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



 

FORM 10-Q



 

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

        FOR THE QUARTERLY PERIOD ENDED March 31, 2015

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

COMMISSION FILE NUMBER: 814-00852



 

GSV Capital Corp.

(Exact name of registrant as specified in its charter)



 

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

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

(650) 235-4769

(Registrant’s telephone number, including area code)



 

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

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

 
Large accelerated filer o   Accelerated filer x
Non-accelerated filer o (do not check if a smaller reporting company)   Smaller reporting company o

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

The number of shares of the issuer’s Common Stock, $0.01 par value, outstanding as of May 11, 2015 was 19,320,100.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP.
 
TABLE OF CONTENTS

 
  PAGE

PART I.

FINANCIAL INFORMATION

        

Item 1.

Financial Statements

    1  
Condensed Consolidated Statements of Assets and Liabilities as of March 31, 2015 (unaudited) and December 31, 2014     1  
Condensed Consolidated Statements of Operations for the three months ended March 31, 2015, and 2014 (unaudited)     2  
Condensed Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2015, and 2014 (unaudited)     3  
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015, and 2014 (unaudited)     4  
Condensed Consolidated Schedule of Investments as of March 31, 2015 (unaudited)     5  
Condensed Consolidated Schedule of Investments as of December 31, 2014     12  
Notes to the Condensed Consolidated Financial Statements as of March 31, 2015 (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

    50  

Item 4.

Controls and Procedures

    51  

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    52  

Item 1A.

Risk Factors

    52  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    52  

Item 3.

Defaults Upon Senior Securities

    52  

Item 4.

Mine Safety Disclosure

    52  

Item 5.

Other Information

    52  

Item 6.

Exhibits

    52  
Schedule of Investments in and Advances to Affiliates (Schedule 12-14)     54  
Signatures     60  

i


 
 

TABLE OF CONTENTS

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

   
  March 31,
2015
  December 31,
2014
ASSETS
    (Unaudited)
          
Investments at fair value:
                 
Investments in controlled securities (cost of $19,435,647 and $17,933,651, respectively)(1)   $ 20,179,675     $ 18,819,335  
Investments in affiliated securities (cost of $85,749,640 and $80,760,208, respectively)(1)     75,411,267       70,172,313  
Investments in non-controlled/non-affiliated securities (cost of $198,586,069 and $202,417,830, respectively)     305,832,821       281,992,669  
Investments in treasury bill (cost of $100,013,333 and $100,001,692, respectively)     100,013,333       100,000,056  
Investments owned and pledged (cost of $5,478,126 and $7,286,332, respectively)     5,492,502       7,298,042  
Total Investments (cost of $409,262,815 and $408,399,713, respectively)     506,929,598       478,282,415  
Cash     8,060,624       3,472,880  
Restricted cash     41,181       48,889  
Due from:
                 
GSV Asset Management(1)     105,844       204,825  
Portfolio companies(1)     77,436       85,356  
Interest and dividends receivable     63,789       26,671  
Prepaid expenses and other assets     549,351       596,926  
Deferred financing costs     2,693,379       2,928,134  
Total Assets     518,521,202       485,646,096  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     30,255       23,396  
Accounts payable and accrued expenses     184,912       292,950  
Accrued incentive fees(1)     22,349,627       14,137,899  
Accrued management fees(1)     641,209       641,276  
Accrued interest payable     150,938       1,139,458  
Payable for securities purchased     89,513,333       90,001,692  
Current taxes payable     134,733       134,733  
Deferred tax liability     18,452,122       6,907,666  
Line of credit payable     16,000,000       18,000,000  
Convertible senior notes embedded derivative liability     1,000       1,000  
Convertible senior notes payable 5.25% due September 15, 2018     68,494,778       68,462,353  
Total Liabilities     215,952,907       199,742,423  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 302,568,295     $ 285,903,673  
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     (39,542,087 )      (31,972,292 ) 
Accumulated net realized gain on investments     8,318,111       496,782  
Accumulated net unrealized appreciation on investments     57,761,556       41,348,468  
Net Assets   $ 302,568,295     $ 285,903,673  
Net Asset Value Per Share   $ 15.66     $ 14.80  

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

 
 
See notes to the Condensed Consolidated Financial Statements

1


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2015
  Three months
ended
March 31,
2014
INVESTMENT INCOME
                 
Interest income from affiliated securities(1)   $ 51,231     $ 39,928  
Interest income from non-affiliated/non-controlled securities     7,793        
Dividend income from affiliated securities(1)           887  
Total Investment Income     59,024       40,815  
OPERATING EXPENSES
                 
Investment management fees(1)     1,921,128       1,756,196  
Accrued incentive fees(1)     8,211,728       969,652  
Costs incurred under administration agreement     802,396       908,532  
Directors’ fees(1)     85,306       65,000  
Professional fees     341,744       456,539  
Interest and credit facility expense     1,368,803       1,179,725  
Other expenses     121,325       132,899  
Gain on fair value adjustment for embedded derivative           (620,000 ) 
Total Operating Expenses     12,852,430       4,848,543  
Benefit for taxes on net investment loss     5,223,611       2,012,914  
Net Investment Loss     (7,569,795 )      (2,794,814 ) 
Net Realized Gain:
                 
From non-controlled/non-affiliated securities     13,218,403       7,931,745  
Total Realized Gain on investments     13,218,403       7,931,745  
Provision for Taxes on realized gains on investments     (5,397,074 )      (3,238,531 ) 
Net Change in Unrealized Appreciation (Depreciation) on investments:
                 
From controlled securities     (141,656 )      (355,631 ) 
From affiliated securities     249,522       (256,966 ) 
From non-controlled/non-affiliated securities     27,676,215       (2,461,082 ) 
Change in Unrealized Appreciation (Depreciation) on investments     27,784,081       (3,073,679 ) 
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments     (11,370,993 )      1,254,983  
Net Increase in Net Assets Resulting From Operations   $ 16,664,622     $ 79,704  
Net Increase in Net Assets Resulting From Operations Per Common Share
                 
Basic   $ 0.86     $  
Diluted   $ 0.73     $  
Weighted Average Common Shares Outstanding
                 
Basic     19,320,100       19,320,100  
Diluted     23,564,228       19,320,100  

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

 
 
See notes to the Condensed Consolidated Financial Statements

2


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2015
  Three months
ended
March 31,
2014
Increase in Net Assets Resulting From Operations
                 
Net Investment Loss   $ (7,569,795 )    $ (2,794,814 ) 
Net Realized Gain on Investments     13,218,403       7,931,745  
Provision for Taxes on realized gain on investments     (5,397,074 )      (3,238,531 ) 
Net Change in Unrealized Appreciation (Depreciation) on investments     27,784,081       (3,073,679 ) 
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments     (11,370,993 )      1,254,983  
Net Increase in Net Assets Resulting From Operations     16,664,622       79,704  
Total Increase in Net Assets     16,664,622       79,704  
Net Assets at Beginning of Period     285,903,673       287,966,444  
Net Assets at End of Period   $ 302,568,295     $ 288,046,148  
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 Condensed Consolidated Financial Statements

3


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2015
  Three months
ended
March 31,
2014
Cash Flows from Operating Activities
                 
Net increase in net assets resulting from operations   $ 16,664,622     $ 79,704  
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
                 
Net realized gain on investments     (13,218,403 )      (7,931,745 ) 
Net change in unrealized (appreciation) depreciation on investments     (27,784,081 )      3,073,679  
Gain on fair value adjustment for embedded derivative           (620,000 ) 
Deferred tax liability     11,544,456       (29,365 ) 
Amortization of discount on senior convertible notes     32,425           
Amortization of deferred financing costs     234,755       251,589  
Amortization of fixed income security premiums and discounts     (15,441 )       
Purchases of investments in:
                 
Portfolio investments     (8,990,125 )      (21,929,081 ) 
United States treasury bill     (100,013,333 )       
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     19,558,200       14,132,278  
Treasuries strips     1,816,000       1,790,785  
United States treasury bill     100,000,000        
Change in operating assets and liabilities:
              
Deposit with Broker           (10,000,000 ) 
Due from GSV Asset Management(1)     98,981       3,039  
Due from portfolio companies     7,920       12,374  
Prepaid expenses and other assets     47,575       (45,221 ) 
Interest and dividends receivable     (37,118 )      (9,006 ) 
Due to GSV Asset Management(1)     6,859       39,221  
Payable for securities purchased     (488,359 )       
Accounts payable and accrued expenses     (108,038 )      (14,991 ) 
Accrued incentive fees(1)     8,211,728       969,652  
Accrued management fees(1)     (67 )       
Accrued interest payable     (988,520 )      (885,500 ) 
Net Cash Provided by (Used in) Operating Activities     6,580,036       (21,112,588 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     6,000,000       18,000,000  
Payments under credit facility     (8,000,000 )       
Deferred offering costs           (43,575 ) 
Change in restricted cash     7,708       125  
Net Cash Provided by (Used in) Financing Activities     (1,992,292 )      17,956,550  
Total Increase (Decrease) in Cash Balance     4,587,744       (3,156,038 ) 
Cash Balance at Beginning of Period     3,472,880       7,219,203  
Cash Balance at End of Period   $ 8,060,624     $ 4,063,165  
Non-Cash Operating Items
                 
Transactions in Investments in Portfolio Companies
                 
Structured notes converted to convertible notes   $ 609,683     $ 517,755  
Preferred shares converted to common shares   $     $ 1,273,125  
Interest Paid   $ 2,357,323     $ 2,065,225  

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

 
 
See notes to the Condensed Consolidated Financial Statements

4


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Twitter, Inc.**
                                            
Common shares     San Francisco, CA Social
Communication
      1,200,600     $ 21,213,458     $ 60,126,048       19.87 % 
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      5,773,690       16,191,055       43,880,044       14.50 % 
Preferred shares, Series G           326,797       1,008,968       2,490,193       0.82 % 
Total                 17,200,023       46,370,237       15.32 % 
2U, Inc. (f/k/a 2tor, Inc.)(9)**
                                            
Common shares     Landover, MD
Online Education
      1,319,233       10,032,117       30,371,382       10.04 % 
Dropbox, Inc.
                                            
Common shares     San Francisco, CA
Online Storage
      760,000       8,641,153       14,844,694       4.91 % 
Preferred shares, Series A-1           552,486       5,015,773       10,791,428       3.57 % 
Total                 13,656,926       25,636,122       8.48 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,519       14,510,855       4.80 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,300,158       11,598,648       11,607,346       3.84 % 
Preferred shares, Series D           1,613,413       2,419,911       2,420,120       0.80 % 
Total                 14,018,559       14,027,466       4.64 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      5,480,348       14,000,398       13,974,887       4.62 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       8,941,173       2.96 % 
Preferred shares, Series C           301,369       1,100,909       2,977,526       0.98 % 
Total                 3,164,265       11,918,699       3.94 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
Manager
      1,899,799       6,799,552       9,650,979       3.19 % 
Preferred shares, Series E           373,134       1,500,522       2,205,353       0.73 % 
Total                 8,300,074       11,856,332       3.92 % 
Avenues Global Holdings, LLC(3)
                                            
Preferred shares, Junior Preferred
Stock
    New York, NY
Globally-focused Private
School
      10,014,270       10,151,854       11,307,653       3.74 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       5,003,631       8,660,750       2.86 % 
Preferred shares, Series E           128,563       2,503,585       2,499,985       0.83 % 
Total                 7,507,216       11,160,735       3.69 % 

 
 
See notes to the Condensed Consolidated Financial Statements

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
March 31, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Ozy Media, Inc.(1)
                                            
Preferred shares, Series B     Mountain View, CA
Daily News and
Information Site
      922,509     $ 4,999,999     $ 5,018,586       1.66 % 
Preferred shares, Series A              1,090,909       3,000,200       4,178,181       1.38 % 
Preferred shares, Series Seed           500,000       500,000       1,700,000       0.56 % 
Total                 8,500,199       10,896,767       3.60 % 
Declara, Inc.(1)
                                            
Preferred shares, Series A     Palo Alto, CA
Social Cognitive Learning
      5,358,195       9,999,999       10,019,825       3.31 % 
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       9,999,590       3.30 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,996,311       3.30 % 
Chegg, Inc.**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792       14,022,863       9,403,196       3.11 % 
StormWind, LLC(2)(5)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
      3,279,629       2,019,687       4,361,907       1.44 % 
Preferred shares, Series C              2,779,134       4,000,787       4,331,940       1.43 % 
Preferred shares, Series A           366,666       110,000       485,832       0.16 % 
Total                 6,130,474       9,179,679       3.03 % 
Lytro, Inc.
                                            
Preferred shares, Series C-1     Mountain View, CA
Consumer Electronics
      2,533,784       7,500,001       7,493,970       2.48 % 
General Assembly Space, Inc.
                                            
Preferred shares, Series C     New York, NY
Online Education
      126,552       2,999,978       3,146,591       1.04 % 
Common shares           133,213       2,999,983       2,999,957       0.99 % 
Total                 5,999,961       6,146,548       2.03 % 
Fullbridge, Inc.(1)
                                            
Preferred shares, Series D     Cambridge, MA
Business Education
      1,655,167       2,956,022       3,111,714       1.04 % 
Preferred shares, Series C              1,728,724       3,193,444       1,625,001       0.54 % 
Convertible Promissory Note 10% Due 03/02/16***            $ 1,030,507       980,395       980,395       0.32 % 
Common Warrants – Strike Price $0.91, Expiration Date 2/18/2019              714,286       90,242       21,429       0.01 % 
Common Warrants – Strike Price $0.91, Expiration Date 4/03/2019              412,088       52,063       12,363       % 
Common Warrants – Strike Price $0.91, Expiration Date 3/02/2020              283,106       35,767       8,493       % 
Common Warrants – Strike Price $0.91, Expiration Date 5/16/2019              192,308       24,296       5,769       % 
Common Warrants – Strike Price $0.91, Expiration Date 3/22/2020              186,170       23,521       5,585       % 

 
 
See notes to the Condensed Consolidated Financial Statements

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
March 31, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Common Warrants – Strike Price $0.91, Expiration Date 10/10/2018              82,418     $ 10,412     $ 2,473       % 
Common Warrants – Strike Price $0.91, Expiration Date 12/11/2018           82,418       10,413       2,473       % 
Total                 7,376,575       5,775,695       1.91 % 
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658       3,598,472       5,651,610       1.87 % 
Learnist Inc. (f/k/a Grockit, Inc.)(1)
                                            
Preferred shares, Series D     San Francisco, CA
Online Learning Platform
      2,728,252       2,005,945       2,346,297       0.78 % 
Preferred shares, Series E              1,731,501       1,503,670       1,610,296       0.53 % 
Preferred shares, Series F           1,242,928       1,450,000       1,441,309       0.48 % 
Total                 4,959,615       5,397,902       1.79 % 
GSV Sustainability Partners(2)
                                            
Preferred shares, Class A     Woodside, CA
Clean Technology
      10,700,000       5,351,412       5,350,000       1.77 % 
Common shares           100,000       10,000       10,000       % 
Total                 5,361,412       5,360,000       1.77 % 
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Online Education
      375,985       4,999,999       5,000,601       1.65 % 
Course Hero, Inc.
                                            
Preferred shares, Series A     Redwood City, CA
Online Education
      2,145,509       5,000,001       5,000,001       1.65 % 
NestGSV, Inc. (d.b.a. GSV Labs, Inc.)(2)
                                            
Preferred shares, Series D     Redwood City, CA
Incubator
      1,845,420       2,404,499       2,460,560       0.81 % 
Preferred shares, Series C              1,561,625       2,007,250       1,264,916       0.42 % 
Preferred shares, Series A              1,000,000       1,021,778       510,000       0.17 % 
Preferred shares, Series B              450,000       605,503       229,500       0.08 % 
Preferred warrants, Series D – $1.33 Strike Price, Expiration Date 10/6/2019              500,000             145,000       0.05 % 
Common shares              200,000       1,000       18,000       0.01 % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date 4/9/2019           187,500             7,500       % 
Total                 6,040,030       4,635,476       1.54 % 
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       0.99 % 
Common shares           229       1,577,097       1,500,000       0.50 % 
Total                 4,577,097       4,500,000       1.49 % 

 
 
See notes to the Condensed Consolidated Financial Statements

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
March 31, 2015
(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     $ 2,339,899       0.77 % 
Senior Subordinated Convertible Promissory Note 8% Due
11/26/2018***(11)
           $ 1,000,000       1,000,000       1,026,707       0.34 % 
Convertible preferred shares,
Series D
             169,033       778,607       730,285       0.24 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             12,846       % 
Total                 3,784,684       4,109,737       1.35 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,982       4,000,000       1.32 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       4,343,409       3,995,221       1.32 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       2,865,933       0.95 % 
DogVacay, Inc.
                                            
Preferred shares, Series B-1     Santa Monica, CA
Dog Boarding
      514,562       2,506,119       2,505,917       0.83 % 
SharesPost, Inc.(1)(6)
                                            
Preferred shares, Series B     San Bruno, CA
Online Marketplace Finance
      1,771,653       2,259,716       2,249,999       0.74 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       146,477       0.05 % 
Total                 2,282,844       2,396,476       0.79 % 
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       1,496,059       1,649,247       0.55 % 
Term Loan, 12%, 09/30/15***            $ 272,500       283,901       296,278       0.10 % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017              500,000       31,354       220,000       0.07 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 08/29/2021              175,815             70,326       0.02 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 09/30/2020              160,806             64,322       0.02 % 
Preferred warrants, $1.16 Strike Price, Expiration Date 6/26/2021           38,594             15,438       0.01 % 
Total                 1,811,314       2,315,611       0.77 % 
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,500,000       0.50 % 
Preferred shares, Series A           3,579,610       758,017       750,000       0.25 % 
Total                 2,260,379       2,250,000       0.75 % 

 
 
See notes to the Condensed Consolidated Financial Statements

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
March 31, 2015
(Unaudited)

         
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       0.66 % 
Preferred shares, Series B           49,505       217,206       249,505       0.08 % 
                   2,217,653       2,249,503       0.74 % 
Clever, Inc.
                                            
Series B Preferred Stock     San Francisco, CA
Education Software
      1,799,047       2,000,601       2,005,701       0.66 % 
Gilt Groupe Holdings, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,433       1,128,644       0.37 % 
AlwaysOn, Inc.(2)
                                            
Preferred shares, Series A     Woodside, CA
Social Media
      1,066,626       1,027,391       554,646       0.18 % 
Preferred shares, Series A-1              4,465,925       876,342       446,593       0.15 % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017           109,375             3,281       % 
Total                 1,903,733       1,004,520       0.33 % 
Enjoy Technology, Inc.
                                            
Series A Preferred Shares     Menlo Park, CA
Online Shopping
      879,198       1,002,440       1,002,440       0.33 % 
Strategic Data Command, LLC(1)(7)
                                            
Common shares     Sunnyvale, CA
Software Development
      800,000       1,001,650       1,000,000       0.33 % 
AliphCom, Inc. (d/b/a Jawbone)
                                            
Common shares     San Francisco, CA
Smart Device Company
      150,000       793,152       722,455       0.24 % 
EdSurge, Inc.(1)
                                            
Preferred shares, Series A     Burlingame, CA
Education Media Platform
      494,365       500,801       512,040       0.17 % 
Cricket Media (f/k/a ePals Inc.)**(1)(8)
                                            
Common shares     Herndon, VA
Online Education
      1,333,333       2,448,959       316,406       0.10 % 
New Zoom, Inc.
                                            
Preferred shares, Series A     San Francisco, CA
Retail Machines
      1,250,000       260,476       275,223       0.09 % 
Neuron Fuel, Inc.
                                            
Preferred shares, Series AAI     San Jose, CA
Computer Software
      250,000       262,530       256,437       0.08 % 
The rSmart Group, Inc.(1)
                                            
Preferred shares, Series B     Scottsdale, AZ
Higher Education
Learning Platform
      1,201,923       1,268,640       196,768       0.07 % 
Odesk Corporation
                                            
Common Shares     Redwood City, CA
Online Workplace Platform
      30,000       183,269       163,725       0.05 % 

 
 
See notes to the Condensed Consolidated Financial Statements

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
March 31, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Totus Solutions, Inc.(1)
                                            
Convertible Promissory Note 6%, Expiration Date, 4/01/2016***     Carrollton, TX     $ 76,110     $ 76,430     $ 79,550       0.03 % 
Preferred shares, Series B     LED Lighting       1,111,111       1,000,000       75,044       0.02 % 
Preferred shares, Series A              869,265       2,184,422             % 
Common Shares           1,130,735       2,840,591             % 
Total                 6,101,443       154,594       0.05 % 
4C Insights (f.k.a The Echo Systems Corp.)
                                            
Preferred shares, Series A     Chicago, IL
Social Data Platform
      512,365       1,436,404       153,710       0.05 % 
Earlyshares.com
                                            
Preferred shares, Series A     Miami, FL
Equity Crowd Funding
      165,715       261,598       125,115       0.04 % 
Dailybreak, Inc.(1)
                                            
Preferred shares, Series A-2     Boston, MA
Social Advertising
      347,666       426,254             % 
Preferred shares, Series A-1           1,878,129       2,430,950             % 
Total                 2,857,204             % 
Total Portfolio Investments                 303,771,356       401,423,763       132.67 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 4/2/2015            $ 100,000,000     $ 100,013,333     $ 100,013,333       33.05 % 
U.S. Treasury Strips(10)
                                            
United States Treasury Strip Coupon, 0.00% due 08/15/2016            $ 1,851,000       1,832,074       1,840,264       0.61 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2016            $ 1,834,000       1,825,362       1,830,149       0.61 % 
United States Treasury Strip Coupon, 0.00% due 08/15/2015         $ 1,823,000       1,820,690       1,822,089       0.60 % 
Total                 5,478,126       5,492,502       1.82 % 
Total Investments               $ 409,262,815     $ 506,929,598       167.54 % 

* 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.

 
 
See notes to the Condensed Consolidated Financial Statements

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
March 31, 2015
(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 (f/k/a ePals Inc.), priced its initial public offering, selling 40,267,333 shares at a price of CAD $0.075 per share. At March 31, 2015, GSV Capital Corp. valued Cricket Media (f/k/a ePals Inc.), based on its March 31, 2015 closing price. GSV Capital Corp.’s Chief Executive Officer, Michael Moe is a Board member of Cricket Media (f/k/a ePals Inc.), which subjects GSV Capital Corp. to insider trading restrictions under Canadian securities law.
(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. At March 31, 2015, GSV Capital Corp. valued 2U, Inc. (f/k/a 2tor, Inc.), based on its March 31, 2015 closing price less 10.0% as the shares are subject to trading restrictions under SEC Rule 144. 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.
(10) 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 March 31, 2015, 3 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 March 31, 2015, the remaining government securities are shown on the Consolidated Schedule of Investments and have an amortized cost of $5,478,126.
(11) Interest will accrue daily on the unpaid principal balance of the note. Accrued interest is not payable until the earlier of a) the closing of a subsequent equity offering by CUX, Inc., or b) the maturity of the note (November 26, 2018). Interest will compound annually beginning on November 26, 2015.

 
 
See notes to the Condensed Consolidated Financial Statements

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2014

         
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     $ 57,413,522       20.08 % 
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      5,773,690       16,189,935       42,985,122       15.03 % 
Preferred shares, Series G           326,797       1,008,968       2,490,193       0.87 % 
Total                 17,198,903       45,475,315       15.90 % 
Dropbox, Inc.
                                            
Common shares     San Francisco, CA
Online Storage
      760,000       8,641,153       14,516,000       5.08 % 
Preferred shares, Series A-1           552,486       5,015,773       10,552,483       3.69 % 
Total                 13,656,926       25,068,483       8.77 % 
2U, Inc. (f/k/a 2tor, Inc.)(9)**
                                            
Common shares     Landover, MD
Online Education
      1,319,233       10,032,117       23,342,509       8.16 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,519       14,510,855       5.08 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,300,158       11,598,648       11,607,346       4.06 % 
Preferred shares, Series D           1,613,413       2,419,751       2,420,120       0.85 % 
Total                 14,018,399       14,027,466       4.91 % 
Avenues Global Holdings, LLC(3)
                                            
Preferred shares, Junior Preferred
Stock
    New York, NY
Globally-focused
Private School
      10,014,270       10,151,854       11,303,410       3.95 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
Manager
      1,899,799       6,799,392       9,214,025       3.22 % 
Preferred shares, Series E           373,134       1,500,522       2,046,909       0.72 % 
Total                 8,299,914       11,260,934       3.94 % 
Ozy Media, Inc.(1)
                                            
Preferred shares, Series B     Mountain View, CA
Daily News and
Information Site
      922,509       4,999,999       4,999,999       1.75 % 
Preferred shares, Series A              1,090,909       3,000,200       4,165,091       1.46 % 
Preferred shares, Series Seed           500,000       500,000       1,573,000       0.55 % 
Total                 8,500,199       10,738,090       3.76 % 
Declara, Inc.(1)
                                            
Preferred shares, Series A     Palo Alto, CA
Social Cognitive Learning
      5,358,195       9,999,999       10,019,825       3.50 % 
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       9,999,590       3.50 % 

 
 
See notes to the Condensed Consolidated Financial Statements

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
December 31, 2014

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861     $ 10,000,003     $ 9,996,311       3.50 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      3,914,535       10,000,401       9,982,064       3.49 % 
StormWind, LLC(2)(5)
                                            
Preferred shares, Series C     Scottsdale, AZ
Interactive Learning
      2,779,134       4,000,787       4,338,830       1.52 % 
Preferred shares, Series B              3,279,629       2,019,687       4,347,608       1.52 % 
Preferred shares, Series A              366,666       110,000       391,592       0.14 % 
Preferred Unit Warrants $1.76 Strike Price, Expiration Date 1/6/15           568,753                   % 
Total                 6,130,474       9,078,030       3.18 % 
Chegg, Inc.**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792       14,022,863       8,173,093       2.86 % 
Lytro, Inc.
                                            
Preferred Stock     Mountain View, CA
Consumer Electronics
      2,533,784       7,500,001       7,500,001       2.62 % 
General Assembly Space, Inc.
                                            
Preferred shares, Series C     New York, NY
Online Education
      126,552       2,999,978       3,125,467       1.09 % 
Common shares           133,213       2,999,983       2,999,957       1.05 % 
Total                 5,999,961       6,125,424       2.14 % 
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658       3,598,472       5,676,873       1.99 % 
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       0.81 % 
Preferred shares, Series E              1,731,501       1,503,670       1,610,296       0.56 % 
Preferred shares, Series F           1,242,928       1,450,000       1,450,000       0.51 % 
Total                 4,959,615       5,379,310       1.88 % 
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Online Education
      375,985       4,999,999       5,000,601       1.75 % 
Course Hero, Inc.
                                            
Preferred shares, Series A     Redwood City, CA
Online Education
      2,145,509       5,000,001       5,000,001       1.75 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       5,003,634       4,999,054       1.75 % 
GSV Sustainability Partners(2)
                                            
Preferred shares, Class A     Woodside, CA
Clean Technology
      9,700,000       4,851,256       4,850,000       1.70 % 
Common shares           100,000       10,000       10,000       0.00 % 
Total                 4,861,256       4,860,000       1.70 % 

 
 
See notes to the Condensed Consolidated Financial Statements

13


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
December 31, 2014

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Fullbridge, Inc.(1)
                                            
Preferred shares, Series C     Cambridge, MA
Business Education
      1,728,724     $ 3,193,444     $ 1,625,001       0.57 % 
Preferred shares, Series D              1,655,167       2,956,022       3,111,714       1.09 % 
Common warrants, $0.91 Strike Price, Expiration Date 3/22/2020              186,170       67,021       1,862       0.00 % 
Common warrants, $0.91 Strike Price, Expiration Date 12/11/2018              82,418       9,799       824       0.00 % 
Common warrants, $0.91 Strike Price, Expiration Date 12/11/2018              412,088       50,970       4,121       0.00 % 
Common warrants, $0.91 Strike Price, Expiration Date 5/16/2019              192,308       23,244       1,923       0.00 % 
Common warrants, $0.91 Strike Price, Expiration Date 3/22/2020              714,286       85,779       7,143       0.00 % 
Common warrants, $0.91 Strike Price, Expiration Date 10/09/2018           82,418       9,901       824       0.00 % 
Total                 6,396,180       4,753,412       1.66 % 
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       1.05 % 
Common shares           229       1,577,097       1,500,000       0.52 % 
Total                 4,577,097       4,500,000       1.57 % 
CUX, Inc. (d/b/a CorpU)(1)
                                            
Convertible preferred shares,
Series C
    San Francisco, CA
Corporate Education
      615,763       2,006,077       2,292,582       0.80 % 
Senior Subordinated Convertible Promissory Note 8% Due
11/26/2018(12)***
           $ 1,000,000       1,000,000       1,007,671       0.35 % 
Convertible preferred shares,
Series D
             169,033       778,607       716,066       0.25 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             12,508       0.00 % 
Total                 3,784,684       4,028,827       1.40 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,982       4,000,640       1.40 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong Education
Technology
      2,126,475       4,335,769       3,995,221       1.40 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       2,869,320       1.00 % 
Preferred shares, Series C           301,369       1,100,909       1,075,425       0.38 % 
Total                 3,164,265       3,944,745       1.38 % 
NestGSV, Inc. (d.b.a. GSV Labs, Inc.),(2)
                                            
Preferred shares, Series C     Redwood City, CA
Incubator
      1,561,625       2,005,730       1,503,832       0.53 % 
Preferred shares, Series D              1,095,418       1,404,499       1,460,557       0.51 % 
Preferred shares, Series A              1,000,000       1,021,778       440,000       0.15 % 
Preferred shares, Series B              450,000       605,500       265,980       0.09 % 
Common shares              200,000       1,000       1,000       0.00 % 

 
 
See notes to the Condensed Consolidated Financial Statements

14


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (Continued)
December 31, 2014

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of Net Assets
Preferred Warrant Series D – $1.33 Strike Price, Expiration Date 10/6/2019              500,000     $     $ 65,000       0.02 % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date 4/9/2019           187,500             24,375       0.01 % 
Total                 5,038,507       3,760,744       1.31 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       3,357,969       1.17 % 
Gilt Groupe Holdings, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,433       3,168,108       1.11 % 
SharesPost, Inc.(1)(6)
                                            
Preferred shares, Series B     San Bruno, CA
Online Marketplace Finance
      1,771,653       2,259,716       2,249,999       0.79 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       485,688