GSV Capital Corp., "GSV," (Nasdaq:GSVC) today reported financial
results for the fourth quarter and fiscal year ended December 31,
2011.
Management Commentary
"The fourth quarter marked tremendous progress for GSV as we
continued to execute on our strategy of investing in high-growth,
venture-backed companies that we believe will drive significant
value creation. We made follow-on investments in Facebook and
Twitter, which represent the largest positions in our portfolio.
Our investment activity during the quarter also included new
positions in companies such as Dropbox, Grockit, and ZocDoc. In
addition, Groupon and Zynga completed their initial public
offerings during the quarter," said Michael T. Moe, GSV's CEO and
founder. "2012 is off to a great start for GSV, as we successfully
raised $96.2 million in a secondary offering which was completed on
February 15th. We are highly encouraged that we were able to
quickly complete a significant capital raise that provides us with
the resources to execute on our investment strategy and take
advantage of what we believe are exciting opportunities in the
market."
Fourth Quarter 2011 Portfolio Investment
Activity
GSV invested in the following new portfolio companies during the
fourth quarter of 2011: Control 4 Inc.; DreamBox Learning, Inc.;
Dropbox, Inc.; Grockit Inc.; StormWind, LLC; The Echo System Corp.;
The rSmart Group, Inc.; and ZocDoc Inc.. Additional investments in
Facebook, Inc., Kno, Inc., and Twitter, Inc. were also made by GSV
during the quarter.
Current Portfolio as of December 31, 2011
Our investment portfolio consists of companies that we believe
represent the "megatrends" that have the potential to drive the
market in the decades to come. GSV invests in companies that
combine what we believe are powerful technological, economic and
social forces that create growth opportunities in the economy. At
the end of the fourth quarter of 2011, GSV's portfolio included
investments in the following companies: Bloom Energy Corporation;
Chegg, Inc.; Control 4 Inc.; DreamBox Learning, Inc.; Dropbox,
Inc.; Facebook, Inc.; Gilt Groupe, Inc.; Grockit Inc.; Groupon,
Inc.; Kno, Inc.; PJB Fund LLC (loan linked to the value of Zynga,
Inc.); Serious Energy, Inc.; SharesPost, Inc.; Silver Spring
Networks, Inc.; StormWind, LLC; The Echo System Corp.; The rSmart
Group, Inc.; TrueCar, Inc.; Twitter, Inc.; ZocDoc Inc.; and
ZoomSystems.
Financial
Results |
|
|
December 31,
2011 |
Total Portfolio Investments |
$64,078,150 |
Total Investments |
$91,078,194 |
Total Cash |
$385,995 |
Total Assets |
$91,798,242 |
Total Liabilities |
$20,294,994 |
Net Assets |
$71,503,248 |
Net Asset Value Per Share |
$12.95 |
|
For the three
months ended December 31,
2011 |
|
For the period from January
6, 2011 (date of inception) to December 31,
2011 |
Total Investment income |
$ 108,920 |
|
$ 162,328 |
Net Investment Loss |
$ (677,663) |
|
$ (2,033,864) |
Net Change In Unrealized Depreciation on
Non--Control/Non-Affiliated Securities |
$ (1,025,996) |
|
$ (1,579,800) |
Net Decrease in Net Assets Resulting
From Operations |
$ (1,703,659) |
|
$ (3,613,664) |
Net Decrease in Net Assets Resulting
From Operations Per Average Share (1) |
$ (0.31) |
|
$ (1.07) |
|
|
|
|
(1) Weighted average
common shares for the period from January 6, 2011 (date of
inception) to December 31, 2011was calculated starting from the
issuance of 100 shares on February 28, 2011. Weighted average
common shares were 5,520,100 and 3,377,429 for the three-month
period ended December 31, 2011 and since inception period,
respectively. |
|
|
|
Portfolio Investments
The total value of GSV's portfolio investments was approximately
$64.1 million at December 31, 2011. During the fourth quarter of
2011, GSV originated approximately $23.5 million of investments in
eight new and three existing portfolio companies. At December 31,
2011, GSV had equity investments in 19 portfolio companies and debt
investments in two portfolio companies.
Results of Operations
Investment income was $108,920, or $0.02 per share, for the
quarter ended December 31, 2011, and $162,328, or $0.05 per share,
for the period from January 6, 2011 (date of inception) to December
31, 2011. Net investment loss was $677,663, or $0.12 per share, for
the quarter ended December 31, 2011, and $2,033,864, or $0.60 per
share, for the period from January 6, 2011 (date of inception) to
December 31, 2011. Net change in unrealized depreciation was
$1,025,996, or $0.19 per share, for the three months ended December
31, 2011, and $1,579,800, or $0.47 per share, for the period from
January 6, 2011 (date of inception) to December 31, 2011. Net
decrease in net assets resulting from operations was $1,703,659, or
$0.31 per share, for the three months ended December 31, 2011, and
$3,613,664, or $1.07 per share, for the period from January 6, 2011
(date of inception) to December 31, 2011.
Conference Call and Webcast Information
The GSV Capital fourth quarter and fiscal year 2011
teleconference and webcast is scheduled to begin at 2:00 p.m.,
Pacific Time, on Monday, March 12, 2012. To participate on the live
call, analysts and investors should dial 1-877-941-1427 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://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=9556
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.
|
|
|
|
STATEMENT OF ASSETS AND
LIABILITES |
(Unaudited) |
|
|
|
December 31,
2011 |
ASSETS |
|
Investments at fair value: |
|
Investments in
non-control/non-affiliated securities (cost of $65,658,866) |
$ 64,078,150 |
Investments in United
States treasury bills (cost of $19,999,128) |
20,000,044 |
Investments in money
market funds (cost of $7,000,000) |
7,000,000 |
Total Investments (cost
of $92,657,994) |
91,078,194 |
|
|
Cash |
385,995 |
Due from: |
|
GSV Asset Management |
13,470 |
Portfolio company |
9,249 |
Accrued interest |
158,389 |
Prepaid expenses |
92,750 |
Deferred offering costs |
56,436 |
Dividend receivable |
1,063 |
Other assets |
2,696 |
|
|
Total
Assets |
91,798,242 |
|
|
LIABILITIES |
|
Due to: |
|
GSV Asset Management |
78,427 |
Other affiliates |
10,782 |
Payable for unsettled securities
transaction |
19,999,128 |
Accounts payable |
206,357 |
Accrued expenses |
300 |
|
|
Total
Liabilities |
20,294,994 |
|
|
Commitments and
contingencies |
|
|
|
Net Assets |
$ 71,503,248 |
|
|
NET ASSETS |
|
Common Stock, par value $0.01 per share
(100,000,000 authorized; 5,520,100 issued and outstanding) |
$ 55,201 |
Paid-in capital in excess of par |
73,027,847 |
Unrealized depreciation on investments |
(1,579,800) |
|
|
Net
Assets |
$ 71,503,248 |
|
|
Net Asset Value Per
Share |
$ 12.95 |
|
|
|
|
|
|
STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
|
|
|
For the three months ended
December 31, 2011 |
For the period from January
6, 2011 (date of inception) to December 31, 2011 |
INVESTMENT INCOME |
|
|
Interest income |
$ 106,167 |
$ 158,389 |
Dividend income |
2,753 |
3,939 |
|
|
|
Total Investment
Income |
108,920 |
162,328 |
|
|
|
OPERATING EXPENSES |
|
|
Investment management fees |
233,961 |
618,865 |
Costs incurred under administration
agreement |
249,166 |
554,232 |
Professional fees |
138,435 |
409,983 |
Organization expenses |
-- |
198,831 |
Insurance expense |
47,193 |
142,494 |
Directors' fees |
42,500 |
127,500 |
Investor relations expense |
36,250 |
89,250 |
Other expenses |
39,078 |
55,037 |
|
|
|
Total Operating
Expenses |
786,583 |
2,196,192 |
|
|
|
Net Investment
Loss |
(677,663) |
(2,033,864) |
|
|
|
Net Change in
Unrealized Depreciation on Investments |
(1,025,996) |
(1,579,800) |
|
|
|
Net Decrease in Net
Assets Resulting From Operations |
$ (1,703,659) |
$ (3,613,664) |
|
|
|
Net Decrease in Net
Assets Resulting From Operations Per Average Share
(1) |
$ (0.31) |
$ (1.07) |
|
|
|
(1) Weighted average common
shares for the period from January 6, 2011 (date of inception) to
December 31, 2011 was calculated starting from the issuance of 100
shares on February 28, 2011. Weighted average common shares were
5,520,100 and 3,377,429 for the three-month period ended December
31, 2011 and since inception period, respectively. |
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS |
(Unaudited) |
|
|
|
|
|
For the three months
ended December 31, 2011 |
For the period from January
6, 2011 (date of inception) to December 31, 2011 |
|
|
|
Per Share Data(1): |
|
|
Net asset value at beginning of period |
$ 13.26 |
$ -- |
Issuance of common shares |
-- |
14.67 (2) |
Underwriters' discount |
-- |
(0.86) |
Offering costs |
-- |
(0.19) |
Net investment loss |
(0.12) |
(0.37) |
Change in unrealized depreciation |
(0.19) |
(0.30) |
Net asset value at end of period |
$ 12.95 |
$ 12.95 |
|
|
|
(1) Financial highlights are
based on shares outstanding as of December 31, 2011. |
|
|
|
(2) Issuance of common shares is
based on the weighted average offering price for the shares issued
during the period. |
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF
INVESTMENTS |
December 31,
2011 |
(Unaudited) |
|
|
|
|
|
|
Portfolio
Investments* |
Headquarters /
Industry |
Shares / Par
Amount |
Cost |
Fair
Value |
% of Net Assets |
|
|
|
|
|
|
Bloom Energy
Corporation |
Sunnyvale, CA |
|
|
|
|
Common shares |
Fuel Cell Energy |
96,389 |
$ 1,815,818 |
$ 1,771,335 |
2.48% |
|
|
|
|
|
|
Chegg,
Inc. |
Santa Clara, CA |
|
|
|
|
Common shares |
Textbook Rental |
774,193 |
6,003,694 |
5,999,996 |
8.39% |
|
|
|
|
|
|
Control 4
Inc. |
Salt Lake City, UT |
|
|
|
|
Common shares |
Home Automation |
666,667 |
1,034,827 |
1,000,000 |
1.40% |
|
|
|
|
|
|
DreamBox Learning,
Inc. |
Bellevue, WA |
|
|
|
|
Preferred shares, Series A |
Education Technology |
3,579,610 |
757,955 |
750,000 |
1.05% |
|
|
|
|
|
|
Dropbox,
Inc. |
San Francisco, CA |
|
|
|
|
Preferred shares, Series A |
Online Storage |
552,486 |
5,015,333 |
4,999,998 |
6.99% |
|
|
|
|
|
|
Facebook,
Inc. |
Palo Alto, CA |
|
|
|
|
Common shares, Class B |
Social Networking |
350,000 |
10,465,981 |
10,462,500 |
14.63% |
|
|
|
|
|
|
Gilt Groupe,
Inc. |
New York, NY |
|
|
|
|
Common shares |
e-Commerce |
|
|
|
|
|
Flash Sales |
203,100 |
5,576,979 |
5,499,250 |
7.69% |
|
|
|
|
|
|
Grockit,
Inc. |
San Francisco, CA |
|
|
|
|
Preferred shares, Series B |
Online Test |
|
|
|
|
|
Preparation |
2,728,252 |
2,005,945 |
2,000,000 |
2.80% |
|
|
|
|
|
|
Groupon, Inc.
(2) |
Chicago, IL |
|
|
|
|
Common shares |
Online Deals |
80,000 |
2,128,585 |
1,188,288 |
1.66% |
|
|
|
|
|
|
Kno,
Inc. |
Santa Clara, CA |
|
|
|
|
Preferred shares, Series C |
Digital |
440,313 |
2,262,006 |
2,250,000 |
3.15% |
Common shares |
Textbooks |
50,000 |
214,303 |
205,000 |
0.29% |
Total |
|
|
2,476,309 |
2,455,000 |
3.44% |
|
|
|
|
|
|
PJB Fund LLC (1)
(3) |
San Francisco, CA |
|
|
|
|
Structured note, 10%, due 8/15/2012 |
Social Gaming |
4,000,000 |
4,029,259 |
4,000,000 |
5.59% |
|
|
|
|
|
|
Serious Energy,
Inc. |
Sunnyvale, CA |
|
|
|
|
Common shares |
Green Materials |
178,095 |
739,130 |
712,380 |
1.00% |
|
|
|
|
|
|
SharesPost,
Inc. |
San Bruno, CA |
|
|
|
|
Preferred shares, Series B |
Online |
1,776,970 |
2,257,984 |
2,256,752 |
3.16% |
Common warrants, $0.13 strike price, expire
6/15/2018 |
Marketplace (Finance) |
770,934 |
23,128 |
17,731 |
0.02% |
Total |
|
|
2,281,112 |
2,274,483 |
3.18% |
|
|
|
|
|
|
Silver Spring
Networks, Inc. |
Redwood City, CA |
|
|
|
|
Common shares |
Smart Grid |
110,143 |
1,153,381 |
1,101,430 |
1.54% |
|
|
|
|
|
|
StormWind,
LLC |
Scottsdale, AZ |
|
|
|
|
Preferred shares, Series B |
Electronic |
1,711,111 |
959,209 |
946,335 |
1.32% |
Preferred warrants, $0.64 strike price,
expire 12/1/2012 |
Marketing and Business Services |
1,568,518 |
53,665 |
53,665 |
0.08% |
Total |
|
|
1,012,874 |
1,000,000 |
1.40% |
|
|
|
|
|
|
The Echo System Corp.
(1) |
New York, NY |
|
|
|
|
Structured note, 6%, due 1/28/2013, and
warrant, $0.20 strike price, expires 11/14/2016 |
Social Analytics |
500,000 |
505,823 |
500,000 |
0.70% |
|
|
|
|
|
|
The rSmart Group,
Inc. |
Scottsdale, AZ |
|
|
|
|
Preferred shares, Series B |
Higher Education |
|
|
|
|
|
Learning Platform |
480,769 |
513,311 |
500,000 |
0.70% |
|
|
|
|
|
|
TrueCar,
Inc. |
Santa Monica, CA |
|
|
|
|
Common shares |
Online |
|
|
|
|
|
Marketplace (Cars) |
377,358 |
2,014,551 |
1,999,997 |
2.80% |
|
|
|
|
|
|
Twitter,
Inc. |
San Francisco, CA |
|
|
|
|
Common shares |
Social |
|
|
|
|
|
Communication |
735,600 |
12,304,345 |
12,113,493 |
16.94% |
|
|
|
|
|
|
ZocDoc
Inc. |
New York, NY |
|
|
|
|
Preferred shares |
Online Medical |
|
|
|
|
|
Scheduling |
200,000 |
3,563,178 |
3,500,000 |
4.89% |
|
|
|
|
|
|
ZoomSystems |
San Francisco, CA |
|
|
|
|
Preferred shares, Series A |
Smart e-tail |
|
|
|
|
|
(Retail) |
1,250,000 |
260,476 |
250,000 |
0.35% |
|
|
|
|
|
|
Total Portfolio
Investments |
|
|
$ 65,658,866 |
$ 64,078,150 |
89.62% |
|
|
|
|
|
|
* 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) 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 are subject to a lock-up
agreement that expires on May 1, 2012. |
|
|
|
|
|
|
(3) Represents a $4 million unsecured
promissory note with an interest rate of 10% and maturity date of
August 15, 2012 that was issued by PJB Fund LLC that may be repaid,
at PJB Fund LLC's election, either by transfer of a certain number
of shares of common stock of Zynga, Inc. or with a cash amount of
equivalent value. The amount payable under the note will be equal
to the face amount, plus the greater of accrued interest (at a rate
of 10%) or a return based on the relative value of Zynga, Inc. To
the extent the borrower repays the note in cash, GSV Capital Corp.
would have no further direct or indirect interest in Zynga, Inc. On
December 15, 2011, Zynga, Inc. priced its initial public offering,
selling 100,000,000 shares at a price of $10.00 per share. |
CONTACT: Media:
Kim Hughes
(415) 516-6187
kim@blueshirtgroup.com
Investors:
Alex Wellins
(415) 217-5861
alex@blueshirtgroup.com
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