Both Spotify and Dropbox are well-known brands not only among the investment community but in general. I literally do not know 1 person (besides my non-tech wife) that doesn’t use either product or both. This name recognition is likely to attract a lot of attention when these companies go public. IPOs are expected this month.
GSV Capital invests in private companies. They were in both Facebook and Twitter pre-IPO. The chart (from this article) shows the stock shooting up on these listings.
Source: GSV Cap, TD Ameritrade, Black Cat Investors LLC
As you understand the company has positions in both Spotify and Dropbox. They are among their top 10 positions according to the table below from the company website (link).
The company is listed and has the ticker symbol GSVC. Their position (23.3% of NAV) is likely to get a boost from a successful listing of these companies. In addition, the stock is trading at a discount to it’s NAV of $9.69 (link to financials). At yesterday’s close of $8.45, the stock is trading at a 13% discount to its NAV so just closing this gap provides a decent return and if history repeats itself then the return should be larger. With Dropbox (DBX) and Spotify (SPOT) expecting to list this month, this is a short-term trade for some quick and potentially easy profits. Risks include the stocks selling off on listing and/or a weak market environment. Personally, I put on a small position yesterday.
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