Friday, April 17, 2015

GSV Capital Corp. (GSVC) Utilizing Proven Formula to Build a Portfolio of the ‘Stars of Tomorrow’

The structure of the U.S. capital markets has been in a period of significant change since the high-water mark that closed out the 1990s. While companies in those days went public earlier in their life-cycles with market caps averaging between $100 million and $300 million, the seismic shift referred to as the ‘Silicon Valley Model’ has changed the entire landscape of the market. These days, companies regularly wait much longer before releasing an IPO, leading to the median market cap skyrocketing to over $1 billion in recent years.

In today’s market, investor demand for access to the ‘stars of tomorrow’ is at an all-time high. GSV Capital Corp. (NASDAQ: GSVC), through its portfolio of innovative and promising companies, is providing investors with a roadmap of the creative solutions needed to grab this access and capitalize on it through investment in what GSV has determined are the next big companies.

Through the utilization of private marketplaces, as well as the purchasing of secondary shares directly from employees and early venture capitalists, GSV has built a portfolio designed to allow smart investors to grab a stake in promising companies that are still early in their business development. GSV is built on the understanding that, at their most fundamental level, growth companies are businesses that increase their sales and earnings at a much higher rate than the average company.

In order to find the next generation of lucrative investments, GSV founder Michael Moe introduced a framework to simplify the process of identifying potential candidates, which he refers to as the Four Ps. The Four Ps take the difficult metric of potential for growth and makes it clear and repeatable when evaluating promising companies. With a good combination of the right people, product, potential and predictability, GSV estimates that companies have a much better chance of significant growth, making them prime candidates for the company’s investment portfolio.

Generally, the company’s portfolio includes businesses from the six industry sectors which its team has concluded have the greatest potential for significant returns. These include Social Media, Mobile Computing and Apps, Cloud Computing, Software as a Service, Green Technology and Education Technology. This dedication to technology can be observed by viewing GSV’s current portfolio, which includes growing forces in the digital world such as online storage solution Dropbox, music streaming service Spotify and ride sharing application Lyft.

This focus on the technology industry is built into the very core of GSV, which is an abbreviation for Global Silicon Valley. GSV believes that the powerful global ideology, which is rapidly expanding from its Northern Californian beginnings, adequately represents the tremendous potential of emerging businesses on every continent around the world. As the next era of technological innovation begins and grows outside of the small Bay Area region that has harbored so much growth in the past, GSV has positioned itself to locate the cream of the crop and help investors of all backgrounds gain an initial piece of the ‘stars of tomorrow’.

As investors continue to search for improved liquidity through alternatives to today’s trend of higher value startups, look for GSV, through its portfolio of promising private companies, to position itself for significant growth opportunities in the years to come.

For more information, visit www.gsvcap.com

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