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GSV Capital Corp. Reports Second Quarter 2013 Results of Operations(GlobeNewswire Via Acquire Media NewsEdge) WOODSIDE, Calif., Aug. 7, 2013 (GLOBE NEWSWIRE) -- GSV Capital Corp., ("GSV" or the "Company") (Nasdaq:GSVC), today reported financial results for the second quarter ended June 30, 2013. "We are pleased to report an increase in our net asset value of $0.18 to $12.87 per share for the second quarter, reflecting what we believe is the pre-IPO value creation that is a hallmark of the companies in our portfolio," said Michael Moe, GSV's founder and Chief Executive Officer. "Momentum is building as we believe several of these later stage companies approach exit, including Control4 (Nasdaq:CTRL) which successfully completed its IPO last Friday. We are equally enthusiastic about the prospects for the latest additions to our portfolio, including our new top ten investment position in online education provider Coursera." Portfolio as of June 30, 2013 At June 30, 2013, the Company had positions in 45 portfolio companies at a collective fair value of $244.2 million. Out of GSV's 45 portfolio companies, the top 10 investments represented 62.8% of net asset value, and the top three investments represented 30.5% of net asset value. Net assets totaled $248.6 million or $12.87 per share at June 30, 2013, an increase of $0.18 per share from net assets of $12.69 per share at March 31, 2013. Top Ten Investments at June 30, 2013 $ in millions Fair Value % of Net Asset Value Twitter, Inc. $37.6 15.1% Palantir Technologies, Inc. 23.0 9.3 Dropbox, Inc. 15.1 6.1 Violin Memory, Inc. 14.4 5.8 Chegg, Inc. 14.0 5.6 Solexel, Inc. 11.0 4.4 2U, Inc. (f/k/a 2tor, Inc.) 10.6 4.3 Avenues World Holdings LLC 10.4 4.2 Coursera, Inc. 10.0 4.0 Kno Inc. 9.9 4.0 Total $156.0 62.8%Portfolio Investment Activity During the second quarter of 2013, GSV invested in new portfolio companies Coursera, Inc., a massive online open course (MOOC) provider; AliphCom, Inc. (d/b/a Jawbone), a provider of smart devices; and oDesk Corporation, an online workplace platform. GSV also made additional investments in the following existing portfolio companies: ZocDoc Inc.; SugarCRM Inc.; Solexel, Inc.; Dailybreak, Inc., CUX Inc. (d/b/a CorpU); and AlwaysOn, Inc. Financial Results Net investment loss was $2,386,911 or $0.12 per share, for the second quarter of 2013, compared to a net investment loss of $2,080,119, or $0.13 per share, for the second quarter of 2012. For the three months ended June 30, 2013, GSV had a net change in unrealized appreciation of $12.2 million, or $0.63 per share, resulting from appreciation of its investments, including its investments in Palantir Technologies, Inc., Twitter, Inc. and Dataminr, Inc., as well as the reclassification of the losses on its investments in Top Hat 430, Inc., Serious Energy, Inc., and AltEgo, LLC from unrealized loss to realized loss on investments. GSV recorded a realized loss of $6.3 million or $0.33 per share during the three months ended June 30, 2013 as a result of the write-off of its investments in Top Hat 430, Inc., Serious Energy, Inc., and AltEgo, LLC. Net increase in net assets resulting from operations was $3,515,703, or $0.18 per share, for the three months ended June 30, 2013, compared to a net decrease in net assets resulting from operations of $5,474,894, or $0.34 per share, for the three months ended June 30, 2012. Weighted average common shares outstanding were 19.3 million for the three months ended June 30, 2013, and 16.3 million for the three months ended June 30, 2012. Conference Call and Webcast Management will hold a conference call and webcast for investors today at 2:00 p.m. PT (5:00 p.m. ET). The conference call number for U.S. participants is (877) 941-1465 and the conference call number for participants outside the U.S. is (480) 629-9867. The conference ID number for both call numbers is 4633999. 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/. Management will utilize a presentation during the conference call. The presentation is also available in the "Investors" section of GSV Capital's website. A replay of the conference call may be accessed through August 14, 2013 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (international), using conference ID number 4633999. An archived replay of the webcast will also be available for 12 months following the live presentation. About GSV Capital Corp. GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA. www.gsvcap.com The GSV Capital Corp. logo is available at //www.globenewswire.com/newsroom/prs/?pkgid=12750 Forward-Looking Statements Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES June 30, 2013December 31, 2012ASSETS(Unaudited) Investments at fair value: Investments in affiliated securities (cost of $35,632,566 and $38,210,753, respectively) $31,939,574 $34,648,363 Investments in non-control/non-affiliated securities (cost of $209,662,962 and $198,936,982, respectively) 212,258,912 190,748,722 Investments in money market funds (cost of $0 and $16,000,000, respectively) -- 16,000,000 Total Investments (cost of $245,295,528 and $253,147,735, respectively) 244,198,486 241,397,085 Cash 4,634,110 11,318,525 Due from: GSV Asset Management 2,606 5,723 Portfolio companies 190,630 316,377 Prepaid expenses 113,682 63,953 Dividend receivable 13,225 1,920 Other assets 6,255 27,145Total Assets 249,158,994 253,130,728 LIABILITIES Due to: GSV Asset Management 438,848 51,194 Accounts payable 91,954 204,093 Accrued expenses 20,943 292,640Total Liabilities 551,745 547,927Net Assets $248,607,249 $252,582,801 NET ASSETS Common stock, par value $0.01 per share (100,000,000 authorized; 19,320,100 and 19,320,100 issued and outstanding, respectively) $193,201 $193,201 Paid-in capital in excess of par 275,837,514 275,837,514 Accumulated net investment loss (15,271,381) (10,316,745) Accumulated net realized loss on investments (11,055,043) (1,380,519) Accumulated net unrealized depreciation on investments (1,097,042) (11,750,650)Net Assets $248,607,249 $252,582,801 Net Asset Value Per Share $12.87 $13.07CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2013201220132012INVESTMENT INCOME Interest income $-- $7,808 $-- $7,808 Interest income from non-control/non-affiliated securities -- 95,075 -- 207,176 Dividend income 15,723 7,471 20,258 13,175Total Investment Income 15,723 110,354 20,258 228,159 OPERATING EXPENSES Investment management fees 1,246,378 1,126,091 2,529,977 1,748,017 Costs incurred under administration agreement 709,885 602,201 1,597,869 947,795 Directors' fees 65,000 65,000 130,250 107,500 Professional fees 220,978 222,561 457,864 354,406 Insurance expense 64,062 55,485 117,075 102,154 Investor relations expense 72,943 95,038 116,505 109,288 Other expenses 23,388 24,097 25,354 33,120Total Operating Expenses 2,402,634 2,190,473 4,974,894 3,402,280 Net Investment Loss (2,386,911) (2,080,119) (4,954,636) (3,174,121) Net Realized Loss on Investments (6,327,632) (1,380,263) (9,674,524) (1,380,519) Net Change in Unrealized Appreciation (Depreciation) on Investments 12,230,246 (2,014,512) 10,653,608 (1,003,317) Net Increase (Decrease) in Net Assets Resulting from Operations $3,515,703 $(5,474,894) $(3,975,552) $(5,557,957) Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share $0.18 $(0.34) $(0.21) $(0.43) Weighted Average Common Shares Outstanding 19,320,100 16,287,133 19,320,100 12,837,133 FINANCIAL HIGHLIGHTS(Unaudited) Three months ended June 30, 2013 Three months ended June 30, 2012 Per Share Data: Net asset value at beginning of period $12.69 $13.47 Issuance of common shares -- 0.99(3) Underwriters' discount -- (0.35)(2) Offering costs -- (0.02)(2) Net investment loss (0.12)(1) (0.13)(1) Realized loss (0.33)(1) (0.07)(2) Change in unrealized appreciation (depreciation) 0.63(1) (0.08)(4) Net asset value at end of period $12.87 $13.81 Six months ended June 30, 2013 Six months ended June 30, 2012 Per Share Data: Net asset value at beginning of period $13.07 $12.95 Issuance of common shares -- 1.91(3) Underwriters' discount -- (0.72)(2) Offering costs -- (0.04)(2) Net investment loss (0.25)(1) (0.16)(2) Realized loss (0.50)(1) (0.07)(2) Change in unrealized appreciation (depreciation) 0.55(1) (0.06)(4) Net asset value at end of period $12.87 $13.81 (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 May 11, 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)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. AND SUBSIDIARYCONSOLIDATED SCHEDULE OF INVESTMENTSJune 30, 2013(Unaudited) Portfolio Investments*Headquarters / IndustryShares Cost Fair Value % of Net Assets Twitter, Inc. San Francisco, CA Common shares Social 1,835,600 $31,755,821 $36,351,602 14.62% Preferred shares, Series A Communication 65,000 1,235,290 1,287,238 0.52% Total 32,991,111 37,638,840 15.14% Palantir Technologies, Inc. Palo Alto, CA Common shares, Class A Cyber Security 7,145,690 20,051,479 21,994,434 8.85% Preferred shares, Series G 326,797 1,008,968 1,012,664 0.41% Total 21,060,447 23,007,098 9.26% Dropbox, Inc. San Francisco, CA Common share Online 760,000 8,641,153 8,740,000 3.52% Preferred shares, Series A-1 Storage 552,486 5,015,333 6,353,589 2.56% Total 13,656,486 15,093,589 6.08% Violin Memory, Inc. Mountain View, CA Preferred shares, Series D Memory 1,666,666 10,018,370 9,999,996 4.02% Preferred shares, Series B Flash 800,000 4,800,798 4,360,000 1.75% Total 14,819,168 14,359,996 5.77% Chegg, Inc. Santa Clara, CA Common shares Textbook Rental 1,274,193 10,014,248 9,571,313 3.85% Preferred shares, Series F 500,000 4,008,654 4,478,523 1.80% Total 14,022,902 14,049,836 5.65% Solexel, Inc. Milpitas, CA Preferred shares, Series C Solar Power 5,034,324 11,016,624 10,999,998 4.42% 2U, Inc. (f/k/a 2tor, Inc.) Landover, MD Common shares Online Education 1,151,802 8,757,668 9,247,603 3.72% Preferred shares, Series A 167,431 1,273,125 1,344,272 0.54% Total 10,030,793 10,591,875 4.26% Avenues World Holdings LLC(3) New York, NY Preferred shares, Class A-1 Globally-focused 5,000,000 10,026,005 10,395,159 4.18% Private School Coursera, Inc. Mountain View, CA Preferred shares, Series B Online Education 2,039,609 9,999,999 9,999,999 4.02% Kno, Inc. Santa Clara, CA Preferred shares, Series C Digital 440,313 2,262,006 2,249,999 0.91% Preferred shares, Series C-1 Textbooks 1 7,510,334 7,500,000 3.02% Common shares 50,000 214,681 172,914 0.07% Total 9,987,021 9,922,913 4.00% GSV CAPITAL CORP. AND SUBSIDIARYCONSOLIDATED SCHEDULE OF INVESTMENTS (continued)June 30, 2013(Unaudited) Portfolio Investments*Headquarters / IndustryShares Cost Fair Value % of Net Assets Facebook, Inc. (7) Menlo Park, CA Common shares, Class A Social Networking 350,000 $10,472,294 $8,708,000 3.50% Control4 Corporation(9) Salt Lake City, UT Common shares Home Automation 782,821 7,011,025 7,518,198 3.02% SugarCRM, Inc. Cupertino, CA Common shares Customer 1,480,131 5,192,673 5,180,459 2.08% Preferred shares, Series E Relationship 373,134 1,500,522 1,652,476 0.66% Total Manager 6,693,195 6,832,935 2.74% ZocDoc Inc. New York, NY Preferred shares, Series A Online Medical 200,000 3,563,178 3,100,000 1.25% Common Stock Scheduling 111,866 1,734,878 1,733,923 0.70% Total 5,298,056 4,833,923 1.95% Bloom Energy Corporation Sunnyvale, CA Common shares Fuel Cell Energy 201,589 3,855,601 4,008,093 1.61% Gilt Groupe, Inc. New York, NY Common shares e-Commerce Flash Sales 248,600 6,594,433 3,841,793 1.55% Spotify Technology S.A. (7) Stockholm, Sweden Common shares Music Streaming Service 3,658 3,598,472 3,682,927 1.48% StormWind, LLC(2) (5) Scottsdale, AZ Preferred shares, Series B Interactive Learning 3,279,629 2,019,687 3,667,495 1.48% Platform Learnist Inc, (f/k/a Grockit, Inc.)(2) (10) San Francisco, CA Preferred shares, Series D Online Test 2,728,252 2,005,945 2,018,906 0.82% Preferred shares, Series E Preparation 1,731,501 1,503,670 1,427,558 0.57% Total 3,509,615 3,446,464 1.39% Fullbridge, Inc.(2) Cambridge, MA Preferred shares, Series C Business Education 1,728,724 3,260,465 3,289,115 1.32% Warrants 186,170 -- -- --% Total 3,260,465 3,289,115 1.32% GSV CAPITAL CORP. AND SUBSIDIARYCONSOLIDATED SCHEDULE OF INVESTMENTS (continued)June 30, 2013(Unaudited) Portfolio Investments*Headquarters / IndustryShares Cost Fair Value % of Net Assets CUX, Inc. (d/b/a CorpU)(1) (2) San Francisco, CA Common Stock Corporate Education 615,763 $2,006,077 $2,483,986 1.00% Convertible preferred shares, Series D 169,033 778,607 775,861 0.31% Warrants 16,903 -- -- --% Total 2,784,684 3,259,847 1.31% Global Education Learning (Holdings) Ltd.(2) (7) Hong Kong Preferred shares, Series A Education Technology 1,472,175 2,999,998 3,187,140 1.28% Parchment, Inc. Scottsdale, AZ Preferred shares, Series D E-Transcript 2,400,384 3,000,000 3,040,167 1.22% Exchange Whittle Schools, LLC(2) (4) New York, NY Preferred shares, Series B Globally-focused 3,000,000 3,000,000 3,000,000 1.21% Private School Dataminr, Inc. New York, NY Preferred shares, Series B Social Media 904,977 2,063,356 2,972,849 1.20% Analytics Totus Solutions, Inc.(2) Carrollton, TX Common shares LED Lighting 20,000,000 5,023,748 2,586,345 1.04% Dailybreak, Inc.(2) Boston, MA Preferred shares, Series A-1 Social Advertising 1,878,129 2,430,950 2,422,788 0.97% SharesPost, Inc. San Bruno, CA Preferred shares, Series B Online Marketplace 1,771,653 2,258,328 2,232,283 0.90% Common warrants, $0.13 strike price, expire 6/15/2018 (Finance) 770,934 23,128 138,768 0.06% Total 2,281,456 2,371,051 0.96% Silver Spring Networks, Inc.(8) Redwood City, CA Common shares Smart Grid 102,028 5,145,271 2,366,472 0.95% TrueCar, Inc. Santa Monica, CA Common shares Online Marketplace 377,358 2,014,863 2,305,338 0.93% (Cars) Maven Research, Inc.(2) San Francisco, CA Preferred shares, Series C Knowledge 318,979 1,999,998 1,828,817 0.74% Preferred shares, Series B Networks 49,505 217,206 232,971 0.09% Total 2,217,204 2,061,788 0.83% GSV CAPITAL CORP. AND SUBSIDIARYCONSOLIDATED SCHEDULE OF INVESTMENTS (continued)June 30, 2013(Unaudited) Portfolio Investments*Headquarters / IndustryShares / Capital Contribution Cost Fair Value % of Net Assets S3 Digital Corp. (d/b/a S3i)(2) New York, NY Preferred shares, Class A1 Sports Analytics 1,033,452 $989,058 $1,123,622 0.45% Preferred warrants, $1.00 strike price, expire 11/21/2017 500,000 31,354 -- --% Total 1,020,412 1,123,622 0.45% NestGSV, Inc.(2) Redwood City, CA Preferred shares, Series A Incubator 1,000,000 1,021,778 1,093,866 0.44% The rSmart Group, Inc. Scottsdale, AZ Preferred shares, Series B Higher Education Learning Platform 1,201,923 1,266,940 933,381 0.38% DreamBox Learning, Inc. Bellevue, WA Preferred shares, Series A Education Technology 3,579,610 758,017 828,257 0.33% AlwaysOn, Inc. (2) Woodside, CA Preferred shares, Series A Social Media 1,066,626 1,027,391 600,000 0.24% Preferred shares, Series A-1 3,152,417 624,783 203,011 0.08% Total 1,652,174 803,011 0.32% AliphCom, Inc. (d/b/a Jawbone) San Francisco, CA Common Stock Audio Electronics Company 150,000 793,152 750,000 0.30% SinoLending Ltd.(2) (7) Shanghai, China Preferred shares, Class A Chinese P2P Lending 6,414,368 501,998 604,859 0.24% NestGSV Silicon Valley, LLC(2) (6) Redwood City, CA Common membership interest Incubator 500,000 500,000 514,084 0.21% Ozy Media, Inc. Mountain View, CA Preferred shares, Series Seed Social Media 500,000 500,000 513,725 0.21% Starfish Holdings, Inc. (d/b/a YourOffers)(2) Beverly Hills, CA Preferred shares, Series A Marketing Platform 43,878,894 2,177,461 500,000 0.20% Common warrants, $0.00001 strike price, expire 11/13/2019 144,800,351 -- -- --% Total 2,177,461 500,000 0.20% GSV CAPITAL CORP. AND SUBSIDIARYCONSOLIDATED SCHEDULE OF INVESTMENTS (continued)June 30, 2013(Unaudited) Portfolio Investments*Headquarters / IndustryShares Cost Fair Value % of Net Assets The Echo System Corp.(2) New York, NY Preferred shares, Series A Social Analytics 512,365 $1,436,404 $379,150 0.15% Preferred warrants, $0.20 strike price, expire 11/14/2016 68,359 75,988 -- -- % Total 1,512,392 379,150 0.15% NewZoom, Inc. (d/b/a ZoomSystems) San Francisco, CA Preferred shares, Series A Smart e-tail (Retail) 1,250,000 260,476 262,500 0.11% Neuron Fuel, Inc. San Jose, CA Preferred shares, Series AAI Computer Software 250,000 262,530 250,000 0.10% Odesk Corporation Redwood City, CA Common Stock Online Marketplace 30,000 183,269 180,000 0.07% Total Portfolio Investments 245,295,528 244,198,486 98.23% Total Investments $245,295,528 $244,198,486 98.23% * All portfolio investments are non-control/non-affiliated and non-income producing, unless identified. Equity investments are subject to lock-up restrictions upon their initial public offering.(1) Investment is income producing.(2) Denotes an Affiliate Investment. "Affiliate Investments" are investments in those companies that are "Affiliated Companies" of GSV Capital Corp., as defined in the Investment Company Act of 1940. A company is deemed to be an "Affiliate" of GSV Capital Corp. if GSV Capital Corp. owns 5% or more of the voting securities of such company.(3) GSV Capital Corp.'s investment in Avenues World Holdings LLC is held through its wholly-owned subsidiary GSVC AV Holdings, Inc.(4) GSV Capital Corp.'s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary GSVC WS Holdings, Inc.(5) GSV Capital Corp.'s investment in StormWind, LLC is held through its wholly-owned subsidiary GSVC SW Holdings, Inc.(6) GSV Capital Corp.'s investment in NestGSV Silicon Valley, LLC is held through its wholly-owned subsidiary GSVC NG Holdings, Inc.(7) Indicates assets that GSV Capital Corp. believes do not represent "qualifying assets" under Section 55(a) of the Investment Company Act of 1940, as amended. Qualifying assets must represent at least 70% of GSV Capital Corp.'s total assets at the time of acquisition of any additional non-qualifying assets.(8) On March 12, 2013, Silver Spring Networks, Inc. priced its initial public offering, selling 4,750,000 shares at a price of $17 per share. GSV Capital Corp.'s shares in Silver Spring Networks, Inc. are subject to a lock-up agreement that expires on September 8, 2013. At June 30, 2013, GSV Capital Corp. valued Silver Spring Networks, Inc. based on its June 30, 2013 closing price. (9) On July 22, 2013, Control4 Corporation completed a 1:5.2 reverse stock split which has been reflected above. (10) On July 31 2013, Grockit, Inc. changed its name to Learnist, Inc. CONTACT: Financial Profiles, Inc. Tricia Ross, (650) 235-4769 [email protected] Source: GSV Capital Corp. 2013 GlobeNewswire, Inc. |