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GSV Capital Corp. Reports Fourth Quarter and Fiscal Year 2017 Financial Results

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WOODSIDE, Calif., March 13, 2018 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (NASDAQ:GSVC) today announced financial results for the quarter and fiscal year ended December 31, 2017. Net assets totaled approximately $204.8 million, or $9.64 per share, at December 31, 2017, as compared to $9.69 per share at September 30, 2017 and $8.66 per share at December 31, 2016.

"In 2017, the GSV Capital team executed a range of proactive measures to enhance shareholder value," said Michael Moe, Executive Chairman of GSV Capital. "Key initiatives included reducing expenses, implementing a share repurchase program, initiating a tender offer for our convertible debt, and adjusting the Company's advisory fee structure. We anticipate a positive impact to NAV resulting from GSV Asset Management's forfeiture of $5 million of its previously accrued, but unearned incentive fee, which will be reflected in GSV Capital's first quarter 2018 earnings."

"Entering 2018, we anticipate significant events in the coming weeks that will impact the valuation of GSV Capital's portfolio, including imminent public listings from Spotify and Dropbox – our second and fourth largest positions, respectively," Moe continued. "Looking ahead, we believe the fundamentals of the GSV Capital portfolio and the opportunity for investors are as strong as they have ever been."

Investment Portfolio as of December 31, 2017

At December 31, 2017, GSV Capital held positions in 31 portfolio companies with an aggregate fair value of approximately $220.6 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 consolidated around top positions. For example, the Company's top five portfolio company investments accounted for 52.4% of the total portfolio at fair value as of December 31, 2017, compared to 39.0% as of December 31, 2016.

       
Top Five Investments at December 31, 2017      
       
$ in millions (rounded) Fair Value   % of Total Portfolio
Palantir Technologies, Inc. $ 35.1   15.9 %
Spotify Technology S.A.   30.7   13.9  
Coursera, Inc.   18.4   8.3  
Dropbox, Inc.   17.9   8.1  
StormWind, LLC   13.5   6.1  
Total (rounded) $ 115.5   52.4 %
           

Fourth Quarter 2017 Portfolio Investment Activity

During 2017, GSV Capital did not fund any new investments.

During the quarter ended December 31, 2017, GSV Capital sold or wrote off securities in the following portfolio companies:

                   
      Shares   Average   Net   Realized
      Sold/   Net Share   Proceeds   Gain/(Loss)(2)
Portfolio Company      Written Off   Price (1)   (in millions)   (in millions)
                   
JAMF Holdings, Inc.     1,468,800   $23.78   $34.9   $25.5
Spotify Technology S.A.     3,657   $3,800   $13.9   $10.3
Dataminr, Inc.     1,206,346   $3.98   $4.8   $1.6
Whittle Schools, LLC     3,000,229   $1.52   $4.6   $(0.2)
Chegg, Inc.     282,192   $15.97   $4.5   $1.2
Strategic Data Command, LLC     2,400,000   $1.02   $2.5   $1.5
Palantir Technologies, Inc.     326,797   $6.40   $2.1   $1.1
Handle Financial, Inc.     548,034   $0.00   -   $(14.0)
Circle Media (2)     2,745,070   $0.00   -   $(1.8)

__________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) Write-off includes a promissory note with principal value of $25,008.

Subsequent to quarter-end, through March 13, 2018, GSV Capital sold positions in the following portfolio companies:

          Average   Net   Realized
      Shares   Net Share   Proceeds   Gain/(Loss)
Portfolio Company     Sold   Price (1)   (in millions)   (in millions)
                   
Chegg, Inc.     500,000   $18.89   $9.4   $3.4
NestGSV, Inc. (d/b/a GSV Labs, Inc.)     N/A   N/A   $0.6   $(0.0)
Avenues Global Holdings, LLC     10,014,270   $0.59   $5.9   $(4.2)

__________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.

     
     
Fourth Quarter 2017 Financial Results    
     
  Quarter Ended
December 31, 2017
Quarter Ended
December 31, 2016
   $ in millions per share  $ in millions  per share
         
Net investment income/(loss) $(3.6) $(0.17) $3.9 $0.17
         
Net realized gain/(loss) 25.2 1.18 (0.3) (0.01)
         
Net change in unrealized depreciation of investments (26.9) (1.26) (36.6) (1.65)
         
Benefit from taxes on unrealized appreciation/depreciation of investments 2.7 0.13 1.6 0.07
         
Net decrease in net assets resulting from operations - basic $(2.5) $(0.12) $(31.5) $(1.42)
 
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