UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

  

FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

 

August 8, 2012

 

GSV CAPITAL CORP.

(Exact name of registrant as specified in its charter)

  

Maryland 1-35156 27-4443543
(State or other jurisdiction  (Commission File Number) (I.R.S. Employer Identification No.)
of incorporation)    

 

2965 Woodside Road

Woodside, CA 94062

(Address of principal executive offices and zip code)

 

Registrant’s telephone number, including area code: (650) 206-2965

 

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02     Results of Operations and Financial Condition.

 

              On August 8, 2012, the registrant issued a press release announcing its financial results for the quarter ended June 30, 2012.  The text of the press release is included as Exhibit 99.1 to this Form 8-K.

 

              The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(a)Not applicable.

 

(b)Not applicable.

 

(c)Not applicable.

 

(d)Exhibits.

  

  Exhibit No.   Description
       
  99.1   Press release dated August 8, 2012

 

 

2
 

 

SIGNATURES 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  

 

Date:August 8, 2012 GSV CAPITAL CORP.
     
     
  By: /s/ Stephen D. Bard
    Stephen D. Bard
    Chief Financial Officer, Chief Compliance Officer, Treasurer and Corporate Secretary

 

 

3

Exhibit 99.1

 

GSV Capital Reports Second Quarter 2012 Results of Operations

 

Net Asset Value (NAV) of Fund was $13.81 per Share as of June 30, 2012

 

WOODSIDE, Calif., August 8, 2012 -- GSV Capital Corp., "GSV", (Nasdaq: GSVC) today reported financial results for the second quarter ended June 30, 2012.

 

Management Commentary

 

"GSV’s portfolio expanded to 34 high-growth venture-backed companies in the second quarter, and we added six more companies since quarter-end.  Today our largest investment as a percentage of net assets is Twitter, followed by Palantir, Violin Memory, Chegg and Dropbox. We continued to build a diversified portfolio across our major investment themes demonstrating an ongoing ability to source and close investments in companies that we believe represent game-changing technology ideas that will drive meaningful growth in the years ahead," said Michael Moe, GSV's CEO and founder. 

 

Portfolio Summary and Investment Activity

 

The total value of GSV's portfolio investments was $171.6 million at June 30, 2012. During the second quarter of 2012, GSV invested approximately $98.5 million in nine new and eight existing portfolio companies.

 

GSV invested in the following new portfolio companies during the second quarter: Avenues World Holdings, Dailybreak, Fullbridge, Global Education Learning, NestGSV, Solexel, Top Hat and Violin Memory.

 

GSV also made additional investments in current portfolio companies AltEgo, Bloom Energy, Chegg, Control4, Dropbox, Kno, Silver Springs Networks and Twitter during the second quarter.

 

 

 

Recent Developments

 

The Company closed on investments totaling $42.5 million, plus transaction costs, subsequent to June 30, 2012, which included investments in 2tor, AltEgo, Dataminr, Gilt Groupe, Maven Research, NestGSV Silicon Valley, Palantir, SinoLending, Spotify, Totus Solutions and Twitter.

 

Portfolio as of June 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 second quarter of 2012, GSV's portfolio included investments in the following companies: AltEgo, AlwaysOn, Avenues World Holdings, Bloom Energy, Chegg, Control4, CUX, Dailybreak, DreamBox Learning, Dropbox, Facebook, Fullbridge, Gilt Groupe, Global Education Learning, Grockit, Groupon, Kno, Maven Research, NestGSV, Palantir, Serious Energy, SharesPost, Silver Spring Networks, Solexel, StormWind, The Echo System, The rSmart Group, Top Hat, TrueCar, Twitter, Violin Memory, ZocDoc, ZoomSystems and Zynga.

 

Financial Results

 

  June 30, 2012
Total Portfolio Investments $171,598,410
Total Investments $187,598,410
Total Cash $79,617,068
Total Assets $267,754,402
Total Liabilities $894,348
Net Assets $266,860,054
Net Asset Value Per Share $13.81

 

2
 

  

   For the three
months ended
June 30, 2012
  For the three
months ended
June 30, 2011
Total Investment Income  $110,354  $-
Net Investment Loss  $(2,080,119)  $(565,305)
Net Realized Loss on Investments  $(1,380,263)  $-
Net Change in Unrealized Depreciation on Investments  $(2,014,512)  $(59,634)
Net Decrease in Net Assets Resulting From Operations  $(5,474,894)  $(624,939)
Net Decrease in Net Assets Resulting From Operations Per Common Share  $(0.34)  $(0.27)
Weighted Average Common Shares Outstanding  16,287,133  2,345,595

 

Results of Operations

 

Investment income was $110,354, or $0.01 per share, for the three months ended June 30, 2012, compared to $0, or $0.00 per share, for the three months ended June 30, 2011. Net investment loss was $2,080,119, or $0.13 per share, in the second quarter of 2012, compared to $565,305, or $0.24 per share, for the prior year period. Net realized loss on investments was $1,380,263, or $0.08 per share, in the second quarter of 2012, compared to $0, or $0.00 per share, for the same period in 2011. Net change in unrealized depreciation was $2,014,512, or $0.12 per share, for the three months ended June 30, 2012, compared to $59,634, or $0.03 per share, for the prior year period. Net decrease in net assets resulting from operations was $5,474,894, or $0.34 per share, and $624,939, or $0.27 per share, for the second quarter of 2012 and 2011, respectively.

 

Conference Call Information

 

The GSV Capital second quarter 2012 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Wednesday, August 8, 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/

 

3
 

 

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.

 

 

Contacts:

 

Media:

Kim Hughes

(415) 516-6187

kim@blueshirtgroup.com

 

Investors:

Alex Wellins

(415) 217-5861

alex@blueshirtgroup.com

 

4
 

 

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Unaudited)

 

   June 30, 2012 
ASSETS     
Investments at fair value:     
  Investments in affiliated securities (cost of $19,828,912)  $19,962,743 
  Investments in non-control/non-affiliated securities (cost of $154,352,615)   151,635,667 
  Investments in money market funds (cost of $16,000,000)   16,000,000 
     Total Investments (cost of $190,181,527)   187,598,410 
      
Cash   79,617,068 
Due from:     
  GSV Asset Management   5,901 
  Portfolio company   246,065 
Accrued interest   9,399 
Prepaid expenses   191,639 
Dividend receivable   2,314 
Other assets   83,606 
      
Total Assets   267,754,402 
      
LIABILITIES     
Due to:     
  GSV Asset Management   17,159 
  Other affiliates   12,717 
Accounts payable   705,028 
Accrued expenses   159,444 
Total Liabilities   894,348 
      
Commitments and contingencies     
      
Net Assets  $266,860,054 
      
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   273,804,610 
Accumulated net investment loss   (3,174,121)
Accumulated net realized loss on investments   (1,380,519)
Accumulated net unrealized depreciation on investments   (2,583,117)
      
Net Assets  $266,860,054 
      
Net Asset Value Per Share  $13.81 

 

5
 

  

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

  Three Months Ended
June 30,
    Six Months Ended
June 30,
 
   2012   2011   2012  2011(1) 
INVESTMENT INCOME                    
Interest income from affiliated securities  $7,808   $   $7,808   $ 
Interest income   95,075        207,176     
Dividend income   7,471        13,175     
                     
Total Investment Income   110,354        228,159     
                     
OPERATING EXPENSES                    
Investment management fees   1,126,091    150,943    1,748,017    150,943 
Costs incurred under administration agreement   602,201    113,035    947,795    113,035 
Directors’ fees   65,000    42,500    107,500    42,500 
Professional fees   222,561    102,582    354,406    118,632 
Insurance expense   55,485    48,109    102,154    48,109 
Investor relations expense   95,038    750    109,288    750 
Organization expenses       97,855        192,495 
Other expenses   24,097    9,531    33,120    9,649 
                     
Total Operating Expenses   2,190,473    565,305    3,402,280    676,113 
                     
Net Investment Loss   (2,080,119)   (565,305)   (3,174,121)   (676,113)
                     
Net Realized Loss on Investments   (1,380,263)       (1,380,519)    
                     
Net Change in Unrealized Depreciation on Investments   (2,014,512)   (59,634)   (1,003,317)   (59,634)
                     
Net Decrease in Net Assets Resulting from Operations  $(5,474,894)  $(624,939)  $(5,557,957)  $(735,747)
                     
Net Decrease in Net Assets Resulting from Operations per Common Share  $(0.34)  $(0.27)  $(0.43)  $(0.42)
                     
Weighted Average Common Shares Outstanding   16,287,133    2,345,595    12,837,133    1,735,385(2)

  

(1) For the period from January 6, 2011 (date of inception) to June 30, 2011.

 

(2) Weighted average common shares for the period from January 6, 2011 (date of inception) to June 30, 2011 was calculated from the issuance of 100 shares on February 28, 2011.

 

6
 

  

FINANCIAL HIGHLIGHTS

(Unaudited)

 

    Three months ended June 30, 2012    Six months ended June 30, 2012    For the period from January 6, 2011 (date of inception) to
 June 30, 2011
    For the period from January 6, 2011 (date of inceptions) to December 31, 2011 
Per Share Data:                    
Net asset value at beginning of period  $13.47   $12.95   $   $ 
Issuance of common shares   0.99 (3)   1.91(3)   15.00(2)   14.67 (4) 
Underwriters’ discount   (0.35)(2)   (0.72)(2)   (1.05)(2)   (0.86)(2)
Offering costs   (0.02)(2)   (0.04)(2)   (0.16)(2)   (0.19)(2)
Net investment loss   (0.13)(1)   (0.16)(2)   (0.20)(2)   (0.37)(2)
Realized loss   (0.07)(2)   (0.07)(2)        
Change in unrealized depreciation   (0.08)(5)   (0.06)(5)   (0.02)(2)   (0.30)(2)
Net asset value at end of period  $13.81   $13.81   $13.57   $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 June 30, 2012 is based on the change in net asset value from the secondary offering on February 10, 2012. Issuance of common shares for the six months ended June 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 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.

                                                                                    

7
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)

 

 

Portfolio Investments*  Headquarters / Industry   Shares / Par Amount   Cost   Fair 
Value
   % of
Net Assets
 
AltEgo, LLC   Santa Monica, CA                     
Preferred shares, Series B-2   Social Media Online Gaming    1,000,000   $1,017,540   $1,000,000    0.37%
                          
AlwaysOn, LLC (1)   Woodside, CA                     
Structured note, 10%, due 1/9/2013 and warrant   

Social

Media

   $250,000    250,000    250,000    0.09%
                          
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    3.75%
                          
Bloom Energy Corporation   Sunnyvale, CA                     
Common shares   Fuel Cell Energy    201,589    3,854,817    3,770,135    1.41%
                          
Chegg, Inc.   Santa Clara, CA                     
Common shares   Textbook Rental    1,274,193    10,012,543    9,999,996    3.75%
Preferred shares, Series F       500,000    4,008,654    4,000,000    1.50%
       Total           14,021,197    13,999,996    5.25%
                          
Control4 Corporation   Salt Lake City, UT                     
Common shares   Home Automation    2,950,667    5,046,583    4,997,000    1.87%
                          
CUX, Inc. (2)   Mechanicsburg, PA                     
Preferred shares, Series C   Corporate Education    246,305    2,005,942    2,000,000    0.75%
                          
Dailybreak, Inc. (2)   Boston, MA                     
Preferred shares, Series A-1   Social Advertising    1,545,181    2,000,000    2,000,000    0.75%
                          
DreamBox Learning, Inc.   Bellevue, WA                     
Preferred shares, Series A   Education Technology    3,579,610    758,017    750,000    0.28%
                          
Dropbox, Inc.   San Francisco, CA                     
Common share   Online    600,000    6,868,679    6,858,500    2.57%
Preferred shares, Series A-1   Storage    552,486    5,015,333    6,314,915    2.37%
       Total           11,884,012    13,173,415    4.94%
                          
Facebook, Inc. (3)   Palo Alto, CA                     
Common shares, Class B   Social Networking    350,000    10,472,294    9,361,100    3.51%
                          
Fullbridge, Inc. (2)   Cambridge, MA                     
Preferred shares, Series C   Business Education    1,196,809    2,250,001    2,250,000    0.84%
                          
Gilt Groupe, Inc.   New York, NY                     
Common shares   

e-Commerce

Flash Sales

    203,100   $5,589,279   $5,499,250    2.06%

 

See Notes to the Consolidated Financial Statements.

 

8
 

  

Global Education Learning (Holdings) Ltd. (2)   San Bruno, CA                     
Preferred shares, Series A   Education Technology    1,472,175    2,999,998    2,999,998    1.12%
                          
Grockit, Inc. (2)   San Francisco, CA                     
Preferred shares, Series D   

Online Test

Preparation

    2,728,252    2,005,945    2,000,000    0.75%
                          
Groupon, Inc. (4)   Chicago, IL                     
Common shares   Online Deals    80,000    2,128,774    850,400    0.32%
                          
Kno, Inc.   Santa Clara, CA                     
Preferred shares, Series C   Digital    440,313    2,262,006    2,250,000    0.84%
Preferred shares, Series C-1   Textbooks    1    7,509,663    7,500,000    2.81%
Common shares       50,000    214,681    205,000    0.08%
       Total           9,986,350    9,955,000    3.73%
                          
Maven Research, Inc.   San Francisco, CA                     
Preferred shares, Series B   Global Knowledge Marketplace    49,505    217,206    200,000    0.07%
                          
NestGSV, Inc. (2)   Redwood City, CA                     
Preferred shares, Series A   Entrepreneurial Education    1,000,000    1,020,145    1,000,000    0.37%
                          
Palantir Technologies, Inc.   Palo Alto, CA                     
Common shares, Class B   Data Security    1,559,419    4,239,986    4,210,431    1.58%
                          
Serious Energy, Inc.   Sunnyvale, CA                     
Common shares   Green Materials    178,095    739,130    237,460    0.09%
                          
SharesPost, Inc.   San Bruno, CA                     
Preferred shares, Series B   Online    1,771,653    2,257,984    2,256,752    0.85%
Common warrants, $0.13 strike price, expire 6/15/2018   

Marketplace

(Finance)

    770,934    23,128    8,480    0.00%
       Total           2,281,112    2,265,232    0.85%
                         
Silver Spring Networks, Inc.   Redwood City, CA                     
Common shares   Smart Grid    510,143    5,145,271    4,901,430    1.84%
                          
Solexel, Inc.   Milpitas, CA                     
Preferred shares, Series C   Solar Technology    4,576,659   $10,016,559   $10,000,000    3.75%
                          
StormWind, LLC (2)   Scottsdale, AZ                     
Preferred shares, Series B   Electronic    3,279,629    2,019,687    2,000,000    0.75%
                          
The Echo System Corp. (1) (2)   New York, NY                     
Preferred shares, Series A   Social Analytics    512,365    1,436,404    1,639,568    0.61%
Preferred warrants, $0.20 strike price, expire 11/14/2016       68,359    75,988    73,176    0.03%
       Total           1,512,392    1,712,744    0.64%
                          
The rSmart Group, Inc.   Scottsdale, AZ                     
Preferred shares, Series B   

Higher Education

Learning Platform

    1,201,923    1,266,940    1,250,000    0.47%

  

See Notes to the Consolidated Financial Statements.

 

9
 

  

                          
Top Hat, Inc. (2)   Shakopee, MN                     
Preferred shares, Series A   Jewelry Retailing Technology    1,777,778    4,014,802    4,000,001    1.50%
                          
TrueCar, Inc.   Santa Monica, CA                     
Common shares   

Online

Marketplace (Cars)

    377,358    2,014,863    1,999,997    0.75%
                          
Twitter, Inc.   San Francisco, CA                     
Common shares   

Social

Communication

    1,835,600    31,751,748    31,513,493    11.81%
                          
Violin Memory, Inc.   Mountain View, CA                     
Preferred shares, Series B   Flash    800,000    4,800,000    4,800,000    1.80%
Preferred shares, Series D   Memory    1,666,666    10,018,045    9,999,996    3.75%
       Total           14,818,045   14,799,996    5.55%
                          
ZocDoc Inc.   New York, NY                     
Preferred shares, Series A   

Online Medical

Scheduling

    200,000    3,563,178    3,500,000    1.31%
                          
ZoomSystems   San Francisco, CA                     
Preferred shares, Series A   

Smart e-tail

(Retail)

    1,250,000    260,476    250,000    0.09%
                          
Zynga, Inc.   San Francisco, CA                     
Common shares   Social Gaming    533,333    3,002,665    2,901,332    1.09%
                          
Total Portfolio Investments   `       $174,181,527   $171,598,410    64.30%

                  

* 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 June 30, 2012, GSV Capital Corp. valued Facebook based on its June 29, 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 May 1, 2012. At June 30, 2012, GSV Capital Corp. valued Groupon, Inc. based on its June 29, 2012 closing price.  

   

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