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):

 

March 13, 2014

 

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)    

 

2925 Woodside Road

Woodside, CA 94062

(Address of principal executive offices and zip code)

 

Registrant’s telephone number, including area code: (650) 235-4769

  

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 2.02Results of Operations and Financial Condition.

 

On March 13, 2014, the registrant issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2013. 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 9.01Financial Statements and Exhibits.

 

(a)Not applicable.

 

(b)Not applicable.

 

(c)Not applicable.

 

(d)Exhibits.

 

Exhibit No. Description
   
99.1 Press release dated March 13, 2014

 

 
 

 

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: March 13, 2014 GSV CAPITAL CORP.
     
  By:   /s/ Stephen D. Bard
    Stephen D. Bard
    Chief Financial Officer, Chief Compliance
    Officer, Treasurer and Corporate Secretary

 

 

 

 

 

GSV Capital Corp. Reports Fourth Quarter and Fiscal Year 2013

Results of Operations

 

Net Asset Value Increases to $14.91 Per Share as of December 31, 2013

 

WOODSIDE, Calif., March 13, 2014 (GLOBE NEWSWIRE) — GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the fourth quarter and year ended December 31, 2013.

 

“Based on a number of positive portfolio developments in 2013, I’m pleased to report a strong annual increase in net asset value per share of $1.84 or 14% to $14.91 at year-end,” said Michael Moe, GSV's founder and Chief Executive Officer. “The core tenet of our investment strategy is the identification of game changing companies at the intersection of megatrends across growth sectors. Based on our portfolio of 49 companies, we estimate a weighted average growth rate of approximately 85% in calendar year 2013 for the private companies we own. In addition to impressive business growth and value creation for these companies, fiscal 2013 turned out the IPO of Twitter, our largest investment, as well a number of other successful offerings and capital raises by our portfolio companies. Several of these may pursue IPOs within the next 18 months. Fundamentals for the themes that we invest in remain compelling, and looking ahead, we are confident in the near term environment for growth investing.”

 

Portfolio as of December 31, 2013

 

At December 31, 2013, the Company had positions in 49 portfolio companies at a collective fair value of $355.4 million. Out of GSV’s 49 portfolio companies, the top 10 investments represented 80.9% of net asset value, and the top three investments represented 53.0% of net asset value.

 

Top Ten Investments at December 31, 2013

 

$ in millions  Fair
Value
   % of Net
Asset Value
 
Twitter, Inc.  $102.8    35.7%
Palantir Technologies, Inc.   33.8    11.8 
Dropbox, Inc.   15.9    5.5 
Coursera, Inc.   14.5    5.0 
Control4 Corporation   13.3    4.6 
2U, Inc. (f/k/a 2tor, Inc.)   11.3    3.9 
Solexel, Inc.   11.3    3.9 
Avenues Global Holdings LLC   10.0    3.5 
Curious.com, Inc.   10.0    3.5 
PayNearMe, Inc.   10.0    3.5 
Total  $232.9    80.9%

 

 
 

 

GSV Capital Corp.

Page 2 of 13

 

Net assets totaled $288.0 million or $14.91 per share at December 31, 2013, an increase from net assets per share of $13.16 per share at September 30, 2013, and $13.07 per share at December 31, 2012.

 

Fourth Quarter 2013 Portfolio Investment Activity

 

During the fourth quarter of 2013, GSV invested in the following new portfolio companies: ePals Inc. (education technology); Curious.com Inc. (online education); JAMF Holdings, Inc. (software development); PayNearMe Inc. (cash transaction network); and Knewton Inc. (education technology). GSV also made net additional investments in existing portfolio companies Totus Solutions Inc.; S3 Digital Corp.; Global Education Learning Ltd.; Dreambox Learning, Inc.; Ozy Media Inc.; and Parchment Inc.

 

Fourth quarter 2013 investments totaled $9.7 million plus transaction costs as follows:

·An investment of $250,000, plus transaction costs, in S3 Digital Corp, a sports analytics company, on October 1, 2013.
·Investments totaling $1,333,332 in Global Education Learning, an education technology company, comprising of an investment of $900,000, plus transaction costs, on October 2, 2013 and an investment of $433,332, plus transaction costs, on October 4, 2013.
·Investments totaling of $500,000 in Fullbridge Inc., a business education company, comprising of an investment of $250,000, plus transaction costs, on October 10, 2013 and an investment of $250,000, plus transaction costs, on December 11, 2013.
·Investments totaling of $1,594,738, in Sugar CRM Inc., a customer relationship company, comprising of an investment of $855,000, plus transaction costs, on October 17, 2013,an investment of $95,000, plus transaction costs, on October 28, 2013 and an investment of $644,738, plus transaction costs, on December 10, 2013.
·An investment of $2,430,016, plus transaction costs, in ePals Inc., an education technology company, on October 22, 2013.
·An investment of $4,519,444, plus transaction costs, in Coursera Inc., an online education company, on October 31, 2013.

 

Fourth Quarter 2013 Financial Results

 

For the quarter and year ended December 31, 2013, GSV accrued incentive fees of $10,523,552 or $0.54 per share in accordance with the American Institute of Certified Public Accountants’ Technical Practice Aids (TIS 6910.2) which considers the hypothetical liquidation value of the Company’s investment portfolio as of the measurement date in determining fair value. No incentive fees were incurred for periods prior to fiscal year 2013.

 

Additionally, for the quarter and year ended December 31, 2013, GSV recognized a net aggregate deferred tax liability of $(8,320,561).1

 

 

1 This included a tax benefit on losses from investment operations of $13,159,269, a benefit for tax on realized capital losses of $9,426,234, and a provision for income taxes on unrealized appreciation of investments of $(30,906,064) for the year ended December 31, 2013.

 

 
 

 

GSV Capital Corp.

Page 3 of 13

 

Net investment loss was $(907,231), or $(0.05) per share, for the fourth quarter of 2013, compared to a net investment loss of $(2,774,192), or $(0.14) per share, for the fourth quarter of 2012. For the three months ended December 31, 2013, GSV had a net change in unrealized appreciation of $67,899,437, or $2.88 per diluted share, resulting from appreciation of its investments, including its investments in [Twitter Inc., Control4 Corporation, Facebook Inc., and Palantir Technologies]. GSV recorded a net realized loss of $(11,868,928) or $(0.61) per share during the three months ended December 31, 2013. Net increase in net assets resulting from operations was $33,643,449, or $1.47 per diluted share, for the three months ended December 31, 2013. This compares to a net decrease in net assets resulting from operations of $(7,276,453), or $(0.38) per share, for the three months ended December 31, 2012. Weighted average common shares outstanding were23.6 million on a diluted per share basis for the three months ended December 31, 2013.

 

Fiscal Year 2013 Financial Results

 

Net investment loss was $(8,875,656), or $(0.46) per share, for the year ended December 31, 2013, compared to a net investment loss of $(8,282,881), or $(0.51) per share, for the year ended December 31, 2012. For the year ended December 31, 2013, GSV had a net change in unrealized appreciation of $87,445,149, or $4.26 per diluted share, compared to a net change in unrealized depreciation of $(10,170,850), or $(0.63) per share, for the year ended December 31, 2012. GSV recorded a net realized loss on investments of $(21,706,021) or $(1.12) per share for the year ended December 31, 2013, compared to a net realized loss on investments of $(1,380,519) or $(0.09) per share for the year ended December 31, 2012.

 

Net increase in net assets resulting from operations was $35,383,643, or $1.78 per diluted share, for the year ended December 31, 2013. This compares to a net decrease in net assets resulting from operations of $(19,834,250), or $(1.23) per share, for the year ended December 31, 2012. Weighted average common shares outstanding were 20.5 million on a diluted basis and 16.1 million for the years ended December 31, 2013 and 2012, respectively.

 

Potential Change in Tax Status

 

On December 3, 2013, GSV applied to the Securities and Exchange Commision, pursuant to Section 851(e) of the Internal Revenue Code, to qualify as a regulated investment company (RIC) for the fiscal year ended December 31, 2013. Since inception, GSV has been taxed as a regular corporation (a “C corporation”) under subchapter C of the Internal Revenue Code. As a result of a potential change to RIC status, GSV would not be subject to federal income tax on the portion of income distributed (or deemed to be distributed) to stockholders. GSV would be subject to U.S. federal income tax at the regular corporate rates on any income or capital gains not distributed (or deemed to be distributed) to stockholders.

 

“It has always been GSV’s intent to be treated as a regulated investment company, or ‘RIC’. In conjunction with that potential change from regular C corporation status, it would be our intention to distribute at least 90% of our investment company taxable income2 to shareholders in the form of dividends,” Mr. Moe commented.

 

 

2 Investment company taxable income is generally net ordinary income plus the excess of realized net short-term capital gains over realized net long-term capital losses.

 

 
 

 

GSV Capital Corp.

Page 4 of 13

 

Conference Call and Webcast; Live Twitter Updates

 

Management will hold a conference call and webcast for investors today at 1:15 p.m. PT (4:15 p.m. ET). The conference call number for U.S. participants is (800) 762-8779 and the conference call number for participants outside the U.S. is (480) 629-9645. The conference ID number for both call numbers is 4672630. 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/events.cfm. An archived replay of the webcast will be available for 12 months following the live presentation.

 

GSV Capital will also provide live updates via Twitter during the conference call. To access the tweets, follow GSV Capital on Twitter: @gsvcap

 

A replay of today’s conference call may be accessed through March 20, 2014 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (international), using conference ID number 4672630.

 

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 Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.

 

Contact

 

Financial Profiles, Inc.

Kristen McNally, (310) 622-8225

gsv@finprofiles.com

 

 
 

 

GSV Capital Corp.

Page 5 of 13

 

GSV CAPITAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

   December 31, 2013   December 31, 2012 
ASSETS          
Investments at fair value:          
Investments in affiliated securities (cost of $64,912,527 and $38,210,753, respectively)  $62,740,162   $34,648,363 
Investments in non-control/non-affiliated securities (cost of $214,796,591 and $198,936,982, respectively)   292,643,491    190,748,722 
Investments owned and pledged (cost of $10,845,236 and $0, respectively)   10,865,200    - 
Investments in money market funds (cost of $0 and $16,000,000, respectively)   -    16,000,000 
Total Investments (cost of $290,554,354 and $253,147,735, respectively)   366,248,853    241,397,085 
           
Cash   7,219,203    11,318,525 
Restricted cash   22,264    - 
Due from:          
GSV Asset Management(1)   3,039    5,723 
Portfolio companies(1)   153,178    316,377 
Interest receivable   7,304    - 
Prepaid expenses   49,739    63,953 
Coupon interest receivable   11,141    - 
Dividend receivable   13,233    1,920 
Deferred credit facility fees   288,249    - 
Deferred debt issuance costs   3,378,121    - 
Deferred offering costs   184,710    - 
Other assets   368,524    27,145 
Total Assets   377,947,558    253,130,728 
           
LIABILITIES          
Due to:          
GSV Asset Management   563,978    51,194 
Accounts payable   382,165    496,733 
Accrued incentive fees   10,523,552    - 
Accrued interest payable   1,056,563    - 
Net deferred tax liability   8,320,561    - 
Convertible senior notes embedded derivative liability   799,000    - 
Convertible senior notes payable 5.25% due September 15, 2018   68,335,295    - 
Total Liabilities   89,981,114    547,927 
Commitments and contingencies (Note 6)          
Net Assets  $287,966,444   $252,582,801 
           
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   (19,192,401)   (10,316,745)
Accumulated net realized loss on investments   (13,660,306)   (1,380,519)
Accumulated net unrealized appreciation (depreciation) on investments   44,788,436    (11,750,650)
Net Assets  $287,966,444   $252,582,801 
           
Net Asset Value Per Share  $14.91   $13.07 

 

(1) This balance is a related party transaction. Refer to Note 2 for more detail.

 

See Notes to the Consolidated Financial Statements.

 

 
 

GSV Capital Corp.

Page 6 of 13

 

 

GSV CAPITAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Three Months Ended December 31, Year Ended December 31, 
   2013   2012 2013   2012 
INVESTMENT INCOME                    
Interest income from affiliated securities  $23,615   $-   $23,615   $21,852 
Interest income from non-control/non-affiliated   securities   -    -    2,256    200,195 
Dividend income from non-control/non-affiliated securities   2,434    5,990    10,072    - 
Dividend income from affiliated securities   -    -    13,008    26,030 
Total Investment Income   26,049    5,990    48,951    248,077 
OPERATING EXPENSES                    
Investment management fees   1,597,650    1,320,159    5,426,485    4,419,345 
Accrued incentive fees   10,523,552    -    10,523,552    - 
Costs incurred under administration agreement   813,619    893,798    3,089,771    2,384,764 
Directors’ fees   65,000    65,000    260,250    237,500 
Professional fees   219,973    362,515    876,769    959,604 
Interest expense   1,087,809    -    1,278,997    - 
Insurance expense   60,918    56,019    240,725    214,306 
Investor relations expense   27,544    38,207    198,809    182,193 
Other expenses   18,483    44,484    89,517    133,246 
Change in fair value of embedded derivative   (322,000)   -    99,000    - 
Total Operating Expenses   14,092,548    2,780,182    22,083,875    8,530,958 
                     
Benefit for taxes on net investment loss   13,159,269    -    13,159,268    - 
                     
Net Investment Income (Loss)   (907,231)   (2,774,192)   (8,875,656)   (8,282,881)
                     
Net Realized Loss on Investments   (11,868,928)   -    (21,706,021)   (1,380,519)
                     
Benefit for taxes on net realized capital losses   9,426,234    -    9,426,234    - 
                     
Net Change in Unrealized Appreciation (Depreciation) on Investments   67,899,437    (4,502,261)   87,445,149    (10,170,850)
                     
Provision for taxes on unrealized appreciation of investments   (30,906,064)   -    (30,906,063)   - 
                     
Net Increase (Decrease) in Net Assets Resulting from Operations  $33,643,449   $(7,276,453)  $35,383,643   $(19,834,250)
                     
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share                    
Basic  $1.74   $(0.38)  $1.83   $(1.23)
Diluted  $1.47   $(0.38)  $1.78   $(1.23)
                     
Weighted Average Common Shares Outstanding                    
Basic   19,320,100    19,320,100    19,320,100    16,096,330 
Diluted   23,564,228    19,320,100    20,541,014    16,096,330 

 

 
 

 

 

GSV Capital Corp.

Page 7 of 13

 

FINANCIAL HIGHLIGHTS

(Unaudited)

 

                   For the period from
January 6, 2011
 
   Three months ended
December 31, 2013
   Three months ended
December 31, 2012
   Three months ended
December 31, 2011
   Year ended
December 31, 2012
   (date of inception) to
December 31, 2011
 
Per Share Data:                         
Net asset value at beginning of period  $13.16   $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   (0.05)(1)   (0.14)(1)   (0.12)(2)   (0.51)(1)   (0.37)(2)
Net Realized Loss on Investments   (0.61)(1)   -    -    (0.09)(1)   - 
Benefit for taxes on net realized capital losses   0.49(1)   -    -    -    - 
Net Change in Unrealized Appreciation (Depreciation) on Investments   3.52(1)   (0.24)(5)   (0.19)(2)   (0.43)(5)   (0.30)(2)
Provision for taxes on unrealized (appreciation) of investments   (1.60)(1)   -    -    -    - 
Net asset value at end of period  $14.91   $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.

 

 
 

 

GSV Capital Corp.

Page 8 of 13

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2013

 

Portfolio Investments*  Headquarters /
Industry
  Shares   Cost   Fair Value   % of Net
Assets
 
                    
Twitter, Inc. (11)**  San Francisco, CA                    
Common shares  Social Communication   1,900,600   $32,991,111   $102,822,460    35.71 
                        
Palantir Technologies, Inc.  Palo Alto, CA                    
Common shares, Class A  Cyber Security   7,145,690    20,051,479    32,119,877    11.15 
Preferred shares, Series G      326,797    1,008,968    1,718,953    0.60 
Total           21,060,447    33,838,830    11.75 
                        
Dropbox, Inc.  San Francisco, CA                    
Common share  Online   760,000    8,641,153    9,181,012    3.19 
Preferred shares, Series A-1  Storage   552,486    5,015,333    6,674,185    2.32 
Total           13,656,486    15,855,197    5.51 
                        
Coursera, Inc.  Mountain View, CA                    
Preferred shares, Series B  Online Education   2,961,399    14,519,443    14,519,443    5.04 
                        
Control4 Corporation (8)**  Salt Lake City, UT                    
Common shares  Home Automation   782,789    7,010,762    13,300,129    4.62 
                        
2U, Inc. (f/k/a 2tor, Inc.)  Landover, MD                    
Common shares  Online Education   1,151,802    8,758,193    9,875,206    3.43 
Preferred shares, Series A      167,431    1,273,125    1,435,503    0.50 
Total           10,031,318    11,310,709    3.93 
                        
Solexel, Inc.  Milpitas, CA                    
Preferred shares, Series C  Solar Power   5,034,324    11,017,561    11,286,628    3.92 
                        
Avenues Global Holdings, LLC (2)  New York, NY                    
Preferred shares, Junior Preferred Stock  Globally-focused Private School   10,014,270    10,150,484    10,014,270    3.48 
                        
Curious.com Inc. (1)  Menlo Park, CA                    
Preferred shares, Series B  Online Education   2,839,861    10,000,003    10,000,003    3.47 
                        
PayNearMe, Inc. (1)  Sunnyvale, CA   3,914,535    10,000,001    10,000,000    3.47 
Preferred shares, Series E  e-Commerce                    
                        
Facebook, Inc. **  Menlo Park, CA                    
Common Shares, Class A  Social Networking   175,000    5,236,147    9,563,750    3.32 
                        
SugarCRM, Inc.  Cupertino, CA                    
Common shares  Customer   1,899,799    6,799,272    7,219,236    2.51 
Preferred shares, Series E  Relationship   373,134    1,500,522    2,160,437    0.75 
Total  Manager        8,299,794    9,379,673    3.26 
                        
Chegg, Inc. (12)**  Santa Clara, CA                    
Common shares  Textbook Rental   1,182,792    14,022,863    8,551,589    2.97 

 

See Notes to the Consolidated Financial Statements.

 

 
 

 

GSV Capital Corp.

Page 9 of 13

 

Portfolio Investments*  Headquarters /
Industry
  Shares   Cost   Fair Value   % of Net
Assets
 
                    
ZocDoc Inc.  New York, NY                    
Preferred shares, Series A  Online Medical   200,000   $3,563,178   $3,926,702    1.36 
Common Stock  Scheduling   111,866    1,734,878    2,196,322    0.76 
Total           5,298,056    6,123,024    2.12 
                        
Knewton  New York, NY                    
Preferred shares, Series E  Online Education   375,985    4,999,999    4,999,999    1.74 
                        
JAMF  Minneapolis, MN                    
Preferred shares, Series B  Technology Development   36,720    4,999,964    4,999,964    1.74 
                        
Whittle Schools, LLC (1) (3)  New York, NY                    
Preferred shares, Series B  Globally-focused Private School   3,000,000    3,000,000    3,000,000    1.04 
Common shares      100    1,531,734    1,500,000    0.52 
Total           4,531,734    4,500,000    1.56 
                        
Spotify Technology S.A. **  Stockholm, Sweden                    
Common shares  Music Streaming Service   3,658    3,598,472    4,443,409    1.54 
                        

Global Education Learning (Holdings) Ltd. (1) **

  Hong Kong                    
Preferred shares, Series A  Education Technology   2,126,475    4,335,671    4,338,009    1.51 
                        
StormWind, LLC (1) (5)  Scottsdale, AZ                    
Preferred shares, Series B  Interactive Learning   3,279,629    2,019,687    4,205,142    1.46 
   Platform                    
                        
Violin Memory, Inc. (9)**  Mountain View, CA                    
Common Shares  Memory Flash   1,247,498    14,819,618    4,204,068    1.46 
                        
Dataminr, Inc.  New York, NY                    
Preferred shares, Series B  Social Media   904,977    2,063,356    2,934,840    1.02 
Preferred shares, Series C  Analytics   301,369    1,100,909    1,099,997    0.38 
Total           3,164,265    4,034,837    1.40 
                        
Gilt Groupe, Inc.  New York, NY                    
Common shares  e-Commerce
Flash Sales
   248,600    6,594,433    4,024,389    1.40 
                        
Parchment, Inc.  Scottsdale, AZ                    
Preferred shares, Series D  E-Transcript Exchange   3,200,512    4,000,862    4,000,640    1.39 

 

See Notes to the Consolidated Financial Statements.

 

 
 

 

GSV Capital Corp.

Page 10 of 13

 

Portfolio Investments*  Headquarters /
Industry
  Shares   Cost   Fair Value   % of Net
Assets
 
                    
Ozy Media, Inc. (1)  Mountain View, CA                    
Preferred shares, Series A  Social Media   1.090,909   $3,000,000   $3,000,000    1.04 
Preferred shares, Series Seed      500,000    500,000    865,000    0.30 
Total           3,500,000    3,865,000    1.34 
                        
Totus Solutions, Inc. (1)  Carrollton, TX                    
Common shares  LED Lighting   11,307,348    2,840,391    576,675    0.20 
Preferred shares, Series A      8,692,652    2,183,582    2,173,163    0.75 
Preferred shares, Series B      11.111,110    1,000,000    1,001,001    0.35 
        Total           6,023,973    3,750,839    1.30 
                        
Fullbridge, Inc. (1)  Cambridge, MA                    
Preferred shares, Series C  Business   1,728,724    3,193,444    3,114,120    1.08 
Term Loan, 10%,  3/31/14***  Education   250,000    262,612    250,000    0.09 
Term Loan, 10%,  3/31/14***      250,000    241,239    250,000    0.09 
Common  warrants,
$0.91 strike price, expire 3/22/2020
      186,170    67,021    126,362    0.04 
Common  warrants,
$0.91 strike price, expire 10/09/2018
      82,418    9,901    -    - 
Common  warrants,
$0.91 strike price, expire 12/10/2018
      82,418    9,799    -    - 
Total           3,784,016    3,740,482    1.30 
                        
Bloom Energy Corporation  Sunnyvale, CA                    
Common shares  Fuel Cell Energy   201,589    3,855,601    3,731,264    1.30 
                        
Learnist Inc, (f/k/a Grockit, Inc.) (1) (11)  San Francisco, CA                    
Preferred shares, Series D  Online Test   2,728,252    2,005,945    2,073,472    0.72 
Preferred shares, Series E  Preparation   1,731,501    1,503,670    1,499,999    0.52 
Total           3,509,615    3,573,471    1.24 
                        
CUX, Inc. (d/b/a CorpU)(1)  San Francisco, CA                    
Common Stock  Corporate Education   615,763    2,006,077    2,229,678    0.77 
Convertible preferred shares, Series D      169,033    778,607    697,041    0.24 
Preferred  warrants,
$4.59 strike price, expire 02/25/2018
      16,903    -    -    - 
Total           2,784,684    2,926,719    1.01 
                        
SharesPost, Inc. (6)  San Bruno, CA                    
Preferred shares, Series B  Online Marketplace   1,771,653    2,259,716    2,232,283    0.78 
Common warrants, $0.13 strike price, expire 6/15/2018  Finance   770,934    23,128    115,640    0.04 
Total           2,282,844    2,347,923    0.82 
                        
TrueCar, Inc.  Santa Monica, CA                    
Common shares  Online Marketplace   377,358    2,014,863    2,299,997    0.80 

 

See Notes to the Consolidated Financial Statements.

 

 
 

 

GSV Capital Corp.

Page 11 of 13

 

Portfolio Investments*  Headquarters /
Industry
  Shares   Cost   Fair Value   % of Net
Assets
 
                    
DreamBox Learning, Inc.   Bellevue, WA                    
Preferred shares, Series A-1  Education   7,159,221   $1,502,362   $1,503,436    0.52 
Preferred shares, Series A  Technology   3,579,610    758,017    751,718    0.26 
Total           2,260,379    2,255,154    0.78 
                        
Maven Research, Inc. (1)  San Francisco, CA                    
Preferred shares, Series C  Knowledge   318,979    2,000,447    1,999,998    0.69 
Preferred shares, Series B  Networks   49,505    217,206    249,505    0.09 
            2,217,653    2,249,503    0.78 
Silver Spring Networks, Inc. **  Redwood City, CA                    
Common shares  Smart Grid   102,028    5,145,271    2,142,588    0.74 
                        
NestGSV, Inc. (1)  Redwood City, CA                    
Preferred shares, Series A  Incubator   1,000,000    1,021,778    1,188,137    0.41 
Preferred shares, Series B      450,000    605,500    594,068    0.21 
Total           1,627,278    1,782,205    0.62 
                        
ePals Inc.**(1)(10)  Herndon, VA                    
Common shares  Online Education   33,333,333    2,444,759    1,666,667    0.58 
Common warrants, 0.075 CAD strike price, expire 4/30/2014      11,111,111    -    33,333    0.01 
            2,444,759    1,700,000    0.59 
                        
S3 Digital Corp. (d/b/a S3i) (1)   New York, NY                    
Preferred shares, Class A1  Sports   1,033,452    989,058    1,168,847    0.41 
Preferred warrants, $1.00 strike price, expire 11/21/2017  Analytics   500,000    31,354    150,000    0.05 
Term Loan, 12%,  09/30/15***      250,000    261,030    250,000    0.09 
Preferred warrants, $1.166 strike price, expire 09/30/2020      160,806    -    64,322    0.02 
Total           1,281,442    1,633,169    0.57 
                        
Dailybreak, Inc. (1)  Boston, MA                    
Preferred shares, Series A-1  Social Advertising   1,878,129    2,430,950    1,211,393    0.42 
                        
Strategic Data Command, LLC (1) (7)  Sunnyvale, CA                    
Common shares  Software Development   800,000    1,001,650    1,046,830    0.36 
                        
The rSmart Group, Inc. (1)  Scottsdale, AZ                    
Preferred shares, Series B  Higher Education Learning Platform   1,201,923    1,267,240    857,302    0.30 
                        
SinoLending Ltd. **  Shanghai, China                    
Preferred shares, Class A  Chinese P2P   6,414,368    503,235    577,293    0.20 
Preferred shares, Class B  Lending   2,333,108    250,491    247,163    0.09 
Total           753,726    824,456    0.29 

 

See Notes to the Consolidated Financial Statements.

 

 
 

 

GSV Capital Corp.

Page 12 of 13

 

Portfolio Investments*  Headquarters /
Industry
  Shares/
Principal
   Cost   Fair Value   % of Net
Assets
 
                    
AlwaysOn, Inc.  (1)  Woodside, CA                    
Preferred shares, Series A-1  Social Media   3,152,417   $624,783   $600,000    0.21 
Preferred shares, Series A      1,066,626    1,027,391    203,011    0.07 
Total           1,652,174    803,011    0.28 
                        
AliphCom, Inc. (d/b/a Jawbone)  San Francisco, CA                    
Common Stock  Smart Device Company   150,000    793,152    782,189    0.27 
                        
NestGSV Silicon Valley, LLC (1) (4)  Redwood City, CA                    
Common membership interest  Incubator   500,000    500,000    557,084    0.19 
                        
New Zoom, Inc  San Francisco, CA                    
Preferred shares, Series A  Retail Machines   1,250,000    260,476    308,660    0.11 
                        
Neuron Fuel, Inc.  San Jose, CA                    
Preferred shares, Series AAI  Computer Software   250,000    262,530    264,941    0.09 
                        
The Echo Systems Corp.                       
Preferred shares, Series A      512,365    1,436,404    229,234    0.08 
Preferred warrants, $0.20 strike price, expire 11/14/2016      68,359    75,988    -    - 
Total           1,512,392    229,234    0.08 
                        
Odesk Corporation  Redwood City, CA                    
Common Shares  Online Workplace Platform   30,000    183,269    184,077    0.06 
                        
Total Portfolio Investments           279,709,118    355,383,653    123.41 
                        
U.S Treasury Strips (13)                       
United States Treasury Strip 02/15/2014     $1,791,000    1,790,785    1,790,839    0.62 
United States Treasury Strip 02/15/2015     $1,816,000    1,810,625    1,811,987    0.63 
United States Treasury Strip 02/15/2016     $1,834,000    1,810,323    1,816,540    0.63 
United States Treasury Strip 08/15/2014     $1,813,000    1,811,187    1,812,094    0.63 
United States Treasury Strip 08/15/2015     $1,823,000    1,811,205    1,813,411    0.63 
United States Treasury Strip 08/15/2016     $1,851,000    1,811,111    1,820,329    0.63 
Total           10,845,236    10,865,200    3.77 
                        
Total Investments          $290,554,354   $366,248,853    127.18 

 

 
 

 

GSV Capital Corp.

Page 13 of 13

 

* 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.

** 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.

*** Investment is income producing.

(1) 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.

(2) GSV Capital Corp.’s investment in Avenues Global Holdings, LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.

(3) GSV Capital Corp.’s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc. Whittle Schools, LLC is a derivative investment with economics linked to Avenues Global Holdings LLC.

(4) GSV Capital Corp.’s investment in NestGSV Silicon Valley, LLC is held through its wholly-owned subsidiary GSVC NG 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 SharesPost, Inc. is held through its wholly-owned subsidiary SPNPM Holdings, LLC.

(7) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly-owned subsidiary GSVC SVDS Holdings, Inc.

(8) On August 2, 2013, Control4 Corporation priced its initial public offering, selling 4,000,000 shares at a price of $16 per share. GSV Capital Corp.’s shares in Control4 are subject to a lock-up agreement which expires on January 29, 2014. At December 31, 2013, GSV Capital Corp. valued Control4 Corporation based on its December 31, 2013 closing price, adjusted for a discount due to lack of marketability of 4%.

(9) On September 27, 2013, Violin Memory Inc. priced its initial public offering, selling 18,000,000 shares at a price of $9 per share. GSV Capital Corp.’s shares in Violin Memory Inc. are subject to a lock-up agreement which expires on March 26, 2014. At December 31, 2013, GSV Capital Corp. valued Violin Memory Inc., based on its December 31, 2013 closing price, adjusted for a discount due to lack of marketability of 15%.

(10) On October 22, 2013, ePals, Inc. priced its initial public offering, selling 40,267,333 shares at a price of CAD $0.075 per share. GSV Capital Corp.’s shares in ePals, Inc. are subject to a lock-up agreement which expires on February 23, 2014. At December 31, 2013, GSV Capital Corp. valued ePals, Inc., based on its December 31, 2013 closing price, adjusted for a discount due to lack of marketability of 8%.

(11) On November 6, 2013, Twitter, Inc. priced its initial public offering, selling 70,000,000 shares at a price of $26 per share. GSV Capital Corp.’s shares in Twitter, Inc. are subject to a lock-up agreement which expires on May 5, 2014. At December 31, 2013, GSV Capital Corp. valued Twitter, Inc., based on its December 31, 2013 closing price, adjusted for a discount due to lack of marketability of 15%.

(12) On November 12, 2013, Chegg, Inc. priced its initial public offering, selling 14,400,000 shares at a price of $12.50 per share. GSV Capital Corp.’s shares in Chegg, Inc. are subject to a lock-up agreement which expires on May 11, 2014. At December 31, 2013, GSV Capital Corp. valued Chegg, Inc., based on its December 31, 2013 closing price, adjusted for a discount due to lack of marketability of 15%.

(13) Refer to Note 9 – Long Term Liabilities. In accordance with the terms of its Convertible Senior Notes payable, the Company deposited $10,867,500 in an escrow account with the trustee.  These funds were used to purchase $10,845,236 of government securities. The cost of the US Treasury Strips approximates their fair value at December 31, 2013.