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



 

FORM 10-Q



 

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

     FOR THE QUARTERLY PERIOD ENDED March 31, 2017

 
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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth 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
Emerging growth company o     

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)Yes o No x

The issuer had 22,181,003 shares of common stock, $0.01 par value per share, outstanding as of May 10, 2017.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP.
 
TABLE OF CONTENTS

 
  PAGE

PART I.

FINANCIAL INFORMATION

        

Item 1.

Condensed Consolidated Financial Statements

    1  
Condensed Consolidated Statements of Assets and Liabilities as of March 31, 2017 (Unaudited) and December 31, 2016     1  
Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (Unaudited)     2  
Condensed Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2017 and 2016 (Unaudited)     3  
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 (Unaudited)     4  
Condensed Consolidated Schedule of Investments as of March 31, 2017 (Unaudited)     5  
Condensed Consolidated Schedule of Investments as of December 31, 2016     10  
Notes to Condensed Consolidated Financial Statements as of March 31, 2017 (Unaudited)     16  
Note 1 — Nature of Operations and Significant Accounting Policies     16  
Note 2 — Related-Party Arrangements     23  
Note 3 — Investments at Fair Value     27  
Note 4 — Equity Offerings and Related Expenses     32  
Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share – Basic and Diluted     33  
Note 6 — Commitments and Contingencies     33  
Note 7 — Financial Highlights     34  
Note 8 — Income Taxes     35  
Note 9 — Long-Term Liabilities     36  
Note 10 — Subsequent Events     37  
Note 11 — Supplemental Financial Data     38  

Item 2.

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

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

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    47  

Item 4.

Controls and Procedures

    47  

i


 
 

TABLE OF CONTENTS

 
  PAGE

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    48  

Item 1A.

Risk Factors

    48  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    49  

Item 3.

Defaults Upon Senior Securities

    49  

Item 4.

Mine Safety Disclosure

    49  

Item 5.

Other Information

    49  

Item 6.

Exhibits

    49  
Schedules 12-14 — Schedules of Investments in and Advances to Affiliates as of March 31, 2017 (unaudited) and December 31, 2016     50  
Signatures     57  

ii


 
 

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

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

   
  March 31,
2017
  December 31,
2016
     (Unaudited)     
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $22,941,049 and $22,893,441, respectively)(1)   $ 20,777,821     $ 19,037,566  
Investments in affiliated securities (cost of $49,873,338 and $51,773,388, respectively)(1)     41,971,308       42,444,690  
Investments in non-controlled/non-affiliated securities (cost of $181,314,443 and $204,101,445, respectively)     207,905,578       200,532,890  
Investments in treasury bill (cost of $59,996,000 and $29,998,750, respectively)     59,997,000       29,998,490  
Total Investments (cost of $314,124,830 and $308,767,024,
respectively)
    330,651,707       292,013,636  
Cash     1,358,545       8,332,634  
Interest and dividends receivable     205,680       92,946  
Prepaid expenses and other assets     157,667       213,942  
Deferred financing costs     329,625       311,268  
Total Assets     332,703,224       300,964,426  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     59,864       422,025  
Accounts payable and accrued expenses     241,526       335,611  
Accrued incentive fees(1)     3,843,752       2,126,444  
Accrued management fees(1)     424,206       524,054  
Accrued interest payable     150,936       1,056,563  
Payable for securities purchased     53,996,000       26,498,750  
Deferred tax liability     10,359,371       10,359,371  
Convertible Senior Notes payable 5.25% due September 15, 2018(2)     67,715,873       67,512,798  
Total Liabilities     136,791,528       108,835,616  
Commitments and contingencies (Notes 6 and 9)
                 
Net Assets   $ 195,911,696     $ 192,128,810  
NET ASSETS
                 
Common stock, par value $0.01 per share (100,000,000 authorized; 22,181,003 and 22,181,003 issued and outstanding, respectively)   $ 221,810     $ 221,810  
Paid-in capital in excess of par     221,237,636       221,237,636  
Accumulated net investment loss     (6,252,208 )      (1,443,996 ) 
Accumulated net realized losses on investments     (25,463,049 )      (773,882 ) 
Accumulated net unrealized appreciation/(depreciation) of investments     6,167,507       (27,112,758 ) 
Net Assets   $ 195,911,696     $ 192,128,810  
Net Asset Value Per Share   $ 8.83     $ 8.66  

(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.

 
 
See accompanying notes to condensed consolidated financial statements.

1


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2017
  Three months
ended
March 31,
2016
INVESTMENT INCOME
                 
Interest income from controlled securities(1)   $ 59,409     $ 4,889  
Interest income from affiliated securities(1)     95,677       92,478  
Interest income from non-controlled/non-affiliated securities     8,373       5,285  
Dividend income from controlled securities(1)     175,000        
Total Investment Income     338,459       102,652  
OPERATING EXPENSES
                 
Management fees(1)     1,272,618       1,958,000  
Incentive fees/(Reversal of Incentive fees)(1)     1,717,308       (5,118,584 ) 
Costs incurred under Administration Agreement(1)     531,484       599,950  
Directors’ fees     82,917       86,250  
Professional fees     262,190       637,128  
Interest expense     1,126,773       1,183,163  
Income tax expense     800        
Other expenses     152,581       209,738  
Total Operating Expenses     5,146,671       (444,355 ) 
Net Investment Income/(Loss)     (4,808,212 )      547,007  
Net Realized Losses:
                 
From affiliated securities     (1,903,414 )       
From non-controlled/non-affiliated securities     (22,785,753 )      (6,075,070 ) 
Net Realized Losses on Investments     (24,689,167 )      (6,075,070 ) 
Net Change in Unrealized Appreciation/(Depreciation) of Investments:
                 
From controlled securities     1,692,647       (266,728 ) 
From affiliated securities     1,426,668       (1,148,187 ) 
From non-controlled/non-affiliated securities     30,160,950       (18,006,086 ) 
Net Change in Unrealized Appreciation/(Depreciation) of
Investments
    33,280,265       (19,421,001 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations   $ 3,782,886     $ (24,949,064 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share
                 
Basic   $ 0.17     $ (1.12 ) 
Diluted(2)   $ 0.17     $ (1.12 ) 
Weighted-Average Common Shares Outstanding
                 
Basic     22,181,003       22,181,003  
Diluted(2)     22,181,003       22,181,003  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.
(2) For the three months ended March 31, 2017 and 2016, 5,751,815 and 5,710,212 potentially dilutive common shares, respectively, 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. Refer to “Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted” for further detail.

 
 
See accompanying notes to condensed consolidated financial statements.

2


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2017
  Three months
ended
March 31,
2016
Net Increase/(Decrease) in Net Assets Resulting from Operations
                 
Net investment income/(loss)   $ (4,808,212 )    $ 547,007  
Net realized losses on investments     (24,689,167 )      (6,075,070 ) 
Net change in unrealized Appreciation/(Depreciation) of investments     33,280,265       (19,421,001 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations     3,782,886       (24,949,064 ) 
Total Increase/(Decrease) in Net Assets     3,782,886       (24,949,064 ) 
Net assets at beginning of period     192,128,810       268,010,945  
Net Assets at End of Period   $ 195,911,696     $ 243,061,881  
Capital Share Activity
                 
Shares issued            
Shares outstanding at beginning of period     22,181,003       22,181,003  
Shares outstanding at end of period     22,181,003       22,181,003  

 
 
See accompanying notes to condensed consolidated financial statements.

3


 
 

TABLE OF CONTENTS

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

   
  Three months
ended
March 31,
2017
  Three months
ended
March 31,
2016
Cash Flows from Operating Activities
                 
Net increase/(decrease) in net assets resulting from operations   $ 3,782,886     $ (24,949,064 ) 
Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash used in operating activities:
                 
Net realized losses on investments     24,689,167       6,075,070  
Net change in unrealized appreciation/(depreciation) of investments     (33,280,265 )      19,421,001  
Amortization of discount on Convertible Senior Notes     203,075       214,028  
Amortization of deferred financing costs           23,833  
Amortization of fixed income security premiums and discounts     (32,796 )      (14,301 ) 
Paid in kind Interest     (17,897 )       
Change in restricted cash           (22,750 ) 
Purchases of investments in:
                 
Portfolio investments     (280 )      (6,005,951 ) 
United States treasury bills     (59,996,000 )      (29,999,883 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments           5,039,632  
United States treasury bills     30,000,000       30,000,000  
United States treasuries strips           1,834,000  
Change in operating assets and liabilities:
                 
Due from GSV Asset Management(1)           219,147  
Due from portfolio companies(1)           3,880  
Prepaid expenses and other assets     56,275       66,603  
Interest and dividends receivable     (112,734 )      (88,351 ) 
Due to GSV Asset Management(1)     (362,161 )      (5,021,739 ) 
Payable for securities purchased     27,497,250       526  
Accounts payable and accrued expenses     (94,085 )      287,574  
Accrued incentive fees(1)     1,717,308       (5,118,585 ) 
Accrued management fees(1)     (99,848 )      (27,511 ) 
Accrued interest payable     (905,627 )      (905,625 ) 
Net Cash Used in Operating Activities     (6,955,732 )      (8,968,466 ) 
Cash Flows from Financing Activities
                 
Deferred offering costs     (18,357 )       
Net Cash Used in Financing Activities     (18,357 )       
Total Decrease in Cash Balance     (6,974,089 )      (8,968,466 ) 
Cash Balance at Beginning of Period     8,332,634       13,349,877  
Cash Balance at End of Period   $ 1,358,545     $ 4,381,411  
Supplemental Information:
                 
Interest Paid   $ 1,811,250     $ 2,088,788  
Taxes Paid   $ 800     $  

(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.

4


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
(UNAUDITED)
March 31, 2017

         
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     $ 2,093,135       1.06 % 
Common shares, Class A           5,773,690       16,189,935       36,980,484       18.88 % 
Total                 17,198,903       39,073,619       19.94 % 
Spotify Technology S.A.**
    Stockholm, Sweden                                      
Common shares     On-Demand Music Streaming       9,541       13,599,572       19,606,755       10.01 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Cloud Computing Services       552,486       5,015,773       7,182,318       3.67 % 
Common shares           760,000       8,641,153       9,880,000       5.04 % 
Total                 13,656,926       17,062,318       8.71 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       7,334,954       3.74 % 
Common shares           133,213       2,999,983       7,721,025       3.94 % 
Total                 5,999,961       15,055,979       7.68 % 
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       14,889,935       7.60 % 
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,510,855       7.41 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series D     Light Field Imaging Platform       159,160       502,081       500,001       0.26 % 
Preferred shares, Series C-1           3,378,379       10,000,002       10,405,407       5.31 % 
Total                 10,502,083       10,905,408       5.57 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       10,532,304       5.38 % 
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       1.02 % 
Preferred shares, Series B              922,509       4,999,999       4,999,999       2.55 % 
Preferred shares, Series A              1,090,909       3,000,200       3,000,000       1.53 % 
Preferred shares, Series Seed           500,000       500,000       500,000       0.26 % 
Total                 10,500,199       10,499,999       5.36 % 
Chegg, Inc.**
    Santa Clara, CA                                      
Common shares     Online Education Services       1,182,792       14,022,863       9,982,764       5.10 % 
Curious.com, Inc.(1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       9,780,484       4.99 % 
StormWind, LLC(2)(6)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       4,650,838       2.37 % 
Preferred shares, Series B              3,279,629       2,019,687       4,470,403       2.28 % 
Preferred shares, Series A           366,666       110,000       499,796       0.26 % 
Total                 6,130,474       9,621,037       4.91 % 

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
March 31, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Declara, Inc.(1)
    Palo Alto, CA                                      
Convertible Promissory Note 9%
Due 6/30/2017***
    Social Cognitive Learning     $ 2,120,658     $ 2,120,658     $ 2,827,020       1.44 % 
Preferred shares, Series A           10,716,390       9,999,999       4,608,048       2.35 % 
Total                 12,120,657       7,435,068       3.79 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     On-Demand Transportation       128,563       2,503,585       3,149,703       1.60 % 
Preferred shares, Series D     Services       176,266       1,792,749       4,163,403       2.13 % 
Total                 4,296,334       7,313,106       3.73 % 
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       490,768       488,488       0.25 % 
Unsecured Promissory Note 12%
Due 5/29/2017***
           $ 526,000       516,234       516,234       0.25 % 
Preferred shares, Series A-4              3,720,424       4,904,498       3,832,037       1.96 % 
Preferred shares, Series A-3              1,561,625       2,005,730       1,342,998       0.69 % 
Preferred shares, Series A-2              450,001       605,500       234,001       0.12 % 
Preferred shares, Series A-1              1,000,000       1,021,778       400,000       0.20 % 
Common shares              200,000       1,000       10,000       0.01 % 
Preferred Warrants Series A-3 – Strike Price $1.33 – Expiration
Date 4/4/2019
             187,500             13,125       0.01 % 
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration
Date 10/6/2019
             500,000             80,000       0.04 % 
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration
Date 7/18/2021
             250,000       74,380       45,000       0.02 % 
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration
Date 11/29/2021
          100,000       29,275       18,000       0.01 % 
Total                 9,649,163       6,979,883       3.56 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship       373,134       1,500,522       2,436,565       1.24 % 
Common shares     Manager       1,524,799       5,476,502       3,827,245       1.95 % 
Total                 6,977,024       6,263,810       3.19 % 
Avenues Global Holdings, LLC(4)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused Private
School
      10,014,270       10,151,854       6,128,733       3.13 % 
Snap Inc. (f/k/a Snapchat, Inc.)**(10)
    Venice, CA                                      
Common shares, Class A     Social Communication       130,208       2,001,135       2,933,586       1.50 % 
Common shares, Class B           130,208       2,001,135       2,933,586       1.50 % 
Total                 4,002,270       5,867,172       3.00 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,389,311       0.71 % 
Preferred shares, Series B           904,977       2,063,356       4,171,944       2.13 % 
Total                 3,164,265       5,561,255       2.84%  

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
March 31, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     On-Demand Commerce       1,681,520     $ 4,000,280     $ 4,000,000       2.04 % 
Preferred shares, Series A           879,198       1,002,440       1,441,885       0.74 % 
Total                 5,002,720       5,441,885       2.78 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,544,727       2.32 % 
Whittle Schools, LLC(1)(5)
    New York, NY                                      
Preferred shares, Series B     Globally-focused Private       3,000,000       3,000,000       3,000,000       1.53 % 
Common shares     School       229       1,577,097       1,500,000       0.77 % 
Total                 4,577,097       4,500,000       2.30 % 
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)(2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000       7,151,412       4,176,901       2.13 % 
Common shares           100,000       10,000             % 
Total                 7,161,412       4,176,901       2.13 % 
CUX, Inc. (d/b/a CorpU)(1)
    Philadelphia, PA                                      
Senior Subordinated Convertible Promissory Note 8%,
Due 11/26/2018***(8)
    Corporate Education     $ 1,166,400       1,166,400       1,166,400       0.60 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.39 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,913,484       0.98 % 
Preferred Warrants Series D – Strike Price $4.59 – Expiration Date 2/25/2018           16,903             4,902       % 
Total                 3,951,084       3,860,647       1.97 % 
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       3,398,904       1.73 % 
A Place for Rover Inc. (f/k/a DogVacay, Inc.)(11)
    Santa Monica, CA                                      
Common shares     Peer-to-Peer Pet Services       707,991       2,506,119       2,500,051       1.28 % 
SharesPost, Inc.
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       1.15 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       84,803       0.04 % 
Total                 2,282,844       2,334,802       1.19 % 
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,999,998       1.02 % 
Preferred shares, Series B           49,505       217,206       256,931       0.13 % 
Total                 2,217,653       2,256,929       1.15 % 
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,503,436       0.77 % 
Preferred shares, Series A           3,579,610       758,017       751,718       0.38 % 
Total                 2,260,379       2,255,154       1.15 % 
Strategic Data Command, LLC(1)(7)
    Sunnyvale, CA                                      
Common shares     Big Data Consulting       2,400,000       989,277       2,229,633       1.14%  

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
March 31, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047     $ 2,000,601     $ 2,000,001       1.02 % 
EdSurge, Inc.(1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       500,000       0.25 % 
Preferred shares, Series A           494,365       500,801       563,576       0.29 % 
Total                 1,002,161       1,063,576       0.54 % 
Tynker (f/k/a Neuron Fuel, Inc.)
    Mountain View, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       892,051       0.46 % 
Fullbridge, Inc.
    Cambridge, MA                                      
Common shares     Business Education       517,917       6,150,506             % 
Junior note 1.49%, Due 11/9/2021***         $ 2,270,458       2,270,863       877,359       0.45 % 
Total                 8,421,369       877,359       0.45 % 
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Common shares     Social Data Platform       436,219       1,436,404       505,744       0.26 % 
Circle Media (f/k/a S3 Digital Corp.
(d/b/a S3i))
(1)
    New York, NY                                      
Promissory Note 12%,
Due 11/17/2017***
    Sports Analytics     $ 25,000       30,203       28,008       0.01 % 
Preferred shares, Series A              1,864,495       1,777,576       316,964       0.16 % 
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                 1,839,709       344,972       0.17 % 
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A     Financial Services       540,270       1,001,815       324,162       0.17 % 
Handle Financial, Inc.
(f/k/a Paynearme, Inc.)
(9)

    Sunnyvale, CA                                      
Common shares     Cash Payment Network       548,034       14,000,398       76,725       0.04 % 
Global Education Learning (Holdings) Ltd.(1)**
    Hong Kong                                      
Preferred shares, Series A     Education Technology       2,126,475       675,495             % 
Total Portfolio Investments                 254,128,830       270,654,707       138.15 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%,
due 4/6/2017***
        $ 60,000,000       59,996,000       59,997,000       30.63 % 
TOTAL INVESTMENTS               $ 314,124,830     $ 330,651,707       168.78 % 

* 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. The Company’s officers and staff may serve on the board of directors of the Company’s portfolio investments.

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
March 31, 2017

** 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, 10.7% 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) Investment was on non-accrual status as of March 31, 2017.
(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) Interest will accrue daily on the unpaid principal balance of the note. Interest began compounding annually on November 26, 2015. 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).
(9) On March 28, 2017, Paynearme, Inc. changed its name to Handle Financial, Inc. As part of the process, Handle Financial, Inc. initiated a 10:1 reverse stock split.
(10) On March 1, 2017, Snap Inc. priced its initial public offering, selling 145,000,000 shares of Class A common stock at a price of $17.00 per share. At March 31, 2017, GSV Capital Corp. valued Snap Inc., based on its March 31, 2017 closing price. The Company’s common stock of Snap Inc. (f/k/a Snapchat, Inc.), are restricted until July 31, 2017 due to Snap Inc.’s IPO.
(11) On March 29, 2017, A Place for Rover Inc. acquired DogVacay, Inc. and pursuant to a plan of reorganization, the Company received common shares of A Place for Rover Inc. in exchange for the Company’s previously held Preferred shares, Series B-1 of DogVacay, Inc.

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2016

         
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     $ 2,223,594       1.16 % 
Common shares, Class A           5,773,690       16,189,935       39,285,371       20.45 % 
Total                 17,198,903       41,508,965       21.61 % 
Spotify Technology S.A.**
    Stockholm, Sweden                                      
Common shares     On-Demand Music Streaming       9,541       13,599,572       18,931,691       9.85 % 
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,510,855       7.55 % 
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       13,856,754       7.21 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       6,697,132       3.49 % 
Common shares           133,213       2,999,983       7,049,632       3.67 % 
Total                 5,999,961       13,746,764       7.16 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Cloud Computing Services       552,486       5,015,773       5,552,484       2.89 % 
Common shares           760,000       8,641,153       7,638,000       3.98 % 
Total                 13,656,926       13,190,484       6.87 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series D     Light Field Imaging Platform       159,160       502,081       500,001       0.26 % 
Preferred shares, Series C-1           3,378,379       10,000,002       10,408,150       5.42 % 
Total                 10,502,083       10,908,151       5.68 % 
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       1.04 % 
Preferred shares, Series B              922,509       4,999,999       4,999,999       2.60 % 
Preferred shares, Series A              1,090,909       3,000,200       3,000,000       1.56 % 
Preferred shares, Series Seed           500,000       500,000       610,000       0.32 % 
Total                 10,500,199       10,609,999       5.52 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       10,532,304       5.48 % 
Curious.com Inc.(1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       9,984,954       5.20 % 
StormWind, LLC(2)(6)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       4,650,838       2.42 % 
Preferred shares, Series B              3,279,629       2,019,687       4,470,403       2.33 % 
Preferred shares, Series A           366,666       110,000       499,796       0.26 % 
Total                 6,130,474       9,621,037       5.01 % 
Chegg, Inc.**
    Santa Clara, CA                                      
Common shares     Online Education Services       1,182,792       14,022,863       8,729,005       4.54 % 

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TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Declara, Inc.(1)
    Palo Alto, CA                                      
Convertible Promissory Note 9%
Due 6/30/2017***(12)
    Social Cognitive Learning     $ 2,120,658     $ 2,120,658     $ 2,827,020       1.47 % 
Preferred shares, Series A           10,716,390       9,999,999       4,786,654       2.49 % 
Total                 12,120,657       7,613,674       3.96 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     On-Demand Transportation       128,563       2,503,585       3,249,430       1.69 % 
Preferred shares, Series D     Services       176,266       1,792,749       4,203,062       2.19 % 
Total                 4,296,334       7,452,492       3.88 % 
Avenues Global Holdings, LLC(4)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused Private
School
      10,014,270       10,151,854       6,128,733       3.19 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship       373,134       1,500,522       2,354,476       1.23 % 
Common shares     Manager       1,524,799       5,476,502       3,762,442       1.96 % 
Total                 6,977,024       6,116,918       3.19 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,377,256       0.72 % 
Preferred shares, Series B           904,977       2,063,356       4,135,745       2.15 % 
Total                 3,164,265       5,513,001       2.87 % 
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     On-Demand Commerce       1,681,520       4,000,280       4,000,000       2.08 % 
Preferred shares, Series A           879,198       1,002,440       1,443,091       0.75 % 
Total                 5,002,720       5,443,091       2.83 % 
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       457,592       427,900       0.22 % 
Unsecured Promissory Note 12%
Due 5/29/2017***
           $ 526,000       501,802       496,725       0.26 % 
Preferred shares, Series A-4(14)              3,720,424       4,904,498       2,715,910       1.41 % 
Preferred shares, Series A-3(14)              1,561,625       2,005,730       952,591       0.50 % 
Preferred shares, Series A-2(14)              450,001       605,500       166,500       0.09 % 
Preferred shares, Series A-1(14)              1,000,000       1,021,778       270,000       0.14 % 
Common shares              200,000       1,000             0.00 % 
Preferred warrants, Series A-3 – $1.33 Strike Price, Expiration
Date 4/4/2019
             187,500             5,625       % 
Preferred warrants, Series A-4 – $1.33 Strike Price, Expiration
Date 10/6/2019
             500,000             40,000       0.02 % 
Preferred warrants, Series A-4 – $1.33 Strike Price, Expiration
Date 7/18/2021
             250,000       74,380       22,500       0.01 % 
Preferred warrants, Series A-4 – $1.33 Strike Price, Expiration
Date 11/29/2021
          100,000       29,275       9,000        
Total                 9,601,555       5,106,751       2.65%  

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TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Whittle Schools, LLC(1)(5)
    New York, NY                                      
Preferred shares, Series B     Globally-focused Private       3,000,000     $ 3,000,000     $ 3,000,000       1.56 % 
Common shares     School       229       1,577,097       1,500,000       0.78 % 
Total                 4,577,097       4,500,000       2.34 % 
Snap Inc. (f/k/a Snapchat, Inc.)
    Venice, CA                                      
Preferred shares, Series F(17)     Social Communication       130,208       2,001,135       2,184,565       1.14 % 
Common shares, Class A(17)           130,208       2,001,135       2,184,565       1.14 % 
Total                 4,002,270       4,369,130       2.28 % 
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)(2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000       7,151,412       4,309,778       2.24 % 
Common shares           100,000       10,000             % 
Total                 7,161,412       4,309,778       2.24 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,000,000       2.08 % 
CUX, Inc. (d/b/a CorpU)(1)
    Philadelphia, PA                                      
Senior Subordinated Convertible Promissory Note 8%, Due 11/26/2018***(8)     Corporate Education     $ 1,166,400       1,166,400       1,166,400       0.61 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.40 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,913,484       1.00 % 
Preferred warrants, Series D, $4.59 Strike Price, Expiration Date 2/25/2018           16,903             4,395       % 
Total                 3,951,084       3,860,140       2.01 % 
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       3,782,409       1.97 % 
DogVacay, Inc.
    Santa Monica, CA                                      
Preferred shares, Series B-1     Peer-to-Peer Pet Services       514,562       2,506,119       2,500,771       1.30 % 
SharesPost, Inc.
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       1.17 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       69,384       0.04 % 
Total                 2,282,844       2,319,383       1.21 % 
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,503,436       0.78 % 
Preferred shares, Series A           3,579,610       758,017       751,718       0.39 % 
Total                 2,260,379       2,255,154       1.17 % 
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,999,998       1.04 % 
Preferred shares, Series B           49,505       217,206       223,763       0.12 % 
Total                 2,217,653       2,223,761       1.16 % 
Strategic Data Command, LLC(1)(7)
    Sunnyvale, CA                                      
Common shares     Big Data Consulting       2,400,000       989,277       2,052,555       1.07%  

12


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047     $ 2,000,601     $ 2,000,001       1.04 % 
EdSurge, Inc.(1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       500,000       0.26 % 
Preferred shares, Series A           494,365       500,801       588,294       0.31 % 
Total                 1,002,161       1,088,294       0.57 % 
Tynker (f/k/a Neuron Fuel, Inc.)
    Mountain View, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       881,367       0.46 % 
Fullbridge, Inc.
    Cambridge, MA                                      
Common shares     Business Education       517,917       6,150,506             % 
Junior note 1.49%, Due 11/9/2021           2,270,458       2,270,858       877,359       0.46 % 
Total                 8,421,364       877,359       0.46 % 
Circle Media (f/k/a S3 Digital Corp.
(d/b/a S3i))
(1)

    New York, NY                                      
Promissory Note 12%, Due 11/17/2017***(15)     Sports Analytics     $ 25,000       26,840       26,544       0.01 % 
Preferred shares, Series A              1,864,495       1,777,576       484,769       0.26 % 
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                 1,836,346       511,313       0.27 % 
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Common shares     Social Data Platform       436,219       1,436,404       505,744       0.26 % 
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A(11)     Financial Services       540,270       1,001,815       307,954       0.16 % 
PayNearMe, Inc.
    Sunnyvale, CA                                      
Common shares(13)     Cash Payment Network       5,480,348       14,000,398       164,410       0.09 % 
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, Expiration Date 1/9/2017           109,375                   % 
Total                 1,903,414             % 
Orchestra One, Inc. (f/k/a Learnist Inc.)
    San Francisco, CA                                      
Common shares     Consumer Health Technology       57,026       4,959,614             —%  

13


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value