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WOODSIDE, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- GSV Capital Corp., "GSV", (Nasdaq:GSVC) today reported financial results for the third quarter ended September 30, 2012. Management Commentary
"We are pleased with the development of our portfolio, which today includes 46 high-growth venture-backed companies that we believe have the potential to drive significant growth, value and shareholder returns. Twitter, Violin Memory and Dropbox are among our largest investments and we demonstrated strong execution in terms of identifying, sourcing and closing key investments across our major investment themes," said Michael Moe, GSV's CEO and founder. Portfolio Summary and Investment Activity
The total value of GSV's portfolio investments was $217.4 million at September 30, 2012. During the third quarter of 2012, GSV invested approximately $50.2 million in nine new and nine existing portfolio companies.
GSV invested in the following new portfolio companies during the third quarter: 2tor, Dataminr, NestGSV Silicon Valley, Neuron Fuel, Strategic Sports Solutions, SinoLending, Spotify, SugarCRM and Totus Solutions.
GSV also made additional investments in current portfolio companies, including: AltEgo, AlwaysOn, Avenues, Control4, Dropbox, Gilt Groupe, Maven Research and Twitter during the third quarter. Recent Developments
The Company closed on investments totaling approximately $4.7 million, plus transaction costs, subsequent to September 30, 2012, which included investments in Control4, Parchment, Ozy Media and Top Hat 430. Portfolio as of September 30, 2012
GSV's investment portfolio consists of companies that it believes benefit from "megatrends" that have the potential to drive the market in the years to come. GSV invests in companies that combine what it believes are powerful technological, economic and social forces that create growth opportunities in the economy.
At the end of the third quarter of 2012, GSV's portfolio included investments in the following companies: 2tor, AltEgo, AlwaysOn, Avenues World Holdings, Bloom Energy, Chegg, Control4, CUX, Dailybreak, Dataminr, DreamBox Learning, Dropbox, Facebook, Fullbridge, Gilt Groupe, Global Education Learning, Grockit, Groupon, Kno, Maven Research, NestGSV, NestGSV Silicon Valley, Neuron Fuel, NewZoom, Strategic Sports Solutions, Serious Energy, SharesPost, Silver Spring Networks, SinoLending, Solexel, Spotify, StormWind, SugarCRM, The Echo System, The rSmart Group, Top Hat 430, Totus Solutions, TrueCar, Twitter, Violin Memory, ZocDoc and Zynga. Financial Results Results of Operations
Investment income was $13,928 or $0.00 per share, for the three months ended September 30, 2012, compared to $53,408, or $0.02 per share, for the three months ended September 30, 2011. Net investment loss was $2,334,568, or $0.12 per share, in the third quarter of 2012, compared to $680,088, or $0.20 per share, for the prior year period. Net realized loss on investments was $0 or $0.00 per share, in the third quarter of 2012, compared to $0, or $0.00 per share, for the same period in 2011. Net change in unrealized depreciation was $4,665,272 or $0.24 per share, for the three months ended September 30, 2012, compared to $494,170, or $0.14 per share, for the prior year period. Net decrease in net assets resulting from operations was $6,999,840, or $0.36 per share, and $1,174,258, or $0.34 per share, for the third quarter of 2012 and 2011, respectively. Conference Call
Information
The GSV Capital third quarter 2012 teleconference and audio webcast is scheduled to begin at 5:30 a.m., Pacific Time, on Wednesday, November 7, 2012, during which the company may provide forward-looking information. To participate on the live call, analysts and investors should dial 877-941-4774 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://investors.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=12750 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.
September 30, 2012
Total Portfolio Investments
$217,441,538
Total Investments
$233,441,538
Total Cash
$26,331,482
Total Assets
$260,309,025
Total Liabilities
$449,771
Net Assets
$259,859,254
Net Asset Value Per Share
$13.45 For the three
months ended
September 30, 2012 For the three
months ended
September 30, 2011
Total Investment Income
$13,928
$53,408
Net Investment Loss
$(2,334,568)
$(680,088)
Net Change in Unrealized Depreciation on Investments
$(4,665,272)
$(494,170)
Net Decrease in Net Assets Resulting From Operations
$(6,999,840)
$(1,174,258)
Net Decrease in Net Assets Resulting From Operations Per Common Share
$(0.36)
$(0.34)
Weighted Average Common Shares Outstanding
19,320,100
3,430,100 CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2012 ASSETS
Investments at fair value:
Investments in affiliated securities (cost of $31,130,920)
$31,247,914
Investments in non-control/non-affiliated securities (cost of $193,559,007)
186,193,624
Investments in money market funds (cost of $16,000,000)
16,000,000
Total Investments (cost of $240,689,927)
233,441,538
Cash
26,331,482
Due from:
GSV Asset Management
3,315
Portfolio companies
291,554
Prepaid expenses
136,096
Dividend receivable
2,190
Other assets
102,850 Total Assets
260,309,025
LIABILITIES
Due to:
GSV Asset Management
41,197
Other affiliates
917
Accounts payable
292,925
Accrued expenses
114,732 Total Liabilities
449,771 Commitments and contingencies
Net Assets
$259,859,254
NET ASSETS
Common stock, par value $0.01 per share
(100,000,000 authorized; 19,320,100 issued and outstanding)
$193,201
Paid-in capital in excess of par
275,837,514
Accumulated net investment loss
(7,542,553)
Accumulated net realized loss on investments
(1,380,519)
Accumulated net unrealized depreciation on investments
(7,248,389) Net Assets
$259,859,254
Net Asset Value Per Share
$13.45
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
September 30,Nine Months Ended
September 30,
2012 2011 2012 2011(1)
INVESTMENT INCOME
$2,418
$ --
$200,195
$--
Interest income from affiliated securities
4,645
52,222
21,852
52,222
Interest income
6,865
1,186
20,040
1,186
Dividend income
13,928
53,408
242,087
53,408 Total Investment Income
OPERATING EXPENSES
1,351,169
233,961
3,099,186
384,904
Investment management fees
543,171
192,031
1,490,966
305,066
Costs incurred under administration agreement
65,000
42,500
172,500
85,000
Directors' fees
242,683
152,916
597,089
271,548
Professional fees
56,133
47,192
158,287
95,301
Insurance expense
34,698
52,250
143,986
53,000
Investor relations expense
--
6,336
--
198,831
Organization expenses
55,642
6,310
88,762
15,959
Other expenses
2,348,496
733,496
5,750,776
1,409,609 Total Operating Expenses
(2,334,568)
(680,088)
(5,508,689)
(1,356,201) Net Investment Loss
--
--
(1,380,519)
-- Net Realized Loss on Investments
(4,665,272)
(494,170)
(5,668,589)
(553,804) Net Change in Unrealized Depreciation on Investments
$(6,999,840)
$(1,174,258)
$(12,557,797)
$(1,910,005) Net Decrease in Net Assets Resulting from Operations
$ (0.36)
$(0.34)
$(0.84)
(0.78) Net Decrease in Net Assets Resulting from Operations per Common Share
19,320,100
3,430,100
15,013,896
2,460,565(2) Weighted Average Common Shares Outstanding
(1) For the period from January 6, 2011 (date of inception) to September 30, 2011.
(2) Weighted average common shares for the period from January 6, 2011 (date of inception) to September 30, 2011 was calculated from the issuance of 100 shares on February 28, 2011.
FINANCIAL HIGHLIGHTS
(Unaudited)
Three months ended
September 30, 2012Three months ended
September 30, 2011
Per Share Data:
Net asset value at beginning of period
$13.81
$13.57
Issuance of common shares
--
--
Accretion from offering
--
0.23(2)
Underwriters' discount
--
(0.23)(2)
Offering costs
--
(0.10)(2)
Net investment loss
(0.12)(1)
(0.12)(2)
Realized loss
--
--
Change in unrealized depreciation
(0.24)(5)
(0.09)(2)
Net asset value at end of period
$13.45
$13.26
Nine months ended
September 30, 2012For the period from
January 6, 2011
(date of inception) to
September 30, 2011For the period from
January 6, 2011
(date of inception) to
December 31, 2011Per Share Data:
Net asset value at beginning of period
$12.95
$ --
$ --
Issuance of common shares
1.91(3)
14.67(4)
14.67(4)
Accretion from offering
--
--
--
Underwriters' discount
(0.72)(2)
(0.86)(2)
(0.86)(2)
Offering costs
(0.04)(2)
(0.20)(2)
(0.19)(2)
Net investment loss
(0.37)(1)
(0.25)(2)
(0.37)(2)
Realized loss
(0.07)(2)
--
--
Change in unrealized depreciation
(0.21)(5)
(0.10)(2)
(0.30)(2)
Net asset value at end of period
$13.45
$13.26
$12.95
(1) Based on weighted average number of shares outstanding for the period. (2)Based on shares outstanding at end of period. (3) Issuance of common shares for the nine months ended September 30, 2012 is based on the change in net asset value from the secondary offerings on February 10, 2012 and May 11, 2012. (4) Issuance of common shares for the period from January 6, 2011 (date of inception) to September 30, 2011 and from January 6, 2011 (date of inception) to December 31, 2011 is based on the
weighted average offering price for the shares issued during the period. (5)Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.
CONSOLIDATED SCHEDULE OF INVESTMENTS September 30, 2012 (Unaudited)
Portfolio Investments*
Headquarters /
Industry
Shares /
Capital
Contribution
Cost
Fair Value
% of
Net
Assets
2tor, Inc.
Landover, MD
Common shares
Online Education
1,151,802
$8,757,599
$8,730,846
3.36%
Preferred shares, Series A
167,431
1,273,125
1,269,154
0.49%
Total
10,030,724
10,000,000
3.85%
AltEgo, LLC
Santa Monica, CA
Preferred shares, Series B-2
Social Media Customer Acquisition
Platform
1,400,000
1,420,406
1,400,000
0.54%
AlwaysOn, Inc. (1)(2)
Woodside, CA
Preferred shares, Series A
Social Media
1,066,626
1,027,391
1,087,955
0.42%
Avenues World Holdings LLC
New York, NY
Preferred shares, Class A-1
Globally-focused Private School
5,000,000
10,026,573
10,000,000
3.85%
Bloom Energy Corporation
Sunnyvale, CA
Common shares
Fuel Cell Energy
201,589
3,855,601
3,678,999
1.42%
Chegg, Inc.
Santa Clara, CA
Common shares
Textbook Rental
1,274,193
10,012,543
10,193,544
3.92%
Preferred shares, Series F
500,000
4,008,654
4,000,000
1.54%
Total
14,021,197
14,193,544
5.46%
Control4 Corporation
Salt Lake City, UT
Common shares
Home Automation
3,650,667
6,274,551
5,950,587
2.29%
CUX, Inc. (2)
San Francisco, CA
Preferred shares, Series C
Corporate Education
246,305
2,006,077
2,000,000
0.77%
Dailybreak, Inc. (2)
Boston, MA
Preferred shares, Series A-1
Social Advertising
1,545,181
2,000,000
2,000,000
0.77%
Dataminr, Inc.
New York, NY
Preferred shares, Series B
Social Media Analytics
904,977
2,060,602
1,999,999
0.77%
DreamBox Learning, Inc.
Bellevue, WA
Preferred shares, Series A
Education Technology
3,579,610
758,017
750,000
0.29%
Dropbox, Inc.
San Francisco, CA
Common share
Online
760,000
8,640,940
8,360,000
3.22%
Preferred shares, Series A-1
Storage
552,486
5,015,333
6,077,346
2.34%
Total
13,656,273
14,437,346
5.56%
Facebook, Inc. (3)
Menlo Park, CA
Common shares, Class B
Social Networking
350,000
10,472,294
6,898,710
2.65%
Fullbridge, Inc. (2)
Cambridge, MA
Preferred shares, Series C
Business Education
1,196,809
2,250,001
2,250,000
0.87%
Gilt Groupe, Inc.
New York, NY
Common shares
e-Commerce
248,600
6,594,346
5,469,200
2.10%
Flash Sales
Global Education Learning (Holdings) Ltd. (2)
Hong Kong
Preferred shares, Series A
Education Technology
1,472,175
2,999,998
2,999,998
1.15%
Grockit, Inc. (2)
San Francisco, CA
Preferred shares, Series D
Online Test
2,728,252
2,005,945
2,000,000
0.77%
Preparation
Groupon, Inc. (4)
Chicago, IL
Common shares
Online Deals
80,000
2,128,774
381,600
0.15%
Kno, Inc.
Santa Clara, CA
Preferred shares, Series C
Digital
440,313
2,262,006
2,250,000
0.87%
Preferred shares, Series C-1
Textbooks
1
7,510,334
7,500,000
2.89%
Common shares
50,000
214,681
205,000
0.08%
Total
9,987,021
9,955,000
3.84%
Maven Research, Inc. (2)
San Francisco, CA
Preferred shares, Series B
Knowledge
49,505
217,206
200,000
0.08%
Preferred shares, Series C
Networks
318,979
1,999,998
1,999,998
0.77%
Total
2,217,204
2,199,998
0.85%
NestGSV, Inc. (2)
Redwood City, CA
Preferred shares, Series A
Incubator
1,000,000
1,021,778
1,000,000
0.38%
NestGSV Silicon Valley, LLC (2)
Redwood City, CA
Common membership interest
Incubator
$500,000
500,000
500,000
0.19%
Neuron Fuel, Inc.
San Jose, CA
Preferred shares, Series AAI
Computer Software
250,000
262,530
250,000
0.10%
NewZoom, Inc. (d/b/a ZoomSystems)
San Francisco, CA
Preferred shares, Series A
Smart e-tail
1,250,000
260,476
250,000
0.10%
(Retail)
Palantir Technologies, Inc.
Palo Alto, CA
Common shares, Class A
Cyber Security
7,045,690
19,780,613
19,747,501
7.60%
Preferred shares, Series G
326,797
1,008,968
999,999
0.38%
Total
20,789,581
20,747,500
7.98%
Serious Energy, Inc.
Sunnyvale, CA
Common shares
Green Materials
178,095
739,130
--
--%
SharesPost, Inc.
San Bruno, CA
Preferred shares, Series B
Online
1,771,653
2,257,984
2,256,752
0.87%
Common warrants, $0.13 strike price, expire 6/15/2018
Marketplace
770,934
23,128
8,480
--%
Total
(Finance)
2,281,112
2,265,232
0.87%
Silver Spring Networks, Inc.
Redwood City, CA
Common shares
Smart Grid
510,143
5,145,271
3,275,118
1.26%
SinoLending Ltd. (2)
Shanghai, China
Preferred shares, Class A
Chinese P2P Lending
6,414,368
501,998
500,000
0.19%
Solexel, Inc.
Milpitas, CA
Preferred shares, Series C
Solar Power
4,576,659
10,016,559
10,000,000
3.85%
Spotify Technology S.A.
Stockholm, Sweden
Common shares
Music Streaming Service
3,658
3,598,472
3,589,659
1.38%
StormWind, LLC (2)
Scottsdale, AZ
Preferred shares, Series B
Interactive Learning Platform
3,279,629
2,019,687
2,000,000
0.77%
Strategic Sports Solutions, LLC (2)
New York, NY
Preferred shares, Class A1
Sports Analytics
500,000
529,522
500,000
0.19%
SugarCRM, Inc.
Cupertino, CA
Common shares
Customer Relationship Manager
432,500
1,521,100
1,513,750
0.58%
The Echo System Corp. (1)(2)
New York, NY
Preferred shares, Series A
Social Analytics
512,365
1,436,404
1,639,568
0.63%
Preferred warrants, $0.20 strike price, expire 11/14/2016
68,359
75,988
70,394
0.03%
Total
1,512,392
1,709,962
0.66%
The rSmart Group, Inc.
Scottsdale, AZ
Preferred shares, Series B
Higher Education
1,201,923
1,266,940
1,250,000
0.48%
Learning Platform
Top Hat 430, Inc. (2)
Shakopee, MN
Preferred shares, Series A
Jewelry Retailing Technology
1,777,778
4,015,179
4,000,001
1.54%
Totus Solutions, Inc. (2)
Carrollton, TX
Common shares
LED Lighting
20,000,000
5,023,748
5,000,000
1.92%
TrueCar, Inc.
Santa Monica, CA
Common shares
Online
377,358
2,014,863
2,011,318
0.77%
Marketplace (Cars)
Twitter, Inc.
San Francisco, CA
Common shares
Social
1,835,600
31,755,821
34,876,400
13.42%
Preferred shares, Series A
Communication
65,000
1,235,290
1,235,000
0.47%
Total
32,991,111
36,111,400
13.89%
Violin Memory, Inc.
Mountain View, CA
Preferred shares, Series B
Flash
800,000
4,800,798
4,800,000
1.85%
Preferred shares, Series D
Memory
1,666,666
10,018,045
9,999,996
3.85%
Total
14,818,843
14,799,996
5.70%
Whittle Schools, LLC (2)
New York, NY
Preferred shares, Series B
Education Technology
1,500,000
1,500,000
1,500,000
0.58%
ZocDoc Inc.
New York, NY
Preferred shares, Series A
Online Medical
200,000
3,563,178
3,500,000
1.35%
Scheduling
Zynga, Inc.
San Francisco, CA
Common shares
Social Gaming
533,333
3,003,462
1,514,666
0.58%
Total Portfolio Investments
$224,689,927
$217,441,538
$83.68%
* 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) 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. A company is deemed to be an "Affiliate" of GSV Capital Corp. if GSV Capital Corp. owns 5% or more but less than 25% of the voting securities of such company.
(3) On May 17, 2012, Facebook, Inc. priced its initial public offering, selling 421,233,615 shares at a price of $38.00 per share. GSV Capital Corp.'s shares in Facebook, Inc. are subject to a lock-up agreement that expires on November 14, 2012. At September 30, 2012, GSV Capital Corp. valued Facebook based on its September 28, 2012 closing price, less a discount for the lock-up restriction.
(4) 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, Inc. are subject to a lock-up agreement that expired on June 1, 2012. At September 30, 2012, GSV Capital Corp. valued Groupon, Inc. based on its September 28, 2012 closing price. CONTACT: Media:
Kim Hughes
(415) 516-6187
kim@blueshirtgroup.com
Investors:
Alex Wellins
(415) 217-5861
alex@blueshirtgroup.com
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