Quarterly Report


  

  

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



 

FORM 10-Q



 

 
(Mark One)
    
x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

          FOR THE QUARTERLY PERIOD ENDED September 30, 2017

 
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00852



 

GSV Capital Corp.

(Exact name of registrant as specified in its charter)



 

 
Maryland   27-4443543
(State of incorporation)   (I.R.S. Employer Identification No.)

 
2925 Woodside Road
Woodside, CA   94062
(Address of principal executive offices)   (Zip Code)

(650) 235-4769

(Registrant’s telephone number, including area code)



 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 
Large accelerated filer o   Accelerated filer x
Non-accelerated filer o (Do not check if a smaller reporting company)   Smaller reporting company o
Emerging growth company o     

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)Yes o No x

The issuer had 21,321,882 shares of common stock, $0.01 par value per share, outstanding as of November 9, 2017.

 

 


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP.
 
TABLE OF CONTENTS

 
  PAGE

PART I.

FINANCIAL INFORMATION

        

Item 1.

Condensed Consolidated Financial Statements

    1  
Condensed Consolidated Statements of Assets and Liabilities as of September 30, 2017 (Unaudited) and December 31, 2016     1  
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2017 and 2016 (Unaudited)     2  
Condensed Consolidated Statements of Changes in Net Assets for the Nine Months Ended September 30, 2017 and 2016 (Unaudited)     4  
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016 (Unaudited)     5  
Condensed Consolidated Schedule of Investments as of September 30, 2017 (Unaudited)     6  
Condensed Consolidated Schedule of Investments as of December 31, 2016     11  
Notes to Condensed Consolidated Financial Statements as of September 30, 2017 (Unaudited)     17  

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

    63  
Forward-Looking Statements     63  
Overview     64  
Investments — (Portfolio Activity)     64  
Results of Operations     66  
Liquidity and Capital Resources     71  
Borrowings
    73  
Critical Accounting Policies     74  
Recent Developments     74  

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

    75  

Item 4.

Controls and Procedures

    76  

PART II.

OTHER INFORMATION

        

Item 1.

Legal Proceedings

    77  

Item 1A.

Risk Factors

    77  

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

    77  

Item 3.

Defaults Upon Senior Securities

    78  

Item 4.

Mine Safety Disclosure

    78  

Item 5.

Other Information

    78  

Item 6.

Exhibits

    78  
Signatures     79  

i


 
 

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

   
  September 30, 2017   December 31, 2016
     (Unaudited)
ASSETS
                 
Investments at fair value:
                 
Non-controlled/non-affiliate investments (cost of $172,562,763 and $204,101,445, respectively)   $ 234,922,519     $ 200,532,890  
Non-controlled/affiliate investments (cost of $49,198,848 and $51,773,388, respectively) (1)     29,787,226       42,444,690  
Controlled investments (cost of $23,101,258 and $22,893,441,
respectively) (1)
    25,066,337       19,037,566  
Investments in treasury bill (cost of $99,991,125 and $29,998,750, respectively)     99,994,000       29,998,490  
Total Investments (cost of $344,853,994 and $308,767,024, respectively)     389,770,082       292,013,636  
Cash     5,154,436       8,332,634  
Interest and dividends receivable     218,437       92,946  
Prepaid expenses and other assets     297,785       213,942  
Deferred financing costs     425,316       311,268  
Total Assets     395,866,056       300,964,426  
LIABILITIES
                 
Due to:
                 
GSV Asset Management (1)     323,897       422,025  
Accounts payable and accrued expenses     257,386       335,611  
Accrued incentive fees (1)     9,608,629       2,126,444  
Accrued management fees (1)           524,054  
Accrued interest payable     156,104       1,056,563  
Payable for shares repurchased     153,560        
Payable for securities purchased     89,491,125       26,498,750  
Deferred tax liability     10,332,666       10,359,371  
Credit facility payable     8,000,000        
Convertible Senior Notes Payable 5.25% due September 15, 2018 (2)     68,162,724       67,512,798  
Total Liabilities     186,486,091       108,835,616  
Commitments and contingencies (Notes 6 and 9)
                 
Net Assets   $ 209,379,965     $ 192,128,810  
NET ASSETS
                 
Common stock, par value $0.01 per share
(100,000,000 authorized; 21,606,894 and 22,181,003 issued and outstanding, respectively)
  $ 216,069     $ 221,810  
Paid-in capital in excess of par     218,442,567       221,237,636  
Accumulated net investment loss     (18,761,130 )       (1,443,996 )  
Accumulated net realized losses on investments     (25,100,964 )       (773,882 )  
Accumulated net unrealized appreciation/(depreciation) of investments     34,583,423       (27,112,758 )  
Net Assets   $ 209,379,965     $ 192,128,810  
Net Asset Value Per Share   $ 9.69     $ 8.66  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.
(2) The Convertible Senior Notes have a face value of $69,000,000. Refer to “Note 9 — Debt Capital Activities” for a reconciliation of the carrying value to the face value.

 
 
See accompanying notes to condensed consolidated financial statements.

1


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

       
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
     2017   2016   2017   2016
INVESTMENT INCOME
                                   
Non-controlled/non-affiliate investments:
                                   
Interest income/(reversal of interest accrual)   $ (21,447 )     $ 2,503     $ (4,640 )     $ 11,906  
Other income                 73,096        
Non-controlled/affiliate investments:
                                   
Interest income/(reversal of interest accrual) (1)     (48,398 )       61,145       143,974       79,858  
Controlled investments:
                                   
Interest income (1)     69,757       23,000       196,534       43,417  
Dividend income (1)     175,000             475,000        
Total Investment Income     174,912       86,648       883,964       135,181  
OPERATING EXPENSES
                                   
Management fees (1)     1,397,332       1,625,963       4,210,932       5,324,186  
Incentive fees/(reversal of incentive fee accrual) (1)     3,334,052       220,719       7,482,185       (7,805,089 )  
Costs incurred under administration agreement (1)     472,413       627,444       1,453,007       1,926,085  
Directors’ fees     86,250       86,250       242,230       258,750  
Professional fees     353,933       416,353       1,318,931       1,441,856  
Interest expense     1,207,548       1,189,736       3,489,381       3,557,225  
Tax expense     4,889             51,379        
Other expenses     119,122       141,838       479,419       558,856  
Total Operating Expenses     6,975,539       4,308,303       18,727,464       5,261,869  
Management fee waiver     (174,666 )             (526,366 )        
Total operating expenses, net of waiver of management fees     6,800,873       4,308,303       18,201,098       5,261,869  
Net Investment Loss     (6,625,961 )       (4,221,655 )       (17,317,134 )       (5,126,688 )  
Realized Gains/(Losses):
                                   
Non-controlled/non-affiliate investments     1,033,577       2,658,715       (21,748,173 )       (2,311,994 )  
Non-controlled/affiliate investments                 (2,578,909 )        
Net Realized Gains/(Losses)     1,033,577       2,658,715       (24,327,082 )       (2,311,994 )  
Change in Unrealized Appreciation/(Depreciation):
                                   
Non-controlled/non-affiliate investments     20,367,064       938,936       65,931,446       (27,841,477 )  
Non-controlled/affiliate investments     (9,822,081 )       (584,077 )       (10,082,924 )       (6,951,895 )  
Controlled investments     5,091,700       (1,616,568 )       5,820,954       (1,823,224 )  
Total Change in Unrealized Appreciation/(Depreciation)     15,636,683       (1,261,709 )       61,669,476       (36,616,596 )  
Benefit from taxes on unrealized
depreciation of investments
    26,705       551,310       26,705       551,310  

 
 
See accompanying notes to condensed consolidated financial statements.

2


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – (Continued)
(UNAUDITED)

       
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
     2017   2016   2017   2016
Net Increase/(Decrease) in Net Assets
Resulting from Operations
  $ 10,071,004     $ (2,273,339 )     $ 20,051,965     $ (43,503,968 )  
Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share
                                   
Basic   $ 0.46     $ (0.10 )     $ 0.91     $ (1.96 )  
Diluted (2)   $ 0.40     $ (0.10 )     $ 0.84     $ (1.96 )  
Weighted-Average Common Shares Outstanding
                                   
Basic     22,000,571       22,181,003       22,120,198       22,181,003  
Diluted (2)     27,752,386       22,181,003       27,872,013       22,181,003  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.
(2) For the three and nine months ended September 30, 2016, 5,710,212 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. Refer to “Note 5 — Net Increase/(Decrease) in Net Assets Resulting from Operations per Common Share — Basic and Diluted” for further detail.

 
 
See accompanying notes to condensed consolidated financial statements.

3


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)

   
  Nine Months
Ended
September 30,
2017
  Nine Months
Ended
September 30,
2016
Change in Net Assets Resulting from Operations
                 
Net investment loss   $ (17,317,134 )     $ (5,126,688 )  
Net realized losses on investments     (24,327,082 )       (2,311,994 )  
Net change in unrealized appreciation/(depreciation) of investments     61,669,476       (36,616,596 )  
Benefit from taxes on unrealized depreciation of investments     26,705       551,310  
Net Increase/(Decrease) in Net Assets Resulting from Operations     20,051,965       (43,503,968 )  
Change in Net Assets Resulting from Capital Transactions
                 
Distributions from realized gains           (820,753 )  
Distributions from return of capital           (66,487 )  
Total distributions           (887,240 )  
Repurchases of common stock     (2,800,810 )        
Net Decrease in Net Assets Resulting from Capital Transactions     (2,800,810 )       (887,240 )  
Total Increase/(Decrease) in Net Assets     17,251,155       (44,391,208 )  
Net assets at beginning of period     192,128,810       268,010,945  
Net Assets at End of Period   $ 209,379,965     $ 223,619,737  
Capital Share Activity
                 
Shares repurchased     (574,109 )        
Shares outstanding at beginning of period     22,181,003       22,181,003  
Shares Outstanding at End of Period     21,606,894       22,181,003  

 
 
See accompanying notes to condensed consolidated financial statements.

4


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

   
  Nine Months
Ended
September 30,
2017
  Nine Months
Ended
September 30,
2016
Cash Flows from Operating Activities
                 
Net increase/(decrease) in net assets resulting from operations   $ 20,051,965     $ (43,503,968 )  
Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash used in operating activities:
                 
Net realized losses on investments     24,327,082       2,311,994  
Net change in unrealized (appreciation)/depreciation of investments     (61,669,476 )       36,616,596  
Deferred tax liability     (26,705 )       (551,310 )  
Amortization of discount on Convertible Senior Notes     649,926       645,891  
Amortization of deferred financing costs     27,751       165,999  
Amortization of fixed income security premiums and discounts     (115,162 )       (9,808 )  
Paid-in-kind-interest     (24,564 )        
Change in restricted cash           (62,500 )  
Purchases of investments in:
                 
Portfolio investments     (2,080 )       (13,019,822 )  
United States treasury bills     (260,045,503 )       (89,999,458 )  
Proceeds from sales or maturity of investments in:
                 
Portfolio investments     9,773,257       25,631,067  
United States treasury bills     190,000,000       3,685,000  
United States treasuries strips           90,000,000  
Change in operating assets and liabilities:
                 
Due from GSV Asset Management (1)           143,749  
Due from portfolio companies (1)           55,692  
Prepaid expenses and other assets     (83,843 )       (87,412 )  
Interest and dividends receivable     (125,491 )       (125,178 )  
Due to GSV Asset Management (1)     (98,128 )       (4,151,497 )  
Payable for securities purchased     62,992,375       552  
Accounts payable and accrued expenses     (78,225 )       258,652  
Accrued incentive fees (1)     7,482,185       (7,805,089 )  
Accrued management fees (1)     (524,054 )       (141,435 )  
Accrued interest payable     (900,459 )       (905,625 )  
Net Cash Used in Operating Activities     (8,389,149 )       (847,910 )  
Cash Flows from Financing Activities
                 
Borrowings under credit facility     16,000,000       3,500,000  
Repayments under credit facility     (8,000,000 )       (3,500,000 )  
Repurchases of common stock     (2,647,250 )        
Deferred credit facility costs     (41,486 )        
Deferred offering costs     (100,313 )       (169,614 )  
Dividends distributed           (887,240 )  
Net Cash Provided by/(Used in) Financing Activities     5,210,951       (1,056,854 )  
Total Decrease in Cash Balance     (3,178,198 )       (1,904,764 )  
Cash Balance at Beginning of Period     8,332,634       13,349,877  
Cash Balance at End of Period   $ 5,154,436     $ 11,445,113  
Supplemental Information:
                 
Interest paid   $ 3,679,244     $ 3,650,961  
Taxes paid   $ 52,481     $  

(1) This balance is a related-party transaction. Refer to “Note 2 — Related-Party Arrangements” for more detail.

 
 
See accompanying notes to condensed consolidated financial statements.

5


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
(UNAUDITED)
September 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of
Net Assets
Palantir Technologies, Inc.
    Palo Alto, CA                                      
Preferred shares, Series G     Data Analysis       326,797     $ 1,008,968     $ 1,955,290       0.93 %  
Common shares, Class A           5,773,690       16,189,935       34,545,111       16.49 %  
Total                 17,198,903       36,500,401       17.42 %  
JAMF Holdings, Inc. (14)
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       1,468,800       9,999,928       35,177,778       16.79 %  
Spotify Technology S.A. **
    Stockholm, Sweden                                      
Common shares     On-Demand Music Streaming       9,541       13,599,572       32,283,584       15.41 %  
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       18,364,968       8.77 %  
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Cloud Computing Services       552,486       5,015,773       6,954,844       3.32 %  
Common shares           760,000       8,641,153       9,567,086       4.57 %  
Total                 13,656,926       16,521,930       7.89 %  
StormWind, LLC (2) (6)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       7,856,020       3.75 %  
Preferred shares, Series B              3,279,629       2,019,687       6,000,048       2.86 %  
Preferred shares, Series A           366,666       110,000       508,741       0.24 %  
Total                 6,130,474       14,364,809       6.85 %  
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       5,924,582       2.83 %  
Common shares           133,213       2,999,983       5,960,277       2.85 %  
Total                 5,999,961       11,884,859       5.68 %  
Chegg, Inc. **
    Santa Clara, CA                                      
Common shares (3) (13)     Online Education Services       782,192       9,273,458       11,607,729       5.54 %  
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series D     Light Field Imaging Platform       159,160       502,081       500,001       0.24 %  
Preferred shares, Series C-1           3,378,379       10,000,002       10,000,002       4.77 %  
Total                 10,502,083       10,500,003       5.01 %  
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       10,405,629       4.97 %  
Ozy Media, Inc. (1)
    Mountain View, CA                                      
Convertible Promissory Note 5% Due 2/28/2018***     Digital Media Platform     $ 2,000,000       2,000,000       2,000,000       0.95 %  
Preferred shares, Series B              922,509       4,999,999       4,390,887       2.10 %  
Preferred shares, Series A              1,090,909       3,000,200       2,633,784       1.26 %  
Preferred shares, Series Seed           500,000       500,000       438,964       0.21 %  
Total                 10,500,199       9,463,635       4.52 %  

 
 
See accompanying notes to condensed consolidated financial statements.

6


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
September 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
NestGSV, Inc. (d/b/a GSV Labs, Inc.) (2)
    Redwood City, CA                                      
Convertible Promissory Note 8% Due 7/31/2018*** (15)     Global Innovation Platform     $ 560,199     $ 563,479     $ 560,199       0.27 %  
Unsecured Promissory Note 12% Due 11/29/2017*** (11)            $ 557,735       533,353       533,353       0.25 %  
Preferred shares, Series A-4              3,720,424       4,904,498       5,189,348       2.48 %  
Preferred shares, Series A-3              1,561,625       2,005,730       1,815,164       0.87 %  
Preferred shares, Series A-2              450,001       605,500       313,836       0.15 %  
Preferred shares, Series A-1              1,000,000       1,021,778       523,060       0.25 %  
Common shares              200,000       1,000             %  
Preferred Warrants Series A-3 – Strike Price $1.33 – Expiration Date 4/4/2019              187,500             13,125       0.01 %  
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration Date 10/6/2019              500,000             165,000       0.08 %  
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration Date 7/18/2021              250,000       74,380       100,000       0.05 %  
Preferred Warrants Series A-4 – Strike Price $1.33 – Expiration Date 11/29/2021              100,000       29,275       40,000       0.02 %  
Preferred Warrant Series B – Strike Price $2.31, Expiration Date 5/29/2022 (11)           125,000       70,379       81,250       0.04 %  
Total                 9,809,372       9,334,335       4.47 %  
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     On-Demand Transportation Services       128,563       2,503,585       3,709,840       1.77 %  
Preferred shares, Series D           176,266       1,792,749       5,086,367       2.43 %  
Total                 4,296,334       8,796,207       4.20 %  
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship Manager       373,134       1,500,522       2,408,120       1.15 %  
Common shares           1,524,799       5,476,502       3,711,007       1.77 %  
Total                 6,977,024       6,119,127       2.92 %  
Curious.com, Inc. (1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       5,960,187       2.85 %  
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     On-Demand Commerce       1,681,520       4,000,280       4,000,000       1.91 %  
Preferred shares, Series A           879,198       1,002,440       1,447,844       0.69 %  
Total                 5,002,720       5,447,844       2.60 %  
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,205,476       0.58 %  
Preferred shares, Series B           904,977       2,063,356       3,619,908       1.73 %  
Total                 3,164,265       4,825,384       2.31 %  
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,592,322       2.19 %  
Avenues Global Holdings, LLC (4)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-Focused Private School       10,014,270       10,151,854       4,514,409       2.16 %  
Whittle Schools, LLC (1) (5)
    New York, NY                                      
Preferred shares, Series B     Globally-Focused Private School       3,000,000       3,000,000       3,000,000       1.43 %  
Common shares           229       1,577,097       1,500,000       0.72 %  
Total                 4,577,097       4,500,000       2.15%  

 
 
See accompanying notes to condensed consolidated financial statements.

7


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
September 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985     $ 4,999,999     $ 3,688,268       1.76 %  
CUX, Inc. (d/b/a CorpU) (1)
    Philadelphia, PA                                      
Senior Subordinated Convertible Promissory Note 8%, Due 11/26/2018*** (8)     Corporate Education     $ 1,166,400       1,166,400       1,166,400       0.56 %  
Convertible preferred shares, Series D              169,033       778,607       775,861       0.37 %  
Convertible preferred shares, Series C              615,763       2,006,077       1,306,396       0.62 %  
Preferred Warrants Series D – Strike Price $4.59 – Expiration Date 2/25/2018           16,903             2,535       %  
Total                 3,951,084       3,251,192       1.55 %  
A Place for Rover Inc. (f/k/a DogVacay, Inc.) (10)
    Seattle, WA                                      
Common shares     Peer-to-Peer Pet Services       707,991       2,506,119       3,069,644       1.47 %  
Declara, Inc. (1)
    Palo Alto, CA                                      
Convertible Promissory Note 9% Due 12/31/2017 (12) (16)     Social Cognitive Learning     $ 2,120,658       2,121,458       2,210,411       1.06 %  
Preferred shares, Series A           10,716,390       9,999,999       794,769       0.38 %  
Total                 12,121,457       3,005,180       1.44 %  
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,650,687       0.79 %  
Preferred shares, Series A           3,579,610       758,017       825,343       0.39 %  
Total                 2,260,379       2,476,030       1.18 %  
SharesPost, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,326,864       1.11 %  
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       69,384       0.03 %  
Total                 2,282,844       2,396,248       1.14 %  
Strategic Data Command, LLC (1) (7)
    Sunnyvale, CA                                      
Common shares     Big Data Consulting       2,400,000       989,277       2,057,155       0.98 %  
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047       2,000,601       2,000,001       0.95 %  
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A     Financial Services       540,270       1,001,815       1,759,577       0.84 %  
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) (2)
    Woodside, CA                                      
Preferred shares, Class A***     Clean Technology       14,300,000       7,151,412       1,367,193       0.65 %  
Common shares           100,000       10,000             %  
Total                 7,161,412       1,367,193       0.65 %  
EdSurge, Inc. (1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       500,000       0.24 %  
Preferred shares, Series A           494,365       500,801       500,001       0.24 %  
Total                 1,002,161       1,000,001       0.48 %  
Tynker (f/k/a Neuron Fuel, Inc.)
    Mountain View, CA                                      
Preferred shares, Series A     Computer Software       534,162       309,310       849,550       0.41%  

 
 
See accompanying notes to condensed consolidated financial statements.

8


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
September 30, 2017

         
Portfolio Investments*   Headquarters/Industry   Shares/ Principal   Cost   Fair Value   % of
Net Assets
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Common shares     Social Data Platform       436,219     $ 1,436,404     $ 591,004       0.28 %  
Fullbridge, Inc.
    Cambridge, MA                                      
Common shares     Business Education       517,917       6,150,506             %  
Promissory note 1.47%, Due 11/9/2021*** (16)         $ 2,270,458       2,270,858       550,023       0.26 %  
Total                 8,421,364       550,023       0.26 %  
Maven Research, Inc. (1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       500,000       0.24 %  
Preferred shares, Series B           49,505       217,206       49,876       0.02 %  
Total                 2,217,653       549,876       0.26 %  
Circle Media (f/k/a S3 Digital Corp. (d/b/a S3i)) (1)
    New York, NY                                      
Promissory Note 12%, Due 11/17/2017*** (16)     Sports Analytics     $ 28,008       30,408             %  
Preferred shares, Series A              1,864,495       1,777,576             %  
Preferred warrants, $1.17 Strike Price, Expiration Date 11/18/2022              5,360       576             %  
Preferred warrants, $1.17 Strike Price, Expiration Date 8/29/2021              175,815                   %  
Preferred warrants, $1.17 Strike Price, Expiration Date 6/26/2021              38,594                   %  
Preferred warrants, $1.17 Strike Price, Expiration Date 9/30/2020              160,806                   %  
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017           500,000       31,354             %  
Total                 1,839,914             %  
Handle Financial, Inc. (f/k/a PayNearMe, Inc.) (9)
    Sunnyvale, CA                                      
Common shares     Cash Payment Network       548,034       14,000,398             %  
Total Portfolio Investments                 244,862,869       289,776,082       138.35 %  
U.S. Treasury
                                            
U.S. Treasury Bill, 0%, due 10/5/2017*** (3)         $ 100,000,000       99,991,125       99,994,000       47.74 %  
TOTAL INVESTMENTS               $ 344,853,994     $ 389,770,082       186.09 %  

* All portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise identified. Equity investments are subject to lock-up restrictions upon their initial public offering (“IPO”). The Company’s and GSV Asset Management LLC’s officers and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments. (Refer to “Note 2 — Related Party Arrangements”). All portfolio investments are considered Level 3 and valued using significant unobservable inputs, unless otherwise noted. (Refer to “Note 3 — Investments at Fair Value”). All investments are restricted as to resale, unless otherwise noted, and were valued at fair value as determined in good faith by the Company’s board of directors.
** 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 (the “1940 Act”). Of GSV Capital Corp.’s total portfolio as of September 30, 2017, 11.26% of its total investments are non-qualifying assets.
*** Investment is income-producing.

 
 
See accompanying notes to condensed consolidated financial statements.

9


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
(UNAUDITED)
September 30, 2017

(1) Denotes an Affiliate Investment. “Affiliate Investments” are investments in those companies that are “Affiliated Companies” of GSV Capital Corp., as defined in the 1940 Act. In general, a company is deemed to be an “Affiliate” of GSV Capital Corp. if GSV Capital Corp. owns 5% or more of the voting securities ( i.e. , securities with the right to elect directors) of such company. For the Schedule of Investments In and Advances To Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 3 — Investments at Fair Value”.
(2) Denotes a Control Investment. “Control Investments” are investments in those companies that are “Controlled Companies” of GSV Capital Corp., as defined in the 1940 Act. In general, under the 1940 Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities ( i.e. , securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. For the Schedule of Investments In and Advances To Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 3 — Investments at Fair Value”.
(3) Denotes an investment considered Level 1 valued using observable inputs.
(4) GSV Capital Corp.’s investment in Avenues Global Holdings, LLC is held through its wholly-owned subsidiary, GSVC AV Holdings, Inc.
(5) GSV Capital Corp.’s investment in Whittle Schools, LLC is held through its wholly-owned subsidiary, GSVC WS Holdings, Inc. Whittle Schools, LLC is an investment that is collateralized by Avenues Global Holdings, LLC, as well as the personal collateral of Chris Whittle, the former chairman of Avenues Global Holdings, LLC.
(6) GSV Capital Corp.’s investment in StormWind, LLC is held through its wholly-owned subsidiary, GSVC SW Holdings, Inc.
(7) GSV Capital Corp.’s investment in Strategic Data Command, LLC is held through its wholly-owned subsidiary, GSVC SVDS Holdings, Inc.
(8) Interest will accrue daily on the unpaid principal balance of the note. Interest began compounding annually on November 26, 2015. Accrued interest is not payable until the earlier of (a) the closing of a subsequent equity offering by CUX, Inc. (d/b/a CorpU), or (b) the maturity of the note (November 26, 2018).
(9) On March 28, 2017, PayNearMe, Inc. changed its name to Handle Financial, Inc. As part of the company’s restructuring process, Handle Financial, Inc. initiated a 10:1 reverse stock split.
(10) On March 29, 2017, A Place for Rover, Inc. acquired DogVacay, Inc. and, pursuant to a plan of reorganization, the Company received common shares of A Place for Rover Inc. in exchange for the Company’s previously held Series B-1 preferred shares of DogVacay, Inc.
(11) On May 29, 2017, the maturity date of the unsecured promissory note to NestGSV, Inc. (d/b/a GSV Labs, Inc.) was extended to November 29, 2017 in exchange for 125,000 Series B warrants. For accounting purposes, the extension of the maturity date was treated as an extinguishment of the existing note and creation of a new note. Refer to “Note 3 — Investments at Fair Value.”
(12) On July 1, 2017, the maturity date of the convertible promissory note to Declara, Inc. was extended to December 31, 2017.
(13) On November 12, 2013, Chegg, Inc. priced its IPO. The lock-up agreement for the Company’s Chegg, Inc. common shares expired on May 11, 2014. As a result, the Company’s Chegg, Inc. common shares are considered unrestricted.
(14) In April 2017, JAMF Holdings, Inc. initiated a 20:1 stock split.
(15) On July 31, 2017, the maturity date of the convertible promissory note to NestGSV, Inc. (d/b/a GSV Labs, Inc.) was extended to July 31, 2018.
(16) As of September 30, 2017, the investments noted had been placed on non-accrual status.

 
 
See accompanying notes to condensed consolidated financial statements.

10


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2016

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of
Net Assets
Palantir Technologies, Inc.
    Palo Alto, CA                                      
Preferred shares, Series G     Data Analysis       326,797     $ 1,008,968     $ 2,223,594       1.16 %  
Common shares, Class A           5,773,690       16,189,935       39,285,371       20.45 %  
Total                 17,198,903       41,508,965       21.61 %  
Spotify Technology S.A. **
    Stockholm, Sweden                                      
Common shares     On-Demand Music Streaming       9,541       13,599,572       18,931,691       9.85 %  
Coursera, Inc.
    Mountain View, CA                                      
Preferred shares, Series B     Online Education       2,961,399       14,519,519       14,510,855       7.55 %  
JAMF Holdings, Inc.
    Minneapolis, MN                                      
Preferred shares, Series B     Mobile Device Management       73,440       9,999,928       13,856,754       7.21 %  
General Assembly Space, Inc.
    New York, NY                                      
Preferred shares, Series C     Online Education       126,552       2,999,978       6,697,132       3.49 %  
Common shares           133,213       2,999,983       7,049,632       3.67 %  
Total                 5,999,961       13,746,764       7.16 %  
Dropbox, Inc.
    San Francisco, CA                                      
Preferred shares, Series A-1     Cloud Computing Services       552,486       5,015,773       5,552,484       2.89 %  
Common shares           760,000       8,641,153       7,638,000       3.98 %  
Total                 13,656,926       13,190,484       6.87 %  
Lytro, Inc.
    Mountain View, CA                                      
Preferred shares, Series D     Light Field Imaging Platform       159,160       502,081       500,001       0.26 %  
Preferred shares, Series C-1           3,378,379       10,000,002       10,408,150       5.42 %  
Total                 10,502,083       10,908,151       5.68 %  
Ozy Media, Inc. (1)
    Mountain View, CA                                      
Convertible Promissory Note 5% Due 2/28/2018***     Digital Media Platform     $ 2,000,000       2,000,000       2,000,000       1.04 %  
Preferred shares, Series B              922,509       4,999,999       4,999,999       2.60 %  
Preferred shares, Series A              1,090,909       3,000,200       3,000,000       1.56 %  
Preferred shares, Series Seed           500,000       500,000       610,000       0.32 %  
Total                 10,500,199       10,609,999       5.52 %  
Course Hero, Inc.
    Redwood City, CA                                      
Preferred shares, Series A     Online Education       2,145,509       5,000,001       10,532,304       5.48 %  
Curious.com Inc. (1)
    Menlo Park, CA                                      
Preferred shares, Series B     Online Education       3,407,834       12,000,006       9,984,954       5.20 %  
StormWind, LLC (2) (6)
    Scottsdale, AZ                                      
Preferred shares, Series C     Interactive Learning       2,779,134       4,000,787       4,650,838       2.42 %  
Preferred shares, Series B              3,279,629       2,019,687       4,470,403       2.33 %  
Preferred shares, Series A           366,666       110,000       499,796       0.26 %  
Total                 6,130,474       9,621,037       5.01 %  
Chegg, Inc. ** (18)
    Santa Clara, CA                                      
Common shares     Online Education Services       1,182,792       14,022,863       8,729,005       4.54 %  
Declara, Inc. (1)
    Palo Alto, CA                                      
Convertible Promissory Note 9% Due 6/30/2017*** (12)     Social Cognitive Learning     $ 2,120,658       2,120,658       2,827,020       1.47 %  
Preferred shares, Series A           10,716,390       9,999,999       4,786,654       2.49 %  
Total                 12,120,657       7,613,674       3.96 %  

 
 
See accompanying notes to condensed consolidated financial statements.

11


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2016

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of
Net Assets
Lyft, Inc.
    San Francisco, CA                                      
Preferred shares, Series E     On-Demand Transportation Services       128,563     $ 2,503,585     $ 3,249,430       1.69 %  
Preferred shares, Series D           176,266       1,792,749       4,203,062       2.19 %  
Total                 4,296,334       7,452,492       3.88 %  
Avenues Global Holdings, LLC (4)
    New York, NY                                      
Preferred shares, Junior Preferred Stock     Globally-Focused Private School       10,014,270       10,151,854       6,128,733       3.19 %  
SugarCRM, Inc.
    Cupertino, CA                                      
Preferred shares, Series E     Customer Relationship Manager       373,134       1,500,522       2,354,476       1.23 %  
Common shares           1,524,799       5,476,502       3,762,442       1.96 %  
Total                 6,977,024       6,116,918       3.19 %  
Dataminr, Inc.
    New York, NY                                      
Preferred shares, Series C     Social Media Analytics       301,369       1,100,909       1,377,256       0.72 %  
Preferred shares, Series B           904,977       2,063,356       4,135,745       2.15 %  
Total                 3,164,265       5,513,001       2.87 %  
Enjoy Technology, Inc.
    Menlo Park, CA                                      
Preferred shares, Series B     On-Demand Commerce       1,681,520       4,000,280       4,000,000       2.08 %  
Preferred shares, Series A           879,198       1,002,440       1,443,091       0.75 %  
Total                 5,002,720       5,443,091       2.83 %  
NestGSV, Inc. (d/b/a GSV Labs, Inc.) (2)
    Redwood City, CA                                      
Convertible Promissory Note 8% Due 7/31/2017***     Global Innovation Platform     $ 500,000       457,592       427,900       0.22 %  
Unsecured Promissory Note 12% Due 5/29/2017***            $ 526,000       501,802       496,725       0.26 %  
Preferred shares, Series A-4 (14)              3,720,424       4,904,498       2,715,910       1.41 %  
Preferred shares, Series A-3 (14)              1,561,625       2,005,730       952,591       0.50 %  
Preferred shares, Series A-2 (14)              450,001       605,500       166,500       0.09 %  
Preferred shares, Series A-1 (14)              1,000,000       1,021,778       270,000       0.14 %  
Common shares              200,000       1,000             0.00 %  
Preferred warrants, Series A-3 – $1.33 Strike Price, Expiration Date 4/4/2019              187,500             5,625       %  
Preferred warrants, Series A-4 – $1.33 Strike Price, Expiration Date 10/6/2019              500,000             40,000       0.02 %  
Preferred warrants, Series A-4 – $1.33 Strike Price, Expiration Date 7/18/2021              250,000       74,380       22,500       0.01 %  
Preferred warrants, Series A-4 – $1.33 Strike Price, Expiration Date 11/29/2021           100,000       29,275       9,000        
Total                 9,601,555       5,106,751       2.65 %  
Whittle Schools, LLC (1) (5)
    New York, NY                                      
Preferred shares, Series B     Globally-Focused Private School       3,000,000       3,000,000       3,000,000       1.56 %  
Common shares           229       1,577,097       1,500,000       0.78 %  
Total                 4,577,097       4,500,000       2.34 %  
Snap Inc. (f/k/a Snapchat, Inc.)
    Venice, CA                                      
Preferred shares, Series F (17)     Social Communication       130,208       2,001,135       2,184,565       1.14 %  
Common shares, Class A (17)           130,208       2,001,135       2,184,565       1.14 %  
Total                 4,002,270       4,369,130       2.28%  

 
 
See accompanying notes to condensed consolidated financial statements.

12


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2016

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of
Net Assets
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) (2)
    Woodside, CA                                      
Preferred shares, Class A     Clean Technology       14,300,000     $ 7,151,412     $ 4,309,778       2.24 %  
Common shares           100,000       10,000             %  
Total                 7,161,412       4,309,778       2.24 %  
Parchment, Inc.
    Scottsdale, AZ                                      
Preferred shares, Series D     E-Transcript Exchange       3,200,512       4,000,982       4,000,000       2.08 %  
CUX, Inc. (d/b/a CorpU) (1)
    Philadelphia, PA                                      
Senior Subordinated Convertible Promissory Note 8%, Due 11/26/2018*** (8)     Corporate Education     $ 1,166,400       1,166,400       1,166,400       0.61 %  
Convertible preferred shares, Series D              169,033       778,607       775,861       0.40 %  
Convertible preferred shares, Series C              615,763       2,006,077       1,913,484       1.00 %  
Preferred warrants, Series D, $4.59 Strike Price, Expiration Date 2/25/2018           16,903             4,395       %  
Total                 3,951,084       3,860,140       2.01 %  
Knewton, Inc.
    New York, NY                                      
Preferred shares, Series E     Online Education       375,985       4,999,999       3,782,409       1.97 %  
DogVacay, Inc.
    Santa Monica, CA                                      
Preferred shares, Series B-1     Peer-to-Peer Pet Services       514,562       2,506,119       2,500,771       1.30 %  
SharesPost, Inc.
    San Bruno, CA                                      
Preferred shares, Series B     Online Marketplace Finance       1,771,653       2,259,716       2,249,999       1.17 %  
Common warrants, $0.13 Strike Price, Expiration Date 6/15/2018           770,934       23,128       69,384       0.04 %  
Total                 2,282,844       2,319,383       1.21 %  
DreamBox Learning, Inc.
    Bellevue, WA                                      
Preferred shares, Series A-1     Education Technology       7,159,221       1,502,362       1,503,436       0.78 %  
Preferred shares, Series A           3,579,610       758,017       751,718       0.39 %  
Total                 2,260,379       2,255,154       1.17 %  
Maven Research, Inc. (1)
    San Francisco, CA                                      
Preferred shares, Series C     Knowledge Networks       318,979       2,000,447       1,999,998       1.04 %  
Preferred shares, Series B           49,505       217,206       223,763       0.12 %  
Total                 2,217,653       2,223,761       1.16 %  
Strategic Data Command, LLC (1) (7)
    Sunnyvale, CA                                      
Common shares     Big Data Consulting       2,400,000       989,277       2,052,555       1.07 %  
Clever, Inc.
    San Francisco, CA                                      
Preferred shares, Series B     Education Software       1,799,047       2,000,601       2,000,001       1.04 %  
EdSurge, Inc. (1)
    Burlingame, CA                                      
Preferred shares, Series A-1     Education Media Platform       378,788       501,360       500,000       0.26 %  
Preferred shares, Series A           494,365       500,801       588,294       0.31 %  
Total                 1,002,161       1,088,294       0.57%  

 
 
See accompanying notes to condensed consolidated financial statements.

13


 
 

TABLE OF CONTENTS

GSV CAPITAL CORP. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2016

         
Portfolio Investments*   Headquarters/Industry   Shares/
Principal
  Cost   Fair Value   % of
Net Assets
Tynker (f/k/a Neuron Fuel, Inc.)
    Mountain View, CA                                      
Preferred shares, Series A     Computer Software       534,162     $ 309,310     $ 881,367       0.46 %  
Fullbridge, Inc.
    Cambridge, MA                                      
Common shares     Business Education       517,917       6,150,506             %  
Junior note 1.49%, Due 11/9/2021           2,270,458       2,270,858       877,359       0.46 %  
Total                 8,421,364       877,359       0.46 %  
Circle Media (f/k/a S3 Digital Corp. (d/b/a S3i)) (1)
    New York, NY                                      
Promissory Note 12%, Due 11/17/2017*** (15)     Sports Analytics     $ 25,000       26,840       26,544       0.01 %  
Preferred shares, Series A              1,864,495       1,777,576       484,769       0.26 %  
Preferred warrants, $1.17 Strike Price, Expiration Date 11/18/2022              5,360       576             %  
Preferred warrants, $1.17 Strike Price, Expiration Date 8/29/2021              175,815                   %  
Preferred warrants, $1.17 Strike Price, Expiration Date 6/26/2021              38,594                   %  
Preferred warrants, $1.17 Strike Price, Expiration Date 9/30/2020              160,806                   %  
Preferred warrants, $1.00 Strike Price, Expiration Date 11/21/2017           500,000       31,354             %  
Total                 1,836,346       511,313       0.27 %  
4C Insights (f/k/a The Echo Systems Corp.)
    Chicago, IL                                      
Common shares     Social Data Platform       436,219       1,436,404       505,744       0.26 %  
Aspiration Partners, Inc.
    Marina Del Rey, CA                                      
Preferred shares, Series A (11)     Financial Services       540,270       1,001,815       307,954       0.16 %  
Handle Financial, Inc. (f/k/a PayNearMe, Inc.)
    Sunnyvale, CA                                      
Common shares (13)     Cash Payment Network       5,480,348       14,000,398