AP NEWS

GSV Capital Corp. Reports Third Quarter 2018 Financial Results

November 7, 2018

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 % of Total Portfolio Investments Value --------------------------- ------- -------------------------------- Spotify Technology S. A. $ 42.6 19.6 % Palantir Technologies, Inc. 35.0 16.1 % Dropbox, Inc. 23.5 10.8 % 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:

Net Proceeds Realized Portfolio Company Exit Date Shares Sold (in millions) 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 Quarter Ended September 30, 2018 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) 1.0 0.05 Net change in unrealized appreciation of investments, net of 14.4 0.70 15.7 0.71 tax benefit(1) ------------- --------- ------------- --------- 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. 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, (2) 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

​ September 30, December 31, 2018 2017 --------------- --------------- ASSETS ​ ​ Investments at fair value: ​ ​ Non-controlled/non-affiliate investments (cost of $102,192,243 and $ 181,222,034 $ 179,908,234 $137,526,726, respectively) Non-controlled/affiliate investments (cost of $42,226,859 and $41,886,312, 5,834,265 16,473,098 respectively) Controlled investments (cost of $22,616,441 and $23,161,314, respectively) 30,134,871 24,207,161 Total Portfolio Investments 217,191,170 220,588,493 Investments in U.S. Treasury bills (cost of $99,967,958 and $99,985,833, 99,983,000 99,994,000 respectively) Total Investments (cost of $267,003,501 and $302,560,185, respectively) 317,174,170 320,582,493 Cash 36,623,050 59,838,600 Due from controlled investments — 840 Escrow proceeds receivable 2,642,281 603,456 Interest and dividends receivable 310,683 35,141 Prepaid expenses and other assets 398,184 208,983 Deferred financing costs 215,048 413,023 ------------- - ------------- - Total Assets 357,363,416 381,682,536 ------------- - ------------- - LIABILITIES ​ ​ Due to GSV Asset Management(1) 87 231,697 Accounts payable and accrued expenses 551,243 458,203 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 purchased 89,577,376 89,485,825 Deferred tax liability 6,033,512 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 Liabilities 143,960,052 176,919,670 ------------- - ------------- - 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 $ 201,749 $ 212,463 and 21,246,345 issued and outstanding, respectively) Paid-in capital in excess of par 195,110,116 202,584,012 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 investments 43,793,648 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. As of September 30, 2018 and December 31, 2017, the 5.25% Convertible Senior Notes due September 15, 2018 (2) 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended Nine Months Ended September ​ September 30, 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 income 65,790 (48,398 ) 521,685 143,974 Controlled investments: ​ ​ ​ Interest income 16,252 69,757 41,153 196,534 Dividend income — 175,000 350,000 475,000 --------- - ------------ - ------------ - ------------ - Total Investment Income 246,352 174,912 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’ fees 86,250 86,250 258,750 242,230 Professional fees 552,179 353,933 1,218,875 1,318,931 Interest expense 1,311,534 1,207,548 3,925,292 3,489,381 Income tax expense (6,235 ) 4,889 142,264 51,379 Other expenses 107,688 119,122 756,994 479,419 Total Operating Expenses 4,556,625 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 4,154,551 6,800,873 10,405,282 18,201,098 management and incentive fees 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 (10,119,77) 1,033,577 (7,532,483 ) (21,748,173 ) 1 Controlled investments — — (680 ) (2,578,909 ) --------- - ------------ - ------------ - ------------ - (10,119,77) 1,033,577 (7,533,163 ) (24,327,082 ) Net Realized Gains/(Losses) on Investments 1 Realized loss on partial repurchase of 5.25% — — (397,846 ) — Convertible Senior Notes due 2018 Change in Unrealized Appreciation/(Depreciation) ​ ​ of Investments: Non-controlled/non-affiliated investments 16,245,474 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 investments 247,314 5,091,700 6,472,584 5,820,954 --------- - ------------ - ------------ - ------------ - Net Change in Unrealized Appreciation/ 14,142,375 15,636,683 32,148,365 61,669,476 (Depreciation) of Investments Benefit from taxes on unrealized depreciation of 214,404 26,705 1,225,275 26,705 investments --------- - ------------ - ------------ - ------------ - Net Increase in Net Assets Resulting from $ 328,810 $ 10,071,004 $ 16,125,108 $ 20,051,965 Operations - ------- - - ---------- - - ---------- - - ---------- - 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 ​ ​ ​ Basic 20,462,626 22,000,571 20,858,192 22,120,198 Diluted(2) 20,462,626 27,752,386 27,728,434 27,872,013

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(1) This balance references a related-party transaction. 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 (2) 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 SUBSIDIARIESFINANCIAL 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 (0.49 ) 0.05 (0.36 ) (1.10 ) investments(1) Realized loss on partial repurchase of 5.25% Convertible Senior Notes due — — (0.02 ) — 2018(1) Net change in unrealized appreciation 0.69 0.71 1.54 2.79 of investments(1) Benefit from taxes on unrealized 0.01 — 0.06 — depreciation of investments(1) 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 $ 6.91 $ 5.41 $ 6.91 $ 5.41 period Total return based on market value(2) 0.73 % 24.65 % 26.79 % 7.55 % Total return based on net asset value 1.15 % 6.37 % 9.75 % 11.89 % (2) 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 8.51 % 13.73 % 10.18 % 12.74 % average net assets(3) Ratio of incentive fee waiver to — % — % (2.38 )% — % average net assets(3) Ratio of management fee waiver to (0.19 )% (0.34 )% (0.42 )% (0.36 )% average net assets(3) Ratio of net operating expenses to 8.32 % 13.34 % 7.38 % 12.36 % average net assets(3) ------------- -- ------------- -- ------------- -- ------------- -- Ratio of net investment loss to (7.30 )% (13.04 )% (5.95 )% (11.78 )% average net assets(3) Portfolio Turnover Ratio 2.98 % — % 3.08 % — %

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(1) Based on weighted-average number of shares outstanding for the relevant period. Total return based on market value is based on the change in market price per share between the opening (2) 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. 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 (3) 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.

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