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GSV Capital Reports Third Quarter 2012 Results of Operations

WOODSIDE, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- GSV Capital Corp., "GSV", (Nasdaq:GSVC) today reported financial results for the third quarter ended September 30, 2012.

Management Commentary

"We are pleased with the development of our portfolio, which today includes 46 high-growth venture-backed companies that we believe have the potential to drive significant growth, value and shareholder returns. Twitter, Violin Memory and Dropbox are among our largest investments and we demonstrated strong execution in terms of identifying, sourcing and closing key investments across our major investment themes," said Michael Moe, GSV's CEO and founder.

Portfolio Summary and Investment Activity

The total value of GSV's portfolio investments was $217.4 million at September 30, 2012. During the third quarter of 2012, GSV invested approximately $50.2 million in nine new and nine existing portfolio companies.

GSV invested in the following new portfolio companies during the third quarter: 2tor, Dataminr, NestGSV Silicon Valley, Neuron Fuel, Strategic Sports Solutions, SinoLending, Spotify, SugarCRM and Totus Solutions.

GSV also made additional investments in current portfolio companies, including: AltEgo, AlwaysOn, Avenues, Control4, Dropbox, Gilt Groupe, Maven Research and Twitter during the third quarter.

Recent Developments

The Company closed on investments totaling approximately $4.7 million, plus transaction costs, subsequent to September 30, 2012, which included investments in Control4, Parchment, Ozy Media and Top Hat 430.

Portfolio as of September 30, 2012

GSV's investment portfolio consists of companies that it believes benefit from "megatrends" that have the potential to drive the market in the years to come. GSV invests in companies that combine what it believes are powerful technological, economic and social forces that create growth opportunities in the economy.

At the end of the third quarter of 2012, GSV's portfolio included investments in the following companies: 2tor, AltEgo, AlwaysOn, Avenues World Holdings, Bloom Energy, Chegg, Control4, CUX, Dailybreak, Dataminr, DreamBox Learning, Dropbox, Facebook, Fullbridge, Gilt Groupe, Global Education Learning, Grockit, Groupon, Kno, Maven Research, NestGSV, NestGSV Silicon Valley, Neuron Fuel, NewZoom, Strategic Sports Solutions, Serious Energy, SharesPost, Silver Spring Networks, SinoLending, Solexel, Spotify, StormWind, SugarCRM, The Echo System, The rSmart Group, Top Hat 430, Totus Solutions, TrueCar, Twitter, Violin Memory, ZocDoc and Zynga.

Financial Results

September 30, 2012
Total Portfolio Investments $217,441,538
Total Investments $233,441,538
Total Cash $26,331,482
Total Assets $260,309,025
Total Liabilities $449,771
Net Assets $259,859,254
Net Asset Value Per Share $13.45

For the three
months ended
September 30, 2012
For the three
months ended
September 30, 2011
Total Investment Income $13,928 $53,408
Net Investment Loss $(2,334,568) $(680,088)
Net Change in Unrealized Depreciation on Investments $(4,665,272) $(494,170)
Net Decrease in Net Assets Resulting From Operations $(6,999,840) $(1,174,258)
Net Decrease in Net Assets Resulting From Operations Per Common Share $(0.36) $(0.34)
Weighted Average Common Shares Outstanding 19,320,100 3,430,100

Results of Operations

Investment income was $13,928 or $0.00 per share, for the three months ended September 30, 2012, compared to $53,408, or $0.02 per share, for the three months ended September 30, 2011. Net investment loss was $2,334,568, or $0.12 per share, in the third quarter of 2012, compared to $680,088, or $0.20 per share, for the prior year period. Net realized loss on investments was $0 or $0.00 per share, in the third quarter of 2012, compared to $0, or $0.00 per share, for the same period in 2011. Net change in unrealized depreciation was $4,665,272 or $0.24 per share, for the three months ended September 30, 2012, compared to $494,170, or $0.14 per share, for the prior year period. Net decrease in net assets resulting from operations was $6,999,840, or $0.36 per share, and $1,174,258, or $0.34 per share, for the third quarter of 2012 and 2011, respectively.

Conference Call Information

The GSV Capital third quarter 2012 teleconference and audio webcast is scheduled to begin at 5:30 a.m., Pacific Time, on Wednesday, November 7, 2012, during which the company may provide forward-looking information. To participate on the live call, analysts and investors should dial 877-941-4774 at least ten minutes prior to the call. GSV Capital will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the company's Web site at http://investors.gsvcap.com/

About GSV Capital Corp.

GSV Capital Corp. (Nasdaq:GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA.

The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12750

Forwarding-Looking Statements

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
September 30, 2012
ASSETS
Investments at fair value:
Investments in affiliated securities (cost of $31,130,920) $31,247,914
Investments in non-control/non-affiliated securities (cost of $193,559,007) 186,193,624
Investments in money market funds (cost of $16,000,000) 16,000,000
Total Investments (cost of $240,689,927) 233,441,538
Cash 26,331,482
Due from:
GSV Asset Management 3,315
Portfolio companies 291,554
Prepaid expenses 136,096
Dividend receivable 2,190
Other assets 102,850
Total Assets 260,309,025
LIABILITIES
Due to:
GSV Asset Management 41,197
Other affiliates 917
Accounts payable 292,925
Accrued expenses 114,732
Total Liabilities 449,771
Commitments and contingencies
Net Assets $259,859,254
NET ASSETS
Common stock, par value $0.01 per share
(100,000,000 authorized; 19,320,100 issued and outstanding) $193,201
Paid-in capital in excess of par 275,837,514
Accumulated net investment loss (7,542,553)
Accumulated net realized loss on investments (1,380,519)
Accumulated net unrealized depreciation on investments (7,248,389)
Net Assets $259,859,254
Net Asset Value Per Share $13.45
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2012 2011 2012 2011(1)
INVESTMENT INCOME $2,418 $ -- $200,195 $--
Interest income from affiliated securities 4,645 52,222 21,852 52,222
Interest income 6,865 1,186 20,040 1,186
Dividend income 13,928 53,408 242,087 53,408
Total Investment Income
OPERATING EXPENSES 1,351,169 233,961 3,099,186 384,904
Investment management fees 543,171 192,031 1,490,966 305,066
Costs incurred under administration agreement 65,000 42,500 172,500 85,000
Directors' fees 242,683 152,916 597,089 271,548
Professional fees 56,133 47,192 158,287 95,301
Insurance expense 34,698 52,250 143,986 53,000
Investor relations expense -- 6,336 -- 198,831
Organization expenses 55,642 6,310 88,762 15,959
Other expenses 2,348,496 733,496 5,750,776 1,409,609
Total Operating Expenses
(2,334,568) (680,088) (5,508,689) (1,356,201)
Net Investment Loss
-- -- (1,380,519) --
Net Realized Loss on Investments
(4,665,272) (494,170) (5,668,589) (553,804)
Net Change in Unrealized Depreciation on Investments
$(6,999,840) $(1,174,258) $(12,557,797) $(1,910,005)
Net Decrease in Net Assets Resulting from Operations
$ (0.36) $(0.34) $(0.84) (0.78)
Net Decrease in Net Assets Resulting from Operations per Common Share
19,320,100 3,430,100 15,013,896 2,460,565(2)
Weighted Average Common Shares Outstanding
(1) For the period from January 6, 2011 (date of inception) to September 30, 2011.
(2) Weighted average common shares for the period from January 6, 2011 (date of inception) to September 30, 2011 was calculated from the issuance of 100 shares on February 28, 2011.
FINANCIAL HIGHLIGHTS
(Unaudited)
Three months ended
September 30, 2012
Three months ended
September 30, 2011
Per Share Data:
Net asset value at beginning of period $13.81 $13.57
Issuance of common shares -- --
Accretion from offering -- 0.23(2)
Underwriters' discount -- (0.23)(2)
Offering costs -- (0.10)(2)
Net investment loss (0.12)(1) (0.12)(2)
Realized loss -- --
Change in unrealized depreciation (0.24)(5) (0.09)(2)
Net asset value at end of period $13.45 $13.26


Nine months ended
September 30, 2012
For the period from
January 6, 2011
(date of inception) to
September 30, 2011
For the period from
January 6, 2011
(date of inception) to
December 31, 2011
Per Share Data:
Net asset value at beginning of period $12.95 $ -- $ --
Issuance of common shares 1.91(3) 14.67(4) 14.67(4)
Accretion from offering -- -- --
Underwriters' discount (0.72)(2) (0.86)(2) (0.86)(2)
Offering costs (0.04)(2) (0.20)(2) (0.19)(2)
Net investment loss (0.37)(1) (0.25)(2) (0.37)(2)
Realized loss (0.07)(2) -- --
Change in unrealized depreciation (0.21)(5) (0.10)(2) (0.30)(2)
Net asset value at end of period $13.45 $13.26 $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 nine months ended September 30, 2012 is based on the change in net asset value from the secondary offerings on February 10, 2012 and May 11, 2012.
(4) Issuance of common shares for the period from January 6, 2011 (date of inception) to September 30, 2011 and 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.
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2012
(Unaudited)




Portfolio Investments*



Headquarters /
Industry


Shares /
Capital
Contribution




Cost




Fair Value


% of
Net
Assets
2tor, Inc. Landover, MD
Common shares Online Education 1,151,802 $8,757,599 $8,730,846 3.36%
Preferred shares, Series A 167,431 1,273,125 1,269,154 0.49%
Total 10,030,724 10,000,000 3.85%
AltEgo, LLC Santa Monica, CA
Preferred shares, Series B-2 Social Media Customer Acquisition
Platform 1,400,000 1,420,406 1,400,000 0.54%
AlwaysOn, Inc. (1) (2) Woodside, CA
Preferred shares, Series A Social Media 1,066,626 1,027,391 1,087,955 0.42%
Avenues World Holdings LLC New York, NY
Preferred shares, Class A-1 Globally-focused Private School 5,000,000 10,026,573 10,000,000 3.85%
Bloom Energy Corporation Sunnyvale, CA
Common shares Fuel Cell Energy 201,589 3,855,601 3,678,999 1.42%
Chegg, Inc. Santa Clara, CA
Common shares Textbook Rental 1,274,193 10,012,543 10,193,544 3.92%
Preferred shares, Series F 500,000 4,008,654 4,000,000 1.54%
Total 14,021,197 14,193,544 5.46%
Control4 Corporation Salt Lake City, UT
Common shares Home Automation 3,650,667 6,274,551 5,950,587 2.29%
CUX, Inc. (2) San Francisco, CA
Preferred shares, Series C Corporate Education 246,305 2,006,077 2,000,000 0.77%
Dailybreak, Inc. (2) Boston, MA
Preferred shares, Series A-1 Social Advertising 1,545,181 2,000,000 2,000,000 0.77%
Dataminr, Inc. New York, NY
Preferred shares, Series B Social Media Analytics 904,977 2,060,602 1,999,999 0.77%
DreamBox Learning, Inc. Bellevue, WA
Preferred shares, Series A Education Technology 3,579,610 758,017 750,000 0.29%
Dropbox, Inc. San Francisco, CA
Common share Online 760,000 8,640,940 8,360,000 3.22%
Preferred shares, Series A-1 Storage 552,486 5,015,333 6,077,346 2.34%
Total 13,656,273 14,437,346 5.56%
Facebook, Inc. (3) Menlo Park, CA
Common shares, Class B Social Networking 350,000 10,472,294 6,898,710 2.65%
Fullbridge, Inc. (2) Cambridge, MA
Preferred shares, Series C Business Education 1,196,809 2,250,001 2,250,000 0.87%
Gilt Groupe, Inc. New York, NY
Common shares e-Commerce 248,600 6,594,346 5,469,200 2.10%
Flash Sales
Global Education Learning (Holdings) Ltd. (2) Hong Kong
Preferred shares, Series A Education Technology 1,472,175 2,999,998 2,999,998 1.15%
Grockit, Inc. (2) San Francisco, CA
Preferred shares, Series D Online Test 2,728,252 2,005,945 2,000,000 0.77%
Preparation
Groupon, Inc. (4) Chicago, IL
Common shares Online Deals 80,000 2,128,774 381,600 0.15%
Kno, Inc. Santa Clara, CA
Preferred shares, Series C Digital 440,313 2,262,006 2,250,000 0.87%
Preferred shares, Series C-1 Textbooks 1 7,510,334 7,500,000 2.89%
Common shares 50,000 214,681 205,000 0.08%
Total 9,987,021 9,955,000 3.84%
Maven Research, Inc. (2) San Francisco, CA
Preferred shares, Series B Knowledge 49,505 217,206 200,000 0.08%
Preferred shares, Series C Networks 318,979 1,999,998 1,999,998 0.77%
Total 2,217,204 2,199,998 0.85%
NestGSV, Inc. (2) Redwood City, CA
Preferred shares, Series A Incubator 1,000,000 1,021,778 1,000,000 0.38%
NestGSV Silicon Valley, LLC (2) Redwood City, CA
Common membership interest Incubator $500,000 500,000 500,000 0.19%
Neuron Fuel, Inc. San Jose, CA
Preferred shares, Series AAI Computer Software 250,000 262,530 250,000 0.10%
NewZoom, Inc. (d/b/a ZoomSystems) San Francisco, CA
Preferred shares, Series A Smart e-tail 1,250,000 260,476 250,000 0.10%
(Retail)
Palantir Technologies, Inc. Palo Alto, CA
Common shares, Class A Cyber Security 7,045,690 19,780,613 19,747,501 7.60%
Preferred shares, Series G 326,797 1,008,968 999,999 0.38%
Total 20,789,581 20,747,500 7.98%
Serious Energy, Inc. Sunnyvale, CA
Common shares Green Materials 178,095 739,130 -- --%
SharesPost, Inc. San Bruno, CA
Preferred shares, Series B Online 1,771,653 2,257,984 2,256,752 0.87%
Common warrants, $0.13 strike price, expire 6/15/2018 Marketplace 770,934 23,128 8,480 --%
Total (Finance) 2,281,112 2,265,232 0.87%
Silver Spring Networks, Inc. Redwood City, CA
Common shares Smart Grid 510,143 5,145,271 3,275,118 1.26%
SinoLending Ltd. (2) Shanghai, China
Preferred shares, Class A Chinese P2P Lending 6,414,368 501,998 500,000 0.19%
Solexel, Inc. Milpitas, CA
Preferred shares, Series C Solar Power 4,576,659 10,016,559 10,000,000 3.85%
Spotify Technology S.A. Stockholm, Sweden
Common shares Music Streaming Service 3,658 3,598,472 3,589,659 1.38%
StormWind, LLC (2) Scottsdale, AZ
Preferred shares, Series B Interactive Learning Platform 3,279,629 2,019,687 2,000,000 0.77%
Strategic Sports Solutions, LLC (2) New York, NY
Preferred shares, Class A1 Sports Analytics 500,000 529,522 500,000 0.19%
SugarCRM, Inc. Cupertino, CA
Common shares Customer Relationship Manager 432,500 1,521,100 1,513,750 0.58%
The Echo System Corp. (1) (2) New York, NY
Preferred shares, Series A Social Analytics 512,365 1,436,404 1,639,568 0.63%
Preferred warrants, $0.20 strike price, expire 11/14/2016 68,359 75,988 70,394 0.03%
Total 1,512,392 1,709,962 0.66%
The rSmart Group, Inc. Scottsdale, AZ
Preferred shares, Series B Higher Education 1,201,923 1,266,940 1,250,000 0.48%
Learning Platform
Top Hat 430, Inc. (2) Shakopee, MN
Preferred shares, Series A Jewelry Retailing Technology 1,777,778 4,015,179 4,000,001 1.54%
Totus Solutions, Inc. (2) Carrollton, TX
Common shares LED Lighting 20,000,000 5,023,748 5,000,000 1.92%
TrueCar, Inc. Santa Monica, CA
Common shares Online 377,358 2,014,863 2,011,318 0.77%
Marketplace (Cars)
Twitter, Inc. San Francisco, CA
Common shares Social 1,835,600 31,755,821 34,876,400 13.42%
Preferred shares, Series A Communication 65,000 1,235,290 1,235,000 0.47%
Total 32,991,111 36,111,400 13.89%
Violin Memory, Inc. Mountain View, CA
Preferred shares, Series B Flash 800,000 4,800,798 4,800,000 1.85%
Preferred shares, Series D Memory 1,666,666 10,018,045 9,999,996 3.85%
Total 14,818,843 14,799,996 5.70%
Whittle Schools, LLC (2) New York, NY
Preferred shares, Series B Education Technology 1,500,000 1,500,000 1,500,000 0.58%
ZocDoc Inc. New York, NY
Preferred shares, Series A Online Medical 200,000 3,563,178 3,500,000 1.35%
Scheduling
Zynga, Inc. San Francisco, CA
Common shares Social Gaming 533,333 3,003,462 1,514,666 0.58%
Total Portfolio Investments $224,689,927 $217,441,538 $83.68%
* All portfolio investments are non-control/non-affiliated and non-income producing, unless identified. Equity investments are subject to lock-up restrictions upon their initial public offering.
(1) Investment is income producing.
(2) Denotes an Affiliate Investment. "Affiliate Investments" are investments in those companies that are "Affiliated Companies" of GSV Capital Corp., as defined in the Investment Company Act of 1940. A company is deemed to be an "Affiliate" of GSV Capital Corp. if GSV Capital Corp. owns 5% or more but less than 25% of the voting securities of such company.
(3) On May 17, 2012, Facebook, Inc. priced its initial public offering, selling 421,233,615 shares at a price of $38.00 per share. GSV Capital Corp.'s shares in Facebook, Inc. are subject to a lock-up agreement that expires on November 14, 2012. At September 30, 2012, GSV Capital Corp. valued Facebook based on its September 28, 2012 closing price, less a discount for the lock-up restriction.
(4) On November 8, 2011, Groupon, Inc. priced its initial public offering, selling 35,000,000 shares at a price of $20.00 per share. GSV Capital Corp.'s shares in Groupon, Inc. are subject to a lock-up agreement that expired on June 1, 2012. At September 30, 2012, GSV Capital Corp. valued Groupon, Inc. based on its September 28, 2012 closing price.
CONTACT: Media: Kim Hughes (415) 516-6187 kim@blueshirtgroup.com Investors: Alex Wellins (415) 217-5861 alex@blueshirtgroup.com

Source:GSV Capital Corp.