May 7, 2015

GSV Capital Corp. Reports First Quarter 2015 Results of Operations

Net Asset Value of $15.66 Per Share as of March 31, 2015

WOODSIDE, Calif., May 7, 2015 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the first quarter ended March 31, 2015. Net assets totaled $302.6 million or $15.66 per share at March 31, 2015, as compared to $14.80 per share at December 31, 2014, and $14.91 per share at March 31, 2014.

"We are pleased to report that Q1 2015 marks an important milestone as we achieved the highest NAV since inception. In addition, our portfolio is exhibiting strong fundamental momentum which we believe will continue to positively impact NAV over time," said Michael Moe, Chief Executive Officer of GSV Capital. "Lastly, we have continued to monetize our position in Twitter with meaningful returns this quarter, and will continue to do so to optimize returns for our shareholders."

Investment Portfolio as of March 31, 2015

At March 31, 2015, GSV owned positions in 52 portfolio companies with an aggregate fair value of $401.4 million. Excluding Treasuries, the Company's three largest investments comprised 34.2% of the total portfolio value, while its top ten portfolio companies accounted for approximately 60.0% of the total portfolio value.

     
Top Ten Investments at March 31, 2015
     
$ in millions (rounded) Fair Value % of Total Portfolio
Twitter, Inc.  $ 60.1 15.0%
Palantir Technologies, Inc. 46.4 11.6
2U, Inc. 30.4 7.6
Dropbox, Inc. 25.6 6.4
Coursera, Inc. 14.5 3.6
Solexel, Inc. 14.0 3.5
PayNearMe, Inc. 14.0 3.5
Dataminr, Inc. 11.9 3.0
SugarCRM, Inc. 11.9 3.0
Avenues Global Holdings, LLC 11.3 2.8
Total (rounded)  $ 240.1 60.0%
     

Of the five key investment themes GSV has identified in its portfolio, Education Technology continues to be its largest commitment, constituting 35.1% of the total portfolio. Cloud Computing and Big Data represents 29.1% of the total portfolio, and Social Mobile, Marketplaces and Sustainability make up 21.5%, 8.7%, and 5.6% of the total portfolio, respectively.

First Quarter 2015 Portfolio Investment Activity

In the first quarter of 2015, GSV invested approximately $9.0 million, including follow-on investments of $4.0 million in PayNearMe, $2.5 million in Lyft, $1.0 million in GSVlabs, $1.0 million in the Fullbridge Program, and $0.5 million in GSV Sustainability Partners.

During the first quarter of 2015, GSV sold shares in the following public portfolio company:

           
   Average      
 SharesShareNetRealized  
Portfolio CompanySoldPriceProceedsGain/LossIRR
           
Twitter, Inc. 400,000  $ 48.90 $19,558,200 $13,220,095 39.3%
           

At March 31, 2015, GSV had investments in 48 private companies and 4 public companies (2U, Chegg, Cricket Media (f/k/a ePals Inc.) and Twitter). In general, management intends to liquidate its public securities holdings within one year following the expiration of the IPO lock-up.

Subsequent to quarter end, until May 7, 2015, GSV sold an additional 400,000 shares of Twitter at an average price of $51.52 per share, resulting in $20.6 million in net proceeds, $13.7 million in realized gains, and a 43.5% IRR. At quarter end, GSV had utilized $16.0 million of borrowings under its credit facility, and as of May 7, 2015, GSV has $18.0 million of borrowing capacity available to it under its credit facility.

As GSV's portfolio matures and realizes a cumulative net realized gain, GSV intends to distribute a portion of such gains to shareholders in the form of a distribution, though it is not certain as to when GSV will be able to do so.

First Quarter 2015 Financial Results

         
 Three Months EndedThree Months Ended
 March 31, 2015March 31, 2014
 $ in millions
(rounded)

per share
$ in millions
(rounded)

per share
Net investment loss  $ (7.6)  $ (0.39)  $ (2.8)  $ (0.14)
         
Realized gain  $ 13.2  $ 0.68  $ 7.9  $ 0.41
         
Provision for taxes on net realized capital gains  $ (5.4)  $ (0.28)  $ (3.2)  $ (0.17)
         
Change in unrealized appreciation (depreciation)  $ 27.8  $ 1.44  $ (3.1)  $ (0.16)
         
(Provision) / Benefit for taxes on unrealized appreciation / depreciation of investments  $ (11.4)  $ (0.59)  $ 1.3  $ 0.06
         
Net increase in net assets resulting from operations - basic  $ 16.7  $ 0.86  $ 0.1  $ 0.00
         

Weighted average common basic shares outstanding were 19.3 million for the three months ended March 31, 2015 and March 31, 2014.

Our liquid assets ended the quarter at $110.3 million, consisting of $8.1 million of cash, $2.0 million of unused borrowings available under the credit facility, and $100.2 million of public securities not subject to lock-up agreements, of which $30.7 million are subject to other sales restrictions.

New Independent Registered Public Accounting Firm

On April 27, 2015, upon the recommendation of the Audit Committee, GSV's Board of Directors appointed Deloitte & Touche LLP ("Deloitte") to serve as GSV's new independent registered public accounting firm to audit GSV's consolidated financial statements for the fiscal year ending December 31, 2015, subject to ratification by our stockholders. Please see GSV's Current Report on Form 8-K, as filed with the Securities and Exchange Commission (the "SEC") on April 28, 2015, for more information.

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 800-818-6592, and the conference call number for participants outside the U.S. is 1 719-457-2657. The conference ID number for both call numbers is 7129206. 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 14, 2015 by dialing 888-203-1112 (U.S.) or 1 719-457-0820 (international), using conference ID number 7129206.

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

www.gsvcap.com

Follow GSV Capital on Twitter: @gsvcap

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 SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.

     
GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
     
 March 31, 2015December 31, 2014
ASSETS(Unaudited) 
Investments at fair value:    
Investments in controlled securities (cost of $19,435,647 and $17,933,651, respectively) (1)  $ 20,179,675  $ 18,819,335
Investments in affiliated securities (cost of $85,749,640 and $80,760,208, respectively) (1) 75,411,267 70,172,313
Investments in non-controlled/non-affiliated securities (cost of $198,586,069 and $202,417,830, respectively) 305,832,821 281,992,669
Investments in treasury bill (cost of $100,013,333 and $100,001,692, respectively) 100,013,333 100,000,056
Investments owned and pledged (cost of $5,478,126 and $7,286,332, respectively) 5,492,502 7,298,042
Total Investments (cost of $409,262,815 and $408,399,713, respectively) 506,929,598 478,282,415
     
Cash 8,060,624 3,472,880
Restricted cash 41,181 48,889
Due from:    
GSV Asset Management(1) 105,844 204,825
Portfolio companies(1) 77,436 85,356
Interest and dividends receivable 63,789 26,671
Prepaid expenses and other assets 464,561 596,926
Deferred financing costs 2,778,169 2,928,134
Total Assets 518,521,202 485,646,096
     
LIABILITIES    
Due to:    
GSV Asset Management(1) 30,255 23,396
Accounts payable and accrued expenses 184,912 292,950
Accrued incentive fees (1) 22,349,627 14,137,899
Accrued management fees (1) 641,209 641,276
Accrued interest payable 150,938 1,139,458
Payable for securities purchased 89,513,333 90,001,692
Current taxes payable 134,733 134,733
Deferred tax liability 18,452,122 6,907,666
Line of credit payable 16,000,000 18,000,000
Convertible senior notes embedded derivative liability 1,000 1,000
Convertible senior notes payable 5.25% due September 15, 2018 68,494,778 68,462,353
Total Liabilities 215,952,907 199,742,423
Commitments and contingencies    
Net Assets  $ 302,568,295  $ 285,903,673
     
NET ASSETS    
Common stock, par value $0.01 per share    
(100,000,000 authorized; 19,320,100 issued and outstanding)  $ 193,201  $ 193,201
Paid-in capital in excess of par 275,837,514 275,837,514
Accumulated net investment loss (39,542,087) (31,972,292)
Accumulated net realized gain on investments 8,318,111 496,782
Accumulated net unrealized appreciation on investments 57,761,556 41,348,468
Net Assets  $ 302,568,295  $ 285,903,673
     
Net Asset Value Per Share  $ 15.66  $ 14.80
     
(1) This balance is a related party transaction.
     
     
GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
     
 Three months endedThree months ended
 March 31, 2015March 31, 2014
INVESTMENT INCOME   
Interest income from affiliated securities  $ 51,231  $ 39,928
Interest income from non-affiliated/non-controlled securities 7,793 --
Dividend income from affiliated securities -- 887
Total Investment Income 59,024 40,815
     
OPERATING EXPENSES    
Investment management fees (1) 1,921,128 1,756,196
Accrued incentive fees(1) 8,211,728 969,652
Costs incurred under administration agreement 802,396 908,532
Directors' fees(1) 85,306 65,000
Professional fees 341,744 456,539
Interest and credit facility expense 1,368,803 1,179,725
Other expenses 121,325 132,899
Gain on fair value adjustment for embedded derivative -- (620,000)
Total Operating Expenses 12,852,430 4,848,543
     
Benefit for taxes on net investment loss 5,223,611 2,012,914
     
Net Investment Loss (7,569,795) (2,794,814)
     
Net Realized Gain:    
From non-controlled/non-affiliated securities 13,218,403 7,931,745
Total Realized Gain on investments 13,218,403 7,931,745
     
Provision for Taxes on realized gains on investments (5,397,074) (3,238,531)
     
Net Change in Unrealized Appreciation (Depreciation) on investments:    
From controlled securities (141,656) (355,631)
From affiliated securities 249,522 (256,966)
From non-controlled/non-affiliated securities 27,676,215 (2,461,082)
Change in Unrealized Appreciation (Depreciation) on investments 27,784,081 (3,073,679)
     
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments (11,370,993) 1,254,983
     
Net Increase in Net Assets Resulting From Operations  $ 16,664,622  $ 79,704
     
Net Increase in Net Assets Resulting From Operations Per Common Share    
Basic  $ 0.86 $ --
Diluted  $ 0.73 $ --
     
Weighted Average Common Shares Outstanding    
Basic 19,320,100 19,320,100
Diluted 23,564,228 19,320,100
     
(1) This balance is a related party transaction.
     
         
GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
         
 Three months ended  Three months ended  
 March 31, 2015  March 31, 2014  
Per Share Data(Unaudited)  (Unaudited)  
Net asset value at beginning of period  $ 14.80    $ 14.91  
Net investment loss (0.39)(1) (0.14)(1)
Realized gain 0.68(1) 0.41(1)
Provision for taxes on net realized capital gains (0.28)(1) (0.17)(1)
Change in unrealized appreciation (depreciation) 1.44(1) (0.16)(1)
(Provision)/Benefit for taxes on unrealized appreciation/deprecation of investments (0.59)(1) 0.06(1)
Net asset value at end of period  $ 15.66    $ 14.91  
         
Per share market value at end of period 9.80   10.14  
Total return based on market value 13.56 %(2) (16.13) %(2)
Total return based on net asset value 5.81 %(2) -- %(2)
Shares outstanding at end of period 19,320,100   19,320,100  
         
Ratio / Supplemental Data:        
Net assets at end of period  $ 302,568,295    $ 288,046,148  
Average net assets  $ 296,308,650    $ 287,546,332  
         
Annualized ratios        
Ratio of gross operating expenses to average net assets (3) 17.59 % 6.84 %
Ratio of net income tax provisions to average net assets(3) (15.80) % (0.04) %
Ratio of net operating expenses to average net assets (3) 1.79 % 6.80 %
         
Ratio of net investment loss to average net assets (3) (10.36) % (3.94) %
         
(1) Based on weighted average number of shares outstanding for the year/period.
(2) Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the period. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share
(3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For the three months ended March 31, 2015, March 31, 2014, the Company did not incur any non-recurring expenses. Because the ratios are calculated for the Company's common stock taken as a whole, an individual investor's ratios may vary from these ratios.
         
CONTACT: GSV Capital Corp.

         William Tanona

         (650) 235-4769

         IR@gsvam.com


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