May 8, 2013

GSV Capital Corp. Reports First Quarter 2013 Results of Operations

Net Asset Value of $12.69 Per Share as of March 31, 2013

WOODSIDE, Calif., May 8, 2013 (GLOBE NEWSWIRE) -- GSV Capital Corp., ("GSV" or the "Company") (Nasdaq:GSVC), today reported financial results for the first quarter ended March 31, 2013.

"Dramatic growth and value creation are taking place in the private marketplace today, and GSV's value proposition enables investors to access many of the world's most dynamic, VC-backed companies," said Michael Moe, GSV's founder and Chief Executive Officer. "We are pleased with the growth and execution that our portfolio companies are delivering and we have great confidence in the long-term value that we believe is being created.  In our opinion, the fundamentals of the companies in our portfolio remain very strong overall and we believe there are a number of potential catalysts on the horizon."

Portfolio as of March 31, 2013

At March 31, 2013, the Company had positions in 45 portfolio companies at a fair value of $222.2 million. Additionally, the Company had cash and short-term investments of $22.8 million.

Out of GSV's 45 portfolio companies, the top 10 investments represented 60.6% of net asset value, and the top three investments represented 28.9% of net asset value. Net assets totaled $245.1 million or $12.69 per share at March 31, 2013.

Top Ten Investments at March 31, 2013
 
$ in millions Fair Value % of Net Asset Value
Twitter, Inc. $ 35.2 14.4%
Palantir Technologies, Inc. 20.6 8.4
Dropbox, Inc. 15.0 6.1
Chegg, Inc. 14.2 5.8
Violin Memory, Inc. 14.2 5.8
2U, Inc. (f/k/a 2tor, Inc.) 10.3 4.2
Avenues World Holdings LLC 10.0 4.1
Solexel, Inc. 10.0 4.1
Kno Inc. 9.9 4.0
Facebook, Inc. 9.0 3.7
 Total $ 148.4 60.6%

Portfolio Investment Activity

During the first quarter of 2013, GSV invested a total of approximately $3.4 million, plus transaction costs, in the following portfolio companies: SugarCRM Inc.; Fullbridge, Inc.; CUX Inc. (d/b/a CorpU); and AlwaysOn, Inc.

Financial Results

Investment income was $4,535, or $0.00 per share, for the three months ended March 31, 2013, compared to $117,805, or $0.01 per share, for the three months ended March 31, 2012. Net investment loss was $2,567,725 or $0.13 per share, for the first quarter of 2013, compared to a net investment loss of $1,094,002, or $0.12 per share, for the first quarter of 2012. Net decrease in net assets resulting from operations was $7,491,255 or $0.38 per share for the first quarter of 2013, compared to $83,063, or $0.01 per share, for the first quarter of 2012.

Weighted average common shares outstanding were 19.3 million for the three months ended March 31, 2013, and 9.4 million for the three months ended March 31, 2012.

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 4616073. Additionally, interested parties can listen to a live webcast of the call from the "Investors" 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 May 15, 2013 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (international), using conference ID number 4616073.

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=12750

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
     
 March 31, 2013December 31, 2012
ASSETS(Unaudited) 
Investments at fair value:    
Investments in affiliated securities (cost of $40,175,504 and $38,210,753, respectively)  $ 34,353,557  $ 34,648,363
Investments in non-control/non-affiliated securities (cost of $195,306,389 and $198,936,982, respectively) 187,801,048 190,748,722
Investments in money market funds (cost of $16,000,000 and $16,000,000, respectively) 16,000,000 16,000,000
Total Investments (cost of $251,481,893 and $253,147,735, respectively) 238,154,605 241,397,085
     
Cash 6,818,379 11,318,525
Due from:    
GSV Asset Management 8,505 5,723
Portfolio companies 323,041 316,377
Prepaid expenses 65,741 63,953
Dividend receivable 1,477 1,920
Other assets 48,489 27,145
Total Assets 245,420,237 253,130,728
     
LIABILITIES    
Due to:    
GSV Asset Management 39,012 51,194
Accounts payable 236,359 204,093
Accrued expenses 53,320 292,640
Total Liabilities 328,691 547,927
Commitments and contingencies (Note 6)   
Net Assets  $ 245,091,546  $ 252,582,801
     
NET ASSETS    
Common stock, par value $0.01 per share (100,000,000 authorized; 19,320,100 and 19,320,100 issued and outstanding, respectively)  $ 193,201  $ 193,201
Paid-in capital in excess of par  275,837,514  275,837,514
Accumulated net investment loss  (12,884,470)  (10,316,745)
Accumulated net realized loss on investments  (4,727,411)  (1,380,519)
Accumulated net unrealized depreciation on investments  (13,327,288)  (11,750,650)
Net Assets  $ 245,091,546  $ 252,582,801
    
Net Asset Value Per Share  $ 12.69  $ 13.07
 
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
     
 Three months ended
March 31, 2013
Three months ended
March 31, 2012
INVESTMENT INCOME  
Interest income from non-control/non-affiliated securities $ --   $ 112,101
Dividend income 4,535 5,704
Total Investment Income 4,535 117,805
     
OPERATING EXPENSES    
Investment management fees 1,283,599 621,926
Costs incurred under administration agreement 887,984 345,594
Directors' fees 65,250 42,500
Professional fees 236,886 131,845
Insurance expense 53,013 46,669
Investor relations expense 43,562 14,250
Other expenses 1,966 9,023
Total Operating Expenses 2,572,260 1,211,807
     
Net Investment Loss  (2,567,725)  (1,094,002)
     
Net Realized Loss on Investments  (3,346,892)  (256)
     
Net Change in Unrealized Appreciation (Depreciation) on Investments  (1,576,638)  1,011,195
     
Net Decrease in Net Assets Resulting From Operations  $ (7,491,255)  $ (83,063)
     
Net Decrease in Net Assets Resulting From Operations Per Common Share  $ (0.38)  $ (0.01)
     
Weighted Average Common Shares Outstanding 19,320,100 9,387,133
 
 
FINANCIAL HIGHLIGHTS
(Unaudited)
 

Three months ended 
March 31, 2013
 

Three months ended 
March 31, 2012
 

 Year ended
December 31, 2012
 For the period from
January 6, 2011
(date of inception) to
December 31, 2011
 
Per Share Data:                
Net asset value at beginning of period $ 13.07   $ 12.95   $ 12.95   $ --  
Issuance of common shares  --     1.14 (3) 1.91 (4)  14.67 (5)
Underwriters' discount  --     (0.58) (2)  (0.72) (2)  (0.86) (2)
Offering costs  --     (0.03) (2)  (0.04) (2)  (0.19) (2)
Net investment loss  (0.13) (1)  (0.12) (2)  (0.51) (1)  (0.37) (2)
Realized loss  (0.17) (1)  --     (0.09) (1)  --   
Change in unrealized depreciation  (0.08) (1)  0.11 (2)  (0.43) (6)  (0.30) (2)
Net asset value at end of period $ 12.69   $ 13.47   $ 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 three months ended March 31, 2012 is based on the change in net asset value from the secondary offering on February 10, 2012.
(4)  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.
(5)  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.
(6)  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
March 31, 2013
(Unaudited)
           

Portfolio Investments*
Headquarters /
Industry

Shares
 
Cost 

Fair Value 
% of Net Assets
           
Twitter, Inc. San Francisco, CA        
Common shares Social 1,835,600  $ 31,755,821  $ 34,013,669 13.88%
Preferred shares, Series A Communication 65,000 1,235,290 1,204,450 0.49%
Total     32,991,111 35,218,119 14.37%
           
Palantir Technologies, Inc. Palo Alto, CA        
Common shares, Class A Cyber Security 7,145,690 20,051,479 19,650,648 8.02%
Preferred shares, Series G   326,797 1,008,968 973,855 0.40%
Total     21,060,447 20,624,503 8.42%
           
Dropbox, Inc. San Francisco, CA        
Common share Online 760,000 8,641,153 8,674,133 3.54%
Preferred shares, Series A-1 Storage 552,486 5,015,333 6,305,707 2.57%
Total     13,656,486 14,979,840 6.11%
           
Chegg, Inc. Santa Clara, CA        
Common shares Textbook Rental 1,274,193 10,012,543 9,763,275 3.98%
Preferred shares, Series F   500,000 4,008,654 4,431,600 1.81%
Total     14,021,197 14,194,875 5.79%
           
Violin Memory, Inc. Mountain View, CA        
Preferred shares, Series B Flash 800,000 4,800,798 4,189,312 1.71%
Preferred shares, Series D Memory 1,666,666 10,018,370 9,999,996 4.08%
Total     14,819,168 14,189,308 5.79%
           
2U, Inc. (f/k/a 2tor, Inc.) Landover, MD        
Common shares Online Education 1,151,802 8,757,599 8,963,899 3.66%
Preferred shares, Series A   167,431 1,273,125 1,303,032 0.53%
Total     10,030,724 10,266,931 4.19%
           
Avenues World Holdings LLC (3) New York, NY        
Preferred shares, Class A-1 Globally-focused 5,000,000 10,026,005 10,037,500 4.10%
  Private School        
           
Solexel, Inc. Milpitas, CA        
Preferred shares, Series C Solar Power 4,576,659 10,016,559 10,000,000 4.08%
           
Kno, Inc. Santa Clara, CA        
Preferred shares, Series C Digital 440,313 2,262,006 2,249,999 0.92%
Preferred shares, Series C-1 Textbooks 1 7,510,334 7,500,000 3.06%
Common shares   50,000 214,681 162,025 0.07%
Total     9,987,021 9,912,024 4.05%
           
Facebook, Inc. (8) Menlo Park, CA        
Common shares, Class B Social Networking 350,000 10,472,294 8,953,000 3.65%
           
Control4 Corporation Salt Lake City, UT        
Common shares Home Automation 4,070,667  $ 7,011,025  $ 7,261,052 2.96%
           
SugarCRM, Inc. Cupertino, CA        
Common shares Customer 1,086,047 3,813,378 3,801,165 1.55%
Preferred shares, Series E Relationship 373,134 1,500,247 1,499,999 0.61%
Total Manager   5,313,625 5,301,164 2.16%
           
Totus Solutions, Inc. (2) Carrollton, TX        
Common shares LED Lighting 20,000,000 5,023,748 3,960,000 1.62%
           
Grockit, Inc. (2) San Francisco, CA        
Preferred shares, Series D Online Test 2,728,252 2,005,945 2,247,398 0.92%
Preferred shares, Series E Preparation 1,731,501 1,503,670 1,499,999 0.61%
Total     3,509,615 3,747,397 1.53%
           
StormWind, LLC (2) (5) Scottsdale, AZ        
Preferred shares, Series B Interactive Learning 3,279,629 2,019,687 3,552,931 1.45%
  Platform        
           
Bloom Energy Corporation Sunnyvale, CA        
Common shares Fuel Cell Energy 201,589 3,855,601 3,408,870 1.39%
           
Fullbridge, Inc. (2) Cambridge, MA        
Preferred shares, Series C Business Education 1,728,724 3,260,465 3,250,001 1.33%
           
Spotify Technology S.A. (8) Stockholm, Sweden        
Common shares Music Streaming Service 3,658 3,598,472 3,164,575 1.29%
           
Gilt Groupe, Inc. New York, NY        
Common shares e-Commerce 248,600 6,594,346 3,115,269 1.27%
  Flash Sales        
           
ZocDoc Inc. New York, NY        
Preferred shares, Series A Online Medical Scheduling 200,000 3,563,178 3,100,000 1.26%
           
Global Education Hong Kong        
Learning (Holdings) Ltd. (2) (8)  Education        
Preferred shares, Series A  Technology 1,472,175 2,999,998 3,076,110 1.26%
           
Parchment, Inc. Scottsdale, AZ        
Preferred shares, Series D E-Transcript  2,400,384  $ 3,000,000  $ 3,036,486 1.24%
  Exchange        
           
Whittle Schools, LLC (2) (4) New York, NY        
Preferred shares, Series B Globally-focused 3,000,000 3,000,000 3,000,000 1.22%
  Private School        
           
CUX, Inc. (d/b/a CorpU) (2) San Francisco, CA        
Preferred shares, Series C Corporate Education 246,305 2,006,077 1,999,997 0.82%
Preferred shares, Series C-1   50,960 519,989 517,244 0.21%
Total     2,526,066 2,517,241 1.03%
           
SharesPost, Inc. San Bruno, CA        
Preferred shares, Series B Online Marketplace 1,771,653 2,257,984 2,232,283 0.91%
Common warrants, $0.13 strike price, expire 6/15/2018 (Finance) 770,934 23,128 146,477 0.06%
Total     2,281,112 2,378,760 0.97%
           
TrueCar, Inc. Santa Monica, CA        
Common shares Online Marketplace  377,358 2,014,863 2,307,922 0.94%
  (Cars)        
           
Maven Research, Inc. (2) San Francisco, CA        
Preferred shares, Series B Knowledge 49,505 217,206 293,713 0.12%
Preferred shares, Series C Networks 318,979 1,999,998 1,892,501 0.77%
Total     2,217,204 2,186,214 0.89%
           
Dailybreak, Inc. (2) Boston, MA        
Preferred shares, Series A-1 Social Advertising 1,545,181 2,000,000 2,097,583 0.86%
           
Dataminr, Inc. New York, NY        
Preferred shares, Series B Social Media  904,977 2,060,791 2,036,198 0.83%
  Analytics        
           
The Echo System Corp. (1)(2) New York, NY        
Preferred shares, Series A Social Analytics 512,365 1,436,404 1,607,545 0.66%
Preferred warrants, $0.20 strike price, expire 11/14/2016   68,359 75,988 60,156 0.02%
Total     1,512,392 1,667,701 0.68%
           
Silver Spring Networks, Inc. (9) Redwood City, CA        
Common shares Smart Grid 102,028  $ 5,145,271  $ 1,591,331 0.65%
           
AltEgo, LLC (2) (6) Santa Monica, CA        
Preferred shares, Series B-2 Social Media Customer Acquisition Platform 1,400,000 1,420,406 1,194,200 0.49%
           
S3 Digital Corp. (d/b/a S3i) (2) New York, NY        
Preferred shares, Class A1 Sports Analytics 1,033,452 989,058 1,050,504 0.43%
Preferred warrants, $1.00 strike price, expire 11/21/2017   500,000 31,354  --  --%
Total     1,020,412 1,050,504 0.43%
           
NestGSV, Inc. (2) Redwood City, CA        
Preferred shares, Series A Incubator 1,000,000 1,021,778 976,000 0.40%
           
The rSmart Group, Inc. Scottsdale, AZ        
Preferred shares, Series B Higher Education Learning Platform 1,201,923 1,266,940 911,058 0.37%
           
DreamBox Learning, Inc. Bellevue, WA        
Preferred shares, Series A Education 3,579,610 758,017 787,514 0.32%
  Technology        
           
AlwaysOn, Inc. (1)(2) Woodside, CA        
Preferred shares, Series A Social Media 1,066,626 1,027,391 203,011 0.08%
Preferred shares, Series A-1   2,101,612 416,706 400,000 0.16%
Total     1,444,097 603,011 0.24%
           
Ozy Media, Inc. Mountain View, CA        
Preferred shares, Series Seed Social Media 500,000 500,000 512,250 0.21%
           
Starfish Holdings, Inc. (d/b/a YourOffers) (2) Beverly Hills, CA        
Preferred shares, Series A, and common warrants, $0.00001 strike price, expire 11/13/2019 Marketing Platform 43,878,894 2,029,695 500,000 0.20%
           
NestGSV Silicon Valley, LLC (2) (7) Redwood City, CA        
Common membership interest Incubator $ 500,000 500,000 500,000 0.20%
           
SinoLending Ltd. (2) (8) Shanghai, China        
Preferred shares, Class A Chinese P2P Lending 6,414,368 501,998 474,663 0.19%
           
NewZoom, Inc. (d/b/a ZoomSystems) San Francisco, CA        
Preferred shares, Series A Smart e-tail (Retail) 1,250,000  $ 260,476  $ 262,500 0.12%
           
Neuron Fuel, Inc. San Jose, CA        
Preferred shares, Series AAI Computer Software 250,000 262,530 250,000 0
           
Serious Energy, Inc. (8) Sunnyvale, CA        
Common shares Green Materials 178,095 739,130  --  --%
           
Top Hat 430, Inc. (2) (8) (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     235,481,893 222,154,605 90.65%
         
Money Market Funds (1)          
Fidelity Institutional Money Market Funds          
Money Market Portfolio   8,000,000 8,000,000 8,000,000 3.26%
Prime Money Market Portfolio   8,000,000 8,000,000 8,000,000 3.26%
Total Money Market Funds     16,000,000 16,000,000 6.52%
           
Total Investments      $ 251,481,893  $ 238,154,605 97.17%
           
* 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 of the voting securities of such company.
(3) GSV Capital Corp.'s investment in Avenues World Holdings LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.
(4) GSV Capital Corp.'s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc.
(5) GSV Capital Corp.'s investment in StormWind, LLC is held through its wholly-owned subsidiary GSVC SW Holdings, Inc.
(6) GSV Capital Corp.'s investment in AltEgo, LLC is held through its wholly-owned subsidiary GSVC AE Holdings, Inc.
(7) GSV Capital Corp.'s investment in NestGSV Silicon Valley, LLC is held through its wholly-owned subsidiary GSVC NG Holdings, Inc.
(8) 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.
(9) On March 12, 2013, Silver Spring Networks, Inc. priced its initial public offering, selling 4,750,000 shares at a price of $17 per share. GSV Capital Corp.'s shares in Silver Spring Networks, Inc. are subject to a lock-up agreement that expires on September 8, 2013. At March 31, 2013, GSV Capital Corp. valued Silver Spring Networks, Inc. based on its March 31, 2013 closing price.
(10) On March 25, 2013, Top Hat 430, Inc. filed for Chapter 7 bankruptcy after filing for Chapter 11 bankruptcy in February 2013 and failing to reach a reorganization agreement.
CONTACT: Financial Profiles, Inc.

         Tricia Ross, (650) 235-4769

         gsv@finprofiles.com


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