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 March 31, 2019
¨ 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.)
345 California Street, Suite 600, San Francisco, CA
94104
(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 every Interactive Data File required to be submitted 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 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 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 ¨ NO x

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class
 
Trading Symbol
 
Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share
 
GSVC
 
Nasdaq Capital Market

The issuer had 19,762,647 shares of common stock, $0.01 par value per share, outstanding as of May 8, 2019.


 


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)
March 31,
2019
 
December 31,
2018
ASSETS

 

Investments at fair value:

 

Non-controlled/non-affiliate investments (cost of $112,265,183 and $105,869,607, respectively)
$
193,484,417

 
$
170,067,233

Non-controlled/affiliate investments (cost of $29,999,703 and $42,333,854, respectively)
2,620,361

 
5,931,863

Controlled investments (cost of $22,962,133 and $22,960,942, respectively)
17,466,686

 
22,816,733

Total Portfolio Investments
213,571,464

 
198,815,829

Investments in U.S. Treasury bills (cost of $99,961,333 and $99,982,067, respectively)
99,980,000

 
99,994,000

Total Investments (cost of $265,188,352 and $271,146,470, respectively)
313,551,464

 
298,809,829

Cash
24,997,482

 
28,184,163

Escrow proceeds receivable
2,177,555

 
2,494,582

Interest and dividends receivable
345,884

 
255,670

Deferred financing costs
267,541

 
267,541

Receivable for unsettled trades
2,017,423

 

Prepaid expenses and other assets
699,114

 
207,769

Total Assets
344,056,463

 
330,219,554

LIABILITIES

 

Due to GSV Asset Management(1)
207,710

 

Accounts payable and accrued expenses
2,345,086

 
490,687

Accrued incentive fees, net of waiver of incentive fees(1)

 
4,660,472

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

 
415,056

Accrued interest payable

 
475,000

Payable for securities purchased
89,460,654

 
89,480,103

Deferred tax liability
979,713

 
885,566

4.75% Convertible Senior Notes due March 28, 2023(2)
38,525,528

 
38,434,511

Total Liabilities
131,518,691

 
134,841,395

Commitments and contingencies (Notes 7 and 10)

 

Net Assets
$
212,537,772

 
$
195,378,159

NET ASSETS

 

Common stock, par value $0.01 per share (100,000,000 authorized; 19,762,647 and 19,762,647 issued and outstanding, respectively)
$
197,626

 
$
197,626

Paid-in capital in excess of par
192,322,399

 
192,322,399

Accumulated net investment loss
(15,608,592
)
 
(16,228,294
)
Accumulated net realized losses on investments
(11,757,058
)
 
(7,691,365
)
Accumulated net unrealized appreciation of investments
47,383,397

 
26,777,793

Net Assets
$
212,537,772

 
$
195,378,159

Net Asset Value Per Share
$
10.75

 
$
9.89

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 March 31, 2019 and December 31, 2018, the 4.75% Convertible Senior Notes due March 28, 2023 had a face value of $40,000,000. Refer to “Note 10—Debt Capital Activities” for a reconciliation of the carrying value to the face value.

1

TABLE OF CONTENTS
GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31, 2019
 
Three Months Ended March 31, 2018
INVESTMENT INCOME

 

Non-controlled/non-affiliate investments:

 

Interest income
$
138,497

 
$
1,680

Non-controlled/affiliate investments:

 

Interest income
59,466

 
234,082

Controlled investments:

 

Interest income
29,287

 
13,573

Total Investment Income
227,250

 
249,335

OPERATING EXPENSES

 

Management fees(1)
848,723

 
1,323,576

(Reversal of Incentive fee accrual)/Incentive fees(1)
(4,660,472
)
 
1,471,334

Costs incurred under Administration Agreement(1)
306,084

 
424,145

Directors’ fees
86,250

 
86,250

Professional fees
2,061,922

 
339,898

Interest expense
604,168

 
1,140,063

Income tax expense
3,763

 
122,270

Other expenses
357,110

 
489,270

Total Operating Expenses
(392,452
)
 
5,396,806

Management fee waiver(1)

 
(154,944
)
Incentive fee waiver(1)

 
(5,000,000
)
Total operating expenses, net of waiver of management and incentive fees
(392,452
)
 
241,862

Net Investment Income
619,702

 
7,473

Realized Gains/(Losses) on Investments:

 

Non-controlled/non-affiliated investments
8,269,138

 
(776,045
)
Non-controlled/affiliate investments
(12,334,831
)
 

Controlled investments

 
(680
)
Net Realized Losses on Investments
(4,065,693
)
 
(776,725
)
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
17,028,343

 
9,854,664

Non-controlled/affiliate investments
9,022,648

 
(7,676,330
)
Controlled investments
(5,351,240
)
 
5,955,060

Net Change in Unrealized Appreciation/(Depreciation) of Investments
20,699,751

 
8,133,394

Provision for taxes on unrealized appreciation of investments
(94,147
)
 

Net Increase in Net Assets Resulting from Operations
$
17,159,613

 
$
6,966,296

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

Basic
$
0.87

 
$
0.33

Diluted
$
0.75

 
$
0.30

Weighted-Average Common Shares Outstanding

 

Basic
19,762,647

 
21,150,662

Diluted
23,493,991

 
26,713,656

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

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
Three Months Ended March 31, 2019
 
Three Months Ended March 31, 2018
Change in Net Assets Resulting from Operations

 

Net investment gain
$
619,702

 
$
7,473

Net realized losses on investments
(4,065,693
)
 
(776,725
)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018

 
(397,846
)
Net change in unrealized appreciation of investments
20,699,751

 
8,133,394

Provision for taxes on unrealized appreciation of investments
(94,147
)
 

Net Increase in Net Assets Resulting from Operations
17,159,613

 
6,966,296

Change in Net Assets Resulting from Capital Transactions

 

Repurchases of common stock

 
(1,241,428
)
Net Decrease in Net Assets Resulting from Capital Transactions

 
(1,241,428
)
Total Increase in Net Assets
17,159,613

 
5,724,868

Net assets at beginning of year
195,378,159

 
204,762,866

Net Assets at End of Period
$
212,537,772

 
$
210,487,734

Capital Share Activity

 

Shares outstanding at beginning of year
19,762,647

 
21,246,345

Shares issued

 

Shares repurchased

 
(179,807
)
Shares Outstanding at End of Period
19,762,647

 
21,066,538


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, 2019
 
Three Months Ended March 31, 2018
Cash Flows from Operating Activities

 

Net change in net assets resulting from operations
$
17,159,613

 
$
6,966,296

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

 

Net realized losses on investments
4,065,693

 
776,725

Net change in unrealized appreciation of investments
(20,699,751
)
 
(8,133,394
)
Change in deferred tax liability
94,147

 
(343,515
)
Amortization of discount on 5.25% Convertible Senior Notes due 2018

 
201,162

Amortization of discount on 4.75% Convertible Senior Notes due 2023
91,017

 
3,024

Amortization of deferred financing costs

 
20,472

Amortization of fixed income security premiums and discounts
(1,191
)
 

Write-off of deferred offering costs

 
325,248

Paid-in-kind interest

 
(207,069
)
Escrow proceeds receivable
(8,359
)
 

Purchases of investments in:

 

Portfolio investments
(10,008,040
)
 
(105,568
)
U.S. Treasury bills
(99,961,333
)
 
(99,970,444
)
Proceeds from sales or maturity of investments in:

 

Portfolio investments
11,871,346

 
15,962,239

U.S. Treasury bills
100,000,000

 
100,000,000

Change in operating assets and liabilities:

 

Due from controlled investments

 
840

Prepaid expenses and other assets
(491,345
)
 
49,711

Interest and dividends receivable
(90,214
)
 
(31,901
)
Receivable from unsettled trades
(2,017,423
)
 

Escrow proceeds receivable
317,027

 
395,009

Due to GSV Asset Management(1)
207,710

 
239,693

Payable for securities purchased
(19,449
)
 
(15,393
)
Accounts payable and accrued expenses
1,854,399

 
329,951

Income tax payable

 
465,775

Accrued incentive fees(1)
(4,660,472
)
 
(3,528,666
)
Accrued management fees(1)
(415,056
)
 
(49,717
)
Accrued interest payable
(475,000
)
 
(931,394
)
Net Cash Provided by/(Used in) Operating Activities
(3,186,681
)
 
12,419,085

Cash Flows from Financing Activities

 

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

 
40,000,000

Deferred debt issuance costs

 
(1,840,120
)
Repurchases of common stock

 
(1,241,428
)
Repayment of 5.25% Convertible Senior Notes due 2018

 
(19,290,565
)
Realized loss on repurchase of 5.25% Convertible Senior Notes due 2018

 
397,846

Deferred offering costs

 
36,140

Net Cash Provided by/(Used in) Financing Activities

 
18,061,873

Total Increase/(Decrease) in Cash Balance
(3,186,681
)
 
30,480,958

Cash Balance at Beginning of Year
28,184,163

 
59,838,600

Cash Balance at End of Period
$
24,997,482

 
$
90,319,558

Supplemental Information:

 

Interest paid
$
974,932

 
$
1,810,677

Taxes paid
$
3,763

 
$
810

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.

4

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2019
Portfolio Investments*
 
Headquarters/
Industry
 
Date of Initial Investment
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
 
 
 
 
 
 
 
 
 
 
 
 
Palantir Technologies, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
 
 
Common shares, Class A
 
Data Analysis
 
5/7/2012
 
5,773,690

 
$
16,189,935

 
$
30,136,481

 
14.18
%
Coursera, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Education
 
6/9/2013
 
2,961,399

 
14,519,519

 
28,685,381

 
13.50
%
Lyft, Inc.**
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Common shares, Class A(3)(8)
 
On-Demand Transportation Services
 
3/21/2014
 
304,829

 
4,296,894

 
22,075,716

 
10.38
%
Spotify Technology S.A.**
 
Stockholm, Sweden
 
 
 
 
 
 
 
 
 
 
Common shares(3)(7)
 
On-Demand Music Streaming
 
8/6/2012
 
150,360

 
6,390,300

 
20,869,968

 
9.82
%
Course Hero, Inc.
 
Redwood City, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Online Education
 
9/18/2014
 
2,145,509

 
5,000,001

 
20,572,207

 
9.68
%
Dropbox, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Common shares(3)(11)
 
Cloud Computing Services
 
11/15/2011
 
874,990

 
13,656,926

 
19,074,782

 
8.97
%
Neutron Holdings, Inc. (d/b/a/ Lime)
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred Shares, Series D
 
Micromobility
 
1/25/2019
 
41,237,113

 
10,006,800

 
10,000,000

 
4.71
%
Enjoy Technology, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
On-Demand Commerce
 
7/29/2015
 
1,681,520

 
4,000,280

 
6,380,359

 
3.00
%
Preferred shares, Series A
 
 
 
10/16/2014
 
879,198

 
1,002,440

 
3,336,029

 
1.57
%
Total
 
 
 
 
 
 
 
5,002,720

 
9,716,388

 
4.57
%
Nextdoor.com, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Social Networking
 
9/27/2018
 
580,360

 
10,006,578

 
9,691,395

 
4.56
%
SharesPost, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Marketplace Finance
 
7/19/2011
 
1,771,653

 
2,259,716

 
6,738,469

 
3.17
%
Common shares
 
 
 
7/20/2011
 
770,934

 
123,987

 
969,718

 
0.46
%
Total
 
 
 
 
 
 
 
2,383,703

 
7,708,187

 
3.63
%
Parchment, Inc.
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series D 8%
 
E-Transcript Exchange
 
10/1/2012
 
3,200,512

 
4,000,982

 
6,825,071

 
3.21
%
A Place for Rover Inc. (f/k/a DogVacay, Inc.)
 
Seattle, WA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Peer-to-Peer Pet Services
 
11/3/2014
 
707,991

 
2,506,119

 
3,180,863

 
1.50
%
Clever, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Education Software
 
12/5/2014
 
1,799,047

 
2,000,601

 
2,000,001

 
0.94
%
Aspiration Partners, Inc.
 
Marina Del Rey, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Financial Services
 
8/11/2015
 
540,270

 
1,001,815

 
1,702,207

 
0.80
%
Tynker (f/k/a Neuron Fuel, Inc.)
 
Mountain View, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A 8%
 
Computer Software
 
8/8/2012
 
534,162

 
309,310

 
789,491

 
0.37
%
4C Insights (f/k/a The Echo Systems Corp.)
 
Chicago, IL
 
 
 
 
 
 
 
 
 
 
Common shares
 
Social Data Platform
 
3/30/2012
 
436,219

 
1,436,404

 
422,678

 
0.20
%
Knewton, Inc.
 
New York, NY
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
Online Education
 
12/16/2013
 
375,985

 
4,999,999

 

 
%
Convertible Promissory Note 8% Due 12/31/2019***
 
 
 
7/23/2018
 
134,405

 
135,213

 
33,601

 
0.02
%
Total
 
 
 
 
 
 
 
5,135,212

 
33,601

 
0.02
%
Fullbridge, Inc.
 
Cambridge, MA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Business Education
 
5/13/2012
 
517,917

 
6,150,506

 

 
%
Promissory note 1.47%, Due 11/9/2021(4)
 
 
 
3/3/2016
 
2,270,458

 
2,270,858

 

 
%
Total
 
 
 
 
 
 
 
8,421,364

 

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-controlled/Non-affiliate
 
 
 
 
 
 
 
$
112,265,183

 
$
193,484,417

 
91.04
%
See accompanying notes to condensed consolidated financial statements.

5

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2019
Portfolio Investments*
 
Headquarters/
Industry
 
Date of Initial Investment
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NON-CONTROLLED/AFFILIATE(1)
 
 
 
 
 
 
 
 
 
 
 
 
Ozy Media, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
 
 
Convertible Promissory Note 5% Due 12/31/2018***(4)(9)
 
Digital Media Platform
 
8/31/2016
 
2,102,384

 
$
2,102,384

 
$
1,576,788

 
0.74
%
Common Warrants, Strike Price $0.01, Expiration Date 4/9/2018
 
 
 
4/9/2018
 
295,565

 
30,647

 

 
%
Preferred shares, Series B 6%
 
 
 
10/3/2014
 
922,509

 
4,999,999

 

 
%
Preferred shares, Series A 6%
 
 
 
12/11/2013
 
1,090,909

 
3,000,200

 

 
%
Preferred shares, Series Seed 6%
 
 
 
11/2/2012
 
500,000

 
500,000

 

 
%
Total
 
 
 
 
 
 
 
10,633,230

 
1,576,788

 
0.74
%
EdSurge, Inc.
 
Burlingame, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Education Media Platform
 
11/12/2015
 
378,788

 
501,360

 
250,000

 
0.12
%
Preferred shares, Series A
 
 
 
2/28/2014
 
494,365

 
500,801

 
276,178

 
0.13
%
Total
 
 
 
 
 
 
 
1,002,161

 
526,178

 
0.25
%
CUX, Inc. (d/b/a CorpU)
 
Philadelphia, PA
 
 
 
 
 
 
 
 
 
 
Senior Subordinated Convertible Promissory Note 10% Due 2/14/2020***(6)
 
Corporate Education
 
11/26/2014
 
1,360,489

 
1,361,969

 
340,122

 
0.16
%
Convertible preferred shares, Series D 6%
 
 
 
5/31/2013
 
169,033

 
778,607

 
177,273

 
0.08
%
Convertible preferred shares, Series C 8%
 
 
 
3/29/2012
 
615,763

 
2,006,077

 

 
%
Preferred Warrants Series D, Strike Price $4.59, Expiration Date 2/14/2020
 
 
 
5/31/2013
 
16,903

 

 

 
%
Total
 
 
 
 
 
 
 
4,146,653

 
517,395

 
0.24
%
Maven Research, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series C
 
Knowledge Networks
 
7/2/2012
 
318,979

 
2,000,447

 

 
%
Preferred shares, Series B
 
 
 
2/28/2012
 
49,505

 
217,206

 

 
%
Total
 
 
 
 
 
 
 
2,217,653

 

 
%
Curious.com, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Online Education
 
11/22/2013
 
1,135,944

 
12,000,006

 

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-controlled/Affiliate
 
 
 
 
 
 
 
$
29,999,703

 
$
2,620,361

 
1.23
%
 
 
 
 
 
 
 
 
 
 
 
 
 
CONTROLLED(2)
 
 
 
 
 
 
 
 
 
 
 
 
StormWind, LLC(5)
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series C 8%
 
Interactive Learning
 
1/7/2014
 
2,779,134

 
4,000,787

 
6,761,479

 
3.18
%
Preferred shares, Series B 8%
 
 
 
12/16/2011
 
3,279,629

 
2,019,687

 
5,258,768

 
2.48
%
Preferred shares, Series A 8%
 
 
 
2/25/2014
 
366,666

 
110,000

 
364,332

 
0.17
%
Total
 
 
 
 
 
 
 
6,130,474

 
12,384,579

 
5.83
%

See accompanying notes to condensed consolidated financial statements.

6

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2019
Portfolio Investments*
 
Headquarters/
Industry
 
Date of Initial Investment
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NestGSV, Inc. (d/b/a GSV Labs, Inc.)
 
San Mateo, CA
 
 
 
 
 
 
 
 
 
 
Convertible Promissory Note 12% Due 12/31/2019***
 
Global Innovation Platform
 
2/17/2016
 
936,525

 
$
952,627

 
$
468,262

 
0.22
%
Preferred shares, Series A-4
 
 
 
10/6/2014
 
3,720,424

 
4,904,498

 
2,432,829

 
1.14
%
Preferred shares, Series A-3
 
 
 
4/4/2014
 
1,561,625

 
2,005,730

 
850,971

 
0.40
%
Preferred shares, Series A-2
 
 
 
7/15/2013
 
450,001

 
605,500

 
147,130

 
0.07
%
Preferred shares, Series A-1
 
 
 
5/25/2012
 
1,000,000

 
1,021,778

 
245,217

 
0.12
%
Common shares
 
 
 
7/1/2014
 
200,000

 
1,000

 

 
%
Preferred Warrants Series A-3, Strike Price $1.33, Expiration Date 4/4/2021
 
 
 
4/4/2014
 
187,500

 

 

 
%
Preferred Warrants Series A-4, Strike Price $1.33, Expiration Date 10/6/2021
 
 
 
10/6/2014
 
500,000

 

 
5,000

 
0.00
%
Preferred Warrants Series A-4, Strike Price $1.33, Expiration Date 7/18/2021
 
 
 
7/8/2016
 
250,000

 
74,380

 
2,500

 
0.00
%
Preferred Warrants Series B, Strike Price $2.31, Expiration Date 11/29/2021
 
 
 
11/29/2016
 
100,000

 
29,275

 

 
%
Preferred Warrant Series B–Strike Price $2.31, Expiration Date 6/30/2022
 
 
 
5/29/2017
 
125,000

 
70,379

 

 
%
Preferred Warrant Series B–Strike Price $2.31, Expiration Date 12/31/2023
 
 
 
12/31/2018
 
250,000

 
5,080

 

 
%
Total
 
 
 
 
 
 
 
9,670,247

 
4,151,909

 
1.95
%
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)
 
Woodside, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Class A***(10)
 
Clean Technology
 
4/15/2014
 
14,300,000

 
7,151,412

 
930,198

 
0.44
%
Common shares
 
 
 
4/15/2014
 
100,000

 
10,000

 

 
%
Total
 
 
 
 
 
 
 
7,161,412

 
930,198

 
0.44
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Controlled
 
 
 
 
 
 
 
$
22,962,133

 
$
17,466,686

 
8.22
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Portfolio Investments
 
 
 
 
 
 
 
$
165,227,019

 
$
213,571,464

 
100.49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury bill, 0%, due 4/4/2019***(3)
 
 
 
3/28/2019
 
$
100,000,000

 
99,961,333

 
99,980,000

 
47.04
%
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL INVESTMENTS
 
 
 
 
 
 
 
$
265,188,352

 
$
313,551,464

 
147.53
%

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”). Preferred dividends are generally only payable when declared and paid by the portfolio company's board of directors. The Company’s directors and officers, 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 March 31, 2019, 19.78% of its total investments are non-qualifying assets.
***
Investment is income-producing.

(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”.



7

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2019

(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 March 31, 2019, 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.

(7)
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 restrictions upon sale. During the three months ended March 31, 2019, GSV Capital Corp. sold 85,000 common shares of Spotify Technology S.A. At March 31, 2019, GSV Capital Corp. valued its common shares of Spotify Technology S.A. based on its March 31, 2019 closing price.

(8)
On March 29, 2019, Lyft, Inc. priced its initial public offering for 32,500,000 Class A common shares at a price of $72.00 per share. GSV Capital Corp.'s 176,266 Series D preferred shares and 128,563 Series E preferred shares of Lyft, Inc. automatically converted to Class A common shares immediately prior to the close of the offering and are subject to a 180-day lock-up provision. At March 31, 2019, GSV Capital Corp. valued is common shares of Lyft, Inc. Based on its March 31, 2019 closing price, less a 7.5% liquidity discount due to the lock-up provision.

(9)
Subsequent to December 31, 2018, Ozy Media Inc.'s obligations under its financing arrangements with the Company became past due.

(10)
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 three months ended March 31, 2019, SPBRX, INC. declared, and GSV Capital Corp. received, an aggregate of $0 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.

(11)
On March 23, 2018, Dropbox, Inc. priced its IPO. The lock-up agreement for GSV Capital Corp.'s common shares expired on August 23, 2018. At March 31, 2019, GSV Capital Corp. valued its common shares of Dropbox, Inc. based on ite March 31, 2019 closing price.



8

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2018
Portfolio Investments*
 
Headquarters/
Industry
 
Date of Initial Investment
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
 
 
 
 
 
 
 
 
 
 
 
 
Palantir Technologies, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
 
 
Common shares, Class A
 
Data Analysis
 
5/7/2012
 
5,773,690

 
$
16,189,935

 
$
34,053,394

 
17.43
%
Spotify Technology S.A.**
 
Stockholm, Sweden
 
 
 
 
 
 
 
 
 
 
Common shares(3)(7)
 
On-Demand Music Streaming
 
8/6/2012
 
235,360

 
10,002,084

 
26,713,360

 
13.67
%
Coursera, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Education
 
6/9/2013
 
2,961,399

 
14,519,519

 
23,111,889

 
11.83
%
Dropbox, Inc.**
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Common shares(3)(8)
 
Cloud Computing Services
 
11/15/2011
 
874,990

 
13,656,926

 
17,876,046

 
9.15
%
Lyft, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
On-Demand Transportation
 
3/11/2015
 
128,563

 
2,503,585

 
6,583,483

 
3.37
%
Preferred shares, Series D
 
 
 
3/21/2014
 
176,266

 
1,792,749

 
9,026,269

 
4.62
%
Total
 
 
 
 
 
 
 
4,296,334

 
15,609,752

 
7.99
%
Course Hero, Inc.
 
Redwood City, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Online Education
 
9/18/2014
 
2,145,509

 
5,000,001

 
14,106,625

 
7.22
%
Nextdoor.com, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Social Networking
 
9/27/2018
 
580,360

 
10,006,578

 
10,097,442

 
5.17
%
SharesPost, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Online Marketplace Finance
 
7/19/2011
 
1,771,653

 
2,259,716

 
5,943,577

 
3.04
%
Common shares(13)
 
 
 
7/20/2011
 
770,934

 
123,987

 
855,327

 
0.44
%
Total
 
 
 
 
 
 
 
2,383,703

 
6,798,904

 
3.48
%
Parchment, Inc.
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series D 8%
 
E-Transcript Exchange
 
10/1/2012
 
3,200,512

 
4,000,982

 
6,151,161

 
3.15
%
Enjoy Technology, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
On-Demand Commerce
 
7/29/2015
 
1,681,520

 
4,000,280

 
4,000,000

 
2.05
%
Preferred shares, Series A
 
 
 
10/16/2014
 
879,198

 
1,002,440

 
2,091,436

 
1.07
%
Total
 
 
 
 
 
 
 
5,002,720

 
6,091,436

 
3.12
%
A Place for Rover Inc. (f/k/a DogVacay, Inc.)
 
Seattle, WA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Peer-to-Peer Pet Services
 
11/3/2014
 
707,991

 
2,506,119

 
3,511,661

 
1.80
%
Knewton, Inc.
 
New York, NY
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series E
 
Online Education
 
12/16/2013
 
375,985

 
4,999,999

 
2,021,690

 
1.03
%
Convertible Promissory Note 8% Due 12/31/2019(12)
 
 
 
7/23/2018
 
$
134,405

 
135,213

 
134,405

 
0.07
%
Total
 
 
 
 
 
 
 
5,135,212

 
2,156,095

 
1.10
%
Clever, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series B
 
Education Software
 
12/5/2014
 
1,799,047

 
2,000,601

 
2,000,001

 
1.02
%
Aspiration Partners, Inc.
 
Marina Del Rey, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A
 
Financial Services
 
8/11/2015
 
540,270

 
1,001,815

 
999,975

 
0.51
%
Tynker (f/k/a Neuron Fuel, Inc.)
 
Mountain View, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A 8%
 
Computer Software
 
8/8/2012
 
534,162

 
309,310

 
789,492

 
0.41
%
4C Insights (f/k/a The Echo Systems Corp.)
 
Chicago, IL
 
 
 
 
 
 
 
 
 
 
Common shares
 
Social Data Platform
 
3/30/2012
 
436,219

 
1,436,404

 

 
%
Fullbridge, Inc.
 
Cambridge, MA
 
 
 
 
 
 
 
 
 
 
Common shares
 
Business Education
 
5/13/2012
 
517,917

 
6,150,506

 

 
%
Promissory Note 1.49% Due 11/9/2021(4)
 
 
 
3/3/2016
 
$
2,270,458

 
2,270,858

 

 
%
Total
 
 
 
 
 
 
 
8,421,364

 

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-controlled/Non-affiliate
 
 
 
 
 
 
 
$
105,869,607

 
$
170,067,233

 
87.05
%
See accompanying notes to condensed consolidated financial statements.

9

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
December 31, 2018
Portfolio Investments*
 
Headquarters/
Industry
 
Date of Initial Investment
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NON-CONTROLLED/AFFILIATE(1)
 
 
 
 
 
 
 
 
 
 
 
 
Ozy Media, Inc.
 
Mountain View, CA
 
 
 
 
 
 
 
 
 
 
Convertible Promissory Note 5% Due 12/31/2018(11)
 
Digital Media Platform
 
8/31/2016
 
2,102,384

 
$
2,102,384

 
$
3,153,575

 
1.61
%
Preferred shares, Series B 6%
 
 
 
10/3/2014
 
922,509

 
4,999,999

 

 
%
Preferred shares, Series A 6%
 
 
 
12/11/2013
 
1,090,909

 
3,000,200

 

 
%
Preferred shares, Series Seed 6%
 
 
 
11/2/2012
 
500,000

 
500,000

 

 
%
Common Warrants, Strike Price $0.01, Expiration Date 4/9/2028(11)
 
 
 
4/9/2018
 
295,565

 
30,647

 

 
%
Total
 
 
 
 
 
 
 
10,633,230

 
3,153,575

 
1.61
%
CUX, Inc. (d/b/a CorpU)
 
Philadelphia, PA
 
 
 
 
 
 
 
 
 
 
Senior Subordinated Convertible Promissory Note 10% Due 2/14/2020***(6)
 
Corporate Education
 
11/26/2014
 
1,360,489

 
1,361,969

 
1,360,489

 
0.70
%
Convertible preferred shares, Series D 6%
 
 
 
5/31/2013
 
169,033

 
778,607

 
878,005

 
0.45
%
Convertible preferred shares, Series C 8%
 
 
 
3/29/2012
 
615,763

 
2,006,077

 

 
%
Preferred Warrants Series D, Strike Price $4.59, Expiration Date 2/14/2020(9)
 
 
 
5/31/2013
 
16,903

 

 
19,946

 
0.01
%
Total
 
 
 
 
 
 
 
4,146,653

 
2,258,440

 
1.16
%
EdSurge, Inc.
 
Burlingame, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series A-1
 
Education Media Platform
 
11/12/2015
 
378,788

 
501,360

 
250,000

 
0.13
%
Preferred shares, Series A
 
 
 
2/28/2014
 
494,365

 
500,801

 
269,848

 
0.14
%
Total
 
 
 
 
 
 
 
1,002,161

 
519,848

 
0.27
%
Maven Research, Inc.
 
San Francisco, CA
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series C
 
Knowledge Networks
 
7/2/2012
 
318,979

 
2,000,447

 

 
%
Preferred shares, Series B
 
 
 
2/28/2012
 
49,505

 
217,206

 

 
%
Total
 
 
 
 
 
 
 
2,217,653

 

 
%
Curious.com, Inc.
 
Menlo Park, CA
 
 
 
 
 
 
 
 
 
 
Common shares(15)
 
Online Education
 
11/22/2013
 
1,135,944

 
12,000,006

 

 
%
Declara, Inc.
 
Palo Alto, CA
 
 
 
 
 
 
 
 
 
 
Convertible Promissory Note 12% Due 4/30/2018(4)(10)
 
Social Cognitive Learning
 
12/30/2015
 
2,327,727

 
2,334,152

 

 
%
Preferred shares, Series A 8%
 
 
 
4/17/2014
 
10,716,390

 
9,999,999

 

 
%
Total
 
 
 
 
 
 
 
12,334,151

 

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Non-controlled/Affiliate
 
 
 
 
 
 
 
$
42,333,854

 
$
5,931,863

 
3.04
%
 
 
 
 
 
 
 
 
 
 
 
 
 
CONTROLLED(2)
 
 
 
 
 
 
 
 
 
 
 
 
StormWind, LLC(5)
 
Scottsdale, AZ
 
 
 
 
 
 
 
 
 
 
Preferred shares, Series C 8%
 
Interactive Learning
 
1/7/2014
 
2,779,134

 
4,000,787

 
7,194,971

 
3.68
%
Preferred shares, Series B 8%
 
 
 
12/16/2011
 
3,279,629

 
2,019,687

 
5,770,328

 
2.95
%
Preferred shares, Series A 8%
 
 
 
2/25/2014
 
366,666

 
110,000

 
421,525

 
0.22
%
Total
 
 
 
 
 
 
 
6,130,474

 
13,386,824

 
6.85
%

See accompanying notes to condensed consolidated financial statements.







10

TABLE OF CONTENTS


GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS –continued
December 31, 2018
Portfolio Investments*
 
Headquarters/
Industry
 
Date of Initial Investment
 
Shares/
Principal
 
Cost
 
Fair Value
 
% of Net
Assets
NestGSV, Inc. (d/b/a GSV Labs, Inc.)
 
San Mateo, CA
 
 
 
 
 
 
 
 
 
 
Convertible Promissory Note 12% Due 12/31/2019***(14)
 
Global Innovation Platform
 
2/17/2016
 
936,525

 
951,436

 
936,525

 
0.48
 %
Preferred shares, Series A-4
 
 
 
10/6/2014
 
3,720,424

 
4,904,498

 
4,960,553

 
2.54
 %
Preferred shares, Series A-3