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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