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



 

FORM 10-Q



 

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

        FOR THE QUARTERLY PERIOD ENDED September 30, 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 November 8, 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 September 30, 2016 and December 31, 2015     1  
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015     3  
Condensed Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2016 and 2015     5  
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015     6  
Condensed Consolidated Schedule of Investments as of September 30, 2016     7  
Condensed Consolidated Schedule of Investments as of December 31, 2015     13  
Notes to Condensed Consolidated Financial Statements as of September 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     36  
Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted     36  
Note 6 — Commitments and Contingencies     37  
Note 7 — Financial Highlights     37  
Note 8 — Income Taxes     39  
Note 9 — Long-Term Liabilities     40  
Note 10 — Subsequent Events     42  

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     47  
Liquidity and Capital Resources     52  
Equity Issuances and Debt Capital Activities     52  
Contractual Obligations     53  
Off-Balance Sheet Arrangements     53  
Distributions     53  
Borrowings     54  
Related-Party Transactions     55  
Critical Accounting Policies     56  
Recent Developments     58  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    59  

Item 4.

Controls and Procedures

    60  

i


 
 

TABLE OF CONTENTS

 
  PAGE

PART II.

OTHER INFORMATION

    61  

Item 1.

Legal Proceedings

    61  

Item 1A.

Risk Factors

    61  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    61  

Item 3.

Defaults Upon Senior Securities

    61  

Item 4.

Mine Safety Disclosure

    61  

Item 5.

Other Information

    62  

Item 6.

Exhibits

    62  
(Schedules 12-14) — Schedules of Investments in and Advances to Affiliates as of September 30, 2016 (unaudited) and December 31, 2015     63  
Signatures     70  

ii


 
 

TABLE OF CONTENTS

Item 1. Condensed Consolidated Financial Statements (Unaudited)

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

   
  September 30, 2016   December 31, 2015
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $22,832,672 and $21,830,392, respectively)(1)   $ 22,050,846     $ 22,871,790  
Investments in affiliated securities (cost of $73,984,911 and $73,942,123, respectively)(1)     64,121,729       66,075,585  
Investments in non-controlled/non-affiliated securities (cost of $181,608,512 and $197,577,328, respectively)     212,097,381       260,861,392  
Investments in treasury bill (cost of $29,999,935 and $29,999,968, respectively)     29,999,935       30,000,000  
Investments owned and pledged (amortized cost of $0 and $3,675,192, respectively)(2)           3,676,693  
Total Investments (cost of $308,426,030 and $327,025,003,
respectively)
    328,269,891       383,485,460  
Cash     11,445,113       13,349,877  
Restricted cash     115,431       52,931  
Due from:
                 
GSV Asset Management(1)     77,021       220,770  
Portfolio companies(1)     679       56,371  
Interest and dividends receivable     222,361       97,183  
Prepaid expenses and other assets     315,238       227,826  
Deferred financing costs(3)     356,268       352,653  
Total Assets     340,802,002       397,843,071  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     895,932       5,047,429  
Accounts payable and accrued expenses     364,239       105,587  
Accrued incentive fees(1)     9,509,476       17,314,565  
Accrued management fees(1)     541,988       683,423  
Accrued interest payable     150,938       1,056,563  
Payable for securities purchased     26,499,909       26,499,357  
Deferred tax liability     11,924,845       12,476,155  
Convertible Senior Notes payable 5.25% due September 15, 2018(2)(3)     67,294,938       66,649,047  
Total Liabilities     117,182,265       129,832,126  
Commitments and contingencies (Notes 6 and 9)
                 
Net Assets   $ 223,619,737     $ 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)

   
  September 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     (21,760,725 )      (16,634,037 ) 
Accumulated net realized gains (losses) on investments     (517,892 )      2,681,342  
Accumulated net unrealized appreciation of investments     7,919,017       43,984,303  
Net Assets   $ 223,619,737     $ 268,010,945  
Net Asset Value Per Share   $ 10.08     $ 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 N.A., the trustee. These funds were used to purchase six U.S. Treasury Strips with an original cost of $10,845,236. As of September 30, 2016, all of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement.
(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 FASB 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 September 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
September 30,
  Nine months ended
September 30,
     2016   2015   2016   2015
INVESTMENT INCOME
                                   
Interest income from controlled securities(1)   $ 23,000     $     $ 43,417     $  
Interest income/(reversal of interest accrual) from affiliated securities(1)     61,145       31,992       79,858       152,388  
Interest income from non-controlled/non-affiliated securities     2,503       7,371       11,906       23,109  
Dividend income from non-controlled/non-affiliated securities                       46,781  
Total Investment Income     86,648       39,363       135,181       222,278  
OPERATING EXPENSES
                                   
Management fees(1)     1,625,963       2,063,017       5,324,186       5,994,530  
Incentive fees/(Reversal of incentive fee
accrual)(1)
    220,719       1,062,535       (7,805,089 )      10,839,602  
Costs incurred under administration agreement(1)     627,444       598,456       1,926,085       2,185,888  
Directors’ fees     86,250       94,620       258,750       287,426  
Professional fees     416,353       265,429       1,441,856       1,001,401  
Interest expense     1,189,736       1,183,833       3,557,225       3,781,419  
Income tax expense           852,970             852,970  
Other expenses     141,838       118,417       558,856       382,895  
Gain on fair value adjustment for embedded derivative                       (1,000 ) 
Total Operating Expenses     4,308,303       6,239,277       5,261,869       25,325,131  
Provision for taxes on net investment loss(3)           (26,583,935 )            (18,865,865 ) 
Net Investment Loss     (4,221,655 )      (32,783,849 )      (5,126,688 )      (43,968,718 ) 
Net Realized Gains/(Losses):
                                   
From affiliated securities           (10,170,567 )            (10,161,030 ) 
From non-controlled/non-affiliated securities     2,658,715       37,460,383       (2,311,994 )      64,305,863  
Net Realized Gains/(Losses) on investments     2,658,715       27,289,816       (2,311,994 )      54,144,833  
Benefit from taxes on realized gains on investments(3)           11,307,706             342,802  
Net Change in Unrealized Appreciation/ (Depreciation) of Investments:
                                   
From controlled securities     (1,616,568 )      719,143       (1,823,224 )      685,571  
From affiliated securities     (584,077 )      5,124,897       (6,951,895 )      4,467,809  
From non-controlled/non-affiliated securities     938,936       (27,825,708 )      (27,841,477 )      (5,095,366 ) 
Total Change in Unrealized Appreciation/ (Depreciation) of investments     (1,261,709 )      (21,981,668 )      (36,616,596 )      58,014  
Benefit from taxes on unrealized appreciation/depreciation of investments(3)     551,310       25,020,686       551,310       16,021,883  
Net Increase/(Decrease) in Net Assets Resulting from Operations   $ (2,273,339 )    $ 8,852,691     $ (43,503,968 )    $ 26,598,814  
Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ (0.10 )    $ 0.45     $ (1.96 )    $ 1.37  
Diluted(2)   $ (0.10 )    $ 0.42     $ (1.96 )    $ 1.27  
Weighted-Average Common Shares Outstanding
                                   
Basic     22,181,003       19,320,100       22,181,003       19,320,100  
Diluted(2)     22,181,003       23,564,228       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.

3


 
 

TABLE OF CONTENTS

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

(2) For the three and nine months ended September 30, 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.
(3) Due to the Company’s change in tax status to a regulated investment company (“RIC”) from a C Corporation, the associated accrued benefits and provisions from previous periods were reversed, resulting in a provision for net investment loss, a benefit from net realized gains, and a benefit from unrealized appreciation of investments for the three and nine months ended September 30, 2015. Refer to “Note 1 — Nature of Operations and Significant Accounting Policies — Summary of Significant Accounting Policies — U.S. Federal and State Income Taxes,” “Note 8 — Income Taxes” and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations” for further detail.

 
 
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)

   
  Nine months
ended
September 30,
2016
  Nine months
ended
September 30,
2015
Net Increase/(Decrease) in Net Assets Resulting from Operations
                 
Net investment loss   $ (5,126,688 )    $ (43,968,718 ) 
Net realized gains/(losses) on investments     (2,311,994 )      54,144,833  
Benefit from taxes on realized gains on investments           342,802  
Net change in unrealized appreciation/(depreciation) of investments     (36,616,596 )      58,014  
Benefit from taxes on unrealized Appreciation/depreciation of investments     551,310       16,021,883  
Net Increase/(Decrease) in Net Assets Resulting from Operations     (43,503,968 )      26,598,814  
Distributions from realized gains     (887,240 )       
Total Increase/(Decrease) in Net Assets     (44,391,208 )      26,598,814  
Net assets at beginning of period     268,010,945       285,903,673  
Net Assets at End of Period   $ 223,619,737     $ 312,502,487  
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)

   
  Nine months
ended
September 30,
2016
  Nine months
ended
September 30,
2015
Cash Flows from Operating Activities
                 
Net increase/(decrease) in net assets resulting from operations   $ (43,503,968 )    $ 26,598,814  
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     2,311,994       (54,144,833 ) 
Net change in unrealized depreciation/(appreciation) of investments     36,616,596       (58,014 ) 
Gain on fair value adjustment for embedded derivative           (1,000 ) 
Deferred tax liability     (551,310 )      2,501,181  
Amortization of discount on Convertible Senior Notes     645,891       637,869  
Amortization of deferred financing costs     165,999       90,424  
Amortization of fixed income security premiums and discounts     (9,808 )      (58,030 ) 
Change in restricted cash     (62,500 )      (4,042 ) 
Non-cash dividend income           (46,781 ) 
Purchases of investments in:
                 
Portfolio investments     (13,019,822 )      (17,146,659 ) 
United States treasury bills     (89,999,458 )      (225,015,507 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     25,631,067       92,641,645  
United States treasury bills     3,685,000       3,639,000  
United States treasury strips     90,000,000       300,000,000  
Changes in operating assets and liabilities:
                 
Due from GSV Asset Management(1)     143,749       (647 ) 
Due from portfolio companies(1)     55,692       24,985  
Prepaid expenses and other assets     (87,412 )      249,941  
Interest and dividends receivable     (125,178 )      (102,076 ) 
Due to GSV Asset Management(1)     (4,151,497 )      (3,416 ) 
Payable for securities purchased     552       (68,001,096 ) 
Accounts payable and accrued expenses     258,652       (225,087 ) 
Accrued incentive fees(1)     (7,805,089 )      10,839,602  
Accrued management fees(1)     (141,435 )      46,396  
Accrued interest payable     (905,625 )      (988,520 ) 
Current taxes payable           (102,932 ) 
Net Cash Provided by/(Used in) Operating Activities     (847,910 )      71,371,217  
Cash Flows from Financing Activities
                 
Borrowings under Credit Facility     3,500,000       6,000,000  
Repayments under Credit Facility     (3,500,000 )      (24,000,000 ) 
Deferred offering costs     (169,614 )       
Distributions from realized gains     (887,240 )       
Net Cash Used in Financing Activities     (1,056,854 )      (18,000,000 ) 
Net Increase/(Decrease) in Cash     (1,904,764 )      53,371,217  
Cash at Beginning of period     13,349,877       3,472,880  
Cash at End of Period   $ 11,445,113     $ 56,844,097  
Supplemental Cash Flow Information:
                 
Interest Paid   $ 3,650,961     $ 4,769,939  
Taxes Paid   $     $ 852,970  
Non-Cash Operating Items:
                 
Transactions in Portfolio Company Investments
                 
Preferred shares converted to common shares   $ 1,436,404     $  
Convertible notes converted to warrants   $ 74,380     $  
Convertible notes converted to preferred shares   $     $ 295,801  
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.

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
September 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     $ 2,304,277       1.03 % 
Common shares, Class A           5,773,690       16,189,935       40,710,849       18.21 % 
Total                 17,198,903       43,015,126       19.24 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Cloud Computing Services       552,486       5,015,773       7,195,109       3.22 % 
Common shares           760,000       8,641,153       9,897,596       4.43 % 
Total                 13,656,926       17,092,705       7.65 % 
Spotify Technology S.A. **
    Stockholm, Sweden                                      
Common shares     On-Demand Music Streaming       9,541       13,599,572       16,210,657       7.25 % 
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,435,486       6.46 % 
PayNearMe, Inc.(1)
    Sunnyvale, CA                                      
Preferred shares, Series E     Cash Payment Network       5,480,348       14,000,398       13,974,887       6.25 % 
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       12,429,978       5.56 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       6,191,265       2.77 % 
Common shares           133,213       2,999,983       6,180,284       2.76 % 
Total                 5,999,961       12,371,549       5.53 % 
Ozy Media, Inc.(1)
    Mountain View, CA                                      
Convertible Promissory Note 5%
Due 2/28/2018***
    Digital Media
Platform
    $ 2,000,000       2,000,000       2,000,000       0.89 % 
Preferred shares, Series B              922,509       4,999,999       4,657,211       2.08 % 
Preferred shares, Series A              1,090,909       3,000,200       3,879,542       1.73 % 
Preferred shares, Series Seed           500,000       500,000       1,521,045       0.69 % 
Total                 10,500,199       12,057,798       5.39 % 
Declara, Inc.(1)
                                            
Convertible Promissory Note 6%
Due 12/30/2016***
    Palo Alto, CA     $ 2,000,000       2,000,000       2,000,000       0.89 % 
Preferred shares, Series A     Social Cognitive Learning
      10,716,390       9,999,999       9,999,999       4.47 % 
Total                 11,999,999       11,999,999       5.36 % 
Curious.com Inc.(1)     Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       11,336,432       5.07 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series D     Light Field Imaging Platform       159,160       502,081       500,001       0.22 % 
Preferred shares, Series C-1           3,378,379       10,000,002       10,400,238       4.65 % 
Total                 10,502,083       10,900,239       4.87 % 
Avenues Global Holdings, LLC(4)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused Private
School
      10,014,270       10,151,854       10,847,868       4.85 % 

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
StormWind, LLC(2)(6)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134     $ 4,000,787     $ 4,650,838       2.08 % 
Preferred shares, Series B              3,279,629       2,019,687       4,470,403       2.00 % 
Preferred shares, Series A           366,666       110,000       499,796       0.22 % 
Total                 6,130,474       9,621,037       4.30 % 
Beamreach Solar, Inc. (f/k/a Solexel, Inc.)
    Milpitas, CA                                      
Preferred shares, Series D     Solar Power       1,613,413       2,419,751       1,532,742       0.69 % 
Preferred shares, Series C           5,300,158       11,598,648       7,337,470       3.28 % 
Total                 14,018,399       8,870,212       3.97 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship       373,134       1,500,522       2,802,236       1.26 % 
Common shares     Manager       1,524,799       5,476,502       5,779,577       2.58 % 
Total                 6,977,024       8,581,813       3.84 % 
Chegg, Inc.**
    Santa Clara, CA                                      
Common shares     Online Education Services       1,182,792       14,022,863       8,385,995       3.75 % 
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(2)
    Redwood City, CA                                      
Convertible Promissory Note 8%
Due 7/31/2017***
    Global Innovation
Platform
    $ 500,000       427,900       427,900       0.19 % 
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       4,487,614       2.01 % 
Preferred shares, Series C              1,561,625       2,005,730       1,573,681       0.70 % 
Preferred shares, Series B              450,001       605,500       271,398       0.13 % 
Preferred shares, Series A              1,000,000       1,021,778       454,237       0.20 % 
Common shares              200,000       1,000             % 
Preferred warrants, Series C – $1.33 Strike Price, Expiration Date 4/4/2019              187,500             31,875       0.01 % 
Preferred warrants, Series D – $1.33 Strike Price, Expiration Date 10/6/2019              500,000             155,000       0.08 % 
Preferred warrants, Series D – $1.33 Strike Price, Expiration Date 7/18/2021           250,000       74,380       77,500       0.03 % 
Total                 9,540,786       7,979,205       3.57 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     On-Demand Transportation       128,563       2,503,585       3,274,366       1.46 % 
Preferred shares, Series D     Services       176,266       1,792,749       4,230,384       1.89 % 
Total                 4,296,334       7,504,750       3.35 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,570,337       0.70 % 
Preferred shares, Series B           904,977       2,063,356       4,715,545       2.11 % 
Total                 3,164,265       6,285,882       2.81 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       5,697,273       2.55 % 
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     On-Demand Commerce       1,681,520       4,000,280       4,000,000       1.79 % 
Preferred shares, Series A           879,198       1,002,440       1,439,400       0.64 % 
Total                 5,002,720       5,439,400       2.43 % 

8


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985     $ 4,999,999     $ 4,953,723       2.22 % 
Whittle Schools, LLC(1)(5)
    New York, NY                                      
Preferred shares, Series B     Globally-focused Private       3,000,000       3,000,000       3,000,000       1.34 % 
Common shares     School       229       1,577,097       1,500,000       0.67 % 
Total                 4,577,097       4,500,000       2.01 % 
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)(2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000       7,151,412       4,450,604       1.99 % 
Common shares           100,000       10,000             % 
Total                 7,161,412       4,450,604       1.99 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,000,000       1.79 % 
Snap, Inc. (f/k/a Snapchat, Inc.)
    Venice, CA                                      
Preferred shares, Series F     Social Communication       130,208       4,002,270       3,999,990       1.79 % 
CUX, Inc. (d/b/a CorpU)(1)
    Philadelphia, PA                                      
Senior Subordinated Convertible Promissory Note 8%, Due 11/26/2018***(8)     Corporate Education
  
  
    $ 1,080,000       1,080,000       1,080,000       0.48 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.35 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,913,484       0.86 % 
Preferred warrants, $4.59 Strike Price, Expiration Date 2/25/2018           16,903             3,888       % 
Total                 3,864,684       3,773,233       1.69 % 
DogVacay, Inc.
    Santa Monica, CA                                      
Preferred shares, Series B-1     Peer-to-Peer Pet Services       514,562       2,506,119       2,500,771       1.12 % 
SharesPost, Inc.
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       1.01 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       77,093       0.03 % 
Total                 2,282,844       2,327,092       1.04 % 
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,999,998       0.89 % 
Preferred shares, Series B           49,505       217,206       249,691       0.12 % 
Total                 2,217,653       2,249,689       1.01 % 
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047       2,000,601       2,000,001       0.89 % 
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,108,717       0.50 % 
Preferred shares, Series A           3,579,610       758,017       554,358       0.24 % 
Total                 2,260,379       1,663,075       0.74 % 
Fullbridge, Inc.(1)
    Cambridge, MA                                      
Convertible Promissory Note 10% Due 3/2/2016(3)     Business Education
  
    $ 1,030,507       1,021,263       354,075       0.16 % 
Convertible Promissory Note 10% Due 3/14/2017(3)            $ 1,000,000       1,000,000       935,849       0.42%  

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TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
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                 8,418,483       1,289,924       0.58 % 
Strategic Data Command, LLC(1)(7)
    Sunnyvale, CA                                      
Common shares     Big Data Consulting       2,400,000       989,277       1,167,550       0.52 % 
EdSurge, Inc.(1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       527,942       0.24 % 
Preferred shares, Series A           494,365       500,801       546,708       0.24 % 
Total                 1,002,161       1,074,650       0.48 % 
Tynker (f/k/a Neuron Fuel, Inc.)
    Mountain View, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       937,653       0.42 % 
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A     Financial Services       18,009       1,001,815       797,651       0.36 % 
Circle Media (f/k/a S3 Digital Corp.
(d/b/a S3i))
(1)

    New York, NY                                      
Promissory Note 12%, Due 11/17/2016***     Sports Analytics     $ 25,000       26,544       26,544       0.01 % 
Preferred shares, Series A              1,864,495       1,777,576       671,023       0.30 % 
Preferred warrants, $1.17 Strike Price, Expiration Date 11/18/2022              5,360       576             % 
Preferred warrants, $1.17 Strike Price, Expiration Date 8/29/2021              175,815                   % 
Preferred warrants, $1.17 Strike Price, Expiration Date 6/26/2021              38,594                   % 
Preferred warrants, $1.17 Strike Price, Expiration Date 9/30/2020              160,806                   % 
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017           500,000       31,354             % 
Total                 1,836,050       697,567       0.31 % 
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Preferred shares, Series A     Social Data Platform       436,219       1,436,404       529,131       0.24 % 
Cricket Media (f/k/a ePals Inc.)(10)
    Herndon, VA                                      
Common shares     Online Education       133,333       2,448,959       141,866       0.06 % 
Upwork Global Inc. (f/k/a Odesk Corporation)
    Mountain View, CA                                      
Common shares     Online Workplace Platform       25,159       183,269       119,505       0.05%  

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TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Earlyshares.com, Inc.
    Miami, FL                                      
Convertible Promissory Note 5%,
Due 2/26/2017 ***(9)
    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 % 
Orchestra One, Inc. (f/k/a Learnist Inc.)
    San Francisco, CA                                      
Common shares     Consumer Health Technology       57,026       4,959,614       4,361       % 
AliphCom, Inc. (d/b/a Jawbone)
    San Francisco, CA                                      
Common shares     Smart Device Company       150,000       793,152       2,789       % 
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, Expiration Date 1/9/2017           109,375                   % 
Total                 1,903,414             % 
Global Education Learning (Holdings) Ltd.(1)**     Hong Kong                                      
Preferred shares, Series A     Education Technology       2,126,475       675,495             % 
Total Portfolio Investments                 278,426,095       298,269,956       133.38 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%,
due 10/6/2016***
        $ 30,000,000       29,999,935       29,999,935       13.42 % 
TOTAL INVESTMENTS               $ 308,426,030     $ 328,269,891       146.80 % 

* 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, 7.5% 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 September 30, 2016.
(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.

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CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
September 30, 2016
(Unaudited)

(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) 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.
(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 Earlyshares.com, Inc., or (b) the maturity of the note (February 26, 2017). Interest began compounding annually on February 26, 2015.
(10) On June 6, 2016, Cricket Media (f/k/a ePals Inc.) declared a 10:1 reverse split of its common shares.

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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 % 
Beamreach Solar, Inc.
(f/k/a 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 % 

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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 % 
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)(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 % 
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%  

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 4/3/2019              412,088     $ 52,063     $ 4,121       0.00 % 
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
      3,000,000       3,000,000       3,000,000       1.12 % 
Common shares     School       229