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



 

FORM 10-Q



 

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

     FOR THE QUARTERLY PERIOD ENDED June 30, 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 August 9, 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 June 30, 2017 (Unaudited) and December 31, 2016     1  
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 (Unaudited)     2  
Condensed Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2017 and 2016 (Unaudited)     4  
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (Unaudited)     5  
Condensed Consolidated Schedule of Investments as of June 30, 2017 (Unaudited)     6  
Condensed Consolidated Schedule of Investments as of December 31, 2016     11  
Notes to Condensed Consolidated Financial Statements as of June 30, 2017
(Unaudited)
    17  
Note 1 — Nature of Operations and Significant Accounting Policies     17  
Note 2 — Related-Party Arrangements     25  
Note 3 — Investments at Fair Value     28  
Note 4 — Equity Offerings and Related Expenses     34  
Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted     35  
Note 6 — Commitments and Contingencies     36  
Note 7 — Financial Highlights     36  
Note 8 — Income Taxes     37  
Note 9 — Long-Term Liabilities     39  
Note 10 — Subsequent Events     41  
Note 11 — Supplemental Financial Data     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)     44  
Results of Operations     46  
Liquidity and Capital Resources     51  
Critical Accounting Policies     54  
Recent Developments     54  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    55  

Item 4.

Controls and Procedures

    56  

i


 
 

TABLE OF CONTENTS

 
  PAGE

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    57  

Item 1A.

Risk Factors

    57  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    58  

Item 3.

Defaults Upon Senior Securities

    58  

Item 4.

Mine Safety Disclosure

    58  

Item 5.

Other Information

    58  

Item 6.

Exhibits

    58  
Schedules 12-14 — Schedules of Investments in and Advances to Affiliates as of June 30, 2017 (unaudited) and December 31, 2016     59  
Signatures     66  

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

   
  June 30,
2017
  December 31,
2016
     (Unaudited)     
ASSETS
                 
Investments at fair value:
                 
Investments in controlled securities (cost of $22,982,044 and $22,893,441, respectively)(1)   $ 19,855,423     $ 19,037,566  
Investments in affiliated securities (cost of $49,197,923 and $51,773,388, respectively)(1)     39,608,382       42,444,690  
Investments in non-controlled/non-affiliated securities (cost of $181,314,446 and $204,101,445, respectively)     223,304,013       200,532,890  
Investments in treasury bill (cost of $99,988,000 and $29,998,750, respectively)     99,994,000       29,998,490  
Total Investments (cost of $353,482,413 and $308,767,024, respectively)     382,761,818       292,013,636  
Cash     2,602,570       8,332,634  
Interest and dividends receivable     337,100       92,946  
Prepaid expenses and other assets     72,556       213,942  
Deferred financing costs     446,018       311,268  
Total Assets     386,220,062       300,964,426  
LIABILITIES
                 
Due to:
                 
GSV Asset Management(1)     347,807       422,025  
Accounts payable and accrued expenses     243,058       335,611  
Accrued incentive fees(1)     6,274,577       2,126,444  
Accrued management fees(1)     396,428       524,054  
Accrued interest payable     1,061,729       1,056,563  
Payable for securities purchased     89,483,890       26,498,750  
Deferred tax liability     10,359,371       10,359,371  
Credit facility payable     8,000,000        
Convertible Senior Notes Payable 5.25% due September 15, 2018(2)     67,943,431       67,512,798  
Total Liabilities     184,110,291       108,835,616  
Commitments and contingencies (Notes 6 and 9)
                 
Net Assets   $ 202,109,771     $ 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     (12,135,169 )      (1,443,996 ) 
Accumulated net realized losses on investments     (26,134,541 )      (773,882 ) 
Accumulated net unrealized appreciation/(depreciation) of investments     18,920,035       (27,112,758 ) 
Net Assets   $ 202,109,771     $ 192,128,810  
Net Asset Value Per Share   $ 9.11     $ 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
June 30,
  Six Months Ended
June 30,
     2017   2016   2017   2016
INVESTMENT INCOME
                                   
Interest income from controlled securities(1)   $ 67,368     $ 15,528     $ 126,777     $ 20,417  
Interest income/(reversal of interest accrual) from affiliated securities(1)(3)     96,695       (73,894 )      192,372       18,584  
Interest income from
non-controlled/non-affiliated securities
    8,434       4,247       16,807       9,532  
Dividend income from controlled
securities(1)
    125,000             300,000        
Other income from non-controlled/non-affiliated securities     73,096             73,096        
Total Investment Income     370,593       (54,119 )      709,052       48,533  
OPERATING EXPENSES
                                   
Management fees(1)     1,359,180       1,740,223       2,813,600       3,698,223  
Incentive fees/(reversal of incentive fee accrual)(1)     2,430,825       (2,907,224 )      4,148,133       (8,025,808 ) 
Costs incurred under administration agreement(1)     449,110       698,692       980,594       1,298,642  
Directors’ fees     73,063       86,250       155,980       172,500  
Professional fees     702,808       388,375       964,998       1,025,503  
Interest expense     1,155,060       1,184,326       2,281,833       2,367,489  
Tax expense     45,690             46,490        
Other expenses     207,716       207,280       360,297       417,018  
Total Operating Expenses     6,423,452       1,397,922       11,751,925       953,567  
Management fee waiver     (169,898 )            (351,700 )       
Total operating expenses, net of waiver of management fees     6,253,554       1,397,922       11,400,225       953,567  
Net Investment Loss     (5,882,961 )      (1,452,041 )      (10,691,173 )      (905,034 ) 
Net Realized Gains/(Losses):
                                   
From affiliated securities     (675,495 )            (2,578,909 )       
From non-controlled/non-affiliated securities     4,003       1,104,361       (22,781,750 )      (4,970,709 ) 
Net Realized Gains/(Losses) on investments     (671,492 )      1,104,361       (25,360,659 )      (4,970,709 ) 

 
 
See accompanying notes to condensed consolidated financial statements.

2


 
 

TABLE OF CONTENTS

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

       
  Three Months Ended
June 30,
  Six Months Ended
June 30,
     2017   2016   2017   2016
Net Change in Unrealized
Appreciation/(Depreciation) on investments:

                                   
From controlled securities     (963,393 )      60,073       729,254       (206,655 ) 
From affiliated securities     (1,687,511 )      (5,219,631 )      (260,843 )      (6,367,818 ) 
From non-controlled/non-affiliated securities     15,403,432       (10,774,328 )      45,564,382       (28,780,414 ) 
Total Change in Unrealized
Appreciation/(Depreciation) on investments
    12,752,528       (15,933,886 )      46,032,793       (35,354,887 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations   $ 6,198,075     $ (16,281,566 )    $ 9,980,961     $ (41,230,630 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ 0.28     $ (0.74 )    $ 0.45     $ (1.86 ) 
Diluted(2)   $ 0.26     $ (0.74 )    $ 0.44     $ (1.86 ) 
Weighted-Average Common Shares Outstanding
                                   
Basic     22,181,003       22,181,003       22,181,003       22,181,003  
Diluted(2)     27,932,818       22,181,003       27,932,818       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 and six months ended June 30, 2016, 5,710,212 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive. Refer to “Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted” for further detail.
(3) Interest income for each of the three and six months ended June 30, 2016 reflects the reversal of previously accrued interest from loans to Fullbridge, Inc.

 
 
See accompanying notes to condensed consolidated financial statements.

3


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30,
2017
  Six months
ended
June 30,
2016
Net Increase/(Decrease) in Net Assets Resulting from Operations
                 
Net investment loss   $ (10,691,173 )    $ (905,034 ) 
Net realized losses on investments     (25,360,659 )      (4,970,709 ) 
Net change in unrealized appreciation/(depreciation) of investments     46,032,793       (35,354,887 ) 
Net Increase/(Decrease) in Net Assets Resulting from Operations     9,980,961       (41,230,630 ) 
Total Increase/(Decrease) in Net Assets     9,980,961       (41,230,630 ) 
Net assets at beginning of period     192,128,810       268,010,945  
Net Assets at End of Period   $ 202,109,771     $ 226,780,315  
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.

4


 
 

TABLE OF CONTENTS

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

   
  Six months
ended
June 30,
2017
  Six months
ended
June 30,
2016
Cash Flows from Operating Activities
                 
Net increase/(decrease) in net assets resulting from operations   $ 9,980,961     $ (41,230,630 ) 
Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash used in operating activities:
                 
Net realized losses on investments     25,360,659       4,970,709  
Net change in unrealized (appreciation)/depreciation of investments     (46,032,793 )      35,354,887  
Amortization of discount on Convertible Senior Notes     430,633       428,535  
Amortization of deferred financing costs     6,824       53,669  
Amortization of fixed income security premiums and discounts     (73,873 )      (8,099 ) 
Paid-in-kind-interest     52,483        
Change in restricted cash           (22,750 ) 
Purchases of investments in:
                 
Portfolio investments     (280 )      (10,514,101 ) 
United States treasury bills     (160,054,378 )      (59,999,523 ) 
Proceeds from sales or maturity of investments in:
                 
Portfolio investments           6,972,598  
United States treasury bills     90,000,000       60,000,000  
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)           3,879  
Prepaid expenses and other assets     141,386       64,106  
Interest and dividends receivable     (244,154 )      (40,265 ) 
Due to GSV Asset Management(1)     (74,218 )      (4,514,739 ) 
Payable for securities purchased     62,985,140       243  
Accounts payable and accrued expenses     (92,553 )      161,510  
Accrued incentive fees(1)     4,148,133       (8,025,808 ) 
Accrued management fees(1)     (127,626 )      (99,951 ) 
Accrued interest payable     5,166        
Net Cash Used in Operating Activities     (13,588,490 )      (14,392,583 ) 
Cash Flows from Financing Activities
                 
Borrowings under credit facility     8,000,000       3,500,000  
Deferred credit facility costs     (100,313 )       
Deferred offering costs     (41,261 )       
Net Cash Provided by Financing Activities     7,858,426       3,500,000  
Total Decrease in Cash Balance     (5,730,064 )      (10,892,583 ) 
Cash Balance at Beginning of Period     8,332,634       13,349,877  
Cash Balance at End of Period   $ 2,602,570     $ 2,457,294  
Supplemental Information:
                 
Interest Paid   $ 1,832,654     $ 1,811,250  
Taxes Paid   $ 46,490     $  

(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.

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
(UNAUDITED)
June 30, 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     $ 1,980,798       0.98 % 
Common shares, Class A           5,773,690       16,189,935       34,995,779       17.32 % 
Total                 17,198,903       36,976,577       18.30 % 
Spotify Technology S.A.**
    Stockholm, Sweden                                      
Common shares     On-Demand Music Streaming       9,541       13,599,572       27,033,199       13.38 % 
JAMF Holdings, Inc.(14)
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       1,468,800       9,999,928       20,575,952       10.18 % 
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       18,364,441       9.09 % 
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Cloud Computing Services       552,486       5,015,773       6,287,859       3.11 % 
Common shares           760,000       8,641,153       8,649,582       4.28 % 
Total                 13,656,926       14,937,441       7.39 % 
Chegg, Inc.**
    Santa Clara, CA                                      
Common shares(13)     Online Education Services       1,182,792       14,022,863       14,536,514       7.19 % 
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,979       6,314,946       3.12 % 
Common shares           133,213       2,999,983       6,647,329       3.29 % 
Total                 5,999,962       12,962,275       6.41 % 
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       10,532,304       5.21 % 
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series D     Light Field Imaging Platform       159,160       502,081       500,001       0.25 % 
Preferred shares, Series C-1           3,378,379       10,000,002       10,000,002       4.95 % 
Total                 10,502,083       10,500,003       5.20 % 
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       0.99 % 
Preferred shares, Series B              922,509       4,999,999       4,999,999       2.47 % 
Preferred shares, Series A              1,090,909       3,000,200       3,000,000       1.48 % 
Preferred shares, Series Seed           500,000       500,000       500,000       0.25 % 
Total                 10,500,199       10,499,999       5.19 % 
StormWind, LLC(2)(5)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       4,650,838       2.30 % 
Preferred shares, Series B              3,279,629       2,019,687       4,470,403       2.21 % 
Preferred shares, Series A           366,666       110,000       499,796       0.25 % 
Total                 6,130,474       9,621,037       4.76 % 
Curious.com, Inc.(1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       8,933,329       4.42 % 

 
 
See accompanying notes to condensed consolidated financial statements.

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
June 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
NestGSV, Inc. (d/b/a GSV Labs, Inc.)(2)
    Redwood City, CA                                      
Convertible Promissory Note 8% Due
7/31/2017***
    Global Innovation Platform
  
    $ 514,889     $ 510,420     $ 508,141       0.25 % 
Unsecured Promissory Note 12% Due
11/29/2017***(11)
           $ 526,000       467,198       467,200       0.23 % 
Preferred shares, Series A-4              3,720,424       4,904,498       4,873,755       2.41 % 
Preferred shares, Series A-3              1,561,625       2,005,730       1,702,171       0.84 % 
Preferred shares, Series A-2              450,001       605,500       297,000       0.15 % 
Preferred shares, Series A-1              1,000,000       1,021,778       490,000       0.24 % 
Common shares              200,000       1,000             % 
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             150,000       0.07 % 
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration Date 7/18/2021              250,000       74,380       87,500       0.04 % 
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration Date 11/29/2021              100,000       29,275       35,000       0.02 % 
Preferred Warrant Series B – Strike Price $2.31, Expiration Date 6/30/2022(11)           125,000       70,379       81,250       0.04 % 
Total                 9,690,158       8,705,142       4.30 % 
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     On-Demand Transportation       128,563       2,503,585       3,599,764       1.78 % 
Preferred shares, Series D     Services       176,266       1,792,749       4,829,688       2.39 % 
Total                 4,296,334       8,429,452       4.17 % 
Declara, Inc.(1)
    Palo Alto, CA                                      
Convertible Promissory Note 9% Due
12/31/2017***(12)
    Social Cognitive Learning
  
    $ 2,120,658       2,120,658       2,827,020       1.40 % 
Preferred shares, Series A           10,716,390       9,999,999       4,393,720       2.17 % 
Total                 12,120,657       7,220,740       3.57 % 
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship       373,134       1,500,522       2,537,800       1.26 % 
Common shares     Manager       1,524,799       5,476,502       4,240,940       2.10 % 
Total                 6,977,024       6,778,740       3.36 % 
Avenues Global Holdings, LLC(3)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-focused
      10,014,270       10,151,854       5,873,369       2.91 % 
       Private School                                      
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     On-Demand Commerce       1,681,520       4,000,280       4,000,000       1.98 % 
Preferred shares, Series A           879,198       1,002,440       1,297,975       0.64 % 
Total                 5,002,720       5,297,975       2.62 % 
Snap Inc. (f/k/a Snapchat, Inc.)**
    Venice, CA                                      
Common shares, Class A(9)     Social Communication       130,208       2,001,135       2,313,796       1.14 % 
Common shares, Class B(9)           130,208       2,001,135       2,313,796       1.14 % 
Total                 4,002,270       4,627,592       2.28 % 
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,544,727       2.25%  

 
 
See accompanying notes to condensed consolidated financial statements.

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
June 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Whittle Schools, LLC(1)(4)
    New York, NY                                      
Preferred shares, Series B     Globally-focused       3,000,000     $ 3,000,000     $ 3,000,000       1.48 % 
Common shares     Private School       229       1,577,097       1,500,000       0.74 % 
Total                 4,577,097       4,500,000       2.22 % 
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,099,997       0.54 % 
Preferred shares, Series B           904,977       2,063,356       2,841,628       1.41 % 
Total                 3,164,265       3,941,625       1.95 % 
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       3,737,291       1.85 % 
CUX, Inc. (d/b/a CorpU)(1)
    Philadelphia, PA                                      
Senior Subordinated Convertible
Promissory Note 8%, Due
11/26/2018***(7)
    Corporate Education
  
  
    $ 1,166,400       1,166,400       1,166,400       0.58 % 
Convertible preferred shares, Series D              169,033       778,607       775,861       0.38 % 
Convertible preferred shares, Series C              615,763       2,006,077       1,169,950       0.58 % 
Preferred Warrants Series D – Strike Price $4.59 – Expiration Date 2/25/2018           16,903             4,395       % 
Total                 3,951,084       3,116,606       1.54 % 
A Place for Rover Inc. (f/k/a DogVacay, Inc.)(10)
    Seattle, WA                                      
Common shares     Peer-to-Peer Pet Services       707,991       2,506,119       2,500,047       1.24 % 
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A     Financial Services       540,270       1,001,815       2,352,615       1.16 % 
SharesPost, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       1.11 % 
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       69,384       0.03 % 
Total                 2,282,844       2,319,383       1.14 % 
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,503,436       0.74 % 
Preferred shares, Series A           3,579,610       758,017       751,718       0.37 % 
Total                 2,260,379       2,255,154       1.11 % 
Strategic Data Command, LLC(1)(6)
    Sunnyvale, CA                                      
Common shares     Big Data Consulting       2,400,000       989,277       2,160,000       1.07 % 
Maven Research, Inc.(1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,955,341       0.97 % 
Preferred shares, Series B           49,505       217,206       195,050       0.10 % 
Total                 2,217,653       2,150,391       1.07 % 
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047       2,000,601       2,000,001       0.99 % 
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)(2)
    Woodside, CA                                      
Preferred shares, Class A***     Clean Technology       14,300,000       7,151,412       1,529,244       0.76 % 
Common shares           100,000       10,000             % 
Total                 7,161,412       1,529,244       0.76%  

 
 
See accompanying notes to condensed consolidated financial statements.

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
June 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
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       499,309       0.25 % 
Total                 1,002,161       999,309       0.50 % 
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       0.43 % 
Total                 8,421,369       877,359       0.43 % 
Tynker (f/k/a Neuron Fuel, Inc.)
    Mountain View, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       844,230       0.42 % 
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Common shares     Social Data Platform       436,219       1,436,406       505,747       0.25 % 
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     $ 28,008       30,283       28,008       0.01 % 
Preferred shares, Series A              1,864,495       1,777,576             % 
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                 1,839,789       28,008       0.01 % 
Handle Financial, Inc. (f/k/a PayNearMe, Inc.)(8)
    Sunnyvale, CA                                      
Common shares     Cash Payment Network       548,034       14,000,398             % 
Total Portfolio Investments                 253,494,413       282,767,818       139.89 % 
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 7/6/2017***         $ 100,000,000       99,988,000       99,994,000       49.48 % 
TOTAL INVESTMENTS               $ 353,482,413     $ 382,761,818       189.37 % 

* 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 (“IPO”). Unless otherwise noted, all investments were pledged as collateral under the Credit Facility. The Company’s and GSV Asset Management, LLC’s officers and staff, as applicable, 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, 12.07% 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

 
 
See accompanying notes to condensed consolidated financial statements.

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
June 30, 2017

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) GSV Capital Corp.’s investment in Avenues Global Holdings, LLC is held through its wholly owned subsidiary, GSVC AV Holdings, Inc.
(4) GSV Capital Corp.’s investment in Whittle Schools, LLC is held through its wholly owned subsidiary, GSVC WS Holdings, Inc. Whittle Schools, LLC is an investment that is collateralized by Avenues Global Holdings, LLC, as well as the personal collateral of Chris Whittle, the former chairman of Avenues Global Holdings, LLC.
(5) GSV Capital Corp.’s investment in StormWind, LLC is held through its wholly owned subsidiary, GSVC SW Holdings, Inc.
(6) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly owned subsidiary, GSVC SVDS Holdings, Inc.
(7) 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).
(8) On March 28, 2017, PayNearMe, Inc. changed its name to Handle Financial, Inc. As part of the company’s restructuring process, Handle Financial, Inc. initiated a 10:1 reverse stock split.
(9) On March 1, 2017, Snap Inc. priced its IPO, selling 145,000,000 shares of Class A common stock at a price of $17.00 per share. At June 30, 2017, GSV Capital Corp. valued Snap Inc., based on its June 30, 2017 closing price on the New York Stock Exchange of $17.77. The Company’s shares of common stock of Snap Inc. (f/k/a Snapchat, Inc.), are restricted until July 31, 2017.
(10) 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 Series B-1 preferred shares of DogVacay, Inc.
(11) On May 29, 2017, the maturity date of the unsecured promissory note to NestGSV, Inc. (d/b/a GSV Labs, Inc.) was extended to November 29, 2017 in exchange for 125,000 Series B warrants. For accounting purposes, the extension of the maturity date was treated as an extinguishment of the existing note and creation of a new note. Refer to “Note 3 — Investments at Fair Value.”
(12) On July 1, 2017, the maturity date of the convertible promissory note to Declara, Inc. was extended to December 31, 2017.
(13) On November 12, 2013, Chegg Inc. priced its IPO. The lock-up agreement for the Company’s Chegg Inc. common shares expired on May 11, 2014.
(14) In April 2017, JAMF Holdings Inc., initiated a 20:1 stock split.

 
 
See accompanying notes to condensed consolidated financial statements.

10


 
 

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 % 
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 % 

 
 
See accompanying notes to condensed consolidated financial statements.

11


 
 

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
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       10,014,270       10,151,854       6,128,733       3.19 % 
       Private School                             
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 % 
Whittle Schools, LLC(1)(5)
    New York, NY                                      
Preferred shares, Series B     Globally-focused       3,000,000       3,000,000       3,000,000       1.56 % 
Common shares     Private School       229       1,577,097       1,500,000       0.78 % 
Total                 4,577,097       4,500,000       2.34%  

 
 
See accompanying notes to condensed consolidated financial statements.

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
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 % 
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%  

 
 
See accompanying notes to condensed consolidated financial statements.

13


 
 

TABLE OF CONTENTS

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

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of
Net Assets
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