Suro Capital Corp. · NASDAQ:SSSS
Suro Capital — GSV Capital — Shareholder Meeting (June 2013)
29 slides from Suro Capital's shareholder meeting presentation, Jun 6, 2013
Slide 1: Annual Shareholder Meeting
Invest in tomorrow ’ s stars. Today. June 5, 2013 Corp. Annual Shareholder Meeting
Slide 2: Forward Looking Statement
Invest in tomorrow ’ s stars. Today. Forward Looking Statement This presentation contains forward looking statements that involve substantial risks and uncertainties . All forward - looking statements included in this presentation are made only as of the date hereof and are subject to change without
Slide 3: GSV Capital Summary
Invest in tomorrow ’ s stars. Today. 3 GSV Capital Summary GSV Capital Summary
Slide 4: GSV at a Glance
Invest in tomorrow ’ s stars. Today. 4 GSV at a Glance GSV = Global Silicon Valley As of March 31, 2013: » NAV: $12.69 » Cash: $22.8M » Public Securities: $11.0M » Private Securities: $214.4M As of May 28, 2013: » Stock Price: $8.35 » Discount to NAV: 34% 1 2 3 GSV at a Glance
Slide 5: GSV Investment Team and Directors
Invest in tomorrow ’ s stars. Today. GSV Investing Ecosystem Cathy Friedman Bill Campbell Mark Flynn Cathy Friedman Mark Klein Michael Moe Leonard Potter David Spreng Michael Moe, CFA Mark Flynn Stephen Bard, CFA Dave Crowder Luben Pampoulov Matthew Hanson, CFA Board of Directors 5 GSV Investment Te
Slide 6: Potential for Substantial Returns: Past High-Growth IPOs
Invest in tomorrow ’ s stars. Today. Potential for Substantial Returns 6 Potential for Substantial Returns IPO Mkt. Cap at IPO Appreciation 1971 $53mm 2,378x 1986 $228mm 705x 1988 $212mm 110x 1991 $314mm 350x 1992 $220mm 145x Past High - Growth IPOs
Slide 7: Value of Private Companies Today
Invest in tomorrow ’ s stars. Today. Estimated Valuation (1) $9.7B $4.0B $3.0B $3.0B $2.2B IPO Mkt. Cap at IPO Appreciation 1971 $53mm 2,378x 1986 $228mm 705x 1988 $212mm 110x 1991 $314mm 350x 1992 $220mm 145x (1) Based on various public media reports Past High - Growth IPOs 7 Value of Private Compa
Slide 8: GSV's Sweet Spot
Invest in tomorrow ’ s stars. Today. GSVC ’ s Sweet Spot < $100mm Enterprise Value 15% of Invested Capital 8 >$100mm Enterprise Value 85% of Invested Capital GSV ’ s Sweet Spot
Slide 9: Top 10 Positions – over 60% of Net Assets
Invest in tomorrow ’ s stars. Today. Top 10 Positions – over 60% of Net Assets Investment Size ( $M) % of Net Assets 1 $ 35.2 14.4% 2 $ 20.6 8.4% 3 $ 15.0 6.1% 4 $ 14.2 5.8% 5 $14.2 5.8% 6 $ 10.3 4.2% 7 $10.0 4.1% 8 $10.0 4.1% 9 $9.9 4.0% 10 $9.0 3 .7 % Data as of March 31, 2013 9 Top 10 Positions –
Slide 10: Top 10 Positions – 6 Growing Over 100%
Invest in tomorrow ’ s stars. Today. Top 10 Positions – over 60% of Net Assets Investment 1 2 3 4 5 6 7 8 9 10 (1) 2012 to 2013 growth based on GSV estimates 10 Top 10 Positions – > over 60% of Net Assets 6 of The Top 10 Positions Are Growing Over 100% (1)
Slide 11: GSV's Sweet Spot: Portfolio Revenue Growth
Invest in tomorrow ’ s stars. Today. GSVC ’ s Sweet Spot < $100mm Enterprise Value 15% of Invested Capital 11 >$100mm Enterprise Value 85% of Invested Capital Aggregate Portfolio Company Revenue Growth Rate = 87% (1) GSV ’ s Sweet Spot (1) 2012 to 2013 growth based on GSV estimates. Excludes publicl
Slide 12: GSV Invests Alongside Leading VCs
Invest in tomorrow ’ s stars. Today. Firms Number of Investments 9 6 4 4 4 4 4 3 2 1 GSV Invests Alongside Leading VCs 12 GSV Invests Alongside Leading VCs
Slide 13: GSV's Disciplined Investment Approach
Invest in tomorrow ’ s stars. Today. Optimized portfolio of 45 - 50 companies to date Strict adherence to our investment themes and focus on growth opportunities Applying our proprietary Four P ’ s investment framework Determine appropriate value based on available information and desired IRRs Utili
Slide 14: Key Investment Themes
Invest in tomorrow ’ s stars. Today. 14 Investment Themes Cloud and Big Data Education Technology Internet Commerce Sustainability Social Mobile Key Investment Themes Key Investment Themes
Slide 15: Social Mobile - Twitter
Invest in tomorrow ’ s stars. Today. 15 Other Investors Twitter is a global real - time communications platform with 550 million total users. First Investment: August 2011 GSVC Fair Value: $35.2M Registered Users: 175M Tweets per Day: 200M Registered Users: 550M Tweets per Day: 550M+ New Users per S
Slide 16: Social Mobile - Spotify
Invest in tomorrow ’ s stars. Today. Users: 24M Paying Subscribers: 6M+ 110 million songs, albums, and radio stations exist on the Spotify platform 16 Other Investors Spotify allows members to create playlists, share songs, and easily align music with their preferences. First Investment: August 2012
Slide 17: Cloud Computing - Dropbox
Invest in tomorrow ’ s stars. Today. 17 Other Investors Dropbox allows seamless file sharing through their cloud computing platform. First Investment: November 2011 GSVC Fair Value: $15.0M Registered Users: 50M Registered Users: 100M+ Paying Users: 2M in 200 countries 1 billion files uploaded every
Slide 18: Big Data - Violin Memory
Invest in tomorrow ’ s stars. Today. Set the world record for creating the most efficient 2 - processor ever Acquired Gridiron Systems, a data storage infrastructure provider 18 Other Investors Violin Memory is pioneering the future of flash storage in the enterprise data center. Violin ’ s flash Me
Slide 19: Education Technology - 2U
Invest in tomorrow ’ s stars. Today. 19 Other Investors 2U ’ s represents the next phase of the online education evolution. 2U partners with leading universities to offer the same courses that a student would find in the physical classroom, in an online - only setting offering credited courses. Firs
Slide 20: Education - Avenues
Invest in tomorrow ’ s stars. Today. 20 Other Investors Avenues offers its K - 12 students a learning experience that aligns with the knowledge, skills and abilities required to compete in today ’ s global economy through a global network of premier schools. First Investment: May 2012 GSVC Investmen
Slide 21: Education Technology - Kno
Invest in tomorrow ’ s stars. Today. 21 Other Investors Kno, Inc. is an education software company that has partnered with 100+ leading publishers to offer more than 200,000 interactive education titles that make learning more engaging, efficient and social for students. First Investment: May 2011 G
Slide 22: Internet Commerce - Gilt Groupe
Invest in tomorrow ’ s stars. Today. First Investment: May 2011 GSV Fair Value: $3.1M 4 million members Over 8 million members shop for high - end brands such as Vera Wang, Fred Perry, Oakley, and Missoni. “ Five Years In and Profitable, Gilt Refocuses on New Leadership, an IPO in 2013 and More ” –
Slide 23: Sustainability - Bloom Energy
Invest in tomorrow ’ s stars. Today. 50% conversion efficiency from incoming fuel to usable electricity. “ Report: Bloom Energy Raises Another $130M ” – GigaOM (5.13.13) Pioneering Energy as a Service 23 Other Investors Bloom Energy fuel cells are designed to deliver clean, reliable and cost - effec
Slide 24: Sustainability - Solexel
Invest in tomorrow ’ s stars. Today. Consistently generating efficiency enhancements Awarded U.S. DOE SunShot award SunPower is a strategic investor 24 a Other Investors Solexel develops high - efficiency, low - cost, crystalline silicon solar photovoltaic cells and modules for commercial and reside
Slide 25: IPO Returns and Industry Breakdown by Sector
Invest in tomorrow ’ s stars. Today. 25 IPO Filings – Last 12 Months IPO Returns by Sector – Last 12 Months IPO Industry Breakdown (Last 12 Months) IPO Industry Breakdown (Last 12 Months)
Slide 26: IPO Filings and Offering Proceeds
Invest in tomorrow ’ s stars. Today. 26 Number of Filings IPO Filings – Last 12 Months YTD IPO Filings and Offering Proceeds Offering Proceeds ($B)
Slide 27: IPO Pricing and First Day Appreciation
Invest in tomorrow ’ s stars. Today. 27 Pricing Within or Above Filing Range IPO Filings – Last 12 Months Pricing and First Day Appreciation Average First Day Appreciation
Slide 28: GSV Capital Catalysts
Invest in tomorrow ’ s stars. Today. 28 GSV Capital Catalysts Technology is experiencing a massive acceleration – we own the leaders Several portfolio companies likely to pursue IPOs in next 18 months Portfolio company revenues are growing at approximately 87% in CY 2013 GSVC is trading at a 37% dis
Slide 29: Thank You
Invest in tomorrow ’ s stars. Today. 29 GSV Capital Catalysts Thank You