March 12, 2013

GSV Capital Corp. Reports Fourth Quarter and Fiscal Year 2012 Results of Operations

Net Asset Value of $13.07 Per Share as of December 31, 2012

WOODSIDE, Calif., March 12, 2013 (GLOBE NEWSWIRE) -- GSV Capital Corp., ("GSV" or the "Company") (Nasdaq:GSVC), today reported financial results for the fourth quarter and fiscal year ended December 31, 2012.

"By investing in what we believe to be transformative businesses with substantial growth potential, our emphasis is on long-term value creation and the potential for sizable returns," said Michael Moe, GSV's founder and Chief Executive Officer. "At year-end 2012, our portfolio consisted of 47 primarily venture capital-backed emerging companies and translated into a net asset value of $252.6 million, or $13.07 per share. We believe clear opportunity exists as several of our portfolio companies approach eventual exit and others continue to innovate and advance their business strategies. Indicative of the types of investments we select, based on our internal estimates, we believe that a number of our top ten portfolio companies achieved revenue growth of over 100% in 2012. In 2013, we look forward to bolstering our portfolio with the new and emerging leaders shaping the growth economy."

Portfolio as of December 31, 2012

At December 31, 2012, the Company had positions in 47 portfolio companies at a fair value of $225.4 million. Additionally, the Company had cash and short-term investments of $27.3 million.

Out of GSV's 47 portfolio companies, the top 10 investments represented 59.3% of net asset value, and the top three investments represented 28.4% of net asset value. Net assets totaled $252.6 million or $13.07 per common share at December 31, 2012.

$ in millions Fair Value % of Net
Asset Value
Twitter, Inc. $ 36.1 14.3%
Palantir Technologies, Inc. 21.1 8.3
Violin Memory, Inc. 14.8 5.8
Dropbox, Inc. 14.5 5.7
Chegg, Inc. 14.2 5.6
Avenues World Holdings LLC 10.0 4.0
Solexel, Inc. 10.0 4.0
2U, Inc. 10.0 4.0
Kno Inc. 9.9 3.9
Facebook, Inc. 9.3 3.7
Total $ 149.9 59.3%

Fourth Quarter 2012 Portfolio Investment Activity

During the fourth quarter of 2012, GSV invested a total of approximately $5.5 million, plus transaction costs, in the following new portfolio companies: Parchment, Inc.; Starfish Holdings, Inc. (also known as YourOffers); and Ozy Media, Inc. GSV made additional investments totaling approximately $6.8 million in existing portfolio companies including SugarCRM Inc.; Whittle Schools, LLC; Grockit Inc..; Control4 Corporation; and S3 Digital Corp.

Fourth Quarter 2012 Financial Results

Investment income was $5,990, or $0.00 per share, for the three months ended December 31, 2012, compared to $108,920, or $0.02 per share, for the three months ended December 31, 2011. Net investment loss was $2,774,192, or $0.14 per share, for the fourth quarter of 2012, compared to a net investment loss of $677,663, or $0.12 per share, for the fourth quarter of 2011. Net decrease in net assets resulting from operations was $7,276,453, or $0.38 per share, and $1,703,659, or $0.31 per share, for the fourth quarter of 2012 and 2011, respectively.

Weighted average common shares outstanding were 19.3 million for the three months ended December 31, 2012, and 5.5 million for the three months ended December 31, 2011.

Fiscal Year 2012 Financial Results

For the year ended December 31, 2012, investment income was $248,077, or $0.02 per share, compared to investment income of $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 $8,282,881 million or $0.51 per share, for the year ended December 31, 2012, resulting primarily from operating expenses incurred during the year. This compares to net investment loss of $2,033,864 million or $0.60 per share, for the period from January 6, 2011 (date of inception) to December 31, 2011. The net decrease in net assets resulting from operations was $19,834,250 million, or $1.23 per share, for the year ended December 31, 2012, compared to a net decrease in net assets resulting from operations of $3,613,664 million, or $1.07 per share, for the period from January 6, 2011 (date of inception) to December 31, 2011.

Weighted average common shares outstanding were approximately 16.1 million for the year ended December 31, 2012 and 3.4 million for the year ended December 31, 2011.

Conference Call and Webcast

Management will hold a conference call and webcast for investors today at 2:00 p.m. PT (5:00 p.m. ET). The conference call number for U.S. participants is (877) 941-8609 and the conference call number for participants outside the U.S. is (480) 629-9692. The conference ID number for both call numbers is 4603561. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of GSV Capital's website at http://investors.gsvcap.com/. An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed through March 19, 2013 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (international), using conference ID number 4603561.

About GSV Capital Corp.

GSV Capital Corp. (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. www.gsvcap.com

The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=16444

Forward-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.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(Unaudited)
     
 December 31, 2012December 31, 2011
ASSETS   
Investments at fair value:    
Investments in affiliated securities (cost of $38,210,753 and $0, respectively)  $ 34,648,363 $ -- 
Investments in non-control/non-affiliated securities (cost of $198,936,982 and $65,658,866, respectively) 190,748,722 64,078,150
Investment in United States treasury bill (cost of $0 and $19,999,128, respectively) -- 20,000,044
Investments in money market funds (cost of $16,000,000 and $7,000,000, respectively) 16,000,000 7,000,000
Total Investments (cost of $253,147,735 and $92,657,994, respectively) 241,397,085 91,078,194
     
Cash 11,318,525 385,995
Due from:    
GSV Asset Management 5,723 13,470
Portfolio companies 316,377 9,249
Accrued interest -- 158,389
Prepaid expenses 63,953 92,750
Deferred offering costs -- 56,436
Dividend receivable 1,920 1,063
Other assets 27,145 2,696
Total Assets 253,130,728 91,798,242
     
LIABILITIES    
Due to:    
GSV Asset Management 51,194 78,427
Other affiliates -- 10,782
Payable for unsettled securities transaction -- 19,999,128
Accounts payable 204,093 206,357
Accrued expenses 292,640 300
Total Liabilities 547,927 20,294,994
     
Net Assets  $ 252,582,801  $ 71,503,248
     
NET ASSETS    
Common stock, par value $0.01 per share    
(100,000,000 authorized; 19,320,100 and 5,520,100 issued and outstanding, respectively)  $ 193,201  $ 55,201
Paid-in capital in excess of par 275,837,514 73,027,847
Accumulated net investment loss (10,316,745) --
Accumulated net realized loss on investments (1,380,519) --
Accumulated net unrealized depreciation on investments (11,750,650) (1,579,800)
Net Assets  $ 252,582,801  $ 71,503,248
Net Asset Value Per Share  $ 13.07  $ 12.95
   
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
           
 Three Months Ended
December 31,
Year Ended
December 31,
 
 2012201120122011(1)  
INVESTMENT INCOME          
Interest income from affiliated securities $ -- $ --  $ 21,852 $ --  
Interest income from non-control/non-affiliated securities -- 106,167 200,195 158,389  
Dividend income 5,990 2,753 26,030 3,939  
Total Investment Income 5,990 108,920 248,077 162,328  
           
OPERATING EXPENSES          
Investment management fees 1,320,159 233,961 4,419,345 618,865  
Costs incurred under administration agreement 893,798 249,166 2,384,764 554,232  
Directors' fees 65,000 42,500 237,500 127,500  
Professional fees 362,515 138,435 959,604 409,983  
Insurance expense 56,019 47,193 214,306 142,494  
Investor relations expense 38,207 36,250 182,193 89,250  
Organization expenses -- -- -- 198,831  
Other expenses 44,484 39,078 133,246 55,037  
Total Operating Expenses 2,780,182 786,583 8,530,958 2,196,192  
           
Net Investment Loss (2,774,192) (677,663) (8,282,881) (2,033,864)  
           
Net Realized Loss on Investments -- -- (1,380,519) --  
           
Net Change in Unrealized Depreciation on Investments (4,502,261) (1,025,996) (10,170,850) (1,579,800)  
           
Net Decrease in Net Assets Resulting from Operations  $ (7,276,453)  $ (1,703,659)  $ (19,834,250)  $ (3,613,664)  
           
Net Decrease in Net Assets Resulting from Operations per Common Share  $ (0.38)  $ (0.31)  $ (1.23)  $ (1.07)  
           
Weighted Average Common Shares Outstanding 19,320,100 5,520,100 16,096,330 3,377,429(2)
           
(1) For the period from January 6, 2011 (date of inception) to December 31, 2011.          
(2) Weighted average common shares for the period from January 6, 2011 (date of inception) to December 31, 2011 was calculated from the issuance of 100 shares on February 28, 2011.
                 
FINANCIAL HIGHLIGHTS                
(Unaudited)                
         
Per Share Data:  Three months ended
December 31, 2012
   Three months ended
December 31, 2011
   Year ended
December 31, 2012
   For the period from
January 6, 2011
(date of inception) to 
December 31, 2011
 
Net asset value at beginning of period $ 13.45   $ 13.26   $ 12.95   $ --  
Issuance of common shares --   --   1.91(3) 14.67(4)
Underwriters' discount --   --   (0.72)(2) (0.86)(2)
Offering costs --   --   (0.04)(2) (0.19)(2)
Net investment loss (0.14)(1) (0.12)(2) (0.51)(1) (0.37)(2)
Realized loss --   --   (0.09)(1) --  
Change in unrealized depreciation (0.24)(5) (0.19)(2) (0.43)(5) (0.30)(2)
Net asset value at end of period $ 13.07   $ 12.95   $ 13.07   $ 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 year ended December 31, 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 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
December 31, 2012
(Unaudited)
 
Portfolio Investments*Headquarters /
Industry
Shares / Capital ContributionCostFair Value% of Net Assets
           
Twitter, Inc. San Francisco, CA        
Common shares Social 1,835,600 $ 31,755,821 $ 34,876,400 13.81%
Preferred shares, Series A Communication 65,000 1,235,290 1,235,000 0.49%
 Total     32,991,111 36,111,400 14.30%
           
Palantir Technologies, Inc. Palo Alto, CA        
Common shares, Class A Cyber Security 7,145,690 20,051,479 20,150,846 7.98%
Preferred shares, Series G   326,797 1,008,968 921,568 0.36%
 Total     21,060,447 21,072,414 8.34%
           
Violin Memory, Inc. Mountain View, CA        
Preferred shares, Series B Flash 800,000 4,800,798 4,800,000 1.90%
Preferred shares, Series D Memory 1,666,666 10,018,045 9,999,996 3.96%
 Total     14,818,843 14,799,996 5.86%
           
Dropbox, Inc. San Francisco, CA        
Common share Online 760,000 8,641,153 8,360,000 3.31%
Preferred shares, Series A-1 Storage 552,486 5,015,333 6,077,346 2.41%
 Total     13,656,486 14,437,346 5.72%
           
Chegg, Inc. Santa Clara, CA        
Common shares Textbook Rental 1,274,193 10,012,543 10,193,544 4.03%
Preferred shares, Series F   500,000 4,008,654 4,000,000 1.58%
 Total     14,021,197 14,193,544 5.61%
           
Avenues World Holdings LLC (5) New York, NY        
Preferred shares, Class A-1 Globally-focused Private School 5,000,000 10,025,123 10,000,000 3.96%
           
Solexel, Inc. Milpitas, CA        
Preferred shares, Series C Solar Power 4,576,659 10,016,559 10,000,000 3.96%
           
2U, Inc. (f/k/a 2tor, Inc.) Landover, MD        
Common shares Online Education 1,151,802 8,757,599 8,730,659 3.46%
Preferred shares, Series A   167,431 1,273,125 1,269,127 0.50%
 Total     10,030,724 9,999,786 3.96%
           
Kno, Inc. Santa Clara, CA        
Preferred shares, Series C Digital 440,313 2,262,006 2,249,999 0.89%
Preferred shares, Series C-1 Textbooks 1 7,510,334 7,500,000 2.97%
Common shares   50,000 214,681 178,850 0.07%
 Total     9,987,021 9,928,849 3.93%
           
Facebook, Inc. (3) (10) Menlo Park, CA        
Common shares, Class B Social Networking 350,000 10,472,294 9,317,000 3.69%
           
Control4 Corporation Salt Lake City, UT        
Common shares Home Automation 4,070,667 7,011,025 7,123,667 2.82%
           
Totus Solutions, Inc.(2) Carrollton, TX        
Common shares LED Lighting 20,000,000 5,023,748 5,000,000 1.98%
           
Grockit, Inc.(2) San Francisco, CA        
Preferred shares, Series D Online Test 2,728,252 2,005,945 2,373,579 0.94%
Preferred shares, Series E Preparation 1,731,501 1,503,670 1,506,406 0.60%
  Total     3,509,615 3,879,985 1.54%
           
SugarCRM, Inc. Cupertino, CA        
Common shares Customer Relationship Manager 1,086,047 3,813,378 3,801,165 1.50%
           
Gilt Groupe, Inc. New York, NY        
Common shares e-Commerce Flash Sales 248,600 6,594,346 3,637,329 1.44%
           
Spotify Technology S.A. (10) Stockholm, Sweden        
Common shares Music Streaming Service 3,658 3,598,472 3,589,669 1.42%
           
ZocDoc Inc. New York, NY        
Preferred shares, Series A Online Medical Scheduling 200,000 3,563,178 3,500,000 1.38%
           
Bloom Energy Corporation Sunnyvale, CA        
Common shares Fuel Cell Energy 201,589 3,855,601 3,225,424 1.28%
           
Global Education Learning (Holdings) Ltd.(2) (10) Hong Kong        
Preferred shares, Series A Education Technology 1,472,175 2,999,998 3,003,237 1.19%
           
Parchment, Inc. Scottsdale, AZ        
Preferred shares, Series D E-Transcript Exchange 2,400,384 3,000,000 3,000,480 1.19%
           
Whittle Schools, LLC(2) (6) New York, NY        
Preferred shares, Series B Globally-focused Private School 3,000,000 3,000,000 3,000,000 1.19%
           
StormWind, LLC(2) (7) Scottsdale, AZ        
Preferred shares, Series B Interactive Learning Platform 3,279,629 2,019,687 2,545,812 1.01%
           
SharesPost, Inc. San Bruno, CA        
Preferred shares, Series B Online 1,771,653 2,257,984 2,249,999 0.89%
Common warrants, $0.13 strike price, expire 6/15/2018 Marketplace (Finance) 770,934 23,128 123,349 0.05%
 Total     2,281,112 2,373,348 0.94%
           
Maven Research, Inc.(2) San Francisco, CA        
Preferred shares, Series B Knowledge 49,505 217,206 310,396 0.12%
Preferred shares, Series C Networks 318,979 1,999,998 1,999,998 0.79%
 Total     2,217,204 2,310,394 0.91%
           
Fullbridge, Inc.(2) Cambridge, MA        
Preferred shares, Series C Business Education 1,196,809 2,250,001 2,250,001 0.89%
           
Starfish Holdings, Inc. (d/b/a YourOffers)(2) (10) Beverly Hills, CA        
Preferred shares, Series A, and common warrants, $0.00001 strike price, expire 11/13/2019 Marketing Platform 43,878,894 2,012,103 2,193,945 0.87%
           
TrueCar, Inc. Santa Monica, CA        
Common shares Online Marketplace (Cars) 377,358 2,014,863 2,011,318 0.79%
           
Dataminr, Inc. New York, NY        
Preferred shares, Series B Social Media Analytics 904,977 2,060,602 1,999,999 0.79%
           
CUX, Inc. (d/b/a CorpU)(2) San Francisco, CA        
Preferred shares, Series C Corporate Education 246,305 2,006,077 1,999,997 0.79%
           
Dailybreak, Inc.(2) Boston, MA        
Preferred shares, Series A-1 Social Advertising 1,545,181 2,000,000 1,993,283 0.79%
           
Silver Spring Networks, Inc. Redwood City, CA        
Common shares Smart Grid 510,143 5,145,271 1,976,804 0.78%
           
The Echo System Corp.(1)(2) New York, NY        
Preferred shares, Series A Social Analytics 512,365 1,436,404 1,639,568 0.65%
Preferred warrants, $0.20 strike price, expire 11/14/2016   68,359 75,988 68,359 0.03%
 Total     1,512,392 1,707,927 0.68%
           
AltEgo, LLC(2) (8) Santa Monica, CA        
Preferred shares, Series B-2 Social Media Customer Acquisition Platform 1,400,000 1,420,406 1,400,000 0.55%
           
Zynga, Inc. (10) San Francisco, CA        
Common shares Social Gaming 533,333 3,003,462 1,258,666 0.50%
           
The rSmart Group, Inc. Scottsdale, AZ        
Preferred shares, Series B Higher Education Learning Platform 1,201,923 1,266,940 1,250,000 0.49%
           
S3 Digital Corp. (d/b/a S3i)(2) New York, NY        
Preferred shares, Class A1 Sports Analytics 1,033,452 989,058 1,033,452 0.41%
Preferred warrants, $1.00 strike price, expire 11/21/2017   500,000 31,354 31,354 0.01%
 Total     1,020,412 1,064,806 0.42%
           
NestGSV, Inc.(2) Redwood City, CA        
Preferred shares, Series A Incubator 1,000,000 1,021,778 1,000,000 0.40%
           
DreamBox Learning, Inc. Bellevue, WA        
Preferred shares, Series A Education Technology 3,579,610 758,017 751,718 0.30%
           
SinoLending Ltd.(2) (10) Shanghai, China        
Preferred shares, Class A Chinese P2P Lending 6,414,368 501,998 500,321 0.20%
           
Ozy Media, Inc. Mountain View, CA        
Preferred shares, Series Seed Social Media 500,000 500,000 500,000 0.20%
           
NestGSV Silicon Valley, LLC(2) (9) Redwood City, CA        
Common membership interest Incubator $ 500,000 500,000 500,000 0.20%
           
Groupon, Inc.(4) (10) Chicago, IL        
Common shares Online Deals 80,000 2,128,774 388,800 0.15%
           
AlwaysOn, Inc.(1)(2) Woodside, CA        
Preferred shares, Series A Social Media 1,066,626 1,027,391 298,655 0.12%
           
NewZoom, Inc. (d/b/a ZoomSystems) San Francisco, CA        
Preferred shares, Series A Smart e-tail (Retail)
 
1,250,000 260,476 250,000 0.10%
           
Neuron Fuel, Inc. San Jose, CA        
Preferred shares, Series AAI Computer Software 250,000 262,530 250,000 0.10%
           
Serious Energy, Inc. (10) Sunnyvale, CA        
Common shares Green Materials 178,095 739,130 -- --%
           
Top Hat 430, Inc.(2) (10) Shakopee, MN        
Preferred shares, Series A Jewelry Retailing 1,844,444 4,167,943 -- --%
Preferred warrants, $2.25 strike price, expire 11/2/2017 Technology 13,333 -- -- --%
  Total     4,167,943 -- --%
           
Total Portfolio Investments     $ 237,147,735 $ 225,397,085 89.23%
       
* 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 expired on November 14, 2012. At December 31, 2012, GSV Capital Corp. valued Facebook based on its December 31, 2012 closing price.
(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 December 31, 2012, GSV Capital Corp. valued Groupon, Inc. based on its December 31, 2012 closing price.
(5) GSV Capital Corp.'s investment in Avenues World Holdings LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.
(6) GSV Capital Corp.'s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc.
(7) GSV Capital Corp.'s investment in StormWind, LLC is held through its wholly-owned subsidiary GSVC SW Holdings, Inc.
(8) GSV Capital Corp.'s investment in AltEgo, LLC is held through its wholly-owned subsidiary GSVC AE Holdings, Inc.
(9) GSV Capital Corp.'s investment in NestGSV Silicon Valley, LLC is held through its wholly-owned subsidiary GSVC NG Holdings, Inc.
(10) 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. Qualifying assets must represent at least 70% of GSV Capital Corp.'s total assets at the time of acquisition of any additional non-qualifying assets.
CONTACT: Financial Profiles, Inc.

         Tricia Ross, (650) 235-4769

         gsv@finprofiles.com


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