Net Asset Value of $10.58 per Share as of September 30, 2018

Board of Directors Approves Additional $5.0 Million for Share Repurchase Program, Bringing Share Repurchase Program Total to $20.0 Million

WOODSIDE, Calif., Nov. 07, 2018 (GLOBE NEWSWIRE) -- GSV Capital Corp. (“GSV Capital” or the “Company”) (Nasdaq:GSVC) today announced financial results for the quarter ended September 30, 2018.  Net assets totaled approximately $213.4 million, or $10.58 per share, at September 30, 2018, as compared to $9.64 per share at December 31, 2017 and $9.69 per share at September 30, 2017.

"We are pleased to report a strong third quarter for GSV Capital, which was driven by positive developments across the portfolio,” said Michael Moe, Chairman of GSV Capital’s Board of Directors. "Looking ahead, GSV Capital is well positioned to execute against its disciplined growth investment strategy. We believe we have developed a portfolio and pipeline of leading, late-stage venture-backed companies with strong operating fundamentals and the potential for scaled valuation growth. The IPO environment continues to show signs of strength, and we remain confident that our portfolio companies planning to go public in the near-term will be well received."

"We are also happy to announce that the GSV Capital Board of Directors has authorized the expansion of our current share repurchase program by $5.0 million to an aggregate of $20.0 million,” Moe continued. “Under this program, we have repurchased a total of approximately $14.2 million in shares, including approximately $4.1 million in the third quarter of 2018. Since inception of the Share Repurchase Program, we have repurchased approximately 11% of GSV Capital common stock.”

Investment Portfolio as of September 30, 2018

At September 30, 2018, GSV Capital held positions in 26 portfolio companies with an aggregate fair value of approximately $217.2 million. As a result of the Company’s continued strategy to increase the size of its investments in individual portfolio companies, GSV Capital’s investment portfolio has become more concentrated around its top positions. For example, the Company’s top five portfolio company investments accounted for 62.9% of the total portfolio at fair value as of September 30, 2018, compared to 47.8% as of September 30, 2017. GSV Capital’s portfolio investments do not include the Company’s investments in treasuries.

Top Five Investments at September 30, 2018

$ in millions Fair Value% of Total Portfolio Investments
Spotify Technology S. A.$42.619.6  %
Palantir Technologies, Inc. 35.016.1  %
Dropbox, Inc. 23.510.8  %
Coursera, Inc. 20.6  9.5  %
StormWind, LLC 15.0  6.9  %
Total$136.7 62.9  % 

Third Quarter 2018 Portfolio Investment Activity

During the three months ended September 30, 2018, GSV Capital made the following new investments:

Portfolio Company Investment Transaction Date Gross Payments
(in millions)
Knewton, Inc. Unsecured Convertible Promissory Note 7/23/2018 $0.1
Nextdoor.com, Inc. Common Stock 9/27/2018 $6.3

                                                                                                                                                                   
During the three months ended September 30, 2018, GSV Capital exited investments in the following portfolio companies:

Portfolio Company Exit Date Shares Sold Net Proceeds
(in millions)
Realized
Gain / (Loss)
(in millions) (1)
Lytro, Inc. 8/1/2018 3,537,539 $0.8($9.3)
SugarCRM, Inc. 8/30/2018 1,897,933 $2.6($4.1)
DreamBox Learning, Inc. 9/5/2018 10,738,831 $5.2$3.3

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(1)Includes expected escrow proceeds of approximately $1.0 million.

Third Quarter 2018 Financial Results

 Quarter Ended
September 30, 2018
Quarter Ended
September 30, 2017
     
  $ in millions
 per share
 $ in millions
 per share
     
Net investment loss$(3.9)$(0.19)$(6.6)$(0.30)
     
Net realized gain/(loss) on investments(10.1)(0.49)1.00.05
     
Net change in unrealized appreciation of investments, net of tax benefit(1)14.40.7015.70.71
     
Net increase in net assets resulting from operations - basic$0.3$0.02$10.1$0.46
     
Repurchase of common stock(2)(4.1)0.10(2.8)0.12
     
Increase/(decrease) in net asset value(3)$(3.7)$0.12$7.3$0.58

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(1)Includes related net tax benefit of $0.2 million and $<0.1 million for the quarters ended September 20, 2018 and 2017, respectively.
(2)During the quarters ended September 30, 2018 and 2017, the Company repurchased 575,958 and 574,109 shares of GSV Capital common stock, respectively, for approximately $4.1 million and $2.8 million, respectively, in cash under its Share Repurchase Program. The use of cash in connection with the repurchases decreased net asset value as of period end; however, the reduction in shares outstanding as of period end resulted in an increase in the net asset value per share.
(3)Total may not sum, due to rounding.

Weighted-average common basic shares outstanding were approximately 20.5 million and 22.0 million for the quarters ended September 30, 2018 and 2017, respectively.

GSV Capital’s liquid assets were $102.6 million as of September 30, 2018, consisting of $36.6 million of cash and $66.0 million of unrestricted marketable securities. At quarter-end and as of November 7, 2018, GSV Capital did not have any borrowings outstanding under its $12.0 million credit facility.

Convertible Senior Notes

GSV Capital’s 5.25% Convertible Senior Notes due 2018 matured on September 15, 2018. Pursuant to the terms of the 5.25% Convertible Senior Notes due 2018, the Company repaid the remaining outstanding aggregate principal amount of the 5.25% Convertible Senior Notes due 2018, including accrued but unpaid interest, upon maturity. As a result the 5.25% Convertible Senior Notes were no longer outstanding as of such date.

Share Repurchase Program

Under the publicly announced share repurchase program, as of September 30, 2018, the Company had repurchased 2,006,048 shares of its common stock for approximately $12.4 million. From October 1, 2018 through November 7, 2018, the Company repurchased an additional 259,954 shares of its common stock for an aggregate purchase price of $1.8 million.

As of November 7, 2018, in light of the Board of Directors’ authorization to increase the amount of shares of Company common stock that may be repurchased under the share repurchase program, the dollar value of shares that may yet be purchased by the Company under the program is approximately $5.8 million.

Conference Call and Webcast

Management will hold a conference call and webcast for investors on the same day at 2:00 p.m. PT (5:00 p.m. ET).  The conference call access number for U.S. participants is 877-830-2596, and the conference call access number for participants outside the U.S. is +1 785-424-1745. The conference ID number for both access numbers is 8100153.  Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of GSV Capital's website at http://investors.gsvcap.com/.  An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on November 14, 2018 by dialing 888-203-1112 (U.S.) or +1 719-457-0820 (International) and using conference ID number 8100153.

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 and CEO Mark Klein, 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

Follow GSV Capital on Twitter: @gsvcap

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 our future performance, condition or results of operations 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 SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein, unless required to do so by law.

Contact

GSV Capital Corp.
(650) 235-4769
IR@gsvam.com


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

September 30,
 2018
 December 31,
 2017
ASSETS 
Investments at fair value: 
Non-controlled/non-affiliate investments (cost of $102,192,243 and $137,526,726, respectively)$181,222,034  $179,908,234 
Non-controlled/affiliate investments (cost of $42,226,859 and $41,886,312, respectively)5,834,265  16,473,098 
Controlled investments (cost of $22,616,441 and $23,161,314, respectively)30,134,871  24,207,161 
Total Portfolio Investments217,191,170  220,588,493 
Investments in U.S. Treasury bills (cost of $99,967,958 and $99,985,833, respectively)99,983,000  99,994,000 
Total Investments (cost of $267,003,501 and $302,560,185, respectively)317,174,170  320,582,493 
Cash36,623,050  59,838,600 
Due from controlled investments  840 
Escrow proceeds receivable2,642,281  603,456 
Interest and dividends receivable310,683  35,141 
Prepaid expenses and other assets398,184  208,983 
Deferred financing costs215,048  413,023 
Total Assets357,363,416  381,682,536 
LIABILITIES 
Due to GSV Asset Management(1)87  231,697 
Accounts payable and accrued expenses551,243  458,203 
Accrued incentive fees, net of waiver of incentive fees(1)9,142,024  9,278,085 
Accrued management fees, net of waiver of management fees(1)314,338  424,447 
Accrued interest payable  1,056,563 
Payable for securities purchased89,577,376  89,485,825 
Deferred tax liability6,033,512  7,602,301 
5.25% Convertible Senior Notes due September 15, 2018(2)  68,382,549 
4.75% Convertible Senior Notes due March 28, 2023(2)38,341,472   
Total Liabilities143,960,052  176,919,670 
    
Net Assets$213,403,364  $204,762,866 
NET ASSETS 
Common stock, par value $0.01 per share (100,000,000 authorized; 20,174,955 and 21,246,345 issued and outstanding, respectively)$201,749  $212,463 
Paid-in capital in excess of par195,110,116  202,584,012 
Accumulated net investment loss(17,911,239) (8,593,717)
Accumulated net realized gains/(losses) on investments(7,790,909) 140,100 
Accumulated net unrealized appreciation of investments43,793,648  10,420,008 
Net Assets$213,403,364  $204,762,866 
Net Asset Value Per Share$10.58  $9.64 

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(1)This balance references a related-party transaction.
(2)As of September 30, 2018 and December 31, 2017, the 5.25% Convertible Senior Notes due September 15, 2018 had a face value of $0 and $69,000,000, respectively.  As of September 30, 2018 and December 31, 2017, the 4.75% Convertible Senior Notes due March 28, 2023 had a face value of $40,000,000 and $0, respectively.


GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended September 30, Nine Months Ended September 30,
 2018 2017 2018 2017
INVESTMENT INCOME    
Non-controlled/non-affiliate investments:    
Interest income$164,310  $(21,447) $174,922  $(4,640)
Other income      73,096 
Non-controlled/affiliate investments:    
Interest income65,790  (48,398) 521,685  143,974 
Controlled investments:    
Interest income16,252  69,757  41,153  196,534 
Dividend income  175,000  350,000  475,000 
Total Investment Income246,352  174,912  1,087,760  883,964 
OPERATING EXPENSES    
Management fees(1)1,345,090  1,397,332  3,954,732  4,210,932 
Incentive fees(1)804,520  3,334,052  4,863,939  7,482,185 
Costs incurred under Administration Agreement(1)355,599  472,413  1,176,857  1,453,007 
Directors’ fees86,250  86,250  258,750  242,230 
Professional fees552,179  353,933  1,218,875  1,318,931 
Interest expense1,311,534  1,207,548  3,925,292  3,489,381 
Income tax expense(6,235) 4,889  142,264  51,379 
Other expenses107,688  119,122  756,994  479,419 
Total Operating Expenses4,556,625  6,975,539  16,297,703  18,727,464 
Management fee waiver(1)(402,074) (174,666) (892,421) (526,366)
Incentive fee waiver(1)    (5,000,000)  
Total operating expenses, net of waiver of management and incentive fees4,154,551  6,800,873  10,405,282  18,201,098 
Net Investment Loss(3,908,199) (6,625,961) (9,317,522) (17,317,134)
Realized Gains/(Losses) on Investments:    
Non-controlled/non-affiliated investments(10,119,771) 1,033,577  (7,532,483) (21,748,173)
Controlled investments    (680) (2,578,909)
Net Realized Gains/(Losses) on Investments(10,119,771) 1,033,577  (7,533,163) (24,327,082)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018    (397,846)  
Change in Unrealized Appreciation/(Depreciation) of Investments:     
Non-controlled/non-affiliated investments16,245,474  20,367,064  36,655,159  65,931,446 
Non-controlled/affiliate investments(2,350,413) (9,822,081) (10,979,378) (10,082,924)
Controlled investments247,314  5,091,700  6,472,584  5,820,954 
Net Change in Unrealized Appreciation/(Depreciation) of Investments14,142,375  15,636,683  32,148,365  61,669,476 
Benefit from taxes on unrealized depreciation of investments214,404  26,705  1,225,275  26,705 
Net Increase in Net Assets Resulting from Operations$328,810  $10,071,004  $16,125,108  $20,051,965 
Net Increase in Net Assets Resulting from Operations per Common Share:     
Basic$0.02  $0.46  $0.77  $0.91 
Diluted(2)$0.02  $0.40  $0.72  $0.84 
Weighted-Average Common Shares Outstanding    
Basic20,462,626  22,000,571  20,858,192  22,120,198 
Diluted(2)20,462,626  27,752,386  27,728,434  27,872,013 

____________________________________

(1)This balance references a related-party transaction.
(2)For the three months ended September 30, 2018, 7,173,218 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. For the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017, 0 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.


GSV CAPITAL CORP. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS (UNAUDITED)

 Three Months Ended September 30, Nine Months Ended September 30,
Per Basic Share Data 2018 2017 2018 2017
Net asset value at beginning of period $10.46  $9.11  $9.64  $8.66 
Net investment loss(1) (0.19) (0.30) (0.45) (0.78)
Net realized gain/(loss) on investments(1) (0.49) 0.05  (0.36) (1.10)
Realized loss on partial repurchase of 5.25% Convertible Senior Notes due 2018(1)     (0.02)  
Net change in unrealized appreciation of investments(1) 0.69  0.71  1.54  2.79 
Benefit from taxes on unrealized depreciation of investments(1) 0.01    0.06   
Repurchase of common stock(1) 0.10  0.12  0.17  0.12 
Net asset value at end of period $10.58  $9.69  $10.58  $9.69 
Per share market value at end of period $6.91  $5.41  $6.91  $5.41 
Total return based on market value(2) 0.73% 24.65% 26.79% 7.55%
Total return based on net asset value(2) 1.15% 6.37% 9.75% 11.89%
Shares outstanding at end of period 20,174,955  21,606,894  20,174,955  21,606,894 
Ratios/Supplemental Data:        
Net assets at end of period $213,403,364  $209,379,965  $213,403,364  $209,379,965 
Average net assets $214,704,044  $201,557,182  $210,108,076  $196,478,030 
Ratio of gross operating expenses to average net assets(3) 8.51% 13.73% 10.18% 12.74%
Ratio of incentive fee waiver to average net assets(3) % % (2.38)% %
Ratio of management fee waiver to average net assets(3) (0.19)% (0.34)% (0.42)% (0.36)%
Ratio of net operating expenses to average net assets(3) 8.32% 13.34% 7.38% 12.36%
Ratio of net investment loss to average net assets(3) (7.30)% (13.04)% (5.95)% (11.78)%
Portfolio Turnover Ratio 2.98% % 3.08% %

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(1)Based on weighted-average number of shares outstanding for the relevant period.
(2)Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the year. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share.
(3)Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses, including the $5.0 million accrued incentive fee forfeiture pursuant to the Waiver Agreement, are not annualized. For the three and nine months ended September 30, 2018, the Company excluded $0 and $352,667 of non-recurring expenses, respectively and did not annualize the incentive fee waiver. For the three and nine months ended September 30, 2017, the Company did not incur any non-recurring expenses. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios.