Firsthand Technology Value Fund, Inc.

What they do

SVVC is a Maryland corporation that elected to be treated as a business development company under the 1940 Act and is externally managed by Firsthand Capital Management, Inc. (FCM). Its investment objective is long-term growth of capital, principally through capital gains on equity and equity-related investments. It generally must invest at least 70% of total assets in qualifying assets, including securities of private or micro-cap U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt. The Fund was incorporated in April 2010, completed a reorganization of Firsthand Technology Value Fund in April 2011, and commenced operations on April 18, 2011.

Revenue drivers

• Equity and equity-related portfolio investments — Returns come from realized and unrealized gains or losses on equity and equity-related securities of private and micro-cap technology companies, not from operating revenue.
• Qualifying assets — At least 70% of total assets must be in qualifying assets such as private or micro-cap public U.S. company securities, cash, cash equivalents, U.S. government securities and high-quality debt investments.
• Concentration in Level 3 holdings — Fair Value Level 3 securities represented (32.4)% of net assets at June 30, 2026, and restricted securities were $144,732, or (32.4)% of net assets, at that date.

Recent performance

The fund has reported annual net losses in each year from 2021 through 2025, with net income of $-7.4M in 2021, $-64.1M in 2022, $-29.3M in 2023, about $-199,692 in 2024, and $-1.3M in 2025. Diluted EPS over the same years were $-1.07, $-9.31, $-4.26, $-0.03 and $-0.15. Operating cash flow was negative in most years, including $-2,512 in 2025 and $-253 in 2024, and positive at $3,404 in 2022. At June 30, 2026, total assets were $148,694 and total liabilities were $595,775, while cash and equivalents were last reported at $2,609 as of September 30, 2023. The 10-Q also notes a .03 adjustment at both June 30, 2026 and December 31, 2025 to increase NAV to 0.00.

Strategy

Management continues to operate the fund as an externally managed BDC under the 1940 Act, with Firsthand Capital Management, Inc. serving as investment adviser and managing the investment process daily. The stated objective remains long-term capital growth through equity and equity-related investments, with a required minimum of 70% of total assets in qualifying assets. Valuation of restricted and illiquid holdings is determined in good faith by FCM as valuation designee under Rule 2a-5, subject to Board oversight. The company has filed periodic event disclosures since the last 10-K, including a 2026-08-18 8-K covering a delisting or listing-rule failure, a director or officer change, and other events.

Risks

• Illiquid and restricted holdings — Restricted securities were $144,732, or (32.4)% of net assets, at June 30, 2026, meaning valuation and exit depend on illiquid private positions.
• Leverage and liabilities exceeding assets — At June 30, 2026, total liabilities of $595,775 exceeded total assets of $148,694, leaving the fund with negative net assets on the reported balance sheet.
• Listing-rule failure — The company disclosed a delisting notice or listing-rule failure in its August 18, 2026 Form 8-K.
• Persistent losses and negative operating cash flow — The fund reported annual net losses every year from 2021 through 2025 and negative operating cash flow in 2021, 2023, 2024 and 2025.

Outlook

The provided excerpts state the fund's objective of seeking long-term growth of capital through equity and equity-related investments and its requirement to hold at least 70% of total assets in qualifying assets. No forward guidance or specific outlook figures are included in the source material beyond standard forward-looking statement language and risk factor references. Management notes in the 10-Q that valuation inputs for Level 3 holdings are subject to change and that increases or decreases in unobservable inputs would change security valuations. The August 18, 2026 8-K events, including a delisting or listing-rule failure and a director or officer change, are reported but no management outlook is provided in the excerpts.