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



 

FORM 10-Q



 

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

        FOR THE QUARTERLY PERIOD ENDED June 30, 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 August 10, 2015 was 19,320,100.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP.
 
TABLE OF CONTENTS

 
  PAGE

PART I.

FINANCIAL INFORMATION

        

Item 1.

Condensed Consolidated Financial Statements

    1  
Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2015 (unaudited) and December 31, 2014     1  
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014 (unaudited)     2  
Condensed Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2015 and 2014 (unaudited)     3  
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 (unaudited)     4  
Condensed Consolidated Schedule of Investments as of June 30, 2015 (unaudited)     6  
Condensed Consolidated Schedule of Investments as of December 31, 2014     13  
Notes to the Condensed Consolidated Financial Statements as of June 30, 2015 (unaudited)     20  
Note 1 — Nature of Operations and Significant Accounting Policies     20  
Note 2 — Related-Party Arrangements     28  
Note 3 — Investments at Fair Value     29  
Note 4 — Equity Offerings and Related Expenses     36  
Note 5 — Net Increase (Decrease) in Net Assets Per Common Share — Basic and Diluted     36  
Note 6 — Commitments and Contingencies     37  
Note 7 — Financial Highlights     37  
Note 8 — Income Tax     38  
Note 9 — Long Term Liabilities     41  
Note 10 — Subsequent Events     42  

Item 2.

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

    44  
Overview     45  
Investments — (Portfolio Activity)     45  
Results of Operations     46  
Liquidity and Capital Resources     52  
Equity Issuances & Debt Capital Activities     53  
Contractual Obligations     53  
Off-Balance Sheet Arrangements     53  
Distribution Policy     53  
Borrowings     54  
Related-Party Transactions     55  
Critical Accounting Policies     57  
Recent Developments     57  

i


 
 

TABLE OF CONTENTS

 
  PAGE

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    58  

Item 4.

Controls and Procedures

    58  

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    59  

Item 1A.

Risk Factors

    59  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    60  

Item 3.

Defaults Upon Senior Securities

    60  

Item 4.

Mine Safety Disclosure

    60  

Item 5.

Other Information

    60  

Item 6.

Exhibits

    60  
Schedules of Investments in and Advances to Affiliates (Schedules 12-14) as of June 30, 2015 (unaudited) and December 31, 2014     62  
Signatures     68  

ii


 
 

TABLE OF CONTENTS

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

   
  June 30,
2015
  December 31,
2014
     (Unaudited)     
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $19,031,912 and $17,933,651 respectively)(1)   $ 20,666,877     $ 18,819,335  
Investments in affiliated securities (cost of $85,207,517 and $80,760,208 respectively)(1)     75,297,514       70,172,313  
Investments in non-controlled/non-affiliated securities (cost of $194,193,416 and $202,417,830 respectively)     294,378,268       281,992,669  
Investments in treasury bill (cost of $100,001,569 and $100,001,692
respectively)
    100,001,569       100,000,056  
Investments owned and pledged (amortized cost of $5,485,542 and $7,286,332 respectively)(2)     5,498,112       7,298,042  
Total Investments (cost of $403,919,956 and $408,399,713 respectively)     495,842,340       478,282,415  
Cash     8,049,760       3,472,880  
Restricted cash     41,181       48,889  
Due from:
                 
GSV Asset Management(1)     1,124       204,825  
Portfolio companies(1)     68,371       85,356  
Interest and dividends receivable     119,248       26,671  
Prepaid expenses and other assets     63,982       596,926  
Deferred financing costs     2,514,558       2,928,134  
Total Assets     506,700,564       485,646,096  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     29,325       23,396  
Accounts payable and accrued expenses     62,169       292,950  
Accrued incentive fees(1)     23,914,966       14,137,899  
Accrued management fees(1)     670,128       641,276  
Accrued interest payable     1,056,563       1,139,458  
Payable for securities purchased     89,501,569       90,001,692  
Current taxes payable     134,733       134,733  
Deferred tax liability     19,153,303       6,907,666  
Line of credit payable           18,000,000  
Convertible Senior Notes embedded derivative liability           1,000  
Convertible Senior Notes payable 5.25% due September 15, 2018     68,528,012       68,462,353  
Total Liabilities     203,050,768       199,742,423  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 303,649,796     $ 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     (43,157,161 )      (31,972,292 ) 
Accumulated net realized gain on investments     16,386,895       496,782  
Accumulated net unrealized appreciation on investments     54,389,347       41,348,468  
Net Assets   $ 303,649,796     $ 285,903,673  
Net Asset Value Per Share   $ 15.72     $ 14.80  

(1) This balance is a related-party transaction. Refer to Note 2 to the Condensed Consolidated Financial Statements for more detail.
(2) 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 with an original cost of $10,845,236. As of June 30, 2015, three 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 June 30, 2015, the remaining government securities are shown on the Condensed Consolidated Statements of Assets and Liabilities as “Investments owned and Pledged” with an amortized cost of $5,485,542.

 
 
See notes to Condensed Consolidated Financial Statements

1


 
 

TABLE OF CONTENTS

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

       
  Three Months Ended
June 30,
  Six Months Ended
June 30,
     2015   2014   2015   2014
INVESTMENT INCOME
                                   
Interest income from controlled securities(1)   $     $ 667     $     $ 5,733  
Interest income from affiliated securities(1)     69,165       68,591       120,396       103,453  
Interest income from non-controlled/non-affiliated securities     7,945       27,775       15,738       27,775  
Dividend income from non-controlled/non-affiliated securities     46,781             46,781       887  
Total Investment Income     123,891       97,033       182,915       137,848  
OPERATING EXPENSES
                                   
Management fees(1)     2,010,385       1,933,663       3,931,513       3,689,859  
Incentive fees(1)     1,565,339       844,633       9,777,067       1,814,285  
Costs incurred under administration agreement(1)     785,036       929,701       1,587,432       1,838,233  
Directors’ fees     107,500       65,000       192,806       130,000  
Professional fees     394,228       402,555       735,972       859,094  
Interest and credit facility expense     1,228,783       1,533,971       2,597,586       2,713,696  
Other expenses     143,153       186,028       264,478       318,927  
Gain on fair value adjustment for embedded
derivative
    (1,000 )      (20,000 )      (1,000 )      (640,000 ) 
Total Operating Expenses     6,233,424       5,875,551       19,085,854       10,724,094  
Benefit for taxes on net investment loss     2,494,459       2,359,369       7,718,070       4,372,283  
Net Investment Loss     (3,615,074 )      (3,419,149 )      (11,184,869 )      (6,213,963 ) 
Net Realized Gain (Loss):
                                   
From affiliated securities                       10,419  
From non-controlled/non-affiliated securities     13,636,614       (7,249,566 )      26,855,017       671,760  
Net Realized Gain (Loss) on investments     13,636,614       (7,249,566 )      26,855,017       682,179  
(Provision)/Benefit for taxes on realized gains/losses on investments     (5,567,830 )      2,959,998       (10,964,904 )      (278,533 ) 
Net Change in Unrealized Appreciation (Depreciation) on investments:
                                   
From controlled securities     (8,277 )      (24,693 )      (33,572 )      (439,092 ) 
From affiliated securities     (804,967 )      (3,566,018 )      (657,088 )      (3,764,212 ) 
From non-controlled/non-affiliated securities     (4,931,155 )      15,063,436       22,730,342       12,602,350  
Total Change in Unrealized Appreciation (Depreciation) on investments     (5,744,399 )      11,472,725       22,039,682       8,399,046  
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments     2,372,190       (4,684,314 )      (8,998,803 )      (3,429,331 ) 
Net Increase (Decrease) in Net Assets Resulting from Operations   $ 1,081,501     $ (920,306 )    $ 17,746,123     $ (840,602 ) 
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ 0.06     $ (0.05 )    $ 0.92     $ (0.04 ) 
Diluted(2)   $ 0.06     $ (0.05 )    $ 0.81     $ (0.04 ) 
Weighted Average Common Shares Outstanding
                                   
Basic     19,320,100       19,320,100       19,320,100       19,320,100  
Diluted(2)     19,320,100       19,320,100       23,564,228       19,320,100  

(1) This balance is a related-party transaction. Refer to Note 2 for more detail.
(2) Refer to “Note 5 — Net Increase (Decrease) in Net Assets Per Common Share — Basic and Diluted” for further detail.

 
 
See notes to Condensed Consolidated Financial Statements

2


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30, 2015
  Six months
ended
June 30, 2014
Increase (Decrease) in Net Assets Resulting From Operations
                 
Net Investment Loss   $ (11,184,869 )    $ (6,213,963 ) 
Net Realized Gain on Investments     26,855,017       682,179  
Provision for Taxes on realized gain on investments     (10,964,904 )      (278,533 ) 
Net Change in Unrealized Appreciation on investments     22,039,682       8,399,046  
Provision for taxes on unrealized appreciation on investments     (8,998,803 )      (3,429,331 ) 
Net Increase (Decrease) in Net Assets Resulting From Operations     17,746,123       (840,602 ) 
Total Increase (Decrease) in Net Assets     17,746,123       (840,602 ) 
Net Assets at Beginning of Period     285,903,673       287,966,444  
Net Assets at End of Period   $ 303,649,796     $ 287,125,842  
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 Condensed Consolidated Financial Statements

3


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30, 2015
  Six months
ended
June 30, 2014
Cash Flows from Operating Activities
                 
Net increase (decrease) in net assets resulting from operations   $ 17,746,123     $ (840,602 ) 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
                 
Net realized gain on investments     (26,855,017 )      (682,179 ) 
Net change in unrealized appreciation on investments     (22,039,682 )      (8,399,046 ) 
Gain on fair value adjustment for embedded derivative     (1,000 )      (640,000 ) 
Deferred tax liability     12,245,637       (664,418 ) 
Amortization of discount on senior convertible notes     65,659        
Amortization of deferred financing costs     413,576       516,348  
Amortization of fixed income security premiums and discounts     (37,092 )      (27,553 ) 
Change in restricted cash     7,708       125  
Non-cash dividend income     (46,781 )       
Purchases of investments in:
                 
Portfolio investments     (10,544,564 )      (35,548,349 ) 
United States treasury bills     (200,014,903 )      (160,001,251 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     40,162,114       32,975,438  
Treasuries strips     1,816,000       1,790,785  
United States treasury bills     200,000,000       80,000,584  
Change in operating assets and liabilities:
                 
Due from GSV Asset Management(1)     203,701       (32,367 ) 
Due from portfolio companies(1)     16,985       30,927  
Prepaid expenses and other assets     532,944       21,619  
Interest and dividends receivable     (92,577 )      31,576  
Due to GSV Asset Management(1)     5,929       (554,331 ) 
Payable for securities purchased     (500,123 )      72,000,667  
Accounts payable and accrued expenses     (230,781 )      (33,344 ) 
Accrued incentive fees(1)     9,777,067       1,814,285  
Accrued management fees(1)     28,852        
Accrued interest payable     (82,895 )      131,130  
Net Cash Provided by (Used in) Operating Activities     22,576,880       (18,109,956 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     6,000,000       18,000,000  
Payments under credit facility     (24,000,000 )      (2,858,667 ) 
Deferred offering costs           (56,300 ) 
Net Cash Provided by (Used in) Financing Activities     (18,000,000 )      15,085,033  
Total Increase (Decrease) in Cash Balance     4,576,880       (3,024,923 ) 
Cash Balance at Beginning of Period     3,472,880       7,219,203  
Cash Balance at End of Period   $ 8,049,760     $ 4,194,280  

 
 
See notes to Condensed Consolidated Financial Statements

4


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30, 2015
  Six months
ended
June 30, 2014
Supplemental Information:
                 
Interest Paid   $ 2,680,481     $ 2,582,566  
Non-Cash Operating Items
                 
Transactions in Portfolio Company Investments
                 
Preferred shares converted to common shares   $     $ 1,273,125  
Convertible notes converted to preferred shares   $     $ 3,064,135  
Structured notes converted to convertible notes   $ 609,683     $  
Term loan converted to preferred shares   $     $ 503,851  
Common shares converted to preferred shares   $     $ 2,006,077  
Common membership interest converted to preferred shares   $     $ 500,000  
Decrease in accounts payable   $     $ (222,097 ) 
Non-Cash Financing Items
                 
Increase in deferred offering costs   $     $ 56,300  

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

 
 
See notes to Condensed Consolidated Financial Statements

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Palantir Technologies, Inc.
                                            
Common shares, Class A     Palo Alto, CA
Cyber Security
      5,773,690     $ 16,191,055     $ 46,168,644       15.20 % 
Preferred shares, Series G           326,797       1,008,968       2,614,376       0.87 % 
Total                 17,200,023       48,783,020       16.07 % 
2U, Inc. (f/k/a 2tor, Inc.)(9)**
                                            
Common shares     Landover, MD
Online Education
      1,319,233       10,032,117       38,219,499       12.59 % 
Dropbox, Inc.
                                            
Common shares     San Francisco, CA
Online Storage
      760,000       8,641,153       17,385,000       5.73 % 
Preferred shares, Series A-1           552,486       5,015,773       12,642,479       4.16 % 
Total                 13,656,926       30,027,479       9.89 % 
Twitter, Inc.**
                                            
Common shares     San Francisco, CA
Social Communication
      800,600       14,271,866       28,997,732       9.55 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,519       14,510,855       4.78 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,300,158       11,598,648       11,607,346       3.82 % 
Preferred shares, Series D           1,613,413       2,420,631       2,420,120       0.80 % 
Total                 14,019,279       14,027,466       4.62 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      5,480,348       14,000,398       13,974,887       4.60 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
Manager
      1,899,799       6,800,952       10,087,028       0.73 % 
Preferred shares, Series E           373,134       1,500,522       2,204,862       3.32 % 
Total                 8,301,474       12,291,890       4.05 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       8,909,182       2.93 % 
Preferred shares, Series C           301,369       1,100,909       2,966,872       0.98 % 
Total                 3,164,265       11,876,054       3.91 % 
Avenues Global Holdings, LLC(3)
                                            
Preferred shares, Junior Preferred
Stock
    New York, NY
Globally-focused Private
School
      10,014,270       10,151,854       11,313,275       3.73 % 
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       11,237,917       3.70 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       5,003,631       8,662,526       2.85 % 
Preferred shares, Series E           128,563       2,503,585       2,499,985       0.83 % 
Total                 7,507,216       11,162,511       3.68 % 

 
 
See notes to Condensed Consolidated Financial Statements

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 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     $ 5,050,976       0.56 % 
Preferred shares, Series A              1,090,909       3,000,200       4,211,199       1.39 % 
Preferred shares, Series Seed           500,000       500,000       1,711,742       1.66 % 
Total                 8,500,199       10,973,917       3.61 % 
Declara, Inc.(1)
                                            
Preferred shares, Series A     Palo Alto, CA
Social Cognitive Learning
      5,358,195       9,999,999       10,019,825       3.30 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,996,311       3.29 % 
StormWind, LLC(2)(5)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
      3,279,629       2,019,687       4,415,727       1.46 % 
Preferred shares, Series C              2,779,134       4,000,787       4,401,490       1.45 % 
Preferred shares, Series A           366,666       110,000       493,683       0.16 % 
Total                 6,130,474       9,310,900       3.07 % 
Chegg, Inc.**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792       14,022,863       9,273,089       3.05 % 
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658       3,598,472       8,152,255       2.68 % 
Lytro, Inc.
                                            
Preferred shares, Series C-1     Mountain View, CA
Consumer Electronics
      2,533,784       7,500,241       7,500,001       2.47 % 
General Assembly Space, Inc.
                                            
Preferred shares, Series C     New York, NY
Online Education
      126,552       2,999,978       3,116,745       0.99 % 
Common shares           133,213       2,999,983       2,999,957       1.02 % 
Total                 5,999,961       6,116,702       2.01 % 
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(2)
                                            
Preferred shares, Series D     Redwood City, CA
Incubator
      2,970,422       3,904,498       3,960,563       1.30 % 
Preferred shares, Series C              1,561,625       2,007,250       1,257,964       0.41 % 
Preferred shares, Series A              1,000,000       1,021,778       389,825       0.13 % 
Preferred shares, Series B              450,000       605,500       215,250       0.07 % 
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             9,375       0.00 % 
Total                 7,540,026       5,995,977       1.97 % 

 
 
See notes to Condensed Consolidated Financial Statements

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of Net Assets
Fullbridge, Inc.(1)
                                            
Preferred shares, Series D     Cambridge, MA
Business Education
      1,655,167     $ 2,956,022     $ 3,111,714       1.02 % 
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       992,389       1,063,031       0.36 % 
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       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/02/2020              283,106       35,767       8,493       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 5/16/2019              192,308       24,296       5,769       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/22/2020              186,170       23,521       5,585       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 10/10/2018              82,418       10,412       2,473       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 12/11/2018           82,418       10,413       2,473       0.00 % 
Total                 7,388,569       5,858,331       1.93 % 
Learnist Inc. (f/k/a Grockit, Inc.)(1)
                                            
Preferred shares, Series D     San Francisco, CA
Online Learning Platform
      2,728,252       2,005,945       2,355,843       0.78 % 
Preferred shares, Series E              1,731,501       1,503,670       1,611,278       0.53 % 
Preferred shares, Series F           1,242,928       1,450,000       1,452,234       0.47 % 
Total                 4,959,615       5,419,355       1.78 % 
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       0.00 % 
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 % 
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       0.49 % 
Total                 4,577,097       4,500,000       1.48 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,982       4,000,000       1.32 % 
CUX, Inc. (d/b/a CorpU)(1)
                                            
Convertible preferred shares,
Series C
    San Francisco, CA
Corporate Education
      615,763       2,006,077       2,132,258       0.70 % 
Senior Subordinated Convertible Promissory Note 8% Due
11/26/2018***(11)
           $ 1,000,000       1,000,000       1,047,342       0.35 % 

 
 
See notes to Condensed Consolidated Financial Statements

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Convertible preferred shares,
Series D
             169,033     $ 778,607     $ 664,523       0.22 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             7,775       0.00 % 
Total                 3,784,684       3,851,898       1.27 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       4,344,969       3,755,828       1.24 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       3,185,106       1.05 % 
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 % 
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,500,000       0.25 % 
Preferred shares, Series A           3,579,610       758,017       750,000       0.49 % 
Total                 2,260,379       2,250,000       0.74 % 
Maven Research, Inc.(1)
                                            
Preferred shares, Series C     San Francisco, CA
Knowledge Networks
      318,979       2,000,447       1,999,998       0.08 % 
Preferred shares, Series B           49,505       217,206       249,691       0.66 % 
Total                 2,217,653       2,249,689       0.74 % 
Clever, Inc.
                                            
Preferred shares, Series B     San Francisco, CA
Education Software
      1,799,047       2,000,601       2,000,675       0.66 % 
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       1,496,699       1,312,527       0.43 % 
Term Loan, 12%, 09/30/15***            $ 272,500       283,901       304,769       0.10 % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017              500,000       31,354       200,000       0.07 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 08/29/2021              175,815             58,019       0.02 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 09/30/2020              160,806             53,066       0.02 % 
Preferred warrants, $1.16 Strike Price, Expiration Date 6/26/2021           38,594             12,736       0.00 % 
Total                 1,811,954       1,941,117       0.64 % 
Gilt Groupe Holdings, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600       6,594,433       1,194,922       0.39 % 

 
 
See notes to Condensed Consolidated Financial Statements

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of Net Assets
AlwaysOn, Inc.
                                            
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       876,343       446,593       0.15 % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017           109,375             3,281       0.00 % 
Total                 1,903,734       1,004,520       0.33 % 
Enjoy Technology, Inc.
                                            
Preferred shares, Series A     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       989,277       1,000,000       0.33 % 
Tynker (f/k/a Neuron Fuel, Inc.)
                                            
Preferred shares, Series A     San Jose, CA
Computer Software
      534,162       309,310       791,361       0.26 % 
AliphCom, Inc. (d/b/a Jawbone)
                                            
Common shares     San Francisco, CA
Smart Device Company
      150,000       793,152       573,560       0.19 % 
EdSurge, Inc.(1)
                                            
Preferred shares, Series A     Burlingame, CA
Education Media Platform
      494,365       500,801       500,801       0.16 % 
New Zoom, Inc.
                                            
Preferred shares, Series A     San Francisco, CA
Retail Machines
      1,250,000       260,476       287,548       0.09 % 
Cricket Media (f/k/a ePals Inc.)**(8)
                                            
Common shares     Herndon, VA
Online Education
      1,333,333       2,448,959       237,440       0.08 % 
The rSmart Group, Inc.(1)
                                            
Preferred shares, Series B     Scottsdale, AZ
Higher Education Learning
Platform
      1,201,923       1,269,163       210,691       0.07 % 
Earlyshares.com, Inc.
                                            
Preferred shares, Series A     Miami, FL
Equity Crowdfunding
      165,715       261,598       125,115       0.04 % 
Convertible Promissory Note 5%, 8/02/2016(12)         $ 50,000       50,840       50,528       0.02 % 
Total                 312,438       175,643       0.06 % 
Upwork Global Inc. (f/k/a Odesk Corporation
                                            
Common Shares     Redwood City, CA
Online Workplace Platform
      30,000       183,269       156,180       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       130,653       0.04 % 
Totus Solutions, Inc.(1)
                                            
Convertible Promissory Note 6%, 4/01/2016***     Carrollton, TX
LED Lighting
    $ 76,110       77,190       40,344       0.01 % 
Preferred shares, Series B              1,111,111       1,000,000             0.00 % 

 
 
See notes to Condensed Consolidated Financial Statements

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2015
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of Net Assets
Preferred shares, Series A              869,265     $ 2,184,422     $       0.00 % 
Common Shares           1,130,735       2,840,591             0.00 % 
Total                 6,102,203       40,344       0.01 % 
Dailybreak, Inc.(1)
                                            
Preferred shares, Series A-2     Boston, MA
Social Advertising
      347,666       426,254             0.00 % 
Preferred shares, Series A-1           1,878,129       2,430,950             0.00 % 
Total                 2,857,204             0.00 % 
Total Portfolio Investments                 298,432,845       390,342,659       128.55 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 7/2/2015            $ 100,000,000     $ 100,001,569     $ 100,001,569       32.93 % 
U.S. Treasury Strips(10)
                                            
United States Treasury Strip Coupon, 0.00% due 08/15/2016            $ 1,851,000       1,835,497       1,842,708       0.61 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2016            $ 1,834,000       1,827,810       1,832,459       0.60 % 
United States Treasury Strip Coupon, 0.00% due 08/15/2015         $ 1,823,000       1,822,235       1,822,945       0.60 % 
Total                 5,485,542       5,498,112       1.81 % 
Total Investments               $ 403,919,956     $ 495,842,340       163.29 % 

* 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.

 
 
See notes to Condensed Consolidated Financial Statements

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2015
(Unaudited)

(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 June 30, 2015, GSV Capital Corp. valued Cricket Media (f/k/a ePals Inc.), based on its June 30, 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 June 30, 2015, GSV Capital Corp. valued 2U, Inc. (f/k/a 2tor, Inc.), based on its June 30, 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 June 30, 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 June 30, 2015, the remaining government securities are shown on the Condensed Consolidated Schedule of Investments with an amortized cost of $5,485,542.
(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.
(12) 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 Earlyshares.com, Inc., or b) the maturity of the note (August 2, 2016). Interest will compound annually beginning on February 26, 2015.

 
 
See notes to Condensed Consolidated Financial Statements

12


 
 

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 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,996,311       3.50 % 

 
 
See notes to 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
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 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
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)