Out Fox The $treet

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. 

Small-Cap Insight Investors looking for a stock that provides large yields from investing in venture capital firms should look no further than Hercules Technology Growth Capital ( HTGC ) . Considering the company invests in early stage, venture backed firms; it might surprise the investment community that the company has a limited history of payment defaults. Historically, the net realized loss since inception only represents 1.1% of total commitments or an annualized loss rate of only a low 13 basis points. So if the company has historically lost only $42.8 million on a substantial investment portfolio over 10 years, why has the stock historically paid high dividends? Hercules Technology is a leading specialty finance company that focuses on loaning senior secured debt with floating interest rates to venture capital-backed companies in tech-related markets. The company has a high focus on the biotechnology, life science, and cleantech industries that historically are...

Anybody following this blog, knows that we've been bullish on the pre-IPO concept of GSV Capital (GSVC) . The company is heavily invested in Twitter and will benefit greatly from a high flying IPO of Twitter.  With the news after hours that Twitter has filed the S-1 to go public, investors should expect GSV to soar from now to the IPO. The company had Twitter listed as the largest investment valued at roughly $37M or 15% of the assets. With that valuation based on Twitter being worth rough $10B, GSV Capital will gain big time if it goes public in the $15B to $20B range. Remember that GSV has plenty of other promising IPO candidates that could send the NAV soaring higher, but Twitter remains the highest profile and largest investment. As of writing this post, the stock is up some 17% after hours. Disclosure: Long GSVC. Please review the disclaimer page for more details.