GSV Capital (GSVC +0.4%) had a net asset value of $287.1M ($14.86/share) at the end of Q2, 54% above its current trading price. NAV fell by $0.05/share Q/Q, and rose $1.99 Y/Y.
GSV's 50 portfolio companies had an aggregate fair value of $367M. Twitter accounted for 21.2% of portfolio value - it's worth more following its huge post-earnings gains. Palantir Technologies made up 11.2%, Dropbox 7.7%, and 2U 5.3%.
$13.5M in losses were realized on the sale of positions in Violin Memory and Silver Spring, and $6.3M in gains realized on Control4 and Facebook share sales. $10.8M in new investments were made.
On the CC (transcript), CEO Michael Moe suggested GSV is in no rush to pare its Twitter (NYSE:TWTR) position. "We believe there is substantial near-term upside in the stock, and we believe that investors are just now starting to understand the power of the Twitter platform."
Facebook (NASDAQ:FB) +0.9% AH, LinkedIn (NYSE:LNKD) +2.1% AH, YELP +2.7%, and Twitter shareholder GSV Capital (NASDAQ:GSVC) +4.8% after Twitter skyrockets AH thanks to a big Q2 beat (moreso on revenue than EPS), strong Q3 guidance, and better-than-expected MAU growth.
Yelp is due tomorrow, LinkedIn on Thursday, and GSV on Aug. 7. Facebook posted strong Q2 numbers of its own last week.
Stephen Bard, until now GSV Capital's (GSVC) CFO, treasurer, secretary, and compliance chief, has resigned.
William Tanona, formerly a managing director at Fortress Investment Group, has been named GSV's new CFO, treasurer, and secretary. Carl Rizzo, formerly a director at compliance services firm Alaric, is the firm's new compliance chief.
Uber has raised $1.2B at a whopping $17B pre-money valuation - well above the $10B valuation the app-based taxi service platform was reportedly targeting not too long ago.
The funding round makes Uber, which receives a 20% cut on enabled taxi fares, nearly as valuable as LinkedIn, and more valuable than Yahoo after backing out its Alibaba/Yahoo Japan stakes.
GSV Capital (GSVC +4.3%), which has invested in Uber rival Lyft and plenty of other late-stage startups, has received a boost from the report. Google invested in Uber last year at a much lower $3.5B valuation.
In a Q&A, CEO Travis Kalanick notes Uber is now in 128 cities and nearly 40 countries, and is experimenting with an expansion into logistics services. A courier service called Uber Rush was recently launched in Manhattan.
Under pressure from Phil Goldstein's Bulldog Investors, Kevin Lanids' Firsthand Technology Value Fund (SVVC +10.6%) agrees to repurchase up to $10M of stock in the open market this year and to tender for at least $20M of stock at up to 95% of NAV by the end of next January.
Bulldog agrees to withdraw its board nominees and to stop fighting to end the fund's investment management agreement.
"We're obviously in the throes of what feels like a correction for the small-cap and growth-equity companies," says Revolution Ventures managing partner David Golden.
Following a Q1 that saw the highest level of U.S. VC investment since 2001 ($10.7B, up from $9.1B in Q4 and $7.5B a year earlier ), as well as a handful of late-stage deals featuring eye-popping valuations (Airbnb, Dropbox), a rapid selloff in high-beta tech stocks is yielding a sense of caution.
Accel Partners' Jim Breyer (an early Facebook investor): "Not a board meeting goes by when at least half the meeting isn't spent on financial strategy." Venrock's Nick Beim: "We all feel like we're at the top of the cycle, and everyone's skating on new ice ... Just how thin the ice is not yet clear."
GSV Capital's (GSVC) Michael Moe, whose firm often takes positions in late-stage startups, likes what he sees. "I think prices will get more favorable for buyers because it will be more difficult to do megadeals at megavaluations." The Firsthand Tech Value Fund (SVVC) might also get more favorable terms.
Today's tech IPOs - Weibo and Leju - each delivered solid gains, but only did so after pricing their offerings at the low end of their respective ranges.
Re/code previously reported Lyft, whose pink mustache-adorned cars are now found in 30 U.S. cities, was raising funding at a $700M valuation. But the company had only filed to raise $150M at the time.
GSV also says it has invested $6M in online tech educational platform General Assembly, as part of a $35M funding round, and that it's "in the final stages of negotiations with a handful of investments that we may complete within the next 30 to 60 days."
Yesterday, #3 GSV holding Dropbox (appears to be headed for an IPO) announced new business and photo storage tools, and disclosed it now has 275M users.
Aided by King's poor debut and general momentum stock weakness, U.S. and Chinese Internet stocks have fallen hard for the second time this week.
In addition to King rival Zynga and newly-minted VR headset maker Facebook, Twitter (TWTR -7.1%) is among the leading U.S. decliners. Exactly 3 months after reaching a peak of $74.73, shares have fallen below their post-IPO opening price of $45.10. They remain well above their $26 IPO price.
Other U.S. decliners: P -5.2%. Z -6.2%. TRLA -7%. GSVC -4.8%. SVVC -4.1%.
"Among GSV's (GSVC -9.6%) portfolio of about 50 companies, we think that 2U (S-1 filed), Dropbox, Gilt Group, Spotify, SugarCRM, and TruCar could go public in 2014," says analyst Jeff Houston, reiterating his Outperform rating and $20 price target.
Taking a look at GSV's public holdings, all except ePals have had big moves to the upside, and GSV's stock now trades at a sizable discount to NAV.
Cloud storage company Dropbox's latest funding round gives it a $10B valuation, the company today confirmed in an SEC filing. The funding size was for $325M, with an additional $25M to be added by a strategic investor. In its last round 3 years ago, the company was valued at $4B.
Facebook (FB) is down 2.3% AH, and LinkedIn (LNKD) is down 1.6%, after Twitter and Pandora provided disappointing Q4 reports. In addition, Twitter shareholder GSV Capital (GSVC) is down 6.7%.
Richly-valued Twitter beat Q4 estimates and provided above-consensus revenue guidance. But it also reported a 7% Q/Q drop in Timeline views and slowing monthly active user growth. Pandora beat Q4 EPS estimates, but only reported in-line revenue and issued below-consensus guidance.
Four months after raising $60M through a convertible debt offering, GSV Capital (GSVC +1.1%) has obtained an $18M credit facility from Silicon Valley Bank. (PR)
The facility matures at the end of 2016, and carries an interest rate of either 8% or the prime rate + 4.75% (whichever is greater). It also comes with a $180K/year fee.
GSV has also provided a recap of recent news events for various portfolio companies. Though shares remain below the highs they saw ahead of Twitter's IPO, they've rallied in recent weeks with the help of Twitter's post-IPO gains and reports two of its biggest holdings - Palantir and Dropbox - are raising funding at steep valuations.