March 12, 2012

GSV Capital Reports Fourth Quarter and Fiscal Year 2011 Results of Operations

WOODSIDE, Calif., March 12, 2012 (GLOBE NEWSWIRE) -- GSV Capital Corp., "GSV," (Nasdaq:GSVC) today reported financial results for the fourth quarter and fiscal year ended December 31, 2011.

Management Commentary

"The fourth quarter marked tremendous progress for GSV as we continued to execute on our strategy of investing in high-growth, venture-backed companies that we believe will drive significant value creation. We made follow-on investments in Facebook and Twitter, which represent the largest positions in our portfolio. Our investment activity during the quarter also included new positions in companies such as Dropbox, Grockit, and ZocDoc. In addition, Groupon and Zynga completed their initial public offerings during the quarter," said Michael T. Moe, GSV's CEO and founder. "2012 is off to a great start for GSV, as we successfully raised $96.2 million in a secondary offering which was completed on February 15th. We are highly encouraged that we were able to quickly complete a significant capital raise that provides us with the resources to execute on our investment strategy and take advantage of what we believe are exciting opportunities in the market."

Fourth Quarter 2011 Portfolio Investment Activity

GSV invested in the following new portfolio companies during the fourth quarter of 2011: Control 4 Inc.; DreamBox Learning, Inc.; Dropbox, Inc.; Grockit Inc.; StormWind, LLC; The Echo System Corp.; The rSmart Group, Inc.; and ZocDoc Inc.. Additional investments in Facebook, Inc., Kno, Inc., and Twitter, Inc. were also made by GSV during the quarter.

Current Portfolio as of December 31, 2011

Our investment portfolio consists of companies that we believe represent the "megatrends" that have the potential to drive the market in the decades to come. GSV invests in companies that combine what we believe are powerful technological, economic and social forces that create growth opportunities in the economy. At the end of the fourth quarter of 2011, GSV's portfolio included investments in the following companies: Bloom Energy Corporation; Chegg, Inc.; Control 4 Inc.; DreamBox Learning, Inc.; Dropbox, Inc.; Facebook, Inc.; Gilt Groupe, Inc.; Grockit Inc.; Groupon, Inc.; Kno, Inc.; PJB Fund LLC (loan linked to the value of Zynga, Inc.); Serious Energy, Inc.; SharesPost, Inc.; Silver Spring Networks, Inc.; StormWind, LLC; The Echo System Corp.; The rSmart Group, Inc.; TrueCar, Inc.; Twitter, Inc.; ZocDoc Inc.; and ZoomSystems.

Financial Results  
 December 31, 2011
Total Portfolio Investments $64,078,150
Total Investments $91,078,194
Total Cash $385,995
Total Assets $91,798,242
Total Liabilities $20,294,994
Net Assets $71,503,248
Net Asset Value Per Share $12.95
 
For the three

months ended
December 31, 2011
 For the period from
January 6, 2011

 (date of inception) to
December 31, 2011
Total Investment income $ 108,920   $ 162,328
Net Investment Loss $ (677,663)   $ (2,033,864)
Net Change In Unrealized Depreciation on Non--Control/Non-Affiliated Securities $ (1,025,996)   $ (1,579,800)
Net Decrease in Net Assets Resulting From Operations $ (1,703,659)   $ (3,613,664)
Net Decrease in Net Assets Resulting From Operations Per Average Share (1) $ (0.31)   $ (1.07)
       
(1) Weighted average common shares for the period from January 6, 2011 (date of inception) to December 31, 2011was calculated starting from the issuance of 100 shares on February 28, 2011. Weighted average common shares were 5,520,100 and 3,377,429 for the three-month period ended December 31, 2011 and since inception period, respectively.      

Portfolio Investments

The total value of GSV's portfolio investments was approximately $64.1 million at December 31, 2011. During the fourth quarter of 2011, GSV originated approximately $23.5 million of investments in eight new and three existing portfolio companies. At December 31, 2011, GSV had equity investments in 19 portfolio companies and debt investments in two portfolio companies.

Results of Operations

Investment income was $108,920, or $0.02 per share, for the quarter ended December 31, 2011, and $162,328, or $0.05 per share, for the period from January 6, 2011 (date of inception) to December 31, 2011. Net investment loss was $677,663, or $0.12 per share, for the quarter ended December 31, 2011, and $2,033,864, or $0.60 per share, for the period from January 6, 2011 (date of inception) to December 31, 2011. Net change in unrealized depreciation was $1,025,996, or $0.19 per share, for the three months ended December 31, 2011, and $1,579,800, or $0.47 per share, for the period from January 6, 2011 (date of inception) to December 31, 2011. Net decrease in net assets resulting from operations was $1,703,659, or $0.31 per share, for the three months ended December 31, 2011, and $3,613,664, or $1.07 per share, for the period from January 6, 2011 (date of inception) to December 31, 2011.

Conference Call and Webcast Information

The GSV Capital fourth quarter and fiscal year 2011 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Monday, March 12, 2012. To participate on the live call, analysts and investors should dial 1-877-941-1427 at least ten minutes prior to the call. GSV Capital will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the Company's Web site at http://gsvcap.com.

About GSV Capital Corp.

GSV Capital Corp. (Nasdaq:GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA.

The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9556

Forwarding-Looking Statements

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.

   
   
STATEMENT OF ASSETS AND LIABILITES
(Unaudited)
   
 December 31, 2011
ASSETS 
Investments at fair value:  
 Investments in non-control/non-affiliated securities (cost of $65,658,866)  $ 64,078,150
 Investments in United States treasury bills (cost of $19,999,128) 20,000,044
 Investments in money market funds (cost of $7,000,000) 7,000,000
 Total Investments (cost of $92,657,994) 91,078,194
   
Cash 385,995
Due from:  
 GSV Asset Management 13,470
 Portfolio company 9,249
Accrued interest 158,389
Prepaid expenses 92,750
Deferred offering costs 56,436
Dividend receivable 1,063
Other assets 2,696
   
Total Assets 91,798,242
   
LIABILITIES  
Due to:  
 GSV Asset Management 78,427
 Other affiliates 10,782
Payable for unsettled securities transaction 19,999,128
Accounts payable 206,357
Accrued expenses 300
   
Total Liabilities 20,294,994
   
Commitments and contingencies  
   
Net Assets  $ 71,503,248
   
NET ASSETS  
Common Stock, par value $0.01 per share (100,000,000 authorized; 5,520,100 issued and outstanding) $ 55,201
Paid-in capital in excess of par 73,027,847
Unrealized depreciation on investments (1,579,800)
   
Net Assets  $ 71,503,248
   
Net Asset Value Per Share  $ 12.95
     
     
 STATEMENTS OF OPERATIONS
(Unaudited)
     
 
For the three
months ended
December 31, 2011
For the period from
January 6, 2011
(date of inception) to
December 31, 2011
INVESTMENT INCOME  
Interest income  $ 106,167  $ 158,389
Dividend income 2,753 3,939
     
Total Investment Income 108,920 162,328
     
OPERATING EXPENSES    
Investment management fees 233,961 618,865
Costs incurred under administration agreement 249,166 554,232
Professional fees 138,435 409,983
Organization expenses -- 198,831
Insurance expense 47,193 142,494
Directors' fees 42,500 127,500
Investor relations expense 36,250 89,250
Other expenses 39,078 55,037
     
Total Operating Expenses 786,583 2,196,192
     
Net Investment Loss (677,663) (2,033,864)
     
Net Change in Unrealized Depreciation on Investments (1,025,996) (1,579,800)
     
Net Decrease in Net Assets Resulting From Operations  $ (1,703,659)  $ (3,613,664)
     
Net Decrease in Net Assets Resulting From Operations Per Average Share (1)  $ (0.31)  $ (1.07)
     
(1) Weighted average common shares for the period from January 6, 2011 (date of inception) to December 31, 2011 was calculated starting from the issuance of 100 shares on February 28, 2011. Weighted average common shares were 5,520,100 and 3,377,429 for the three-month period ended December 31, 2011 and since inception period, respectively.
     
     
FINANCIAL HIGHLIGHTS
(Unaudited)
 
     
 
For the three
months ended
December 31, 2011
For the period from
January 6, 2011
(date of inception) to
December 31, 2011
     
Per Share Data(1):    
Net asset value at beginning of period  $ 13.26  $ -- 
Issuance of common shares -- 14.67 (2)
Underwriters' discount -- (0.86)
Offering costs -- (0.19)
Net investment loss (0.12) (0.37)
Change in unrealized depreciation (0.19) (0.30)
Net asset value at end of period  $ 12.95  $ 12.95
     
(1) Financial highlights are based on shares outstanding as of December 31, 2011.
     
(2) Issuance of common shares is based on the weighted average offering price for the shares issued during the period.
           
           
SCHEDULE OF INVESTMENTS
December 31, 2011
(Unaudited)
           

Portfolio Investments*
Headquarters /
Industry
Shares / Par
Amount
 
Cost 
Fair 
Value 
% of Net
Assets
           
Bloom Energy Corporation Sunnyvale, CA        
Common shares Fuel Cell Energy 96,389  $ 1,815,818  $ 1,771,335 2.48%
           
Chegg, Inc. Santa Clara, CA        
Common shares Textbook Rental 774,193 6,003,694 5,999,996 8.39%
           
Control 4 Inc. Salt Lake City, UT        
Common shares Home Automation 666,667 1,034,827 1,000,000 1.40%
           
DreamBox Learning, Inc. Bellevue, WA        
Preferred shares, Series A Education Technology 3,579,610 757,955 750,000 1.05%
           
Dropbox, Inc. San Francisco, CA        
Preferred shares, Series A Online Storage 552,486 5,015,333 4,999,998 6.99%
           
Facebook, Inc. Palo Alto, CA        
Common shares, Class B Social Networking 350,000 10,465,981 10,462,500 14.63%
           
Gilt Groupe, Inc. New York, NY        
Common shares e-Commerce        
  Flash Sales 203,100 5,576,979 5,499,250 7.69%
           
Grockit, Inc. San Francisco, CA        
Preferred shares, Series B Online Test        
  Preparation 2,728,252 2,005,945 2,000,000 2.80%
           
Groupon, Inc. (2) Chicago, IL        
Common shares Online Deals 80,000 2,128,585 1,188,288 1.66%
           
Kno, Inc. Santa Clara, CA        
Preferred shares, Series C Digital 440,313 2,262,006 2,250,000 3.15%
Common shares Textbooks 50,000 214,303 205,000 0.29%
 Total     2,476,309 2,455,000 3.44%
           
PJB Fund LLC (1) (3) San Francisco, CA        
Structured note, 10%, due 8/15/2012 Social Gaming  4,000,000 4,029,259 4,000,000 5.59%
           
Serious Energy, Inc. Sunnyvale, CA        
Common shares Green Materials 178,095 739,130 712,380 1.00%
           
SharesPost, Inc. San Bruno, CA        
Preferred shares, Series B Online 1,776,970   2,257,984   2,256,752 3.16%
Common warrants, $0.13 strike price, expire 6/15/2018 Marketplace (Finance) 770,934 23,128 17,731 0.02%
 Total     2,281,112 2,274,483 3.18%
           
Silver Spring Networks, Inc. Redwood City, CA        
Common shares Smart Grid 110,143 1,153,381 1,101,430 1.54%
           
StormWind, LLC Scottsdale, AZ        
Preferred shares, Series B Electronic 1,711,111 959,209 946,335 1.32%
Preferred warrants, $0.64 strike price, expire 12/1/2012 Marketing and Business Services 1,568,518 53,665 53,665 0.08%
 Total     1,012,874 1,000,000 1.40%
           
The Echo System Corp. (1) New York, NY        
Structured note, 6%, due 1/28/2013, and warrant, $0.20 strike price, expires 11/14/2016 Social Analytics 500,000 505,823 500,000 0.70%
           
The rSmart Group, Inc. Scottsdale, AZ        
Preferred shares, Series B Higher Education        
  Learning Platform 480,769 513,311 500,000 0.70%
           
TrueCar, Inc. Santa Monica, CA        
Common shares Online        
  Marketplace (Cars) 377,358 2,014,551 1,999,997 2.80%
           
Twitter, Inc. San Francisco, CA        
Common shares Social        
  Communication 735,600 12,304,345 12,113,493 16.94%
           
ZocDoc Inc. New York, NY        
Preferred shares Online Medical        
  Scheduling 200,000 3,563,178 3,500,000 4.89%
           
ZoomSystems San Francisco, CA        
Preferred shares, Series A Smart e-tail        
  (Retail) 1,250,000   260,476   250,000 0.35%
           
Total Portfolio Investments     $ 65,658,866 $ 64,078,150 89.62%
           
* 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.
           
(1) Investment is income producing.
           
(2) On November 8, 2011, Groupon, Inc. priced its initial public offering, selling 35,000,000 shares at a price of $20.00 per share. GSV Capital Corp.'s shares in Groupon are subject to a lock-up agreement that expires on May 1, 2012.
           
(3) Represents a $4 million unsecured promissory note with an interest rate of 10% and maturity date of August 15, 2012 that was issued by PJB Fund LLC that may be repaid, at PJB Fund LLC's election, either by transfer of a certain number of shares of common stock of Zynga, Inc. or with a cash amount of equivalent value. The amount payable under the note will be equal to the face amount, plus the greater of accrued interest (at a rate of 10%) or a return based on the relative value of Zynga, Inc. To the extent the borrower repays the note in cash, GSV Capital Corp. would have no further direct or indirect interest in Zynga, Inc. On December 15, 2011, Zynga, Inc. priced its initial public offering, selling 100,000,000 shares at a price of $10.00 per share.
CONTACT: Media:

         Kim Hughes

         (415) 516-6187

         kim@blueshirtgroup.com

         

         Investors:

         Alex Wellins

         (415) 217-5861

         alex@blueshirtgroup.com


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