Out Fox The $treet

The public markets continue to doubt the strategy of investing in high-growth private firms, yet GSV Capital ( NASDAQ: GSVC     ) continues to execute on its strategy and drive value higher. The recent market volatility highlights the value of investing in a diversified group of firms with a long-term horizon. For the first quarter, GSV saw the net asset value, or NAV, remain flat sequentially at $14.91 even with a volatile market for high-growth investments whether public or private. The NAV of GSV was able to withstand the large losses in Twitter ( NYSE: TWTR     ) by offsetting it with gains in other portfolio stocks such as Palantir Technologies and Dropbox . Investors weren't as forgiving with the stock plunging to now sit substantially below that NAV at $10. Oddly, the theme is consistent with other venture capital funds including Firsthand Technology Fund ( NASDAQ: SVVC     ) that trades significantly below NAV as well. Read th...

After reporting that net asset value, or NAV, jumped to nearly $15, why would the stock of GSV Capital Corp. ( NASDAQ: GSVC     ) plunge nearly 10% to below $12? GSV Capital is a business development corporation that invests in pre-IPO, venture-backed firms. The company has a portfolio of nearly 50 investments with a focus on social media, education tech, and big data. The investment firm competes in the industry against Firsthand Technology Value Fund ( NASDAQ: SVVC     ) and other venture firms for the investment positions and investor dollars. The goal of the two funds is to provide regular investors the opportunity to participate in the pre-IPO markets. Read the full article here . Disclosure: Long GSVC. Please review the disclaimer for more details. 

The recent tweet of the pending Twitter IPO sent GSV Capital ( NASDAQ: GSVC     ) soaring, and rightfully so. The company is heavily invested in Twitter and no doubt will benefit from a big gain in an IPO. The business development company (BDC) that invests in venture-backed or pre-IPO companies is so much more than Twitter, though. It has several other stocks in the IPO pipeline and recently raised nearly $70 million in a convertible offering for further investments. Read the full article here . Disclosure: Long GSVC. Please review the disclaimer page for more details.

Small Cap Insight To investors frustrated with being locked out of the pre-IPO market, business development corporations (BDC) such as Firsthand Technology Value Fund ( SVVC ) offered potential for participating in the large IPO gains of hot stocks. The reality hasn't reached the hype from back in 2012 when the Facebook ( FB ) IPO blew up. Now over a year later and with Facebook soaring, one might expect the stock to offer huge upside potential, but one glaring issue exists. The company is a publicly traded venture capital fund that invests in technology and cleantech companies prior to an IPO. It is run by well-known tech investor Kevin Landis that charges management fees of 2% of gross assets and 20% of capital gains. The company competes for investments with venture capitalists, accredited investors and other public funds such as GSV Capital ( GSVC ) and Keating Capital ( KIPO ) . Read the full article at Seeking Alpha. Disclosure: Long GSVC. Please revie...