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



 

FORM 10-Q



 

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

        FOR THE QUARTERLY PERIOD ENDED June 30, 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
(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 issuer had 22,181,003 shares of common stock, $0.01 par value per share, outstanding as of August 9, 2016.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP.
 
TABLE OF CONTENTS

 
  PAGE

PART I.

FINANCIAL INFORMATION

        

Item 1.

Condensed Consolidated Financial Statements (Unaudited)

    1  
Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2016 and December 31, 2015     1  
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015     3  
Condensed Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2016 and 2015     5  
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015     6  
Condensed Consolidated Schedule of Investments as of June 30, 2016     7  
Condensed Consolidated Schedule of Investments as of December 31, 2015     13  
Notes to Condensed Consolidated Financial Statements as of June 30, 2016     19  
Note 1 — Nature of Operations and Significant Accounting Policies     19  
Note 2 — Related-Party Arrangements     27  
Note 3 — Investments at Fair Value     29  
Note 4 — Equity Offerings and Related Expenses     35  
Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted     35  
Note 6 — Commitments and Contingencies     36  
Note 7 — Financial Highlights     37  
Note 8 — Income Taxes     38  
Note 9 — Long-Term Liabilities     39  
Note 10 — Subsequent Events     41  

Item 2.

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

    43  
Forward-Looking Statements     43  
Overview     44  
Investments — (Portfolio Activity)     45  
Results of Operations     46  
Liquidity and Capital Resources     50  
Equity Issuances & Debt Capital Activities     50  
Contractual Obligations     51  
Off-Balance Sheet Arrangements     51  
Distributions     51  
Borrowings     52  
Related-Party Transactions     53  
Critical Accounting Policies     55  
Recent Developments     57  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    57  

Item 4.

Controls and Procedures

    58  

i


 
 

TABLE OF CONTENTS

 
  PAGE

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    59  

Item 1A.

Risk Factors

    59  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    59  

Item 3.

Defaults Upon Senior Securities

    59  

Item 4.

Mine Safety Disclosure

    59  

Item 5.

Other Information

    59  

Item 6.

Exhibits

    60  
Schedules 12-14 — Schedules of Investments in and Advances to Affiliates (unaudited)
as of June 30, 2016 and December 31, 2015
    61  
Signatures     68  

ii


 
 

TABLE OF CONTENTS

Item 1. Condensed Consolidated Financial Statements (Unaudited)

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

   
  June 30,
2016
  December 31,
2015
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $22,831,552 and $21,830,392, respectively)(1)   $ 23,666,295     $ 22,871,790  
Investments in affiliated securities (cost of $71,984,912 and $73,942,123, respectively)(1)     62,705,806       66,075,585  
Investments in non-controlled/non-affiliated securities (cost of $197,104,024 and $197,577,328, respectively)     226,652,817       260,861,392  
Investments in treasury bill (cost of $29,999,640 and $29,999,968, respectively)     29,999,700       30,000,000  
Investments owned and pledged (amortized cost of $1,849,291 and $3,675,192, respectively)(2)     1,850,371       3,676,693  
Total Investments (cost of $323,769,419 and $327,025,003,
respectively)
    344,874,989       383,485,460  
Cash     2,457,294       13,349,877  
Restricted cash     75,681       52,931  
Due from:
                 
GSV Asset Management(1)     1,623       220,770  
Portfolio companies(1)     52,492       56,371  
Interest and dividends receivable     137,448       97,183  
Prepaid expenses and other assets     163,720       227,826  
Deferred financing costs(3)     298,984       352,653  
Total Assets     348,062,231       397,843,071  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     532,690       5,047,429  
Accounts payable and accrued expenses     267,097       105,587  
Accrued incentive fees(1)     9,288,757       17,314,565  
Accrued management fees(1)     583,472       683,423  
Accrued interest payable     1,056,563       1,056,563  
Payable for securities purchased     26,499,600       26,499,357  
Deferred tax liability     12,476,155       12,476,155  
Line of credit payable     3,500,000        
Convertible Senior Notes payable 5.25% due September 15, 2018(2)(3)     67,077,582       66,649,047  
Total Liabilities     121,281,916       129,832,126  
Commitments and contingencies (Note 6)
                 
Net Assets   $ 226,780,315     $ 268,010,945  

 
 
See accompanying notes to condensed consolidated financial statements.

1


 
 

TABLE OF CONTENTS

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

   
  June 30,
2016
  December 31,
2015
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     (17,539,071 )      (16,634,037 ) 
Accumulated net realized gains (losses) on investments     (2,289,367 )      2,681,342  
Accumulated net unrealized appreciation of investments     8,629,416       43,984,303  
Net Assets   $ 226,780,315     $ 268,010,945  
Net Asset Value Per Share   $ 10.22     $ 12.08  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.
(2) The Convertible Senior Notes have a face value of $69,000,000. Refer to “Note 9 — Long-Term Liabilities.” for a reconciliation of the carrying value to the face value. 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 June 30, 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 June 30, 2016, the remaining government securities are scheduled to mature on August 15, 2016 and are shown on the Condensed Consolidated Statements of Assets and Liabilities as “Investments owned and pledged” with an amortized cost of $1,849,291.
(3) Deferred debt issuance costs of $1,947,572 related to the Company’s issuance of the Convertible Senior Notes payable were 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 at June 30, 2016. Refer to “Note 1 — Nature of Operations and Significant Accounting Policies — Recently Adopted Accounting Standards,” as well as “Note 9 — Long-Term Liabilities” for further detail.

 
 
See accompanying notes to condensed consolidated financial statements.

2


 
 

TABLE OF CONTENTS

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

       
  Three Months Ended June 30,   Six Months Ended June 30,
     2016   2015   2016   2015
INVESTMENT INCOME
                                   
Interest income from controlled securities(1)   $ 15,528     $     $ 20,417     $  
Interest income/(reversal of interest accrual) from affiliated securities(1)(3)     (73,894 )      69,165       18,584       120,396  
Interest income from non-controlled/non-affiliated securities     4,247       7,945       9,532       15,738  
Dividend income from non-controlled/non-affiliated securities           46,781             46,781  
Total Investment Income     (54,119 )      123,891       48,533       182,915  
OPERATING EXPENSES
                                   
Management fees(1)     1,740,223       2,010,385       3,698,223       3,931,513  
(Reversal of incentive fee accrual)/Incentive fees(1)     (2,907,224 )      1,565,339       (8,025,808 )      9,777,067  
Costs incurred under administration
agreement(1)
    698,692       785,036       1,298,642       1,587,432  
Directors’ fees     86,250       107,500       172,500       192,806  
Professional fees     388,375       394,228       1,025,503       735,972  
Interest expense     1,184,326       1,228,783       2,367,489       2,597,586  
Other expenses     207,280       143,153       417,018       264,478  
Gain on fair value adjustment for embedded derivative           (1,000 )            (1,000 ) 
Total Operating Expenses     1,397,922       6,233,424       953,567       19,085,854  
Benefit for taxes on net investment loss           2,494,459             7,718,070  
Net Investment Loss     (1,452,041 )      (3,615,074 )      (905,034 )      (11,184,869 ) 
Net Realized Gains/(Losses):
                                   
From non-controlled/non-affiliated securities     1,104,361       13,636,614       (4,970,709 )      26,855,017  
Net Realized Gains/(Losses) on investments     1,104,361       13,636,614       (4,970,709 )      26,855,017  
Provision for taxes on realized gains on investments           (5,567,830 )            (10,964,904 ) 
Net Change in Unrealized Appreciation/ (Depreciation) on investments:
                                   
From controlled securities     60,073       (8,277 )      (206,655 )      (33,572 ) 
From affiliated securities     (5,219,631 )      (804,967 )      (6,367,818 )      (657,088 ) 
From non-controlled/non-affiliated securities     (10,774,328 )      (4,931,155 )      (28,780,414 )      22,730,342  
Total Change in Unrealized Appreciation/(Depreciation) on investments     (15,933,886 )      (5,744,399 )      (35,354,887 )      22,039,682  
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments           2,372,190             (8,998,803 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations   $ (16,281,566 )    $ 1,081,501     $ (41,230,630 )    $ 17,746,123  
Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ (0.74 )    $ 0.06     $ (1.86 )    $ 0.92  
Diluted(2)   $ (0.74 )    $ 0.06     $ (1.86 )    $ 0.81  
Weighted-Average Common Shares Outstanding
                                   
Basic     22,181,003       19,320,100       22,181,003       19,320,100  
Diluted(2)     22,181,003       19,320,100       22,181,003       23,564,228  

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

 
 
See accompanying notes to condensed consolidated financial statements.

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TABLE OF CONTENTS

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

(2) For the three and six months ended June 30, 2016, 5,710,212 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase/(decrease) in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive. For the three months ended June 30, 2015, 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/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted” for further detail.
(3) Interest income for each of the three and six months ended June 30, 2016 reflects the reversal of previously accrued interest from loans to Fullbridge, Inc.

 
 
See accompanying notes to condensed consolidated financial statements.

4


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30,
2016
  Six months
ended
June 30,
2015
Net Increase/(Decrease) in Net Assets Resulting from Operations
                 
Net investment loss   $ (905,034 )    $ (11,184,869 ) 
Net realized gains/(losses) on investments     (4,970,709 )      26,855,017  
Provision for taxes on realized gains on investments           (10,964,904 ) 
Net change in unrealized appreciation/ (depreciation) of investments     (35,354,887 )      22,039,682  
Provision for taxes on unrealized appreciation of investments           (8,998,803 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations     (41,230,630 )      17,746,123  
Total Increase/(Decrease) in Net Assets     (41,230,630 )      17,746,123  
Net assets at beginning of period     268,010,945       285,903,673  
Net Assets at End of Period   $ 226,780,315     $ 303,649,796  
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 accompanying notes to condensed consolidated financial statements.

5


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30,
2016
  Six months
ended
June 30,
2015
Cash Flows from Operating Activities
                 
Net increase/(decrease) in net assets resulting from operations   $ (41,230,630 )    $ 17,746,123  
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     4,970,709       (26,855,017 ) 
Net change in unrealized depreciation/(appreciation) of investments     35,354,887       (22,039,682 ) 
Gain on fair value adjustment for embedded derivative           (1,000 ) 
Deferred tax liability           12,245,637  
Amortization of discount on Convertible Senior Notes     428,535       276,213  
Amortization of deferred financing costs     53,669       203,022  
Amortization of fixed income security premiums and discounts     (8,099 )      (37,092 ) 
Change in restricted cash     (22,750 )      7,708  
Non-cash dividend income           (46,781 ) 
Purchases of investments in:
                 
Portfolio investments     (10,514,101 )      (10,544,564 ) 
United States treasury bills     (59,999,523 )      (200,014,903 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     6,972,598       40,162,114  
United States treasury bills     60,000,000       200,000,000  
United States treasury strips     1,834,000       1,816,000  
Changes in operating assets and liabilities:
                 
Due from GSV Asset Management(1)     219,147       203,701  
Due from portfolio companies(1)     3,879       16,985  
Prepaid expenses and other assets     64,106       532,944  
Interest and dividends receivable     (40,265 )      (92,577 ) 
Due to GSV Asset Management(1)     (4,514,739 )      5,929  
Payable for securities purchased     243       (500,123 ) 
Accounts payable and accrued expenses     161,510       (230,781 ) 
Accrued incentive fees(1)     (8,025,808 )      9,777,067  
Accrued management fees(1)     (99,951 )      28,852  
Accrued interest payable           (82,895 ) 
Net Cash Provided by/(Used in) Operating Activities     (14,392,583 )      22,576,880  
Cash Flows from Financing Activities
                 
Borrowings under Credit Facility     3,500,000       6,000,000  
Repayments under Credit Facility           (24,000,000 ) 
Net Cash Provided by/(Used in) Financing Activities     3,500,000       (18,000,000 ) 
Total Increase/(Decrease) in Cash     (10,892,583 )      4,576,880  
Cash at Beginning of period     13,349,877       3,472,880  
Cash at End of Period   $ 2,457,294     $ 8,049,760  
Supplemental Information:
                 
Interest Paid   $ 1,811,250     $ 2,680,481  
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 accompanying notes to condensed consolidated financial statements.

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 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     $ 2,422,470       1.07 % 
Common shares, Class A           5,773,690       16,189,935       42,799,010       18.87 % 
Total                 17,198,903       45,221,480       19.94 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Online Storage       552,486       5,015,773       7,268,861       3.21 % 
Common shares           760,000       8,641,153       9,999,049       4.41 % 
Total                 13,656,926       17,267,910       7.62 % 
Spotify Technology S.A.**
    Stockholm, Sweden                                      
Common shares     Music Streaming Service       9,541       13,599,572       16,210,657       7.15 % 
Coursera, Inc.     Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,435,486       6.37 % 
PayNearMe, Inc.(1)
    Sunnyvale, CA                                      
Preferred shares, Series E     Cash Payment Network       5,480,348       14,000,398       13,974,887       6.16 % 
Twitter, Inc.**
    San Francisco, CA                                      
Common shares     Social Communication       800,600       14,271,866       13,538,146       5.97 % 
Declara, Inc.(1)
                                            
Convertible Promissory Note 6% Due
12/30/2016***
    Palo Alto, CA     $ 2,000,000       2,000,000       2,000,000       0.88 % 
Preferred shares, Series A     Social Cognitive Learning       10,716,390       9,999,999       9,999,999       4.41 % 
Total                 11,999,999       11,999,999       5.29 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       5,953,295       2.63 % 
Common shares           133,213       2,999,983       5,942,737       2.62 % 
Total                 5,999,961       11,896,032       5.25 % 
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       11,685,548       5.15 % 
Curious.com Inc.(1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       11,637,813       5.13 % 
Avenues Global Holdings, LLC (4)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused Private
School
      10,014,270       10,151,854       10,941,240       4.82 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     Peer to Peer Ridesharing       128,563       2,503,585       3,358,708       1.48 % 
Preferred shares, Series D           346,266       3,518,477       7,349,860       3.24 % 
Total                 6,022,062       10,708,568       4.72 % 
StormWind, LLC (2)(6)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       5,124,368       2.26 % 
Preferred shares, Series B              3,279,629       2,019,687       4,925,563       2.17 % 
Preferred shares, Series A           366,666       110,000       550,683       0.24 % 
Total                 6,130,474       10,600,614       4.67 % 

 
 
See accompanying notes to condensed consolidated financial statements.

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2016
(Unaudited)

         
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     $ 4,647,141       2.05 % 
Preferred shares, Series A     Information Site       1,090,909       3,000,200       3,871,154       1.71 % 
Preferred shares, Series Seed           500,000       500,000       1,517,757       0.67 % 
Total                 8,500,199       10,036,052       4.43 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series C-1     Light Field Imaging Platform       3,378,379       10,000,002       10,000,002       4.41 % 
Solexel, Inc. (d/b/a Beamreach Solar, Inc.)
    Milpitas, CA                                      
Preferred shares, Series D     Solar Power       1,613,413       2,419,751       1,565,011       0.69 % 
Preferred shares, Series C           5,300,158       11,598,648       7,526,224       3.32 % 
Total                 14,018,399       9,091,235       4.01 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship       373,134       1,500,522       2,929,102       1.30 % 
Common shares     Manager       1,524,799       5,476,502       6,041,235       2.66 % 
Total                 6,977,024       8,970,337       3.96 % 
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(2)
    Redwood City, CA                                      
Convertible Promissory Note 8% Due
7/31/2017***
    Incubator     $ 500,000       501,164       500,000       0.22 % 
Unsecured Promissory Note 10% Due
11/23/2016
           $ 500,000       500,000       500,000       0.22 % 
Preferred shares, Series D              3,720,424       4,904,498       4,706,336       2.08 % 
Preferred shares, Series C              1,561,625       2,005,730       1,650,381       0.73 % 
Preferred shares, Series B              450,001       605,500       284,626       0.13 % 
Preferred shares, Series A              1,000,000       1,021,778       476,377       0.21 % 
Common shares              200,000       1,000             % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date 4/4/2019              187,500             41,250       0.02 % 
Preferred warrants, Series D – $1.33 Strike Price, Expiration Date 10/6/2019           500,000             180,000       0.08 % 
Total                 9,539,670       8,338,970       3.69 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,535,648       0.68 % 
Preferred shares, Series B           904,977       2,063,356       4,611,377       2.03 % 
Total                 3,164,265       6,147,025       2.71 % 
Chegg, Inc.**
    Santa Clara, CA                                      
Common shares     Textbook Rental       1,182,792       14,022,863       5,913,960       2.61 % 
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     Online Shopping       1,681,520       4,000,280       4,000,000       1.76 % 
Preferred shares, Series A           879,198       1,002,440       1,439,400       0.64 % 
Total                 5,002,720       5,439,400       2.40 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       5,421,614       2.39 % 
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       4,953,723       2.18 %

 
 
See accompanying notes to condensed consolidated financial statements.

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
GSV Sustainability Partners(2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000     $ 7,151,412     $ 4,726,711       2.08 % 
Common shares           100,000       10,000             % 
Total                 7,161,412       4,726,711       2.08 % 
Whittle Schools, LLC(1)(5)
    New York, NY                                      
Preferred shares, Series B     Globally-focused Private
School
      3,000,000       3,000,000       3,000,000       1.32 % 
Common shares           229       1,577,097       1,500,000       0.66 % 
Total                 4,577,097       4,500,000       1.98 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,000,000       1.76 % 
Snapchat, Inc.
    Venice, CA                                      
Preferred shares, Series F     Social Communication       130,208       4,002,270       3,999,990       1.76 % 
CUX, Inc. (d/b/a CorpU)(1)
    San Francisco, CA                                      
Senior Subordinated Convertible Promissory Note 8% Due 11/26/2018***(9)     Corporate Education     $ 1,080,000       1,080,000       1,080,000       0.48 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.34 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,913,484       0.84 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 2/25/2018           16,903             2,874       % 
Total                 3,864,684       3,772,219       1.66 % 
DogVacay, Inc.
    Santa Monica, CA                                      
Preferred shares, Series B-1     Dog Boarding       514,562       2,506,119       2,500,771       1.11 % 
SharesPost, Inc.
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       0.99 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       138,768       0.06 % 
Total                 2,282,844       2,388,767       1.05 % 
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,999,998       0.88 % 
Preferred shares, Series B           49,505       217,206       249,691       0.11 % 
Total                 2,217,653       2,249,689       0.99 % 
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,271,818       0.56 % 
Preferred shares, Series A           3,579,610       758,017       635,909       0.28 % 
Total                 2,260,379       1,907,727       0.84 % 
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047       2,000,601       1,549,493       0.68 % 
Strategic Data Command, LLC(1)(7)
    Sunnyvale, CA                                      
Common shares     Software Development       2,400,000       989,277       1,207,400       0.54 %

 
 
See accompanying notes to condensed consolidated financial statements.

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Circle Media (f/k/a S3 Digital Corp.
(d/b/a S3i))
(1)

    New York, NY                                      
Promissory Note 12%, 11/17/2016***     Sports Analytics     $ 25,000     $ 26,544     $ 26,544       0.01 % 
Preferred shares, Series A              1,864,495       1,777,576       1,066,293       0.48 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 11/18/2022              5,360       576       161       % 
Preferred warrants, $1.17 Strike Price, Expiration Date 8/29/2021              175,815             5,274       % 
Preferred warrants, $1.17 Strike Price, Expiration Date 6/26/2021              38,594             1,158       % 
Preferred warrants, $1.17 Strike Price, Expiration Date 9/30/2020              160,806             4,824       % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017           500,000       31,354       20,000       0.01 % 
Total                 1,836,050       1,124,254       0.50 % 
Fullbridge, Inc.(1)
    Cambridge, MA                                      
Convertible Promissory Note 10% Due 3/2/2016(3)     Business Education     $ 1,030,507       1,021,259       216,862       0.10 % 
Convertible Promissory Note 10% Due 3/14/2017(3)            $ 1,000,000       1,000,000       905,986       0.40 % 
Preferred shares, Series D              1,655,167       2,957,062             % 
Preferred shares, Series C              1,728,724       3,193,444             % 
Common warrants – Strike Price $0.91, Expiration Date 3/2/2020              283,106       35,767             % 
Common warrants – Strike Price $0.91, Expiration Date 3/22/2020              186,170       23,521             % 
Common warrants – Strike Price $0.91, Expiration Date 5/16/2019              192,308       24,296             % 
Common warrants – Strike Price $0.91, Expiration Date 4/3/2019              412,088       52,063             % 
Common warrants – Strike Price $0.91, Expiration Date 10/10/2018              82,418       10,412             % 
Common warrants – Strike Price $0.91, Expiration Date 12/11/2018              82,418       10,413             % 
Common warrants – Strike Price $0.91, Expiration Date 2/18/2019           714,286       90,242             % 
Total                 8,418,479       1,122,848       0.50 % 
EdSurge, Inc.(1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       530,887       0.24 % 
Preferred shares, Series A           494,365       500,801       549,758       0.24 % 
Total                 1,002,161       1,080,645       0.48 % 
Tynker (f/k/a Neuron Fuel, Inc.)
    San Jose, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       838,393       0.37 % 
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A     Financial Services       18,009       1,001,815       800,141       0.35 % 
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Preferred shares, Series A     Social Data Platform       512,365       1,436,404       569,646       0.25 % 
Cricket Media (f/k/a ePals Inc.)(11)
    Herndon, VA                                      
Common shares     Online Education       1,333,333       2,448,959       143,733       0.06 %

 
 
See accompanying notes to condensed consolidated financial statements.

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2016
(Unaudited)

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Earlyshares.com, Inc.
    Miami, FL                                      
Convertible Promissory Note 5%,
8/2/2016***(10)
    Equity Crowdfunding     $ 50,000     $ 50,840     $ 50,840       0.02 % 
Preferred shares, Series A           165,715       261,598             % 
Total                 312,438       50,840       0.02 % 
Upwork Global Inc. (f/k/a Odesk Corporation)
    Redwood City, CA                                      
Common Shares     Online Workplace Platform       25,159       183,269       47,672       0.02 % 
AliphCom, Inc. (d/b/a Jawbone)
    San Francisco, CA                                      
Common shares     Smart Device Company       150,000       793,152       8,919       % 
Orchestra One, Inc. (f/k/a Learnist Inc.)
    San Francisco, CA                                      
Common shares     Consumer Health Technology       57,026       4,959,614       4,362       % 
Global Education Learning (Holdings) Ltd.(1)**
    Hong Kong                                      
Preferred shares, Series A     Education Technology       2,126,475       675,495             % 
AlwaysOn, Inc.(1)
    Woodside, CA                                      
Preferred shares, Series A-1     Social Media       4,465,925       876,023             % 
Preferred shares, Series A              1,066,626       1,027,391             % 
Preferred warrants Series A, $1.00 strike price, expire 1/9/2017           109,375                   % 
Total                 1,903,414             % 
Total Portfolio Investments                 291,920,488       313,024,918       138.03 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due
7/7/2016***
           $ 30,000,000       29,999,640       29,999,700       13.22 % 
U.S. Treasury Strips(8)
                                            
United States Treasury Strip Coupon, 0.00% due 8/15/2016         $ 1,851,000       1,849,291       1,850,371       0.82 % 
Total Investments               $ 323,769,419     $ 344,874,989       152.07 % 

* 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, 10.3% of its total investments are non-qualifying assets.
*** 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 more than 25% of the voting securities of such company.
(3) Investments were on non-accrual status as of June 30, 2016.

 
 
See accompanying notes to condensed consolidated financial statements.

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
June 30, 2016
(Unaudited)

(4) GSV Capital Corp.’s investment in Avenues Global Holdings, LLC is held through its wholly owned subsidiary GSVC AV Holdings, Inc.
(5) 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.
(6) GSV Capital Corp.’s investment in StormWind, LLC is held through its wholly owned subsidiary GSVC SW Holdings, Inc.
(7) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly owned subsidiary GSVC SVDS Holdings, Inc.
(8) 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 June 30, 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 June 30, 2016, the remaining government securities are shown on the Condensed Consolidated Schedule of Investments with an amortized cost of $1,849,291. 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.
(9) 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.
(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 Earlyshares.com, Inc., or (b) the maturity of the note (August 2, 2016). Interest began compounding annually on February 26, 2015.
(11) 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. As of May 4, 2016, Cricket Media (f/k/a ePals Inc.) was voluntarily delisted from the TSX Venture Exchange as part of a restructuring, after which Cricket Media became privately traded.

 
 
See accompanying notes to condensed consolidated financial statements.

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2015
(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     $ 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 12/30/2016***
    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 accompanying notes to condensed consolidated financial statements.

13


 
 

TABLE OF CONTENTS

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

         
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 % 
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             0.00 % 
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 3/2/2016***     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 3/2/2020              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 4/3/2019              412,088       52,063       4,121       0.00 %

 
 
See accompanying notes to condensed consolidated financial statements.

14


 
 

TABLE OF CONTENTS

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

         
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