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



 

FORM 10-Q



 

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

        FOR THE QUARTERLY PERIOD ENDED March 31, 2016

 
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   Smaller reporting company o
     (do not check if a smaller reporting company)     

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 issuer had 22,181,003 shares of common stock, $0.01 par value per share, outstanding as of May 10, 2016.

 

 


 
 

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 March 31, 2016 (unaudited) and December 31, 2015     1  
Condensed Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015 (unaudited)     3  
Condensed Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2016 and 2015 (unaudited)     4  
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and 2015 (unaudited)     5  
Condensed Consolidated Schedule of Investments as of March 31, 2016 (unaudited)     6  
Condensed Consolidated Schedule of Investments as of December 31, 2015     12  
Notes to the Condensed Consolidated Financial Statements as of March 31, 2016 (unaudited)     18  
Note 1 — Nature of Operations and Significant Accounting Policies     18  
Note 2 — Related-Party Arrangements     26  
Note 3 — Investments at Fair Value     28  
Note 4 — Equity Offerings and Related Expenses     33  
Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per
       Common Share — Basic and Diluted
    33  
Note 6 — Commitments and Contingencies     34  
Note 7 — Financial Highlights     34  
Note 8 — Income Taxes     35  
Note 9 — Long Term Liabilities     36  
Note 10 — Subsequent Events     38  

Item 2.

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

    39  
Forward-Looking Statements     39  
Overview     40  
Investments — (Portfolio Activity)     41  
Results of Operations     42  
Liquidity and Capital Resources     44  
Equity Issuances & Debt Capital Activities     44  
Contractual Obligations     45  
Off-Balance Sheet Arrangements     45  
Distributions     45  
Borrowings     46  
Related-Party Transactions     47  
Critical Accounting Policies     49  
Recent Developments     51  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    51  

Item 4.

Controls and Procedures

    52  

i


 
 

TABLE OF CONTENTS

 
  PAGE

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    53  

Item 1A.

Risk Factors

    53  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    53  

Item 3.

Defaults Upon Senior Securities

    53  

Item 4.

Mine Safety Disclosure

    53  

Item 5.

Other Information

    53  

Item 6.

Exhibits

    54  
Schedules of Investments in and Advances to Affiliates (Schedules 12-14) as of
March 31, 2016 (unaudited) and December 31, 2015
    55  
Signatures     62  

ii


 
 

TABLE OF CONTENTS

Item 1.  Condensed Consolidated Financial Statements

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

   
  March 31,
2016
  December 31,
2015
     (Unaudited)
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $22,330,392 and $21,830,392, respectively)(1)   $ 23,105,062     $ 22,871,790  
Investments in affiliated securities (cost of $71,994,560 and $73,942,123, respectively)(1)     67,935,085       66,075,585  
Investments in non-controlled/non-affiliated securities (cost of $193,925,756 and $197,577,328, respectively)     234,248,249       260,861,392  
Investments in treasury bill (cost of $29,999,883 and $29,999,968, respectively)     29,999,883       30,000,000  
Investments owned and pledged (amortized cost of $1,845,845 and $3,675,192, respectively)(2)     1,847,613       3,676,693  
Total Investments (cost of $320,096,436 and $327,025,003,
respectively)
    357,135,892       383,485,460  
Cash     4,381,411       13,349,877  
Restricted cash     75,681       52,931  
Due from:
                 
GSV Asset Management(1)     1,623       220,770  
Portfolio companies(1)     52,491       56,371  
Interest and dividends receivable     185,534       97,183  
Prepaid expenses and other assets     161,223       227,826  
Deferred financing costs(3)     328,820       352,653  
Total Assets     362,322,675       397,843,071  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     25,690       5,047,429  
Accounts payable and accrued expenses     393,161       105,587  
Accrued incentive fees(1)     12,195,980       17,314,565  
Accrued management fees(1)     655,912       683,423  
Accrued interest payable     150,938       1,056,563  
Payable for securities purchased     26,499,883       26,499,357  
Deferred tax liability     12,476,155       12,476,155  
Convertible Senior Notes payable 5.25% due September 15, 2018(2)(3)     66,863,075       66,649,047  
Total Liabilities     119,260,794       129,832,126  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 243,061,881     $ 268,010,945  

 
 
See notes to the condensed consolidated financial statements

1


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES – (continued)

   
  March 31,
2016
  December 31,
2015
     (Unaudited)
NET ASSETS
                 
Common stock, par value $0.01 per share (100,000,000 authorized; 22,181,003 issued and outstanding, respectively)   $ 221,810     $ 221,810  
Paid-in capital in excess of par     237,757,527       237,757,527  
Accumulated net investment loss     (16,087,030 )      (16,634,037 ) 
Accumulated net realized gains/(losses) on investments     (3,393,728 )      2,681,342  
Accumulated net unrealized appreciation of investments     24,563,302       43,984,303  
Net Assets   $ 243,061,881     $ 268,010,945  
Net Asset Value Per Share   $ 10.96     $ 12.08  

(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 March 31, 2016, five of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At March 31, 2016, 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 $1,845,845. The Convertible Senior Notes have a face value of $69,000,000 due to the Company’s investors. Refer to “Note 9 — Long Term Liabilities” for a reconciliation of the carrying value to the face value.
(3) Deferred debt issuance costs of $1,947,572 related to the Company’s issuance of the Convertible Senior Notes payable was previously classified as “Deferred Financing costs” as of December 31, 2015. In accordance with ASU 2015-03, this balance has been retrospectively reclassified as a direct deduction from the Convertible Senior Notes on the Condensed Consolidated Statements of Assets and Liabilities. Refer to “Note 1 — Nature of Operations and Significant Accounting Policies — Recent Accounting Pronouncements,” as well as “Note 9 — Long Term Liabilities” for further detail.

 
 
See notes to the condensed consolidated financial statements

2


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2016
  Three months
ended
March 31,
2015
INVESTMENT INCOME
                 
Interest income from controlled securities(1)   $ 4,889     $  
Interest income from affiliated securities(1)     92,478       51,231  
Interest income from non-controlled/non-affiliated securities     5,285       7,793  
Total Investment Income     102,652       59,024  
OPERATING EXPENSES
                 
Management fees(1)     1,958,000       1,921,128  
(Reversal of Incentive fee accrual)/Incentive fees(1)     (5,118,584 )      8,211,728  
Costs incurred under Administration Agreement(1)     599,950       802,396  
Directors’ fees     86,250       85,306  
Professional fees     637,128       341,744  
Interest expense     1,183,163       1,368,803  
Other expenses     209,738       121,325  
Total Operating Expenses     (444,355 )      12,852,430  
Benefit for taxes on net investment loss           5,223,611  
Net Investment Income/(Loss)     547,007       (7,569,795 ) 
Net Realized Gains/(Losses):
                 
From non-controlled/non-affiliated securities     (6,075,070 )      13,218,403  
Net Realized Gains/(Losses) on investments     (6,075,070 )      13,218,403  
Provision for taxes on net realized gains on investments           (5,397,074 ) 
Net Change in Unrealized Appreciation/(Depreciation) of investments:
                 
From controlled securities(1)     (266,728 )      (141,656 ) 
From affiliated securities(1)     (1,148,187 )      249,522  
From non-controlled/non-affiliated securities     (18,006,086 )      27,676,215  
Net Change in Unrealized Appreciation/(Depreciation) of investments     (19,421,001 )      27,784,081  
Provision for taxes on unrealized appreciation of investments           (11,370,993 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations   $ (24,949,064 )    $ 16,664,622  
Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share
                 
Basic   $ (1.12 )    $ 0.86  
Diluted(2)   $ (1.12 )    $ 0.73  
Weighted-Average Common Shares Outstanding
                 
Basic     22,181,003       19,320,100  
Diluted(2)     22,181,003       23,564,228  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.
(2) For the three months ended March 31, 2016, 5,710,212 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net decrease 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/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted” for further detail.

 
 
See notes to the condensed consolidated financial statements

3


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2016
  Three months
ended
March 31,
2015
Net Increase/(Decrease) in Net Assets Resulting from Operations
                 
Net Investment Income/(Loss)   $ 547,007     $ (7,569,795 ) 
Net Realized Gains/(Losses) on Investments     (6,075,070 )      13,218,403  
Provision for Taxes on Realized Gains on Investments           (5,397,074 ) 
Net Change in Unrealized Appreciation/(Depreciation) of Investments     (19,421,001 )      27,784,081  
Provision for Taxes on Unrealized Appreciation of Investments           (11,370,993 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations     (24,949,064 )      16,664,622  
Total Increase/(Decrease) in Net Assets     (24,949,064 )      16,664,622  
Net Assets at Beginning of Period     268,010,945       285,903,673  
Net Assets at End of Period   $ 243,061,881     $ 302,568,295  
Capital Share Activity
                 
Shares Issued            
Shares Outstanding at Beginning of Period     22,181,003       19,320,100  
Shares Outstanding at End of Period     22,181,003       19,320,100  

 
 
See notes to the condensed consolidated financial statements

4


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2016
  Three months
ended
March 31,
2015
Cash Flows from Operating Activities
                 
Net increase/(decrease) in net assets resulting from operations   $ (24,949,064 )    $ 16,664,622  
Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash provided by/(used in) operating activities:
                 
Net realized (gains)/losses on investments     6,075,070       (13,218,403 ) 
Net change in unrealized (appreciation)/depreciation of investments     19,421,001       (27,784,081 ) 
Deferred tax liability           11,544,456  
Amortization of discount on Convertible Senior Notes     214,028       209,835  
Amortization of deferred financing costs     23,833       57,345  
Amortization of fixed income security premiums and discounts     (14,301 )      (15,441 ) 
Change in restricted cash     (22,750 )      7,708  
Purchases of investments in:
                 
Portfolio investments     (6,005,951 )      (8,990,125 ) 
United States treasury bills     (29,999,883 )      (100,013,333 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     5,039,632       19,558,200  
United States treasury bills     30,000,000       100,000,000  
United States treasuries strips     1,834,000       1,816,000  
Change in operating assets and liabilities:
                 
Due from GSV Asset Management(1)     219,147       98,981  
Due from portfolio companies(1)     3,880       7,920  
Prepaid expenses and other assets     66,603       47,575  
Interest and dividends receivable     (88,351 )      (37,118 ) 
Due to GSV Asset Management(1)     (5,021,739 )      6,859  
Payable for securities purchased     526       (488,359 ) 
Accounts payable and accrued expenses     287,574       (108,038 ) 
Accrued incentive fees(1)     (5,118,585 )      8,211,728  
Accrued management fees(1)     (27,511 )      (67 ) 
Accrued interest payable     (905,625 )      (988,520 ) 
Net Cash Provided by/(Used in) Operating Activities     (8,968,466 )      6,587,744  
Cash Flows from Financing Activities
                 
Borrowings under Credit Facility           6,000,000  
Repayments under Credit Facility           (8,000,000 ) 
Net Cash Used in Financing Activities           (2,000,000 ) 
Total Increase/(Decrease) in Cash Balance     (8,968,466 )      4,587,744  
Cash Balance at Beginning of Year     13,349,877       3,472,880  
Cash Balance at End of Year   $ 4,381,411     $ 8,060,624  
Supplemental Information:
                 
Interest Paid   $ 2,088,788     $ 2,357,323  
Taxes Paid   $     $  
Non-Cash Operating Items
                 
Transactions in Portfolio Company Investments
                 
Structured notes converted to convertible notes   $     $ 609,683  

(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
March 31, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Palantir Technologies, Inc.
    Palo Alto, CA                                      
Preferred shares, Series G     Data Analysis       326,797     $ 1,008,968     $ 2,470,710       1.02 % 
Common shares, Class A           5,773,690       16,189,935       43,645,831       17.96 % 
Total                 17,198,903       46,116,541       18.98 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Online Storage       552,486       5,015,773       8,077,079       3.32 % 
Common shares           760,000       8,641,153       11,107,661       4.57 % 
Total                 13,656,926       19,184,740       7.89 % 
Spotify Technology S.A.**
    Stockholm, Sweden                                      
Common shares     Music Streaming Service       9,541       13,599,572       16,219,700       6.67 % 
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,435,486       5.94 % 
Solexel, Inc.
    Milpitas, CA                                      
Preferred shares, Series D     Solar Power       1,613,413       2,419,751       2,419,151       1.00 % 
Preferred shares, Series C           5,300,158       11,598,648       11,607,346       4.78 % 
Total                 14,018,399       14,026,497       5.78 % 
PayNearMe, Inc.(1)
    Sunnyvale, CA                                      
Preferred shares, Series E     Cash Payment Network       5,480,348       14,000,398       13,974,887       5.75 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     Peer to Peer Ridesharing       128,563       2,503,585       3,177,630       1.31 % 
Preferred shares, Series D           427,933       4,342,478       10,506,132       4.32 % 
Total                 6,846,063       13,683,762       5.63 % 
Twitter, Inc.
    San Francisco, CA                                      
Common shares     Social Communication       800,600       14,271,866       13,249,930       5.45 % 
Declara, Inc.(1)
                                            
Convertible Promissory Note 6%
Due 12/30/16***
    Palo Alto, CA     $ 2,000,000       2,000,000       2,000,000       0.82 % 
Preferred shares, Series A     Social Cognitive Learning       10,716,390       9,999,999       9,999,999       4.11 % 
Total                 11,999,999       11,999,999       4.93 % 
Curious.com Inc.(1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       11,995,576       4.94 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       5,815,601       2.39 % 
Common shares           133,213       2,999,983       5,805,286       2.39 % 
Total                 5,999,961       11,620,887       4.78 % 
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       11,405,305       4.69 % 
Avenues Global Holdings, LLC (3)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused Private
School
      10,014,270       10,151,854       10,795,434       4.44 % 

 
 
See notes to the condensed consolidated financial statements

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
March 31, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
StormWind, LLC(2)(5)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134     $ 4,000,787     $ 5,212,820       2.14 % 
Preferred shares, Series B              3,279,629       2,019,687       5,010,584       2.06 % 
Preferred shares, Series A           366,666       110,000       560,189       0.23 % 
Total                 6,130,474       10,783,593       4.43 % 
Ozy Media, Inc.(1)
    Mountain View, CA                                      
Preferred shares, Series B     Daily News and
Information Site
      922,509       4,999,999       4,667,956       1.92 % 
Preferred shares, Series A              1,090,909       3,000,200       3,888,493       1.60 % 
Preferred shares, Series Seed           500,000       500,000       1,524,555       0.63 % 
Total                 8,500,199       10,081,004       4.15 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series C-1     Light Field Imaging Platform       3,378,379       10,000,002       10,000,002       4.11 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       2,193,700       0.90 % 
Preferred shares, Series B           904,977       2,063,356       6,587,434       2.71 % 
Total                 3,164,265       8,781,134       3.61 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship       373,134       1,500,522       1,858,207       0.76 % 
Common shares     Manager       1,524,799       5,476,502       6,768,255       2.78 % 
Total                 6,977,024       8,626,462       3.54 % 
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(2)
    Redwood City, CA                                      
Convertible Promissory Note 8%
Due 06/30/16***
    Incubator
  
    $ 500,000       500,000       500,000       0.21 % 
Preferred shares, Series D              3,720,424       4,904,498       4,960,565       2.04 % 
Preferred shares, Series C              1,561,625       2,005,730       1,733,404       0.71 % 
Preferred shares, Series B              450,001       605,500             % 
Preferred shares, Series A              1,000,000       1,021,778             % 
Common shares              200,000       1,000             % 
Preferred warrants, Series D – $1.33 Strike Price, Expiration Date 10/6/2019              500,000             100,000       0.04 % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date 4/9/2019           187,500             22,500       0.01 % 
Total                 9,038,506       7,316,469       3.01 % 
Fullbridge, Inc.(1)
    Cambridge, MA                                      
Convertible Promissory Note 10% Due 03/02/16***     Business Education
  
    $ 1,030,507       1,030,912       1,030,506       0.43 % 
Convertible Promissory Note 10% Due 03/14/17***            $ 1,000,000       1,000,000       1,000,000       0.42 % 
Preferred shares, Series D              1,655,167       2,957,062       2,573,785       1.06 % 
Preferred shares, Series C              1,728,724       3,193,444       1,344,083       0.55 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/02/2020              283,106       35,767       11,324       % 
Common Warrants – Strike Price $0.91, Expiration Date 3/22/2020              186,170       23,521       7,447       % 
Common Warrants – Strike Price $0.91, Expiration Date 5/16/2019              192,308       24,296       7,692       % 
Common Warrants – Strike Price $0.91, Expiration Date 4/03/2019              412,088       52,063       16,484       0.01%  

 
 
See notes to the condensed consolidated financial statements

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
March 31, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Common Warrants – Strike Price $0.91, Expiration Date 10/10/2018              82,418       10,412       2,473       % 
Common Warrants – Strike Price $0.91, Expiration Date 12/11/2018              82,418     $ 10,413     $ 2,473       % 
Common Warrants – Strike Price $0.91, Expiration Date 2/18/2019           714,286       90,242       21,429       0.01 % 
Total                 8,428,132       6,017,696       2.48 % 
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     Online Shopping       1,681,520       4,000,280       4,000,000       1.65 % 
Preferred shares, Series A           879,198       1,002,440       1,439,400       0.59 % 
Total                 5,002,720       5,439,400       2.24 % 
Chegg, Inc.
    Santa Clara, CA                                      
Common shares     Textbook Rental       1,182,792       14,022,863       5,275,252       2.17 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       5,103,870       2.10 % 
GSV Sustainability Partners(2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000       7,151,412       5,005,000       2.06 % 
Common shares           100,000       10,000             % 
Total                 7,161,412       5,005,000       2.06 % 
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       4,953,723       2.04 % 
Whittle Schools, LLC(1)(4)
    New York, NY                                      
Preferred shares, Series B     Globally-focused Private
School
      3,000,000       3,000,000       3,000,000       1.23 % 
Common shares           229       1,577,097       1,500,000       0.62 % 
Total                 4,577,097       4,500,000       1.85 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,000,000       1.65 % 
CUX, Inc. (d/b/a CorpU)(1)
    San Francisco, CA                                      
Senior Subordinated Convertible Promissory Note 8% Due 11/26/2018***(10)     Corporate Education
  
  
    $ 1,080,000       1,080,000       1,080,000       0.44 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.32 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,913,484       0.79 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             3,043       % 
Total                 3,864,684       3,772,388       1.55 % 
DogVacay, Inc.
    Santa Monica, CA                                      
Preferred shares, Series B-1     Dog Boarding       514,562       2,506,119       2,500,771       1.03 % 
SharesPost, Inc.(6)
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       0.93 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       177,315       0.07 % 
Total                 2,282,844       2,427,314       1.00%  

 
 
See notes to the condensed consolidated financial statements

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
March 31, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979     $ 2,000,447     $ 1,999,998       0.82 % 
Preferred shares, Series B           49,505       217,206       249,691       0.10 % 
Total                 2,217,653       2,249,689       0.92 % 
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,258,025       0.52 % 
Preferred shares, Series A           3,579,610       758,017       629,012       0.26 % 
Total                 2,260,379       1,887,037       0.78 % 
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047       2,000,601       1,505,161       0.62 % 
Circle Media (f/k/a S3 Digital Corp.
(d/b/a S3i))
(1)
    New York, NY                                      
Promissory Note 12%, 11/18/2016***     Sports Analytics     $ 25,000       26,544       25,000       0.01 % 
Preferred shares, Series A              1,864,495       1,777,576       1,048,957       0.43 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 11/18/2022              5,360       576       107       % 
Preferred warrants, $1.17 Strike Price, Expiration Date 08/29/2021              175,815             3,516       % 
Preferred warrants, $1.17 Strike Price, Expiration Date 6/26/2021              38,594             772       % 
Preferred warrants, $1.17 Strike Price, Expiration Date 09/30/2020              160,806             3,216       % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017           500,000       31,354       15,000       0.01 % 
Total                 1,836,050       1,096,568       0.45 % 
EdSurge, Inc.(1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       501,682       0.21 % 
Preferred shares, Series A           494,365       500,801       526,632       0.22 % 
Total                 1,002,161       1,028,314       0.43 % 
Strategic Data Command, LLC(1)(7)
    Sunnyvale, CA                                      
Common shares     Software Development       2,400,000       989,277       1,001,650       0.41 % 
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A     Financial Services       18,009       1,001,815       913,980       0.38 % 
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Preferred shares, Series A     Social Data Platform       512,365       1,436,404       850,210       0.35 % 
Tynker (f/k/a Neuron Fuel, Inc.)
    San Jose, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       786,715       0.32 % 
AlwaysOn, Inc.(1)
    Woodside, CA                                      
Preferred shares, Series A-1     Social Media       4,465,925       876,023       89,319       0.04 % 
Preferred shares, Series A              1,066,626       1,027,391       127,995       0.05 % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017           109,375                   % 
Total                 1,903,414       217,314       0.09 % 
Cricket Media (f/k/a ePals Inc.)**(8)
    Herndon, VA                                      
Common shares     Online Education       1,333,333       2,448,959       133,678       0.05%  

 
 
See notes to the condensed consolidated financial statements

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
March 31, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
AliphCom, Inc. (d/b/a Jawbone)
    San Francisco, CA                                      
Common shares     Smart Device Company       150,000     $ 793,152     $ 130,910       0.05 % 
Upwork Global Inc. (f/k/a Odesk Corporation)
    Redwood City, CA                                      
Common Shares     Online Workplace Platform       25,159       183,269       114,964       0.05 % 
Earlyshares.com, Inc.
    Miami, FL                                      
Convertible Promissory Note 5%,
8/02/2016(11)
    Equity Crowdfunding
  
    $ 50,000       50,840       50,000       0.02 % 
Preferred shares, Series A           165,715       261,598       25,023       0.01 % 
Total                 312,438       75,023       0.03 % 
Orchestra One, Inc. (f/k/a Learnist Inc.)
    San Francisco, CA                                      
Common shares     Consumer Health Technology       57,026       4,959,614       4,361       0.01 % 
Global Education Learning (Holdings) Ltd.(1)**
    Hong Kong                                      
Preferred shares, Series A     Education Technology       2,126,475       675,495             % 
Total Portfolio Investments                 288,250,708       325,288,396       133.83 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 4/7/2016            $ 30,000,000       29,999,883       29,999,883       12.34 % 
U.S. Treasury Strips(9)
                                            
United States Treasury Strip Coupon, 0.00% due 08/15/2016         $ 1,851,000       1,845,845       1,847,613       0.76 % 
Total Investments               $ 320,096,436     $ 357,135,892       146.93 % 

* 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. All investments are pledged as collateral, unless otherwise noted, to the Credit Facility. The Company’s officers and staff may serve on the board of directors of the Company’s portfolio investments.
** 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. Of GSV Capital Corp.’s total portfolio, 4.6% of its total investments are non-qualifying.
*** 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 that is collateralized by Avenues Global Holdings LLC as well as the personal collateral of Chris Whittle, the former chairman of Avenues Global Holdings LLC.

 
 
See notes to the condensed consolidated financial statements

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
March 31, 2016
(Unaudited)

(5) GSV Capital Corp.’s investment in StormWind, LLC is held through its wholly owned subsidiary GSVC SW Holdings, Inc.
(6) GSV Capital Corp.’s investment in SharesPost, Inc. is held through its wholly owned subsidiary SPNPM Holdings, LLC.
(7) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly owned subsidiary GSVC SVDS Holdings, Inc.
(8) On October 22, 2013, Cricket Media (f/k/a ePals Inc.) priced its initial public offering, selling 40,267,333 shares at a price of CAD $0.075 per share. At March 31, 2016, GSV Capital Corp. valued Cricket Media based on its March 31, 2016 closing price. GSV Capital Corp.’s Chief Executive Officer, Michael Moe, serves on the board of directors for Cricket Media, which subjects GSV Capital Corp. to insider trading restrictions under Canadian securities law.
(9) Refer to “Note 9 — Long Term Liabilities.” In accordance with the terms of the Company’s Convertible Senior Notes, 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 March 31, 2016, five of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At March 31, 2016, the remaining government securities are shown on the Condensed Consolidated Schedule of Investments with an amortized cost of $1,845,845. These securities do not represent collateral under the Credit Facility, as these securities are pledged exclusively for the repayment of interest under the Convertible Senior Notes.
(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 began compounding annually 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 began compounding annually on February 26, 2015.

 
 
See notes to the condensed consolidated financial statements

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2015

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Palantir Technologies, Inc.
    Palo Alto, CA                                      
Preferred shares, Series G     Data Analysis       326,797     $ 1,008,968     $ 3,018,787       1.13 % 
Common shares, Class A           5,773,690       16,189,935       53,334,461       19.90 % 
Total                 17,198,903       56,353,248       21.03 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Online Storage       552,486       5,015,773       9,359,241       3.49 % 
Common shares           760,000       8,641,153       12,872,947       4.80 % 
Total                 13,656,926       22,232,188       8.29 % 
Twitter, Inc.**
    San Francisco, CA                                      
Common shares     Social Communication       800,600       14,271,866       18,525,884       6.91 % 
Spotify Technology S.A.**
    Stockholm, Sweden                                      
Common shares     Music Streaming Service       9,541       13,599,572       16,219,700       6.05 % 
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,435,486       5.39 % 
Solexel, Inc.
    Milpitas, CA                                      
Preferred shares, Series D     Solar Power       1,613,413       2,419,751       2,420,120       0.90 % 
Preferred shares, Series C           5,300,158       11,598,648       11,607,346       4.33 % 
Total                 14,018,399       14,027,466       5.23 % 
PayNearMe, Inc.(1)
    Sunnyvale, CA                                      
Preferred shares, Series E     Cash Payment Network       5,480,348       14,000,398       13,974,887       5.21 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     Peer to Peer Ridesharing       128,563       2,503,585       2,976,876       1.11 % 
Preferred shares, Series D           493,490       5,003,631       10,992,490       4.10 % 
Total                 7,507,216       13,969,366       5.21 % 
Declara, Inc.(1)(12)
                                            
Convertible Promissory Note 6%
Due 12/30/16***
    Palo Alto, CA     $ 2,000,000       2,000,000       2,000,000       0.75 % 
Preferred shares, Series A     Social Cognitive Learning       10,716,390       9,999,999       9,999,999       3.73 % 
Total                 11,999,999       11,999,999       4.48 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       5,765,799       2.15 % 
Common shares           133,213       2,999,983       5,755,573       2.15 % 
Total                 5,999,961       11,521,372       4.30 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       2,845,044       1.06 % 
Preferred shares, Series B           904,977       2,063,356       8,543,345       3.19 % 
Total                 3,164,265       11,388,389       4.25 % 
Avenues Global Holdings, LLC(3)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused Private
School
      10,014,270       10,151,857       11,015,633       4.11 % 
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       10,722,799       4.00 % 

 
 
See notes to the condensed consolidated financial statements

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2015

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Ozy Media, Inc.(1)
    Mountain View, CA                                      
Preferred shares, Series B     Daily News and       922,509     $ 4,999,999     $ 4,690,178       1.75 % 
Preferred shares, Series A     Information Site       1,090,909       3,000,200       3,907,004       1.46 % 
Preferred shares, Series Seed           500,000       500,000       1,531,812       0.57 % 
Total                 8,500,199       10,128,994       3.78 % 
Curious.com Inc.(1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       2,839,861       10,000,003       9,996,311       3.73 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship
      373,134       1,500,522       2,152,983       0.80 % 
Common shares     Manager       1,524,799       5,476,502       7,830,323       2.92 % 
Total                 6,977,024       9,983,306       3.72 % 
StormWind, LLC(2)(5)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       4,599,718       1.72 % 
Preferred shares, Series B              3,279,629       2,019,687       4,633,228       1.73 % 
Preferred shares, Series A           366,666       110,000       518,000       0.19 % 
Total                 6,130,474       9,750,946       3.64 % 
Chegg, Inc.**
    Santa Clara, CA                                      
Common shares     Textbook Rental       1,182,792       14,022,863       7,960,190       2.97 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series C-1     Consumer Electronics       2,533,784       7,500,001       7,500,001       2.80 % 
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(2)
    Redwood City, CA                                      
Preferred shares, Series D     Incubator       3,720,424       4,904,498       4,960,565       1.85 % 
Preferred shares, Series C              1,561,625       2,005,730       1,733,404       0.65 % 
Preferred shares, Series B              450,000       605,500             0.00 % 
Preferred shares, Series A              1,000,000       1,021,778             0.00 % 
Common shares              200,000       1,000             0.00 % 
Preferred warrants, Series D – $1.33 Strike Price, Expiration Date 10/6/2019              500,000             145,000       0.05 % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date 4/9/2019           187,500             31,875       0.01 % 
Total                 8,538,506       6,870,844       2.56 % 
GSV Sustainability Partners(2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000       7,151,412       6,250,000       2.33 % 
Common shares           100,000       10,000       0.00       0.00 % 
Total                 7,161,412       6,250,000       2.33 % 
Fullbridge, Inc.(1)
    Cambridge, MA                                      
Convertible Promissory Note 10% Due 03/02/16***     Business Education
  
    $ 1,030,507       1,020,859       1,020,859       0.39 % 
Preferred shares, Series D              1,655,167       2,956,022       3,111,714       1.16 % 
Preferred shares, Series C              1,728,724       3,193,444       1,625,001       0.61 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/02/2020              283,106       35,767       2,831       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 3/22/2020              186,170       23,521       1,862       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 5/16/2019              192,308       24,296       1,923       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 4/03/2019              412,088       52,063       4,121       0.00%  

 
 
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, 2015

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Common Warrants – Strike Price $0.91, Expiration Date 12/11/2018              82,418     $ 10,413     $ 824       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 10/10/2018              82,418       10,412       824       0.00 % 
Common Warrants – Strike Price $0.91, Expiration Date 2/18/2019           714,286       90,242       7,143       0.00 % 
Total                 7,417,039       5,777,102       2.16 % 
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     Online Shopping       1,681,520       4,000,280       4,000,000       1.49 % 
Preferred shares, Series A           879,198       1,002,440       1,439,400       0.54 % 
Total                 5,002,720       5,439,400       2.03 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       5,000,001       1.87 % 
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       4,954,086       1.85 % 
Whittle Schools, LLC(1)(4)
    New York, NY                                      
Preferred shares, Series B     Globally-focused Private
School
      3,000,000       3,000,000       3,000,000       1.12 % 
Common shares           229       1,577,097       1,500,000       0.56 % 
Total                 4,577,097       4,500,000       1.68 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,000,000       1.49 % 
CUX, Inc. (d/b/a CorpU)(1)
    San Francisco, CA                                      
Senior Subordinated Convertible Promissory Note 8% Due 11/26/2018***(10)     Corporate Education
  
  
    $ 1,080,000       1,080,000       1,080,000       0.40 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.29 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,959,127       0.73 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 02/25/2018           16,903             10,142       % 
Total                 3,864,684       3,825,130       1.42 % 
Bloom Energy Corporation
    Sunnyvale, CA                                      
Common shares     Fuel Cell Energy       201,589       3,855,601       3,014,861       1.12 % 
DogVacay, Inc.
    Santa Monica, CA                                      
Preferred shares, Series B-1     Dog Boarding       514,562       2,506,119       2,500,771       0.93 % 
SharesPost, Inc.(6)
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       0.84 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       177,315       0.07 % 
Total                 2,282,844       2,427,314       0.91 % 
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,999,998       0.75 % 
Preferred shares, Series B           49,505       217,206       249,691       0.09 % 
Total                 2,217,653       2,249,689       0.84%  

 
 
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, 2015