August 4, 2016

GSV Capital Corp. Reports Second Quarter 2016 Financial Results and Declares a $0.04 Dividend per Share

Net Asset Value of $10.22 per Share as of June 30, 2016

WOODSIDE, Calif., Aug. 04, 2016 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (Nasdaq:GSVC) today announced financial results for the quarter ended June 30, 2016. Net assets totaled approximately $226.8 million, or $10.22 per share, at June 30, 2016, as compared to $10.96 per share at March 31, 2016. 

"We are pleased to report that our Board of Directors announced a $0.04 per share cash dividend," said Michael Moe, Chief Executive Officer of GSV Capital. "We believe the GSV Capital portfolio continues to demonstrate strong fundamentals, with average year-over-year revenue growth on track to exceed 100% for the third straight year. Our second quarter investment in Snapchat, coupled with the successful monetization of selected holdings in the same period, reinforces our commitment to creating long-term stockholder value by connecting public investors with some of the most dynamic, venture-backed private companies in the world."

Dividend Information

On August 3, 2016, GSV Capital's Board of Directors declared a per share cash dividend of $0.04 payable on August 24, 2016 to the Company's stockholders of record as of the close of business on August 16, 2016.

Investment Portfolio as of June 30, 2016

At June 30, 2016, GSV Capital held positions in 47 portfolio companies with an aggregate fair value of approximately $313.0 million. Excluding Treasuries, the Company's three largest investments comprised 25.1% of its total portfolio at fair value, while its top ten portfolio company investments accounted for 53.6% of the total portfolio at fair value.

 
Top Ten Investments at June 30, 2016
     
$ in millions (rounded) Fair Value% of Total Portfolio 
Palantir Technologies, Inc. $45.2 14.4%
Dropbox, Inc.  17.3 5.5 
Spotify Technology S.A.  16.2 5.2 
Coursera, Inc.  14.4 4.6 
PayNearMe, Inc.  14.0 4.5 
Twitter, Inc.  13.5 4.3 
Declara, Inc.  12.0 3.8 
General Assembly Space, Inc.  11.9 3.8 
JAMF Holdings, Inc.  11.7 3.7 
Curious.com, Inc.  11.6 3.7 
Total (rounded) $167.9 53.6%
       

Of the five key investment themes GSV Capital has identified in its portfolio, Cloud Computing and Big Data is its largest commitment, accounting for 32.7% of the total portfolio at fair value. Education Technology represents 30.3% of the total portfolio at fair value, and Social Mobile, Marketplaces and Sustainability represent 17.7%, 14.9% and 4.4% of the total portfolio at fair value, respectively.

Second Quarter 2016 Portfolio Investment Activity

In the second quarter of 2016, GSV Capital invested approximately $4.5 million, including a new investment of approximately $4.0 million in Snapchat and a $500,000 follow-on investment in nestGSV (d/b/a GSVlabs).

GSV Capital sold shares in the following portfolio company during the second quarter:

            
     Average      
   Shares Net Share Net Realized  
Portfolio Company  Sold Price 1 Proceeds Gains 2 IRR
            
Lyft, Inc.  81,667 $23.67  $1,932,965  $1,104,244   48.2%
                    

(1)     The average net share price is the net share price realized after deducting all commissions and fees on the sale(s).
(2)     Realized gains exclude any realized gains/(losses) incurred on the maturity of GSV Capital's treasury investments.

Subsequent to second quarter-end, through August 4, 2016, GSV Capital sold shares in the following portfolio companies:

            
     Average      
   Shares Net Share Net Realized  
Portfolio Company  Sold Price 1 Proceeds Gains 2 IRR
            
Lyft, Inc.  100,000 $24.00  $2,400,000  $1,383,880   43.9%
Twitter, Inc.  800,600 $18.21  $14,578,469  $306,603   0.4%
            

(1)     The average net share price is the net share price realized after deducting all commissions and fees on the sale(s).
(2)     Realized gains exclude any realized gains/(losses) incurred on the maturity of GSV Capital's treasury investments.

At quarter-end, GSV Capital had $3.5 million of borrowings outstanding and $14.5 million of borrowing capacity available under its $18.0 million credit facility. As of August 4, 2016, GSV Capital had no borrowings outstanding and $18.0 million of borrowing capacity available to it under its credit facility.

   
Second Quarter 2016 Financial Results  
 Quarter Ended
June 30, 2016
Quarter Ended
June 30, 2015
 $ in millions
(rounded)
per share$ in millions
(rounded)
 per share

Net investment loss
$(1.4)$(0.06)$(3.6)$(0.19)
     
Net realized gains$1.1 $0.05 $13.6 $0.71 
     
Provision for taxes on net realized
gains
 -  - $(5.6)$(0.29)
     
Net change in unrealized depreciation
of investments
$(15.9)$(0.72)$(5.7)$(0.29)
     
Benefit for taxes on unrealized
depreciation of investments
 -  - $2.4 $0.12 
     
Net increase/(decrease) in net assets
resulting from operations - basic
$(16.3)$(0.74)$1.1 $0.06 
     

Weighted-average common basic shares outstanding were approximately 22.2 million for the quarter ended June 30, 2016 and 19.3 million for the quarter ended June 30, 2015.

GSV Capital's liquid assets ended the quarter at $36.4 million, consisting of $2.5 million of cash, $14.5 million of unused borrowings available under the Company's credit facility and $19.5 million of public securities not subject to lock-up agreements, none of which are subject to periodic sales restrictions.

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 888-819-8001, and the conference call number for participants outside of the United States is 1-913-312-0398. The conference ID number for both call numbers is 8543219. 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 August 11, 2016 by dialing 888-203-1112 (U.S.) or 1-719-457-0820 (international) and using conference ID number 8543219.

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 Company 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

Follow GSV Capital on Twitter: @gsvcap

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 our future performance, condition or results of operations 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, unless required to do so by law.

 
 GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
 
 June 30, 2016 December 31, 2015
    
ASSETS   
Investments at fair value:     
Investments in controlled securities (cost of $22,831,552 and $21,830,392, respectively) (1)$ 23,666,295  $ 22,871,790 
Investments in affiliated securities (cost of $71,994,560 and $73,942,123, respectively) (1)  62,705,806     66,075,585 
Investments in non-controlled/non-affiliated securities (cost of $197,104,024 and $197,577,328,
respectively)
  226,652,817     260,861,392 
Investments in treasury bill (cost of $29,999,640 and $29,999,968, respectively)  29,999,700    30,000,000 
Investments owned and pledged (amortized cost of $1,849,291 and $3,675,192, respectively) (2)  1,850,371    3,676,693 
Total Investments (cost of $323,779,067 and $327,025,003, respectively)  344,874,989    383,485,460 
      
Cash  2,457,294    13,349,877 
Restricted cash  75,681    52,931 
Due from:     
GSV Asset Management (1)  1,623    220,770 
Portfolio companies (1)  52,492    56,371 
Interest and dividends receivable    127,800    97,183 
Prepaid expenses and other assets   163,720    227,826 
Deferred financing costs (3)  298,984     352,653 
Total Assets  348,052,583     397,843,071 
      
LIABILITIES     
Due to:     
GSV Asset Management (1)  532,690    5,047,429 
Accounts payable and accrued expenses   246,097    105,587 
Accrued incentive fees (1)   9,288,757    17,314,565 
Accrued management fees (1)   583,472    683,423 
Accrued interest payable   1,056,563    1,056,563 
Payable for securities purchased   26,499,600    26,499,357 
Deferred tax liability   12,476,155    12,476,155 
Line of credit payable   3,500,000    - 
Convertible Senior Notes payable 5.25% due September 15, 2018 (2)(3)   67,077,582     66,649,047 
Total Liabilities  121,260,916     129,832,126 
      
Commitments and contingencies (Note 6)     
      
Net Assets$ 226,791,667  $ 268,010,945 
      
NET ASSETS     
Common stock, par value $0.01 per share     
(100,000,000 authorized; 22,181,003 issued and outstanding, respectively)$ 221,810  $  221,810 
Paid-in capital in excess of par  237,757,527     237,757,527 
Accumulated net investment loss   (17,518,071)    (16,634,037)
Accumulated net realized gains (losses) on investments   (2,289,367)    2,681,342 
Accumulated net unrealized appreciation of investments   8,619,768     43,984,303 
Net Assets$ 226,791,667  $  268,010,945 
      
Net Asset Value Per Share$ 10.22  $ 12.08 
      

(1)   This balance is a related-party transaction.
(2)  The Convertible Senior Notes have a face value of $69,000,000. In accordance with the terms of the Company's Convertible Senior Notes payable, the Company deposited $10,867,500 in an escrow account with U.S. Bank National Association, the trustee. These funds were used to purchase six U.S. Treasury Strips with an original cost of $10,845,236. As of June 30, 2016, five of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At June 30, 2016, the remaining government securities are scheduled to mature on August 15, 2016 and are shown on the Condensed Consolidated Statements of Assets and Liabilities as "Investments owned and pledged" with an amortized cost of $1,849,291.
(3)  Deferred debt issuance costs of $1,947,572 related to the Company's issuance of the Convertible Senior Notes payable were previously classified as "Deferred financing costs" as of December 31, 2015.  In accordance with ASU 2015-03, this balance has been retrospectively reclassified as a direct deduction from the Convertible Senior Notes on the Condensed Consolidated Statements of Assets and Liabilities at June 30, 2016. 

 
GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2016   2015   2016   2015 
INVESTMENT INCOME        
Interest income from controlled securities (1) $
 15,528  -   20,417  - 
Interest income / (reversal of interest accrual) from affiliated
securities (1) (3)
    (73,894)   69,165     18,584    120,396 
Interest income from non-controlled/non-affiliated securities   4,247    7,945    9,532    15,738 
Dividend income from non-controlled/non-affiliated
securities
   -    46,781    -    46,781 
Total Investment Income    (54,119)  123,891   48,533   182,915 
         
OPERATING EXPENSES        
Management fees (1)   1,740,223    2,010,385    3,698,223    3,931,513 
(Reversal of incentive fee accrual)/Incentive fees (1)   (2,907,224)   1,565,339    (8,025,808)   9,777,067 
Costs incurred under administration agreement (1)    698,692     785,036     1,298,642     1,587,432 
Directors' fees   86,250    107,500    172,500    192,806 
Professional fees   367,375    394,228    1,004,503    735,972 
Interest expense   1,184,326    1,228,783    2,367,489    2,597,586 
Other expenses   207,280    143,153    417,018    264,478 
Gain on fair value adjustment for embedded derivative   -    (1,000)   -    (1,000)
Total Operating Expenses    1,376,922     6,233,424     932,567     19,085,854 
         
Benefit for taxes on net investment loss  -    2,494,459   -    7,718,070 
         
Net Investment Loss  (1,431,041)   (3,615,074)  (884,034)   (11,184,869)
         
Net Realized Gains/(Losses):          
From non-controlled/non-affiliated securities  1,104,361    13,636,614   (4,970,709)   26,855,017 
Net Realized Gains/(Losses) on investments  1,104,361    13,636,614   (4,970,709)   26,855,017 
         
Provision for taxes on realized        
gains on investments  -    (5,567,830)  -    (10,964,904)
         
Net Change in Unrealized Appreciation/        
(Depreciation) on investments:        
From controlled securities   60,073    (8,277)   (206,655)   (33,572)
From affiliated securities   (5,229,279)   (804,967)   (6,377,466)   (657,088)
From non-controlled/non-affiliated securities   (10,774,328)   (4,931,155)   (28,780,414)   22,730,342 
Total Change in Unrealized Appreciation/        
(Depreciation) on investments  (15,943,534)   (5,744,399)  (35,364,535)   22,039,682 
         
(Provision)/Benefit for taxes on unrealized        
appreciation/depreciation on investments  -    2,372,190   -   (8,998,803)
         
Net Increase/(Decrease) in Net Assets        
Resulting from Operations  (16,270,214)  1,081,501  (41,219,278) 17,746,123 
         
Net Increase/(Decrease) in Net Assets Resulting        
from Operations per Common Share        
Basic (0.74)  0.06  (1.86) 0.92 
Diluted (2) (0.74)  0.06  (1.86) 0.81 
         
Weighted-Average Common Shares Outstanding         
Basic  22,181,003   19,320,100   22,181,003   19,320,100 
Diluted (2)  22,181,003   19,320,100   22,181,003   23,564,228 
                 

(1)   This balance is a related-party transaction.
(2)   For each of the three and six months ended June 30, 2016, 5,710,212 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase/(decrease) in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive. For the three months ended June 30, 2015, 4,244,128 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.
(3)   Interest income for the three and six months ended June 30, 2016 reflects the reversal of previously accrued interest from loans to Fullbridge, Inc.

 
GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited)
 
  Three months ended  Three months ended  
  June 30, 2016  June 30, 2015  
Per Share Data:       
Net asset value at beginning of period  10.96  $ 15.66   
Net investment loss   (0.06) (1)
    (0.19) (1) 
Realized gain   0.05 (1)
    0.71  (1) 
Provision for taxes on net realized capital gains   -  (1
)    (0.29) (1) 
Net change in unrealized depreciation   (0.72)(1
)    (0.29) (1) 
Benefit for taxes on unrealized depreciation of investments   -  (1
)
    0.12  (1) 
Net asset value at end of period  10.22  $  15.72   
        
Per share market value at end of period 5.02  $ 10.31   
Total return based on market value  (10.36)%(2)   5.20%  (2) 
Total return based on net asset value  (6.75)%(2)
   0.38%  (2) 
Shares outstanding at end of period  22,181,003    19,320,100   
   .    
Ratio/Supplemental Data:       
Net assets at end of period 226,791,667  $  303,649,796   
Average net assets 240,847,024   $  295,688,346   
        
Annualized ratios       
Ratio of gross operating expenses to average net assets (3)  2.29 %   8.55%  
Ratio of net income tax provisions to average net assets (3)  -   (0.96)%  
Ratio of net operating expenses to average net assets (3)  2.29   7.59  
        
Ratio of net investment loss to       
average net assets (3)  (2.38)%   (4.96)%  
        
Portfolio Turnover Ratio  0.61%   0.39%  
        
        
  Six months ended  Six months ended  
  June 30, 2016  June 30, 2015  
Per Share Data:       
Net asset value at beginning of period$ 12.08 (1) $ 14.80  (1) 
Net investment loss   (0.04)(1)    (0.58) (1) 
Realized gain/(loss)   (0.22)(1)    1.39  (1) 
Provision for taxes on net realized capital gains   -  (1)    (0.57) (1) 
Net change in unrealized appreciation/(depreciation)   (1.59)(1)    1.15  (1) 
Provision for taxes on unrealized appreciation of investments   -      (0.47)  
Net asset value at end of period$  10.22  $  15.72   
        
Per share market value at end of period$ 5.02  $ 10.31   
Total return based on market value  (24.05)%(2)   19.47 (2) 
Total return based on net asset value  (15.40)%(2)   6.22 (2) 
Shares outstanding at end of period  22,181,003    19,320,100   
        
Ratio / Supplemental Data:       
Net assets at end of period$ 226,791,667   $  303,649,796   
Average net assets$ 262,765,524   $   293,486,377   


Annualized ratios       
Ratio of gross operating expenses to average net assets (3)  0.71%   13.11%  
Ratio of net income tax provisions to average net assets (3)  -%   (8.41)%  
Ratio of net operating expenses to average net assets (3)  0.71%   4.70  
        
Ratio of net investment loss to average net assets (3)  (0.67)%   (7.69)%  
        
Portfolio Turnover Ratio  2.12%   2.72  


 (1)Based on weighted-average number of shares outstanding for the 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 each of the three and six months ended June 30, 2016 and 2015, 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.
(650) 235-4769
IR@gsvam.com


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