1,949,705       1,298,858       5,639,564       3,828,835  
Accrued incentive fees     3,684,300             5,498,585        
Costs incurred under administration agreement     718,896       678,283       2,557,129       2,276,152  
Directors’ fees     65,000       65,000       195,000       195,250  
Professional fees     442,683       198,932       1,301,777       656,796  
Interest and credit facility expense     1,442,063       191,188       4,155,759       191,188  
Insurance expense     61,800       62,732       181,839       179,807  
Investor relations expense     35,816       54,760       194,112       171,265  
Other expenses     18,306       45,680       58,898       71,034  
Loss (Gain) on fair value adjustment for embedded derivative     (147,000 )      421,000       (787,000 )      421,000  
Total Operating Expenses     8,271,569       3,016,433       18,995,663       7,991,327  
Benefit for taxes on net investment loss     3,368,311             7,740,594        
Net Investment Loss     (4,881,287 )      (3,013,789 )      (11,095,250 )      (7,968,425 ) 
Net Realized Gain (Loss) on Investments     17,160,816       (162,569 )      17,842,995       (9,837,093 ) 
Provision for taxes on Net Realized Capital Gains     (7,006,762 )            (7,285,295 )       
Net Change in Unrealized Appreciation on Investments     1,260,683       8,892,104       9,659,729       19,545,712  
Provision for taxes on Unrealized Appreciation of Investments     (514,737 )            (3,944,068 )       
Net Increase in Net Assets Resulting from Operations   $ 6,018,713     $ 5,715,746     $ 5,178,111     $ 1,740,194  
Net Increase in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ 0.31     $ 0.29     $ 0.27     $ 0.09  
Diluted   $ 0.30     $ 0.29     $ 0.27     $ 0.09  
Weighted Average Common Shares Outstanding
                                   
Basic     19,320,100       19,320,100       19,320,100       19,320,100  
Diluted     23,564,228       19,320,100       19,320,100       19,320,100  

 
 
See notes to the Consolidated Financial Statements.

2


 
 

TABLE OF CONTENTS

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

   
  Nine months
ended
September 30,
2014
  Nine months
ended
September 30,
2013
Increase in Net Assets Resulting From Operations
                 
Net Investment Loss   $ (11,095,250 )    $ (7,968,425 ) 
Net Realized Gain (Loss) on Investments     17,842,995       (9,837,093 ) 
Provision for taxes on Net Realized Capital Gains     (7,285,295 )       
Net Change in Unrealized Appreciation on Investments     9,659,729       19,545,712  
Provision for taxes on Unrealized Appreciation of Investments     (3,944,068 )       
Net Increase in Net Assets Resulting From Operations     5,178,111       1,740,194  
Total Increase in Net Assets     5,178,111       1,740,194  
Net Assets at Beginning of Period     287,966,444       252,582,801  
Net Assets at End of Period   $ 293,144,555     $ 254,322,995  
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.

3


 
 

TABLE OF CONTENTS

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

   
  Nine months
ended
September 30,
2014
  Nine months
ended
September 30,
2013
Cash Flows from Operating Activities
                 
Net increase in net assets resulting from operations   $ 5,178,111     $ 1,740,194  
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
                 
Net realized (gain) loss on investments     (17,842,995 )      9,837,093  
Net change in unrealized appreciation on investments     (9,659,729 )      (19,545,712 ) 
(Gain) loss on fair value adjustment for embedded derivative     (787,000 )      421,000  
Net deferred tax liability     3,488,769        
Amortization of deferred credit facility fees     146,663        
Amortization of deferred debt issuance costs     631,175       28,371  
Amortization of fixed income security premiums and discounts     (41,426 )       
Write-off of deferred offering costs     277,977        
Purchases of investments in:
                 
Portfolio investments     (45,852,034 )      (24,736,663 ) 
Money market funds           (28,000,000 ) 
United States treasury bill     (260,002,734 )      (10,845,236 ) 
Proceeds from sales or redemption of investments in:
                 
Portfolio investments     62,502,968       6,858,921  
Money market funds           16,000,000  
United States treasury strips     3,603,708        
United States treasury bill     160,001,251        
Change in operating assets and liabilities:
                 
Due from GSV Capital Service Company, LLC(1)     (15,795 )      (9,344 ) 
Due from portfolio companies     45,304       106,818  
Interest receivable     (5,280 )      (2,256 ) 
Prepaid expenses     (192,455 )      (294,371 ) 
Coupon interest receivable     10,245        
Dividend receivable     13,233       (11,464 ) 
Other assets     34,704       23,538  
Due to GSV Asset Management(1)     (515,080 )      (17,391 ) 
Payable for securities purchased     94,001,484        
Accounts payable     (280,418 )      64,508  
Accrued offering costs           253,100  
Accrued credit facility fees           3,078  
Accrued incentive fees     5,498,585        
Accrued interest payable     (821,308 )      191,188  
Accrued expenses     155       (255,725 ) 
Net Cash Used in Operating Activities     (581,922 )      (48,190,353 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     18,000,000        
Repayments under credit facility     (18,000,000 )       
Deferred credit facility fees           (58,998 ) 
Deferred debt issuance costs           (3,237,833 ) 
Deferred offering costs     (93,267 )      (365,873 ) 
Change in restricted cash     (26,625 )      (22,264 ) 
Gross proceeds from convertible senior notes issued           69,000,000  
Net Cash Provided by (Used In) Financing Activities     (119,892 )      65,315,032  
Total Increase (Decrease) in Cash Balance     (701,814 )      17,124,679  
Cash Balance at Beginning of Period     7,219,203       11,318,525  
Cash Balance at End of Period   $ 6,517,389     $ 28,443,204  
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     $ 12,481,883  
Common membership interest converted to preferred shares   $ 500,000     $  
Non-Cash Financing Items
                 
Fair value of make-whole derivative resulting from issuance of convertible debt   $     $ 700,000  

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

 
 
See notes to the Consolidated Financial Statements.

4


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net
Assets
Twitter, Inc.**
                                            
Common shares     San Francisco, CA Social
Communication
      1,600,600     $ 27,551,563     $ 82,558,948       28.16 % 
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      6,825,690       19,186,552       37,541,295       12.81 % 
Preferred shares, Series G           326,797       1,008,968       2,003,266       0.68 % 
Total                 20,195,520       39,544,561       13.49 % 
Dropbox, Inc.
                                            
Common shares     San Francisco, CA
Online Storage
      760,000       8,641,153       15,304,500       5.22 % 
Preferred shares, Series A-1           552,486       5,015,333       11,125,687       3.80 % 
Total                 13,656,486       26,430,187       9.02 % 
2U, Inc. (f/k/a 2tor, Inc.)(9)**
                                            
Common shares     Landover, MD
Online Education
      1,319,233       10,032,117       18,508,839       6.31 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,443       14,513,002       4.95 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,300,158       11,598,649       11,580,845       3.95 % 
Preferred shares, Series D           1,613,413       2,419,151       2,419,151       0.83 % 
Total                 14,017,800       13,999,996       4.78 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
      1,899,799       6,799,392       10,024,532       3.42 % 
Preferred shares, Series E     Manager       373,134       1,500,522       2,099,875       0.72 % 
Total                 8,299,914       12,124,407       4.14 % 
Avenues Global Holdings, LLC(3)
                                            
Preferred shares, Junior Preferred Stock     New York, NY
Globally-focused Private
School
      10,014,270       10,151,854       11,239,445       3.83 % 
Declara, Inc.(1)
                                            
Preferred shares, Series A     Palo Alto, CA
Social Cognitive Learning
      5,358,195       9,999,999       10,138,355       3.46 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      3,914,535       10,000,401       10,000,000       3.41 % 
JAMF Holdings, Inc.
                                            
 
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       9,999,906       3.41 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,997,234       3.41 % 

 
 
See notes to the Consolidated Financial Statements.

5


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net
Assets
StormWind, LLC(2)(5)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
      3,279,629     $ 2,019,687     $ 4,102,129       1.40 % 
Preferred shares, Series C              2,779,134       4,000,787       3,966,353       1.35 % 
Preferred shares, Series A              366,666       110,000       269,001       0.09 % 
Preferred Unit Warrants $1.76 Strike Price, Expiration Date 1/6/15           568,753             28,438       0.01 % 
Total                 6,130,474       8,365,921       2.85 % 
Chegg, Inc.**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792       14,022,863       7,380,622       2.52 % 
General Assembly Space, Inc.
                                            
Common shares     New York, NY
Online Education
      133,213       2,999,983       3,118,666       1.06 % 
Preferred shares, Series C           126,552       2,999,978       2,999,970       1.02 % 
Total                 5,999,961       6,118,636       2.08 % 
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658       3,598,472       5,399,857       1.84 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       5,003,631       5,044,702       1.72 % 
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Online Education
      375,985       4,999,999       5,000,450       1.71 % 
Course Hero Inc.
                                            
Preferred shares, Series A     Redwood City, CA
Online Education
      2,145,509       5,000,001       5,000,001       1.71 % 
Fullbridge, Inc.(1)
                                            
Preferred shares, Series C     Cambridge, MA
Business Education
      1,728,724       3,193,444       1,625,001       0.55 % 
Preferred shares, Series D              1,655,167       2,956,022       3,111,714       1.06 % 
Common warrants, $0.91 Strike Price, Expiration Date 3/22/2020              186,170       67,021       33,394       0.01 % 
Common warrants, $0.91 Strike Price, Expiration Date 12/11/2018              82,418       9,799             % 
Common warrants, $0.91 Strike Price, Expiration Date 12/11/2018              412,088       50,970             % 
Common warrants, $0.91 Strike Price, Expiration Date 5/16/2019              192,308       23,244             % 
Common warrants, $0.91 Strike Price, Expiration Date 3/22/2020              714,286       85,779             % 
Common warrants, $0.91 Strike Price, Expiration Date 10/09/2018           82,418       9,901             % 
Total                 6,396,180       4,770,109       1.62 % 

 
 
See notes to the Consolidated Financial Statements.

6


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net
Assets
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       1.02 % 
Common shares           229       1,577,097       1,500,000       0.51 % 
Total                 4,577,097       4,500,000       1.53 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       4,335,671       4,333,331       1.48 % 
Gilt Groupe, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,433       4,329,440       1.48 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       3,055,202       1.04 % 
Preferred shares, Series C           301,369       1,100,912       1,160,330       0.40 % 
Total                 3,164,268       4,215,532       1.44 % 
TrueCar, Inc.(10)**
                                            
Common shares     Santa Monica, CA
Online Marketplace
      251,572       2,015,023       4,064,146       1.39 % 
Learnist Inc. (f/k/a Grockit, Inc.)(1)
                                            
Preferred shares, Series D     San Francisco, CA
Online Learning Platform
      2,728,252       2,005,945       2,319,014       0.79 % 
Preferred shares, Series E           1,731,501       1,503,670       1,696,871       0.58 % 
Total                 3,509,615       4,015,885       1.37 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,982       3,991,808       1.36 % 
NestGSV, Inc.(2)
                                            
Preferred shares, Series C     Redwood City, CA
Incubator
      1,561,625       2,005,730       2,070,867       0.71 % 
Preferred shares, Series A              1,000,000       1,021,778       806,000       0.27 % 
Preferred shares, Series B              450,000       605,500       443,700       0.15 % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date
4/9/2019
             187,500             52,500       0.02 % 
Common shares              200,000       1,000       1,000       0.00 % 
Convertible Promissory Note         $ 500,000       500,000       504,083       0.17 % 
Total                 4,134,008       3,878,150       1.32 % 
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       1.02 % 
Preferred shares, Series Seed           500,000       500,000       865,000       0.30 % 
Total                 3,500,200       3,865,000       1.32 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       3,097,422       1.06 % 

 
 
See notes to the Consolidated Financial Statements.

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
September 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     $ 2,298,847       0.78 % 
Convertible preferred shares, Series D              169,033       778,607       718,022       0.25 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             11,832       0.00 % 
Total                 2,784,684       3,028,701       1.03 % 
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,615,910       0.55 % 
Preferred shares, Series A           3,579,610       758,017       807,955       0.28 % 
Total                 2,260,379       2,423,865       0.83 % 
SharesPost, Inc.(6)(11)
                                            
Preferred shares, Series B     San Bruno, CA
Online Marketplace Finance
      1,771,653       2,259,717       2,243,268       0.77 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       161,896       0.06 % 
Total                 2,282,845       2,405,164       0.83 % 
Maven Research, Inc.(1)
                                            
Preferred shares, Series C     San Francisco, CA
Knowledge Networks
      318,979       2,000,447       1,999,998       0.68 % 
Preferred shares, Series B           49,505       217,206       248,119       0.08 % 
Total                 2,217,653       2,248,117       0.76 % 
Circle Media (f.k.a. S3 Digital Corp. (d/b/a S3i)(1)
                                            
Preferred shares, Series A     New York, NY
Sports Analytics
      1,462,269       1,495,899       1,705,006       0.58 % 
Term Loan, 12%, 09/30/15***            $ 272,500       283,901       280,000       0.10 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 08/29/2021              175,815             175,000       0.06 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 09/30/2020              160,806             67,539       0.02 % 
Preferred warrants, $1.16 Strike Price, Expiration Date 6/26/2021              38,594             13,508       0.00 % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017           500,000       31,354             0.00 % 
Total                 1,811,154       2,241,053       0.76 % 
AliphCom, Inc. (d/b/a Jawbone)
                                            
Common shares     San Francisco, CA
Smart Device Company
      150,000       793,152       1,387,500       0.47 % 
AlwaysOn, Inc.(2)
                                            
Preferred shares, Series A-1     Woodside, CA
Social Media
      4,465,925       876,023       870,279       0.30 % 
Preferred shares, Series A              1,066,626       1,027,391       207,854       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       1,104,403       0.38 % 

 
 
See notes to the Consolidated Financial Statements.

8


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net
Assets
Strategic Data Command, LLC(1)(7)
                                            
Common shares     Sunnyvale, CA
Software Development
      800,000     $ 1,001,650     $ 1,000,000       0.34 % 
GSV Sustainability Partners(2)
                                            
Preferred shares, Class A     Woodside, CA
Clean Technology
      1,950,000       975,216       975,000       0.34 % 
Common shares           100,000       10,000       10,000       0.00 % 
Total                 985,216       985,000       0.34 % 
The rSmart Group, Inc.(1)
                                            
Preferred shares, Series B     Scottsdale, AZ
Higher Education Learning
Platform
      1,201,923       1,267,240       516,526       0.18 % 
EdSurge, Inc.(1)
                                            
Preferred shares, Series A     Burlingame, CA
Education Media Platform
      494,365       500,801       505,020       0.17 % 
Cricket Media (fka ePals Inc.)**(1)(8)
                                            
Common shares     Herndon, VA
Online Education
      1,333,333       2,448,276       433,847       0.15 % 
Totus Solutions, Inc.(1)
                                            
Preferred shares, Series B     Carrollton, TX
LED Lighting
      11,111,110       1,000,000       292,070       0.10 % 
Convertible Promissory Note 6%, Expiration Date, 4/01/2016            $ 76,110       76,110       77,219       0.03 % 
Preferred shares, Series A              8,692,652       2,183,822             % 
Common Shares           11,307,348       2,840,591             % 
Total                 6,100,523       369,289       0.13 % 
New Zoom, Inc
                                            
Preferred shares, Series A     San Francisco, CA
Retail Machines
      1,250,000       260,476       293,491       0.10 % 
Neuron Fuel, Inc.
                                            
Preferred shares, Series AAI     San Jose, CA
Computer Software
      250,000       262,530       250,981       0.09 % 
Earlyshares.com
                                            
Preferred shares, Series A     Miami, FL
Equity Crowd Funding
      165,715       260,878       249,998       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       217,865       0.07 % 
Odesk Corporation
                                            
Common Shares     Redwood City, CA
Online Workplace Platform
      30,000       183,269       159,324       0.05 % 
Dailybreak, Inc.(1)
                                            
Preferred shares, Series A-1     Boston, MA
Social Advertising
      1,878,129       2,430,950             % 
Preferred shares, Series A-2           347,666       451,236             % 
Total                 2,882,186             % 
Total Portfolio Investments                 280,906,237       366,246,036       124.94 % 

 
 
See notes to the Consolidated Financial Statements.

9


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net
Assets
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 7/3/2014            $ 100,000,000     $ 100,001,483     $ 99,999,944       34.12 % 
U.S. Treasury Strips(11)
                                            
United States Treasury Strip Coupon, 0.00% due 08/15/2016            $ 1,851,000       1,825,247       1,830,972       0.62 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2016            $ 1,834,000       1,820,471       1,826,187       0.62 % 
United States Treasury Strip Coupon, 0.00% due 08/15/2015            $ 1,823,000       1,817,608       1,821,032       0.62 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2015         $ 1,816,000       1,814,570       1,815,673       0.62 % 
Total                 7,277,896       7,293,864       2.48 % 
Total Investments               $ 388,185,616     $ 473,539,844       161.54 % 

* 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.
(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 September 30, 2014, GSV Capital Corp. valued Cricket Media (fka ePals Inc.), based on its September 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.

 
 
See notes to the Consolidated Financial Statements.

10


 
 

TABLE OF CONTENTS

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

(9) 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 expired on September 24, 2014. At September 30, 2014, GSV Capital Corp. valued 2U, Inc. (f/k/a 2tor, Inc.), based on its September 30, 2014 closing price less 10.0%. Michael Moe is a Board member of 2U, Inc. (f/k/a 2tor, Inc.), which subjects GSV Capital Corp. to insider trading restrictions under U.S. securities law. As such, the Company has applied a 10.0% discount to reflect the aforementioned trading restrictions.
(10) 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 November 11, 2014. At September 30, 2014, GSV Capital Corp. valued TrueCar, Inc., based on its September 30, 2014 closing price, adjusted for a discount due to lack of marketability of 10.0%.
(11) Refer to Note 9 — Long Term Liabilities. In accordance with the terms of the Company’s Convertible Senior Notes payable, the Company deposited $10,867,500 in an escrow account with the Trustee. These funds were used to purchase U.S. Treasury Strips (“Government Securities”) with an original cost of $10,845,236. As of September 30, 2014, 2 of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At September 30, 2014, the remaining government securities are shown on the Consolidated Schedule of Investments and have an amortized cost of $7,277,896.

 
 
See notes to the Consolidated Financial Statements.

11


 
 

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
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)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      3,914,535       10,000,001       10,000,000       3.47 % 
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.

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
December 31, 2013

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  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.

13


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
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     $ 3,000,000     $ 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 % 

 
 
See notes to the Consolidated Financial Statements.

14


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
  
CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
December 31, 2013

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net
Assets
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 % 
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