Document
TABLE OF CONTENTS

 
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, 2018
¨ 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 periods as 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 ¨

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES ¨ NO ¨

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 ¨
Accelerated filer x
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
Smaller reporting company ¨
Emerging growth company ¨
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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES ¨ NO x

The issuer had 20,520,290 shares of common stock, $0.01 par value per share, outstanding as of August 8, 2018.


 


TABLE OF CONTENTS

​​

GSV CAPITAL CORP.

TABLE OF CONTENTS
 
 
PAGE
PART I. FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
PART II. OTHER INFORMATION
 

i

TABLE OF CONTENTS

PART I
Item 1. Condensed Consolidated Financial Statements

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
June 30,
2018
 
December 31,
2017
ASSETS

 

Investments at fair value:

 

Non-controlled/non-affiliate investments (cost of $115,469,512 and $137,526,726, respectively)
$
178,256,152

 
$
179,908,234

Non-controlled/affiliate investments (cost of $42,212,967 and $41,886,312, respectively)
8,170,787

 
16,473,098

Controlled investments (cost of $22,568,505 and $23,161,314, respectively)
29,839,622

 
24,207,161

Total Portfolio Investments
216,266,561

 
220,588,493

Investments in U.S. Treasury bills (cost of $99,973,483 and $99,985,833, respectively)
99,986,200

 
99,994,000

Total Investments (cost of $280,224,467 and $302,560,185, respectively)
316,252,761

 
320,582,493

Cash
93,485,576

 
59,838,600

Due from controlled investments

 
840

Escrow proceeds receivable
1,660,279

 
603,456

Interest and dividends receivable
285,783

 
35,141

Prepaid expenses and other assets
88,232

 
208,983

Deferred financing costs
52,917

 
413,023

Total Assets
411,825,548

 
381,682,536

LIABILITIES

 

Due to GSV Asset Management(1)
233,005

 
231,697

Accounts payable and accrued expenses
559,537

 
458,203

Accrued incentive fees, net of waiver of incentive fees(1)
8,337,504

 
9,278,085

Accrued management fees, net of waiver of management fees(1)
316,888

 
424,447

Accrued interest payable
1,268,750

 
1,056,563

Payable for securities purchased
89,615,630

 
89,485,825

Deferred tax liability
6,247,915

 
7,602,301

5.25% Convertible Senior Notes due September 15, 2018(2)
49,849,273

 
68,382,549

4.75% Convertible Senior Notes due March 28, 2023(2)
38,248,433

 

Total Liabilities
194,676,935

 
176,919,670

Commitments and contingencies (Notes 7 and 10)

 

Net Assets
$
217,148,613

 
$
204,762,866

NET ASSETS

 

Common stock, par value $0.01 per share (100,000,000 authorized; 20,750,913 and 21,246,345 issued and outstanding, respectively)
$
207,509

 
$
212,463

Paid-in capital in excess of par
199,178,414

 
202,584,012

Accumulated net investment loss
(14,003,040
)
 
(8,593,717
)
Accumulated net realized gains on investments
2,328,862

 
140,100

Accumulated net unrealized appreciation of investments
29,436,868

 
10,420,008

Net Assets
$
217,148,613

 
$
204,762,866

Net Asset Value Per Share
$
10.46

 
$
9.64

See accompanying notes to condensed consolidated financial statements.
____________________
(1)
This balance references a related-party transaction. Refer to “Note 3—Related-Party Arrangements” for more detail.
(2)
As of June 30, 2018 and December 31, 2017, the 5.25% Convertible Senior Notes due September 15, 2018 had a face value of $49,982,000 and $69,000,000, respectively. As of June 30, 2018 and December 31, 2017, the 4.75% Convertible Senior Notes due March 28, 2023 had a face value of $40,000,000 and $0, respectively. Refer to “Note 10—Debt Capital Activities” for a reconciliation of the carrying value to the face value.

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TABLE OF CONTENTS
GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
INVESTMENT INCOME

 

 

 
 
Non-controlled/non-affiliate investments:

 

 

 
 
Interest income
$
8,932

 
$
8,434

 
$
10,612

 
$
16,807

Other income

 
73,096

 

 
73,096

Non-controlled/affiliate investments:

 

 

 
 
Interest income
221,813

 
96,695

 
455,895

 
192,372

Controlled investments:

 

 

 
 
Interest income
11,328

 
67,368

 
24,901

 
126,777

Dividend income
350,000

 
125,000

 
350,000

 
300,000

Total Investment Income
592,073

 
370,593

 
841,408

 
709,052

OPERATING EXPENSES

 

 

 
 
Management fees(1)
1,286,066

 
1,359,180

 
2,609,642

 
2,813,600

Incentive fees(1)
2,588,085

 
2,430,825

 
4,059,419

 
4,148,133

Costs incurred under Administration Agreement(1)
397,113

 
449,110

 
821,258

 
980,594

Directors’ fees
86,250

 
73,063

 
172,500

 
155,980

Professional fees
326,798

 
702,808

 
666,696

 
964,998

Interest expense
1,473,695

 
1,155,060

 
2,613,758

 
2,281,833

Income tax expense
26,229

 
45,690

 
148,499

 
46,490

Other expenses
160,036

 
207,716

 
649,306

 
360,297

Total Operating Expenses
6,344,272

 
6,423,452

 
11,741,078

 
11,751,925

Management fee waiver(1)
(335,403
)
 
(169,898
)
 
(490,347
)
 
(351,700
)
Incentive fee waiver(1)

 

 
(5,000,000
)
 

Total operating expenses, net of waiver of management and incentive fees
6,008,869

 
6,253,554

 
6,250,731

 
11,400,225

Net Investment Loss
(5,416,796
)
 
(5,882,961
)
 
(5,409,323
)
 
(10,691,173
)
Realized Gains/(Losses) on Investments:

 

 

 
 
Non-controlled/non-affiliated investments
3,363,333

 
4,003

 
2,587,288

 
(22,781,750
)
Controlled investments

 
(675,495
)
 
(680
)
 
(2,578,909
)
Net Realized Gains/(Losses) on Investments
3,363,333

 
(671,492
)
 
2,586,608

 
(25,360,659
)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018

 

 
(397,846
)
 

Change in Unrealized Appreciation/(Depreciation) of Investments:

 

 

 
 
Non-controlled/non-affiliated investments
10,555,021

 
15,403,432

 
20,409,685

 
45,564,382

Non-controlled/affiliate investments
(952,635
)
 
(1,687,511
)
 
(8,628,965
)
 
(260,843
)
Controlled investments
270,209

 
(963,393
)
 
6,225,269

 
729,254

Net Change in Unrealized Appreciation/(Depreciation) of Investments
9,872,595

 
12,752,528

 
18,005,989

 
46,032,793

Benefit from taxes on unrealized depreciation of investments
1,010,871

 

 
1,010,871

 

Net Increase in Net Assets Resulting from Operations
$
8,830,003

 
$
6,198,075

 
$
15,796,299

 
$
9,980,961

Net Increase in Net Assets Resulting from Operations per Common Share:

 

 

 
 
Basic
$
0.42

 
$
0.28

 
$
0.75

 
$
0.45

Diluted(2)
$
0.35

 
$
0.26

 
$
0.66

 
$
0.44

Weighted-Average Common Shares Outstanding

 

 

 
 
Basic
20,968,850

 
22,181,003

 
21,059,254

 
22,181,003

Diluted(2)
28,866,674

 
27,932,818

 
27,796,112

 
27,932,818


See accompanying notes to condensed consolidated financial statements.

_____________________
(1)
This balance references a related-party transaction. Refer to “Note 3—Related-Party Arrangements” for more detail.
(2)
For the three and six months ended June 30, 2018 and 2017, 0 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. Refer to “Note 6—Net Increase in Net Assets Resulting from Operations per Common Share—Basic and Diluted” for further detail.

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GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
Six Months Ended June 30, 2018
 
Six Months Ended June 30, 2017
Change in Net Assets Resulting from Operations

 

Net investment loss
$
(5,409,323
)
 
$
(10,691,173
)
Net realized gains/(losses) on investments
2,586,608

 
(25,360,659
)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018
(397,846
)
 

Net change in unrealized appreciation of investments
18,005,989

 
46,032,793

Benefit from taxes on unrealized depreciation of investments
1,010,871

 

Net Increase in Net Assets Resulting from Operations
15,796,299

 
9,980,961

Change in Net Assets Resulting from Capital Transactions

 

Repurchases of common stock
(3,410,552
)
 

Net Decrease in Net Assets Resulting from Capital Transactions
(3,410,552
)
 

Total Increase in Net Assets
12,385,747

 
9,980,961

Net assets at beginning of year
204,762,866

 
192,128,810

Net Assets at End of Period
$
217,148,613

 
$
202,109,771

Capital Share Activity

 

Shares outstanding at beginning of year
21,246,345

 
22,181,003

Shares issued

 

Shares repurchased
(495,432
)
 

Shares Outstanding at End of Period
20,750,913

 
22,181,003


See accompanying notes to condensed consolidated financial statements.


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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, 2018
 
Six Months Ended June 30, 2017
Cash Flows from Operating Activities

 

Net increase in net assets resulting from operations
$
15,796,299

 
$
9,980,961

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by/(used in) operating activities:

 

Net realized (gains)/losses on investments
(2,586,608
)
 
25,360,659

Net change in unrealized (appreciation)/depreciation of investments
(18,005,989
)
 
(46,032,793
)
Deferred tax liability
(1,354,386
)
 

Amortization of discount on 5.25% Convertible Senior Notes due 2018
359,444

 
430,633

Amortization of discount on 4.75% Convertible Senior Notes due 2023
95,051

 

Amortization of deferred financing costs
41,172

 
6,824

Write-off of deferred offering costs
325,248

 

Amortization of fixed income security premiums and discounts
(12,017
)
 
(73,873
)
Paid-in-kind-interest
(209,453
)
 
52,483

Purchases of investments in:

 

Portfolio investments
(209,656
)
 
(280
)
U.S. Treasury bills
(199,943,927
)
 
(160,054,378
)
Proceeds from sales or maturity of investments in:

 

Portfolio investments
25,297,380

 

U.S. Treasury bills
200,000,000

 
90,000,000

Change in operating assets and liabilities:

 

Due from controlled investments
840

 

Prepaid expenses and other assets
120,751

 
141,386

Interest and dividends receivable
(250,642
)
 
(244,154
)
Escrow proceeds receivable
(1,056,823
)
 

Due to GSV Asset Management(1)
1,308

 
(74,218
)
Payable for securities purchased
129,805

 
62,985,140

Accounts payable and accrued expenses
101,334

 
(92,553
)
Accrued incentive fees(1)
(940,581
)
 
4,148,133

Accrued management fees(1)
(107,559
)
 
(127,626
)
Accrued interest payable
212,187

 
5,166

Net Cash Provided by/(Used in) Operating Activities
17,803,179

 
(13,588,490
)
Cash Flows from Financing Activities

 

Proceeds from the issuance of 4.75% Convertible Senior Notes due 2023
40,000,000

 

Deferred debt issuance costs
(1,846,620
)
 

Repurchases of common stock
(3,410,552
)
 

Repurchase of 5.25% Convertible Senior Notes due 2018
(19,290,565
)
 

Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018
397,846

 

Borrowings under credit facility

 
8,000,000

Deferred credit facility costs

 
(100,313
)
Deferred offering costs
(6,312
)
 
(41,261
)
Net Cash Provided by Financing Activities
15,843,797

 
7,858,426

Total Increase/(Decrease) in Cash Balance
33,646,976

 
(5,730,064
)
Cash Balance at Beginning of Year
59,838,600

 
8,332,634

Cash Balance at End of Period
$
93,485,576

 
$
2,602,570

Supplemental Information:

 

Interest paid
$
1,891,542

 
$
1,832,654

Taxes paid
$
492,014

 
$
46,490

See accompanying notes to condensed consolidated financial statements.
_______________________
(1)
This balance references a related-party transaction. Refer to “Note 3—Related-Party Arrangements” for more detail.

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TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2018
Portfolio Investments*
 
Headquarters/
Industry
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
 
 
 
 
 
 
 
 
 
 
Spotify Technology S.A.**
 
Stockholm, Sweden
 
 
 
 
 
 
 
 
Common shares(3)(7)
 
On-Demand Music Streaming
 
235,360

 
$
10,002,084

 
$
39,596,966

 
18.23
%
Palantir Technologies, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
Common shares, Class A
 
Data Analysis
 
5,773,690

 
16,189,935

 
35,495,295

 
16.35
%
Dropbox, Inc.**
 
San Francisco, CA
 
 
 
 
 
 
 
 
Common shares(3)(8)
 
Cloud Computing Services
 
874,990

 
13,656,926

 
25,530,458

 
11.76
%
Coursera, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Education
 
2,961,399

 
14,519,519

 
18,360,674

 
8.46
%
Lyft, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
On-Demand Transportation Services
 
128,563

 
2,503,585

 
5,694,949

 
2.62
%
Preferred shares, Series D
 
 
 
176,266

 
1,792,749

 
7,808,046

 
3.60
%
Total
 
 
 
 
 
4,296,334

 
13,502,995

 
6.22
%
Course Hero, Inc.
 
Redwood City, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Online Education
 
2,145,509

 
5,000,001

 
11,298,854

 
5.20
%
Parchment, Inc.
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
Preferred shares, Series D
 
E-Transcript Exchange
 
3,200,512

 
4,000,982

 
5,867,338

 
2.70
%
DreamBox Learning, Inc.
 
Bellevue, WA
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Education Technology
 
7,159,221

 
1,502,362

 
3,789,912

 
1.75
%
Preferred shares, Series A
 
 
 
3,579,610

 
758,017

 
1,894,956

 
0.87
%
Total
 
 
 
 
 
2,260,379

 
5,684,868

 
2.62
%
A Place for Rover Inc. (f/k/a DogVacay, Inc.)
 
Seattle, WA
 
 
 
 
 
 
 
 
Common shares
 
Peer-to-Peer Pet Services
 
707,991

 
2,506,119

 
4,800,172

 
2.21
%
Enjoy Technology, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
On-Demand Commerce
 
1,681,520

 
4,000,280

 
3,438,514

 
1.58
%
Preferred shares, Series A
 
 
 
879,198

 
1,002,440

 
1,035,035

 
0.48
%
Total
 
 
 
 
 
5,002,720

 
4,473,549

 
2.06
%
SugarCRM, Inc.(13)
 
Cupertino, CA
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
Customer Relationship Manager
 
373,134

 
1,500,723

 
1,813,267

 
0.84
%
Common shares
 
 
 
1,524,799

 
5,477,236

 
1,265,583

 
0.58
%
Total
 
 
 
 
 
6,977,959

 
3,078,850

 
1.42
%
Knewton, Inc.
 
New York, NY
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
Online Education
 
375,985

 
4,999,999

 
3,061,682

 
1.41
%
SharesPost, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Marketplace Finance
 
1,771,653

 
2,259,716

 
2,249,999

 
1.04
%
Common shares(14)
 
 
 
770,934

 
123,987

 
123,349

 
0.06
%
Total
 
 
 
 
 
2,383,703

 
2,373,348

 
1.10
%
Clever, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Education Software
 
1,799,047

 
2,000,601

 
2,000,001

 
0.92
%
Lytro, Inc.(12)
 
Mountain View, CA
 
 
 
 
 
 
 
 
Preferred shares, Series D
 
Light Field Imaging Platform
 
159,160

 
502,142

 
46,427

 
0.02
%
Preferred shares, Series C-1
 
 
 
3,378,379

 
10,001,216

 
928,544

 
0.43
%
Total
 
 
 
 
 
10,503,358

 
974,971

 
0.45
%
Tynker (f/k/a Neuron Fuel, Inc.)
 
Mountain View, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Computer Software
 
534,162

 
309,310

 
791,361

 
0.36
%

See accompanying notes to condensed consolidated financial statements.

5

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
June 30, 2018
Portfolio Investments*
 
Headquarters/
Industry
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
Aspiration Partners, Inc.
 
Marina Del Rey, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Financial Services
 
540,270

 
1,001,815

 
778,311

 
0.36
%
4C Insights (f/k/a The Echo Systems Corp.)
 
Chicago, IL
 
 
 
 
 
 
 
 
Common shares
 
Social Data Platform
 
436,219

 
1,436,404

 
586,459

 
0.27
%
Fullbridge, Inc.
 
Cambridge, MA
 
 
 
 
 
 
 
 
Common shares
 
Business Education
 
517,917

 
6,150,506

 

 
%
Promissory Note 1.47% Due 11/9/2021(4)
 
 
 
2,270,458

 
2,270,858

 

 
%
Total
 
 
 
 
 
8,421,364

 

 
%
 
 
 
 
 
 
 
 
 
 
 
Total Non-controlled/Non-affiliate
 
 
 
 
 
$
115,469,512

 
$
178,256,152

 
82.09
%
 
 
 
 
 
 
 
 
 
 
 
NON-CONTROLLED/AFFILIATE(1)
 
 
 
 
 
 
 
 
 
 
Ozy Media, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
Convertible Promissory Note 5% Due 10/31/2018(11)
 
Digital Media Platform
 
$
2,102,384

 
2,083,754

 
3,153,247

 
1.45
%
Preferred shares, Series B
 
 
 
922,509

 
4,999,999

 
1,289,491

 
0.59
%
Preferred shares, Series A
 
 
 
1,090,909

 
3,000,200

 
773,475

 
0.36
%
Preferred shares, Series Seed
 
 
 
500,000

 
500,000

 
128,912

 
0.06
%
Common Warrants, Strike Price $0.01, Expiration Date 4/9/2028(11)
 
 
 
34,483

 
30,647

 

 
%
Total
 
 
 
 
 
10,614,600

 
5,345,125

 
2.46
%
CUX, Inc. (d/b/a CorpU)
 
Philadelphia, PA
 
 
 
 
 
 
 
 
Senior Subordinated Convertible Promissory Note 8% Due 11/26/2018***(6)
 
Corporate Education
 
$
1,259,712

 
1,259,712

 
1,259,712

 
0.58
%
Convertible preferred shares, Series D
 
 
 
169,033

 
778,607

 
848,421

 
0.39
%
Convertible preferred shares, Series C
 
 
 
615,763

 
2,006,077

 

 
%
Preferred Warrants Series D, Strike Price $4.59, Expiration Date 8/1/2018(9)
 
 
 
16,903

 

 
8,282

 
0.00
%
Total
 
 
 
 
 
4,044,396

 
2,116,415

 
0.97
%
EdSurge, Inc.
 
Burlingame, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Education Media Platform
 
378,788

 
501,360

 
250,000

 
0.12
%
Preferred shares, Series A
 
 
 
494,365

 
500,801

 
250,000

 
0.12
%
Total
 
 
 
 
 
1,002,161

 
500,000

 
0.24
%
Maven Research, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series C
 
Knowledge Networks
 
318,979

 
2,000,447

 
190,267

 
0.09
%
Preferred shares, Series B
 
 
 
49,505

 
217,206

 
18,980

 
0.01
%
Total
 
 
 
 
 
2,217,653

 
209,247

 
0.10
%
Curious.com, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
Common shares(16)
 
Online Education
 
3,407,834

 
12,000,006

 

 
%
Declara, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
Convertible Promissory Note 12% Due 4/30/2018(4)(10)
 
Social Cognitive Learning
 
$
2,327,727

 
2,334,152

 

 
%
Preferred shares, Series A
 
 
 
10,716,390

 
9,999,999

 

 
%
Total
 
 
 
 
 
12,334,151

 

 
%
 
 
 
 
 
 
 
 
 
 
 
Total Non-controlled/Affiliate
 
 
 
 
 
$
42,212,967

 
$
8,170,787

 
3.76
%

See accompanying notes to condensed consolidated financial statements.

6

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
June 30, 2018
Portfolio Investments*
 
Headquarters/
Industry
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net Assets
CONTROLLED(2)
 
 
 
 
 
 
 
 
 
 
StormWind, LLC(5)
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
Preferred shares, Series C
 
Interactive Learning
 
2,779,134

 
4,000,787

 
8,725,635

 
4.02
%
Preferred shares, Series B
 
 
 
3,279,629

 
2,019,687

 
6,000,048

 
2.76
%
Preferred shares, Series A
 
 
 
366,666

 
110,000

 
623,474

 
0.29
%
Total
 
 
 
 
 
6,130,474

 
15,349,157

 
7.07
%
NestGSV, Inc. (d/b/a GSV Labs, Inc.)
 
Redwood City, CA
 
 
 
 
 
 
 
 
Convertible Promissory Note 8% Due 7/31/2018***(15)
 
Global Innovation Platform
 
$
560,199

 
564,079

 
560,199

 
0.26
%
Preferred shares, Series A-4
 
 
 
3,720,424

 
4,904,498

 
8,130,273

 
3.74
%
Preferred shares, Series A-3
 
 
 
1,561,625

 
2,005,730

 
2,843,860

 
1.31
%
Preferred shares, Series A-2
 
 
 
450,001

 
605,500

 
491,694

 
0.23
%
Preferred shares, Series A-1
 
 
 
1,000,000

 
1,021,778

 
819,491

 
0.38
%
Common shares
 
 
 
200,000

 
1,000

 

 
%
Preferred Warrants Series A-3, Strike Price $1.33, Expiration Date 4/4/2019
 
 
 
187,500

 

 
105,000

 
0.05
%
Preferred Warrants Series A-4, Strike Price $1.33, Expiration Date 10/6/2019
 
 
 
500,000

 

 
470,000

 
0.22
%
Preferred Warrants Series A-4, Strike Price $1.33, Expiration Date 7/18/2021
 
 
 
250,000

 
74,380

 
267,500

 
0.12
%
Preferred Warrants Series B, Strike Price $2.31, Expiration Date 11/29/2021
 
 
 
100,000

 
29,275

 
9,000

 
0.00
%
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 5/29/2022
 
 
 
125,000

 
70,379

 
11,250

 
0.00
%
Total
 
 
 
 
 
9,276,619

 
13,708,267

 
6.31
%
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)
 
Woodside, CA
 
 
 
 
 
 
 
 
Preferred shares, Class A***(17)
 
Clean Technology
 
14,300,000

 
7,151,412

 
782,198

 
0.36
%
Common shares
 
 
 
100,000

 
10,000

 

 
%
Total
 
 
 
 
 
7,161,412

 
782,198

 
0.36
%
 
 
 
 
 
 
 
 
 
 
 
Total Controlled
 
 
 
 
 
$
22,568,505

 
$
29,839,622

 
13.74
%
 
 
 
 
 
 
 
 
 
 
 
Total Portfolio Investments
 
 
 
 
 
$
180,250,984

 
$
216,266,561

 
99.59
%
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
 
 
 
 
 
 
 
 
 
U.S. Treasury bills, 0%, due 7/5/2018***(3)
 
 
 
$
100,000,000

 
99,973,483

 
99,986,200

 
46.05
%
 
 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENTS
 
 
 
 
 
$
280,224,467

 
$
316,252,761

 
145.64
%

See accompanying notes to condensed consolidated financial statements.
__________________________________________
*
All portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise identified. Equity investments are subject to lock-up restrictions upon their initial public offering (“IPO”). The Company’s and GSV Asset Management’s officers and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments. (Refer to “Note 3—Related-Party Arrangements”). All portfolio investments are considered Level 3 and valued using significant unobservable inputs, unless otherwise noted. (Refer to “Note 4—Investments at Fair Value”). All of the Company's portfolio investments are restricted as to resale, unless otherwise noted, and were valued at fair value as determined in good faith by the Company’s board of directors. (Refer to "Note 2—Significant Accounting Policies—Investments at Fair Value").
**
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 (the “1940 Act”). Of GSV Capital Corp.’s total investments as of June 30, 2018, 20.59% of its total investments are non-qualifying assets.
***
Investment is income-producing.

7

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GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
June 30, 2018

(1)
“Affiliate Investments” are investments in those companies that are “Affiliated Companies” of GSV Capital Corp., as defined in the 1940 Act. In general, a company is deemed to be an “Affiliate” of GSV Capital Corp. if GSV Capital Corp. owns 5% or more of the voting securities (i.e., securities with the right to elect directors) of such company. For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 4—Investments at Fair Value”.

(2)
“Control Investments” are investments in those companies that are “Controlled Companies” of GSV Capital Corp., as defined in the 1940 Act. In general, under the 1940 Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 4—Investments at Fair Value”.

(3)
Denotes an investment considered Level 1 or Level 2 and valued using observable inputs.

(4)
As of June 30, 2018, the investments noted had been placed on non-accrual status.

(5)
GSV Capital Corp.’s investments in StormWind, LLC are held through GSV Capital Corp.'s wholly owned subsidiary, GSVC SW Holdings, Inc.

(6)
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).

(7)
On March 14, 2018, as disclosed in its Amendment No. 1 to its Form F-1 Registration Statement filed in connection with its direct listing, Spotify Technology S.A. effectuated a 40:1 stock split of its ordinary shares, beneficiary certificates and any other of its outstanding securities. On April 3, 2018, Spotify Technology S.A., registered for resale up to 55,731,480 ordinary shares by the registered shareholders in a direct listing. GSV Capital Corp.'s common shares of Spotify Technology S.A. are considered unrestricted as they are not subject to restriction upon sale.

(8)
On March 7, 2018, as disclosed in its Amendment No. 1 to its Form S-1 Registration Statement filed in connection with its initial public offering, Dropbox, Inc. effectuated a 1:1.5 reverse stock split of its capital stock. On March 23, 2018, Dropbox, Inc. priced its initial public offering for 26,822,409 Class A common shares at a price of $21.00 per share. Dropbox, Inc., also registered for resale up to 9,177,591 Class A common shares by the registered shareholders. At June 30, 2018, GSV Capital Corp. valued Dropbox, Inc. based on its June 30, 2018 closing price, less a 10% liquidity discount, as the Company's shares of common stock in Dropbox, Inc. are restricted until September 19, 2018.

(9)
On February 23, 2018, CUX, Inc. (d/b/a CorpU) agreed to extend the maturity of the GSV Capital Corp.'s Series D warrants until August 1, 2018. On July 31, 2018, CUX, Inc. (d/b/a CorpU) agreed to further extend the maturity of GSV Capital Corp.'s Series D warrants until November 26, 2018.

(10)
The maturity date of the convertible promissory note to Declara, Inc. was extended an additional three months to April 30, 2018. On January 31, 2018 the interest rate on the convertible promissory note increased to 12% per annum (including 365 days for the purposes of accrual). On January 31, 2018 the convertible promissory note to Declara Inc. was placed on non-accrual status. On April 30, 2018, the Company deemed this investment to be in default based on Declara Inc.'s financial position.

(11)
During the period, Ozy Media, Inc.’s obligations under its financing arrangements with the Company became past due. Effective April 9, 2018, the term of Ozy Media Inc.'s notes were extended through the issuance of a new convertible promissory note, which extended the maturity date of the existing notes to October 31, 2018, or December 31, 2018 if certain conditions are satisfied. In consideration for amending and restating the existing notes, the Company was issued warrants exercisable for 34,483 shares of Ozy Media Inc.'s common stock.

(12)
On March 27, 2018, Lytro, Inc. announced that it was preparing to wind down the company over an unspecified period of time. The fair value of GSV Capital Corp.'s investment in Lytro, Inc as of June 30, 2018 is equal to the amount GSV Capital Corp. expects to recover as a result of the wind down.

8

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GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
June 30, 2018

(13)
On June 14, 2018, SugarCRM, Inc. entered into an agreement to be purchased by AKKR Candy Holdings, Inc. The fair value of GSV Capital Corp.'s investment in SugarCRM, Inc. as of June 30, 2018 is equal to the amount GSV Capital Corp. expects to recover as a result of the transaction.

(14)
On June 15, 2018 GSV Capital Corp. exercised its 770,934 warrants to purchase shares of SharePost, Inc.'s common stock, with a $0.13 strike price.

(15)
Effective July 31, 2018, GSV Capital Corp agreed to extend the Convertible Promissory Note to NestGSV, Inc. (d/b/a GSV Labs, Inc.) until December 31, 2018, with a new interest rate of 12%.  Previously accrued interest will be capitalized into the principal of the new note.

(16)
On June 8, 2018, Curious.com, Inc. completed a recapitalization and issued new Series C preferred shares. In connection with the offering, GSV Capital Corp.'s 3,407,834 Series B preferred shares were converted into common shares.

(17)
The SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) preferred shares held by GSV Capital Corp. do not entitle GSV Capital Corp. to a preferred dividend rate. During the six months ended June 30, 2018, SPBRX, INC. declared, and GSV Capital Corp. received, an aggregate of $350,000 in cash distributions. GSV Capital Corp. does not anticipate that SPBRX, INC. will pay distributions on a quarterly or regular basis or become a predictable distributor of distributions.



9

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2017
Portfolio Investments*
 
Headquarters/​
Industry
 
Shares/​
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
 
 

 

 

 

Palantir Technologies, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
Common shares, Class A
 
Data Analysis
 
5,773,690

 
$
16,189,935

 
$
35,075,759

 
17.13
%
Spotify Technology S.A.**
 
Stockholm, Sweden
 
 
 
 
 
 
 
 
Common shares
 
On-Demand Music Streaming
 
5,884

 
10,002,084

 
30,729,068

 
15.01
%
Coursera, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Education
 
2,961,399

 
14,519,519

 
18,360,674

 
8.97
%
Dropbox, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Cloud Computing Services
 
552,486

 
5,015,773

 
7,524,859

 
3.67
%
Common shares
 
 
 
760,000

 
8,641,153

 
10,350,837

 
5.06
%
Total
 
 
 
 
 
13,656,926

 
17,875,696

 
8.73
%
General Assembly Space, Inc.
 
New York, NY
 
 
 
 
 
 
 
 
Preferred shares, Series C
 
Online Education
 
126,552

 
2,999,978

 
5,281,440

 
2.58
%
Common shares
 
 
 
133,213

 
2,999,983

 
5,559,426

 
2.72
%
Total
 
 
 
 
 
5,999,961

 
10,840,866

 
5.30
%
Lyft, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
On-Demand Transportation Services
 
128,563

 
2,503,585

 
4,269,577

 
2.09
%
Preferred shares, Series D
 
 
 
176,266

 
1,792,749

 
5,853,938

 
2.86
%
Total
 
 
 
 
 
4,296,334

 
10,123,515

 
4.95
%
Course Hero, Inc.
 
Redwood City, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Online Education
 
2,145,509

 
5,000,001

 
10,041,426

 
4.90
%
Chegg, Inc.**
 
Santa Clara, CA
 
 
 
 
 
 
 
 
Common shares(3)(11)
 
Online Education Services
 
500,000

 
6,008,468

 
8,160,000

 
3.99
%
Avenues Global Holdings, LLC(4)
 
New York, NY
 
 
 
 
 
 
 
 
Preferred shares, Junior Preferred Stock
 
Globally-Focused Private School
 
10,014,270

 
10,151,854

 
5,908,419

 
2.89
%
Parchment, Inc.
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
Preferred shares, Series D
 
E-Transcript Exchange
 
3,200,512

 
4,000,982

 
5,583,562

 
2.73
%
Enjoy Technology, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
On-Demand Commerce
 
1,681,520

 
4,000,280

 
3,929,210

 
1.92
%
Preferred shares, Series A
 
 
 
879,198

 
1,002,440

 
1,190,998

 
0.58
%
Total
 
 
 
 
 
5,002,720

 
5,120,208

 
2.50
%
Knewton, Inc.
 
New York, NY
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
Online Education
 
375,985

 
4,999,999

 
3,597,034

 
1.76
%
SugarCRM, Inc.
 
Cupertino, CA
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
Customer Relationship Manager
 
373,134

 
1,500,522

 
1,838,912

 
0.90
%
Common shares
 
 
 
1,524,799

 
5,476,502

 
1,384,956

 
0.68
%
Total
 
 
 
 
 
6,977,024

 
3,223,868

 
1.58
%
A Place for Rover Inc. (f/k/a DogVacay, Inc.)(7)
 
Seattle, WA
 
 
 
 
 
 
 
 
Common shares
 
Peer-to-Peer Pet Services
 
707,991

 
2,506,119

 
3,130,348

 
1.53
%
SharesPost, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Marketplace Finance
 
1,771,653

 
2,259,716

 
2,249,999

 
1.10
%
Common warrants, $0.13 Strike Price,
Expiration Date 6/15/2018
 
 
 
770,934

 
23,128

 
46,256

 
0.02
%
Total
 
 
 
 
 
2,282,844

 
2,296,255

 
1.12
%

See accompanying notes to condensed consolidated financial statements.


10

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
December 31, 2017
Portfolio Investments*
 
Headquarters/​
Industry
 
Shares/​
Principal
 
Cost
 
Fair Value
 
% of Net Assets
DreamBox Learning, Inc.
 
Bellevue, WA
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Education Technology
 
7,159,221

 
$
1,502,362

 
$
1,518,176

 
0.74
%
Preferred shares, Series A
 
 
 
3,579,610

 
758,017

 
759,088

 
0.37
%
Total
 
 
 
 
 
2,260,379

 
2,277,264

 
1.11
%
Lytro, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
Preferred shares, Series D
 
Light Field Imaging Platform
 
159,160

 
502,081

 
100,680

 
0.05
%
Preferred shares, Series C-1
 
 
 
3,378,379

 
10,000,002

 
2,013,587

 
0.98
%
Total
 
 
 
 
 
10,502,083

 
2,114,267

 
1.03
%
Clever, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Education Software
 
1,799,047

 
2,000,601

 
2,000,001

 
0.98
%
Aspiration Partners, Inc.
 
Marina Del Rey, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Financial Services
 
540,270

 
1,001,815

 
1,748,371

 
0.85
%
Tynker (f/k/a Neuron Fuel, Inc.)
 
Mountain View, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Computer Software
 
534,162

 
309,310

 
791,361

 
0.39
%
4C Insights (f/k/a The Echo Systems Corp.)
 
Chicago, IL
 
 
 
 
 
 
 
 
Common shares
 
Social Data Platform
 
436,219

 
1,436,404

 
593,702

 
0.29
%
Fullbridge, Inc.
 
Cambridge, MA
 
 
 
 
 
 
 
 
Common shares
 
Business Education
 
517,917

 
6,150,506

 

 
%
Promissory note 1.47%, Due 11/9/2021(12)
 
 
 
$
2,270,458

 
2,270,858

 
316,570

 
0.15
%
Total
 
 
 
 
 
8,421,364

 
316,570

 
0.15
%
Total Non-controlled/Non-affiliate
 
 
 
 
 
$
137,526,726

 
$
179,908,234

 
87.89
%
NON-CONTROLLED/AFFILIATE(1)
 
 
 
 
 
 
 
 
 
 
Curious.com, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Education
 
3,407,834

 
12,000,006

 
5,514,077

 
2.69
%
Ozy Media, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
Convertible Promissory Note 5% Due
2/28/2018***
(14)
 
Digital Media Platform
 
$
2,000,000

 
2,000,000

 
1,067,639

 
0.52
%
Preferred shares, Series B
 
 
 
922,509

 
4,999,999

 
2,367,022

 
1.16
%
Preferred shares, Series A
 
 
 
1,090,909

 
3,000,200

 
1,419,810

 
0.69
%
Preferred shares, Series Seed
 
 
 
500,000

 
500,000

 
236,635

 
0.12
%
Total
 
 
 
 
 
10,500,199

 
5,091,106

 
2.49
%
CUX, Inc. (d/b/a CorpU)
 
Philadelphia, PA
 
 
 
 
 
 
 
 
Senior Subordinated Convertible Promissory Note 8%, Due 11/26/2018***(6)
 
Corporate Education
 
$
1,259,712

 
1,259,712

 
1,259,712

 
0.62
%
Convertible preferred shares, Series D
 
 
 
169,033

 
778,607

 
989,489

 
0.48
%
Convertible preferred shares, Series C
 
 
 
615,763

 
2,006,077

 
480,184

 
0.23
%
Preferred Warrants Series D–Strike Price $4.59–Expiration Date 2/25/2018(15)
 
 
 
16,903

 

 
2,366

 
0.00
%
Total
 
 
 
 
 
4,044,396

 
2,731,751

 
1.33
%
Declara, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
Convertible Promissory Note 9% Due
12/31/2017
(10)(12)
 
Social Cognitive Learning
 
$
2,120,658

 
2,121,898

 
1,120,329

 
0.55
%
Preferred shares, Series A
 
 
 
10,716,390

 
9,999,999

 
382,678

 
0.19
%
Total
 
 
 
 
 
12,121,897

 
1,503,007

 
0.74
%
EdSurge, Inc.
 
Burlingame, CA
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Education Media Platform
 
378,788

 
501,360

 
500,000

 
0.24
%
Preferred shares, Series A
 
 
 
494,365

 
500,801

 
581,917

 
0.28
%
Total
 
 
 
 
 
1,002,161

 
1,081,917

 
0.52
%
See accompanying notes to condensed consolidated financial statements.

11

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
December 31, 2017
Portfolio Investments*
 
Headquarters/​
Industry
 
Shares/​
Principal
 
Cost
 
Fair Value
 
% of Net Assets