Suro Capital Corp. · NASDAQ:SSSS
Suro Capital — GSV Capital — Investor Presentation (January 2018)
24 slides from Suro Capital's investor presentation, Jan 10, 2018
Slide 1: GSV Capital
2925 Woodside Road Woodside, CA 94062 650-235-4766 info@gsvam.com GSV CAPITAL January 10, 2018 © 2018 GSV Capital Corp / Proprietary + Confidential 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 notice. Actual outcomes and results c
Slide 3: GSV Capital is the first publicly traded security for Silicon Valley VC-backed companies
GSV Capital is the first publicly traded security (NASDAQ: GSVC) enabling investors to get access to Silicon Valley’s leading VC-backed private companies. GSV stands for Global Silicon Valley, and while we are based in the heart of Silicon Valley, the mindset of innovaon and entrepreneurship has gon
Slide 4: Fast Facts
FAST FACTS • GSV Capital is a Nasdaq listed fund (NASDAQ:GSVC) designed to provide access to leading, VC-backed, private companies such as Palantir, Spotify, Dropbox, Coursera, and Lyft. • Growth stage focus — 95%+ of portfolio is “B round” or later. • Notable portfolio monetizations include Faceboo
Slide 5: Connecting Investors with Opportunity
Growth Investors CONNECTING INVESTORS WITH OPPORTUNITY Access Opportunity • Institutional investors must manage the complexity of the private market (e.g., Capital Structure, Waterfalls, Ratchets, and Preferences) • Non-accredited investors have limited access the private market • Difficult to obtai
Slide 6: GSV's Power Alley
GSV’S POWER ALLEY © 2018 GSV Capital Corp / Proprietary + Confidential 6
Slide 7: Team
TEAM Investment Team Michael Moe, CFA, Executive Chairman, GSV Capital Founder and CEO, GSV Asset Management Co-Founder, Chairman and CEO, ThinkEquity Partners (2001-2008) Head of Global Growth Research, Merrill Lynch (1998-2001) Head of Growth Research and Strategy, Montgomery Securities (1995-1998
Slide 8: GSV Capital Invests Alongside Leading VCs
GSV CAPITAL INVESTS ALONGSIDE LEADING VCs *Number of Investments as of 12/31/2016 GSV has consistently invested alongside leading VCs, demonstrag both Access and Leadership. © 2018 GSV Capital Corp / Proprietary + Confidential 8
Slide 9: Portfolio Update
PORTFOLIO UPDATE GSV Capital © 2018 GSV Capital Corp / Proprietary + Confidential 9
Slide 10: NAV: Q3 2017
NAV: Q3 2017 • Net Assets of $209.4 million, or $9.69 per share, as of September 30, 2017 GSV NAV Per Share $8.66 $8.83 $9.11 $9.69 4Q16 1Q17 2Q17 3Q17 © 2018 GSV Capital Corp / Proprietary + Confidential 10
Slide 11: Recent Steps to Enhance Shareholder Value
RECENT STEPS TO ENHANCE SHAREHOLDER VALUE The GSV Capital team is laser focused on specific, proactive steps to enhance shareholder value as we continue to concentrate the portfolio around blue-chip, venture-backed companies with a line of sight to an IPO or liquidity event. 1. EXPENSE REDUCTION: As
Slide 12: Portfolio Today: Top Five = 47.8% of Portfolio
PORTFOLIO TODAY: TOP 5 = 47.8% OF PORTFOLIO as of 9/30/2017 Fair Value % of Total ($ million) Portfolio 1 $36.5M 12.6% 2 $35.2M 12.1% 3 $32.3M* 11.1% 4 $18.4M 6.3% 5 $16.5M 5.7% *Subsequent to third quarter-end, through November 8, 2017, GSVC sold 3,657 shares of Spotify at an average net share pric
Slide 13: Notable Portfolio Updates
NOTABLE PORTFOLIO UPDATES • On December 7, 2017, Lyft announced that it completed a $1.5 billion financing at an $11.5 billion valuation. The round was led by CapitalG, a venture investment arm of Alphabet (Google). • GSV Capital’s third quarter valuation implies a value for Lyft of approximately $6
Slide 14: Investment Themes: Portfolio Distribution
INVESTMENT THEMES: PORTFOLIO DISTRIBUTION as a Percentage of Total Portfolio (Excluding Treasuries) at Fair Value as of 9/30/17 36.0% Cloud + Big Data Education Technology 0.5% GSVC Social / Mobile 34.5% Marketplaces 10.8% Sustainability 18.2% © 2018 GSV Capital Corp / Proprietary + Confidential 14
Slide 15: Portfolio Distribution by Investment Stage
PORTFOLIO DISTRIBUTION as a Percentage of Total Portfolio (Excluding Treasuries) at Fair Value as of 9/30/17 Investment Stage Primary + Secondary Investments 30.4% 64.4% 11.1% Series A Primary 4.7% GSVC Series B GSVC Secondary Series C 4.0% Series D + Later Public 49.8% 35.6% The vast majority of GS
Slide 16: Portfolio Selection Process
PORTFOLIO SELECTION PROCESS VC-BACKED 2000+ Companies TARGETING 300+ Companies ASSESSMENT 200+ Companies VALUATION 100 Companies ACCESS © 2018 GSV Capital Corp / Proprietary + Confidential 16
Slide 17: Key Players: Growth Capital Ecosystem
KEY PLAYERS: GROWTH CAPITAL ECOSYSTEM Hedge Funds Private/Growth Mutual Funds • Access • Access • Insignificant Exposure • Portfolio Liquidity • Portfolio Liquidity • Access Constraints Constraints • Portfolio Liquidity Constraints © 2018 GSV Capital Corp / Proprietary + Confidential 17
Slide 18: Case Studies: GSV Capital Portfolio
CASE STUDIES GSV Capital Porolio © 2018 GSV Capital Corp / Proprietary + Confidential 18
Slide 19: Case Study: Spotify
CASE STUDY: SPOTIFY Description Spotify is a freemium music streaming platform designed for mobile devices. Users can access a free, ad-supported experience, or pay a monthly subscription for Spotify’s premium offering. Investors Thesis Spotify pioneered the streaming music model and remains the pre
Slide 20: Case Study: Coursera
CASE STUDY: COURSERA Description Coursera is the leading global education platform, serving over 26 million users with more than 2,000 courses from premier university partners, including Stanford, Yale, Peking University, Tel Aviv University, and Princeton. Investors Yuri Milner Investment Thesis Co
Slide 21: Case Study: Lyft
CASE STUDY: LYFT Description Lyft is an on-demand ride sharing platform for friendly and affordable rides. Drivers are matched with passengers who request rides through a mobile app, and payments are fully integrated. Investors Thesis Lyft has established a differentiated brand focused on quality, c
Slide 22: Case Study: Dropbox
CASE STUDY: DROPBOX Description Dropbox is the leader in cloud-based digital file storage and device-agnostic sharing/syncing. Its service enables users to access and edit files from any device at any time. Investors Thesis As services and products continue their relentless “march to the cloud,” Dro
Slide 23: Case Study: Palantir
CASE STUDY: PALANTIR Description Palantir offers big data and security services, enabling organizations to integrate, manage, and secure data through human-driven and machine-assisted platforms. Investors Thesis Palantir’s platform is deployed by leading government, commercial, and non-profit instit
Slide 24: © 2018 GSV Capital Corp / Proprietary + Confidential 24
© 2018 GSV Capital Corp / Proprietary + Confidential 24