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GSV Capital is the first publicly traded security giving growth equity investors access to the world's most dynamic, VC-backed private companies.

More about GSV Capital
NASDAQ: GSVC
2017 Investor Letter
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Why We Like

$7.0 million NAV|3.6% of GSVC

Founded

2012

Capital Raised

Undisclosed

Investors

GSV Capital along with Red Eagle Ventures.

GSV Investment Theme

  • Cloud/Big Data
  • Marketplaces
  • Sustainability
  • Education

Overview

GSVlabs is a global innovation platform based in the heart of Silicon Valley that accelerates startups and connects corporations to exponential technologies, business models, and entrepreneurs. GSVlabs accelerates high-growth, high-impact startups across key verticals, including Education Technology (EdTech), Sustainability, Big Data, Mobile, and Entertainment/Gaming.

GSVlabs is home to over 170+ startups that raised over $200 million in 2015. As the access point to a startup ecosystem, major corporations like IBM, JetBlue, 3M, the Times of India, Intel, and AT&T partner with GSVlabs to launch new initiatives, identify talent, and propel new business models.  GSVlabs creates value through this virtuous circle, capturing equity in game-changing startups while providing high-value innovation services to entrepreneurs and corporations.

4Ps
Why We Like It: The Four Ps

Why We Like GSVlabs

The Startup Economy is in full swing, and it is here to stay. The information technology infrastructure that has been laid over the past 50 years now allows companies to scale from startup to billions of revenue in just a few years.  More importantly, we believe that Silicon Valley is not a location, but rather is a mentality and global business ideal.  GSVlabs aims to play a critical role in supporting the Startup Economy around the world.

People

GSVlabs is led by Marlon Evans, formerly Director of Corporate Affairs at Hewlett Packard.  We also consider GSVlabs’ partnerships with key ecosystem members to be an integral part of the “people” behind the Company. The GSVlabs leadership team has deep experience in the innovation ecosystem from Hewlett Packard, Electronic Arts, Intel, Boston Consulting Group, The White House, and Level 3 Communications, as well as experience as startup founders in Silicon Valley.

Product

GSVlabs’ premier campus is an exceptional infrastructure for startup incubation and acceleration, ideally situated near Stanford University in the heart of Silicon Valley. The facility has a strong suite of amenities and easy access to the area’s major transportation corridors. GSVlabs provides full life cycle support for startups, including mentoring, education, legal services, financial services, and access to technology partners. GSVlabs also expanded into key innovation hubs around the world, launching two accelerator programs launched in India in 2016 (partnership with the Times of India, India’s largest media company).

Potential

Each year in the U.S., over 1,500 startups are funded by VC firms, and over 50,000 startups are funded by angel investors. According to Pitchbook, one-third of all startups that raised a Series A in 2015 went through an accelerator. We believe that GSVlabs has the potential to support hundreds of these startups at not only its primary campus, but at other campuses around the country over the next few years.  The GSVlabs model has the ability to scale very quickly across multiple physical campuses.  In addition, GSVlabs reserves the right to make equity investments in selected startup tenants, which could provide meaningful economic upside to the Company’s core services model.

Megatrends

Knowledge Economy; Globalization; Internet; Brands; Demographics; Outsourcing

How Big Can This Be?

GSVlabs has the ability to be a major source of startup incubation and acceleration activity worldwide.  We envision GSVlabs campuses in major cities around the globe, providing support for potentially thousands of startups coming through the GSVlabs doors.

Predictability

Because the GSVlabs model is services-driven, we believe that the business enjoys much greater predictability than the typical incubator or accelerator—a significant part of the economic gains from the model will be dependent solely on GSVlabs’ execution and operational efficiency.  In addition, the Company has secured a very attractive lease on the Redwood City campus, which provides for “square-foot arbitrage” over the near-term.  GSVlabs is also providing much longer residency times for startup tenants, which reduces churn and optimizes occupancy rates.  By utilizing a partner-centric model, customer acquisition cost should remain comparatively low, with high referral rates driving new business.

Risks

The incubator/accelerator space is currently dominated by a few key players, including Plug and Play, YCombinator, TechStars, 500 Startups, and RocketSpace, among others.  GSVlabs will need to undertake significant branding efforts to drive new tenants into its premier campus.  Partnerships are also a key part of GSVlabs’ business model, and the Company will need to convince very sophisticated potential partners of the merits of such alliances.

GSVC percentage figures are based upon the fair value of each holding as of the quarter ended March 31, 2017, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to March 31, 2017. In either case, these values are divided by the fair value of total portfolio investments of GSV Capital as of March 31, 2017.

GSV stands forGlobal Silicon Valley
Learn more at GSV.com