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



 

FORM 10-Q



 

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

              FOR THE QUARTERLY PERIOD ENDED September 30, 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 November 9, 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 September 30, 2015 (unaudited) and December 31, 2014     1  
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014 (unaudited)     2  
Condensed Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2015 and 2014 (unaudited)     3  
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014 (unaudited)     4  
Condensed Consolidated Schedule of Investments as of September 30, 2015
(unaudited)
    6  
Condensed Consolidated Schedule of Investments as of December 31, 2014     13  
Notes to the Condensed Consolidated Financial Statements as of September 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     30  
Note 4 — Equity Offerings and Related Expenses     37  
Note 5 — Net Increase in Net Assets Resulting from Operations per Common Share — Basic and Diluted     37  
Note 6 — Commitments and Contingencies     38  
Note 7 — Financial Highlights     38  
Note 8 — Income Taxes     39  
Note 9 — Long Term Liabilities     41  
Note 10 — Subsequent Events     43  

Item 2.

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

    44  
Forward-Looking Statements     44  
Overview     45  
Investments — (Portfolio Activity)     45  
Results of Operations     47  
Liquidity and Capital Resources     54  
Equity Issuances & Debt Capital Activities     55  
Contractual Obligations     55  
Off-Balance Sheet Arrangements     55  
Distribution Policy     55  
Borrowings     56  
Related-Party Transactions     57  

i


 
 

TABLE OF CONTENTS

 
  PAGE
Critical Accounting Policies     59  
Recent Developments     59  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    60  

Item 4.

Controls and Procedures

    60  

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    61  

Item 1A.

Risk Factors

    61  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    61  

Item 3.

Defaults Upon Senior Securities

    61  

Item 4.

Mine Safety Disclosure

    61  

Item 5.

Other Information

    61  

Item 6.

Exhibits

    62  
Schedules of Investments in and Advances to Affiliates (Schedules 12-14) as of September 30, 2015 (unaudited) and December 31, 2014     63  
Signatures     69  

ii


 
 

TABLE OF CONTENTS

Item 1. Financial Statements

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

   
  September 30,
2015
  December 31,
2014
     (Unaudited)     
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $20,631,912 and $17,933,651 respectively)(1)   $ 22,986,021     $ 18,819,335  
Investments in affiliated securities (cost of $71,650,488 and $80,760,208 respectively)(1)     66,865,382       70,172,313  
Investments in non-controlled/non-affiliated securities (cost of $187,578,628 and $202,417,830 respectively)     259,938,971       281,992,669  
Investments in treasury bill (cost of $25,000,604 and $100,001,692 respectively)     25,000,604       100,000,056  
Investments owned and pledged (amortized cost of $3,669,246 and $7,286,332 respectively)(2)     3,680,616       7,298,042  
Total Investments (cost of $308,530,878 and $408,399,713 respectively)     378,471,594       478,282,415  
Cash     56,844,097       3,472,880  
Restricted cash     52,931       48,889  
Due from:
                 
GSV Asset Management(1)     205,472       204,825  
Portfolio companies(1)     60,371       85,356  
Interest and dividends receivable     128,747       26,671  
Prepaid expenses and other assets     346,985       596,926  
Deferred financing costs     2,299,565       2,928,134  
Total Assets     438,409,762       485,646,096  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     19,980       23,396  
Accounts payable and accrued expenses     67,863       292,950  
Accrued incentive fees(1)     24,977,501       14,137,899  
Accrued management fees(1)     687,672       641,276  
Accrued interest payable     150,938       1,139,458  
Payable for securities purchased     22,000,596       90,001,692  
Current taxes payable     31,801       134,733  
Deferred tax liability     9,408,847       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     68,562,077       68,462,353  
Total Liabilities     125,907,275       199,742,423  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 312,502,487     $ 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     (75,941,010 )      (31,972,292 ) 
Accumulated net realized gains on investments     54,984,417       496,782  
Accumulated net unrealized appreciation of investments     57,428,365       41,348,468  
Net Assets   $ 312,502,487     $ 285,903,673  
Net Asset Value Per Share   $ 16.17     $ 14.80  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” 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 U.S. Bank National Association, the trustee. These funds were used to purchase six U.S. Treasury Strips with an original cost of $10,845,236. As of September 30, 2015, four of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At September 30, 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 $3,669,246.

 
 
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
September 30,
  Nine Months Ended
September 30,
     2015   2014   2015   2014
INVESTMENT INCOME
                                   
Interest income from controlled securities(1)   $     $ 4,083     $     $ 9,816  
Interest income from affiliated securities(1)     31,992       9,294       152,388       112,747  
Interest income from non-controlled/non-affiliated securities     7,371       8,594       23,109       36,369  
Dividend income from non-controlled/non-affiliated securities                 46,781       887  
Total Investment Income     39,363       21,971       222,278       159,819  
OPERATING EXPENSES
                                   
Management fees(1)     2,063,017       1,949,705       5,994,530       5,639,564  
Incentive fees(1)     1,062,535       3,684,300       10,839,602       5,498,585  
Costs incurred under Administration Agreement(1)     598,456       718,896       2,185,888       2,557,129  
Directors’ fees     94,620       65,000       287,426       195,000  
Professional fees     265,429       442,683       1,001,401       1,301,777  
Interest and credit facility expense     1,183,833       1,442,063       3,781,419       4,155,759  
Income tax expense     852,970             852,970        
Other expenses     118,417       115,922       382,895       434,849  
Gain on fair value adjustment for embedded derivative           (147,000 )      (1,000 )      (787,000 ) 
Total Operating Expenses     6,239,277       8,271,569       25,325,131       18,995,663  
(Provision)/Benefit for taxes on net investment
loss(2)
    (26,583,935 )      3,368,311       (18,865,865 )      7,740,594  
Net Investment Loss     (32,783,849 )      (4,881,287 )      (43,968,718 )      (11,095,250 ) 
Net Realized Gains (Losses):
                                   
From affiliated securities     (10,170,567 )            (10,161,030 )      10,419  
From non-controlled/non-affiliated securities     37,460,383       17,160,816       64,305,863       17,832,576  
Net Realized Gains (Losses) on investments     27,289,816       17,160,816       54,144,833       17,842,995  
(Provision)/Benefit for taxes on net realized gains on investments(2)     11,307,706       (7,006,762 )      342,802       (7,285,295 ) 
Net Change in Unrealized Appreciation (Depreciation) of investments:
                                   
From controlled securities     719,143       46,029       685,571       (367,942 ) 
From affiliated securities     5,124,897       (3,783,766 )      4,467,809       (7,650,194 ) 
From non-controlled/non-affiliated securities     (27,825,708 )      4,998,420       (5,095,366 )      17,677,865  
Net Change in Unrealized Appreciation (Depreciation) of investments     (21,981,668 )      1,260,683       58,014       9,659,729  
(Provision)/Benefit for taxes on unrealized appreciation/depreciation of investments(2)     25,020,686       (514,737 )      16,021,883       (3,944,068 ) 
Net Increase in Net Assets Resulting from Operations   $ 8,852,691     $ 6,018,713     $ 26,598,814     $ 5,178,111  
Net Increase in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ 0.45     $ 0.31     $ 1.37     $ 0.27  
Diluted(3)   $ 0.42     $ 0.30     $ 1.27     $ 0.27  
Weighted-Average Common Shares Outstanding
                                   
Basic     19,320,100       19,320,100       19,320,100       19,320,100  
Diluted(3)     23,564,228       23,564,228       23,564,228       19,320,100  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.
(2) Due to the Company’s change in tax status to a regulated investment company (“RIC”) from a C Corporation, the associated accrued benefits and provisions from previous periods were reversed, resulting in a provision for net investment loss, a benefit for net realized gains, and a benefit for unrealized appreciation of investments for the three and nine months ended September 30, 2015. Refer to “Note 8 — Income Taxes” and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations” for further detail.
(3) For the nine months ended September 30, 2014, 4,244,128 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive. Refer to “Note 5 — Net Increase in Net Assets Resulting from Operations per Common Share — Basic and Diluted” for further 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)

   
  Nine months
ended
September 30, 2015
  Nine months
ended
September 30, 2014
Net Increase in Net Assets Resulting from Operations
                 
Net Investment Loss   $ (43,968,718 )    $ (11,095,250 ) 
Net Realized Gains on Investments     54,144,833       17,842,995  
(Provision)/Benefit for Taxes on Net Realized Gains on Investments     342,802       (7,285,295 ) 
Net Change in Unrealized Appreciation of investments     58,014       9,659,729  
(Provision)/Benefit for Taxes on Unrealized Appreciation of Investments     16,021,883       (3,944,068 ) 
Net Increase in Net Assets Resulting from Operations     26,598,814       5,178,111  
Total Increase in Net Assets     26,598,814       5,178,111  
Net Assets at Beginning of Period     285,903,673       287,966,444  
Net Assets at End of Period   $ 312,502,487     $ 293,144,555  
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)

   
  Nine months
ended
September 30, 2015
  Nine months
ended
September 30,
2014
Cash Flows from Operating Activities
                 
Net increase in net assets resulting from operations   $ 26,598,814     $ 5,178,111  
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
                 
Net realized gains on investments     (54,144,833 )      (17,842,995 ) 
Net change in unrealized appreciation of investments     (58,014 )      (9,659,729 ) 
Gain on fair value adjustment for embedded derivative     (1,000 )      (787,000 ) 
Deferred tax liability     2,501,181       3,488,769  
Amortization of discount on Convertible Senior Notes     99,724        
Amortization of deferred financing costs     628,569       777,838  
Amortization of fixed income security premiums and discounts     (58,030 )      (41,426 ) 
Change in restricted cash     (4,042 )      (26,625 ) 
Non-cash dividend income     (46,781 )       
Write-off of deferred offering costs           277,977  
Purchases of investments in:
                 
Portfolio investments     (17,146,659 )      (45,852,034 ) 
United States treasury bills     (225,015,507 )      (260,002,734 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     92,641,645       62,502,968  
Treasuries strips     3,639,000       3,603,708  
United States treasury bills     300,000,000       160,001,251  
Change in operating assets and liabilities:
                 
Due from GSV Capital Service Company, LLC(1)           (15,795 ) 
Due from GSV Asset Management(1)     (647 )       
Due from portfolio companies(1)     24,985       45,304  
Prepaid expenses and other assets     249,941       (157,751 ) 
Interest and dividends receivable     (102,076 )      18,198  
Due to GSV Asset Management(1)     (3,416 )      (515,080 ) 
Payable for securities purchased     (68,001,096 )      94,001,484  
Accounts payable and accrued expenses     (225,087 )      (280,263 ) 
Accrued incentive fees(1)     10,839,602       5,498,585  
Accrued management fees(1)     46,396        
Accrued interest payable     (988,520 )      (821,308 ) 
Current taxes payable     (102,932 )       
Net Cash Provided by (Used in) Operating Activities     71,371,217       (608,547 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     6,000,000       18,000,000  
Repayments under credit facility     (24,000,000 )      (18,000,000 ) 
Deferred offering costs           (93,267 ) 
Net Cash Used in Financing Activities     (18,000,000 )      (93,267 ) 
Total Increase (Decrease) in Cash Balance     53,371,217       (701,814 ) 
Cash Balance at Beginning of Period     3,472,880       7,219,203  
Cash Balance at End of Period   $ 56,844,097     $ 6,517,389  

 
 
See notes to the Condensed Consolidated Financial Statements

4


 
 

TABLE OF CONTENTS

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

   
  Nine months
ended
September 30, 2015
  Nine months
ended
September 30,
2014
Supplemental Information:
                 
Interest Paid   $ 4,769,939     $ 4,977,067  
Taxes Paid   $ 852,970     $  
Non-Cash Operating Items
                 
Transactions in Portfolio Company Investments
                 
Convertible notes converted to preferred shares   $ 295,801     $ 3,064,135  
Structured notes converted to convertible notes     609,683        
Term loan converted to preferred shares           503,851  
Preferred shares converted to common shares           1,273,125  
Common shares converted to preferred shares           2,006,077  
Common membership interest converted to preferred shares           500,000  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.

 
 
See notes to the Condensed Consolidated Financial Statements

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
September 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
Data Analysis
      5,773,690     $ 16,191,055     $ 51,322,812       16.42 % 
Preferred shares, Series G           326,797       1,008,968       3,286,380       1.05 % 
Total                 17,200,023       54,609,192       17.47 % 
Dropbox, Inc.
                                            
Common shares     San Francisco, CA
Online Storage
      760,000       8,641,153       14,482,773       4.63 % 
Preferred shares, Series A-1           552,486       5,015,773       10,530,499       3.37 % 
Total                 13,656,926       25,013,272       8.00 % 
Twitter, Inc.**
                                            
Common shares     San Francisco, CA
Social Communication
      800,600       14,271,866       21,568,164       6.90 % 
Coursera, Inc.
                                            
Preferred shares, Series B     Mountain View, CA
Online Education
      2,961,399       14,519,519       14,446,747       4.62 % 
Solexel, Inc.
                                            
Preferred shares, Series C     Milpitas, CA
Solar Power
      5,300,158       11,598,648       11,607,346       3.71 % 
Preferred shares, Series D           1,613,413       2,420,631       2,420,120       0.77 % 
Total                 14,019,279       14,027,466       4.48 % 
PayNearMe, Inc.(1)
                                            
Preferred shares, Series E     Sunnyvale, CA
Cash Payment Network
      5,480,348       14,000,398       13,974,887       4.47 % 
Avenues Global Holdings, LLC(3)
                                            
Preferred shares, Junior Preferred
Stock
    New York, NY
Globally-focused Private
School
      10,014,270       10,151,854       12,141,120       3.89 % 
Lyft, Inc.
                                            
Preferred shares, Series D     San Francisco, CA
Peer to Peer Ridesharing
      493,490       5,003,631       9,273,828       2.97 % 
Preferred shares, Series E           128,563       2,503,585       2,677,010       0.85 % 
Total                 7,507,216       11,950,838       3.82 % 
Dataminr, Inc.
                                            
Preferred shares, Series B     New York, NY
Social Media Analytics
      904,977       2,063,356       8,909,182       2.85 % 
Preferred shares, Series C           301,369       1,100,909       2,966,872       0.95 % 
Total                 3,164,265       11,876,054       3.80 % 
JAMF Holdings, Inc.
                                            
Preferred shares, Series B     Minneapolis, MN
Mobile Device
Management
      73,440       9,999,928       11,583,628       3.71 % 
General Assembly Space, Inc.
                                            
Preferred shares, Series C     New York, NY
Online Education
      126,552       2,999,978       5,765,799       1.85 % 
Common shares           133,213       2,999,983       5,755,573       1.84 % 
Total                 5,999,961       11,521,372       3.69 % 

 
 
See notes to the Condensed Consolidated Financial Statements

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
September 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     $ 5,290,561       1.69 % 
Preferred shares, Series A              1,090,909       3,000,200       4,407,134       1.42 % 
Preferred shares, Series Seed           500,000       500,000       1,727,898       0.55 % 
Total                 8,500,199       11,425,593       3.66 % 
SugarCRM, Inc.
                                            
Common shares     Cupertino, CA
Customer Relationship
Manager
      1,524,799       5,476,662       8,215,922       2.63 % 
Preferred shares, Series E           373,134       1,500,522       2,165,222       0.69 % 
Total                 6,977,184       10,381,144       3.32 % 
Declara, Inc.(1)
                                            
Preferred shares, Series A     Palo Alto, CA
Social Cognitive Learning
      5,358,195       9,999,999       10,019,825       3.21 % 
Curious.com Inc.(1)
                                            
Preferred shares, Series B     Menlo Park, CA
Online Education
      2,839,861       10,000,003       9,996,311       3.20 % 
StormWind, LLC(2)(5)
                                            
Preferred shares, Series B     Scottsdale, AZ
Interactive Learning
      3,279,629       2,019,687       4,707,330       1.51 % 
Preferred shares, Series C              2,779,134       4,000,787       4,690,108       1.50 % 
Preferred shares, Series A           366,666       110,000       526,284       0.17 % 
Total                 6,130,474       9,923,722       3.18 % 
Chegg, Inc.**
                                            
Common shares     Santa Clara, CA
Textbook Rental
      1,182,792       14,022,863       8,527,930       2.73 % 
Spotify Technology S.A.**
                                            
Common shares     Stockholm, Sweden
Music Streaming Service
      3,658       3,598,472       8,158,224       2.61 % 
Lytro, Inc.
                                            
Preferred shares, Series C-1     Mountain View, CA
Consumer Electronics
      2,533,784       7,500,241       7,500,001       2.40 % 
NestGSV, Inc. (d/b/a GSV Labs,
Inc.)
(2)
                                            
Preferred shares, Series D     Redwood City, CA
Incubator
      3,720,424       4,904,498       4,960,565       1.59 % 
Preferred shares, Series C              1,561,625       2,007,250       1,173,190       0.37 % 
Preferred shares, Series A              1,000,000       1,021,778       550,375       0.18 % 
Preferred shares, Series B              450,000       605,500       247,669       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             7,500       0.00 % 
Total                 8,540,026       7,102,299       2.27%  

 
 
See notes to the Condensed Consolidated Financial Statements

7


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
GSV Sustainability Partners(2)
                                            
Preferred shares, Class A     Woodside, CA
Clean Technology
      11,900,000     $ 5,951,412     $ 5,950,000       1.90 % 
Common shares           100,000       10,000       10,000       0.00 % 
Total                 5,961,412       5,960,000       1.90 % 
Fullbridge, Inc.(1)
                                            
Preferred shares, Series D     Cambridge, MA
Business Education
      1,655,167       2,956,022       3,111,714       1.00 % 
Preferred shares, Series C              1,728,724       3,193,444       1,625,001       0.52 % 
Convertible Promissory Note 10% Due 03/02/16***            $ 1,030,507       1,006,624       1,088,878       0.36 % 
Common Warrants – Strike Price $0.91, Expiration Date 2/18/2019              714,286       90,242       14,286       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 4/03/2019              412,088       52,063       8,242       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/02/2020              283,106       35,767       5,662       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 5/16/2019              192,308       24,296       3,846       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/22/2020              186,170       23,521       3,723       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 10/10/2018              82,418       10,412       1,648       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 12/11/2018           82,418       10,413       1,648       0.00 % 
Total                 7,402,804       5,864,648       1.88 % 
Enjoy Technology, Inc.
                                            
Preferred shares, Series B     Menlo Park, CA
Online Shopping
      1,681,520       4,000,280       4,000,000       1.28 % 
Preferred shares, Series A           879,198       1,002,440       1,701,035       0.54 % 
Total                 5,002,720       5,701,035       1.82 % 
Knewton, Inc.
                                            
Preferred shares, Series E     New York, NY
Online Education
      375,985       4,999,999       5,000,601       1.60 % 
Course Hero, Inc.
                                            
Preferred shares, Series A     Redwood City, CA
Online Education
      2,145,509       5,000,001       5,000,001       1.60 % 
Whittle Schools, LLC(1)(4)
                                            
Preferred shares, Series B     New York, NY
Globally-focused Private
School
      3,000,000       3,000,000       3,000,000       0.96 % 
Common shares           229       1,577,097       1,500,000       0.48 % 
Total                 4,577,097       4,500,000       1.44 % 
Parchment, Inc.
                                            
Preferred shares, Series D     Scottsdale, AZ
E-Transcript Exchange
      3,200,512       4,000,982       4,000,000       1.28%  

 
 
See notes to the Condensed Consolidated Financial Statements

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
September 30, 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     $ 2,175,401       0.70 % 
Senior Subordinated Convertible Promissory Note 8% Due
11/26/2018***(10)
           $ 1,000,000       1,000,000       1,067,507       0.34 % 
Convertible preferred shares,
Series D
             169,033       778,607       679,465       0.22 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             6,930       0.00 % 
Total                 3,784,684       3,929,303       1.26 % 
Bloom Energy Corporation
                                            
Common shares     Sunnyvale, CA
Fuel Cell Energy
      201,589       3,855,601       2,870,592       0.92 % 
DogVacay, Inc.
                                            
Preferred shares, Series B-1     Santa Monica, CA
Dog Boarding
      514,562       2,506,119       2,500,771       0.80 % 
SharesPost, Inc.(6)
                                            
Preferred shares, Series B     San Bruno, CA
Online Marketplace Finance
      1,771,653       2,259,716       2,249,999       0.72 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       185,024       0.06 % 
Total                 2,282,844       2,435,023       0.78 % 
Maven Research, Inc.(1)
                                            
Preferred shares, Series C     San Francisco, CA
Knowledge Networks
      318,979       2,000,447       1,999,998       0.64 % 
Preferred shares, Series B           49,505       217,206       249,691       0.08 % 
Total                 2,217,653       2,249,689       0.72 % 
DreamBox Learning, Inc.
                                            
Preferred shares, Series A-1     Bellevue, WA
Education Technology
      7,159,221       1,502,362       1,448,538       0.46 % 
Preferred shares, Series A           3,579,610       758,017       724,269       0.24 % 
Total                 2,260,379       2,172,807       0.70 % 
Clever, Inc.
                                            
Preferred shares, Series B     San Francisco, CA
Education Software
      1,799,047       2,000,601       2,096,200       0.67 % 
Circle Media (f/k/a S3 Digital Corp. (d/b/a S3i))(1)
                                            
Preferred shares, Series A     New York, NY
Sports Analytics
      1,864,495       1,792,500       1,459,553       0.47 % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017              500,000       31,354       70,000       0.01 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 08/29/2021              175,815             19,340       0.01 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 09/30/2020              160,806             17,689       0.01 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 6/26/2021           38,594             4,245       0.00 % 
Total                 1,823,854       1,570,827       0.50%  

 
 
See notes to the Condensed Consolidated Financial Statements

9


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Gilt Groupe Holdings, Inc.
                                            
Common shares     New York, NY
e-Commerce Flash Sales
      248,600     $ 6,594,433     $ 1,188,372       0.38 % 
AlwaysOn, Inc.(1)
                                            
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       446,594       0.14 % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017           109,375             1,094       0.00 % 
Total                 1,903,734       1,002,334       0.32 % 
Strategic Data Command, LLC(1)(7)
                                            
Common shares     Sunnyvale, CA
Software Development
      800,000       989,277       1,000,000       0.32 % 
Aspiration Partners, Inc.
                                            
Preferred shares, Series A     Marina Del Rey, CA
Financial Services
      18,009       1,001,815       999,975       0.32 % 
4C Insights (f/k/a The Echo Systems Corp.)
                                            
Preferred shares, Series A     Chicago, IL
Social Data Platform
      512,365       1,436,404       850,459       0.27 % 
Tynker (f/k/a Neuron Fuel, Inc.)
                                            
Preferred shares, Series A     San Jose, CA
Computer Software
      534,162       309,310       791,159       0.25 % 
EdSurge, Inc.(1)
                                            
Preferred shares, Series A     Burlingame, CA
Education Media Platform
      494,365       500,801       500,801       0.16 % 
AliphCom, Inc. (d/b/a Jawbone)
                                            
Common shares     San Francisco, CA
Smart Device Company
      150,000       793,152       470,827       0.15 % 
Learnist Inc. (f/k/a Grockit, Inc.)(1)
                                            
Preferred shares, Series D     San Francisco, CA
Online Learning Platform
      2,728,252       2,005,945       187,792       0.06 % 
Preferred shares, Series E              1,731,501       1,503,670       128,440       0.04 % 
Preferred shares, Series F           1,242,928       1,450,000       115,693       0.04 % 
Total                 4,959,615       431,925       0.14 % 
Global Education Learning (Holdings) Ltd.(1)**
                                            
Preferred shares, Series A     Hong Kong
Education Technology
      2,126,475       990,375       399,239       0.13 % 
Cricket Media (f/k/a ePals Inc.)**(8)
                                            
Common shares     Herndon, VA
Online Education
      1,333,333       2,448,959       238,646       0.08 % 
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(11)         $ 50,000       50,840       51,176       0.02 % 
Total                 312,438       176,291       0.06%  

 
 
See notes to the Condensed Consolidated Financial Statements

10


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/Principal   Cost   Fair Value   % of Net Assets
Upwork Global Inc. (f/k/a Odesk Corporation)
                                            
Common Shares     Redwood City, CA
Online Workplace Platform
      30,000     $ 183,269     $ 141,060       0.05 % 
Total Portfolio Investments                 279,861,028       349,790,374       111.93 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due
10/1/2015
           $ 25,000,000       25,000,604       25,000,604       8.00 % 
U.S. Treasury Strips(9)
                                            
United States Treasury Strip Coupon, 0.00% due 08/15/2016            $ 1,851,000       1,838,954       1,846,854       0.59 % 
United States Treasury Strip Coupon, 0.00% due 02/15/2016         $ 1,834,000       1,830,292       1,833,762       0.59 % 
Total                 3,669,246       3,680,616       1.18 % 
Total Investments               $ 308,530,878     $ 378,471,594       121.11 % 

* 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, as amended. 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, as amended. 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 for which the 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 September 30, 2015, GSV Capital Corp. valued Cricket Media (f/k/a ePals Inc.), based on its September 30, 2015 closing price. GSV Capital Corp.’s Chief Executive Officer, Michael Moe, serves on the board of directors for Cricket Media (f/k/a ePals Inc.), which subjects GSV Capital Corp. to insider trading restrictions under Canadian securities law.

 
 
See notes to the Condensed Consolidated Financial Statements

11


 
 

TABLE OF CONTENTS

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

(9) 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 U.S. Bank National Association, the trustee. These funds were used to purchase six U.S. Treasury Strips with an original cost of $10,845,236. As of September 30, 2015, four of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At September 30, 2015, the remaining government securities are shown on the Condensed Consolidated Schedule of Investments with an amortized cost of $3,669,246.
(10) 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. (d/b/a CorpU), or (b) the maturity of the note (November 26, 2018). Interest will compound annually beginning on November 26, 2015.
(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 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 the 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 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
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

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)
                                            
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