U.S.
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,
D.C. 20549



FORM
10-Q



| | [X] | QUARTERLY
                                         REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | --- | --------------------------------------------------------------------------------------------------------------------------------



For
the quarterly period of March 31, 2018 or



| | [  ] | TRANSITION
                                         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------



Commission
File Number 333-168195



FIRSTHAND
TECHNOLOGY VALUE FUND, INC.

(Exact
Name of Registrant as Specified in Charter)



|MARYLAND                            | 27-3008946        
|----------------------------------- | ------------------
|(State or Other Jurisdiction
    of | (I.R.S. Employer  
|Incorporation or
    Organization)  | Identification No)



|150 Almaden
    Boulevard, Suite 1250        |           
|-------------------------------------------- | ----------
|San Jose, California                         | 95113     
|(Address of Principal
    Executive Offices) | (Zip Code)





Registrant’s
Telephone Number, Including Area Code: (408) 886-7096



Indicate
by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  [X]  Yes
 [  ] No



Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):





|[  ]  Large     Accelerated Filer | [X]   Accelerated
Filer                                                      
|--------------------------------- | -----------------------------------------------------------------------------
|[  ]  Non-accelerated Filer       | [  ]    Smaller Reporting Company (Do not check if smaller reporting company)



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [  ] Yes [X]
 No



Indicate
the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.



|Class                                        |  | Outstanding
    at April 30, 2018 | 
|-------------------------------------------- |  | --------------------------------- | 
|Common
    Stock, $0.001 par value per share |  | 7,302,146                         | 














TABLE
OF CONTENTS



|PART I. FINANCIAL INFORMATION | 2 
|----------------------------- | --
|Item 1.                       |   
|                              |   
|                              |   
|                              |   
|                              |   
|                              |   
|                              |   
|                              |   
|Item 2.                       |   
|Item 3.                       |   
|Item 4.                       |   
|PART II. OTHER INFORMATION    | 43
|Item 1.                       |   
|Item 1A.                      |   
|Item 2.                       |   
|Item 3.                       |   
|Item 4.                       |   
|Item 5.                       |   
|Item 6.                       |   
|SIGNATURES                    | 45

1







PART
I. FINANCIAL INFORMATION



ITEM
1. FINANCIAL STATEMENTS










See
accompanying notes to financial statements

2





Firsthand
Technology Value Fund, Inc.

Consolidated
Statements of Assets and Liabilities





|                                                                                    |  | AS OF 
MARCH 31, 2018 (UNAUDITED) |             | AS OF 
DECEMBER 31, 2017
|----------------------------------------------------------------------------------- |  | --------------------------------- | ----------- | ------------------------
|ASSETS                                                                              |  |                                   |             |                         
|Investment securities:                                                              |  |                                   |             |                         
|Unaffiliated investments at acquisition cost                                        |  | $                                 | 23,767,073  | *                       
|Affiliated investments at acquisition cost                                          |  |                                   | 26,285,161  |                         
|Controlled investments at acquisition cost                                          |  |                                   | 119,229,161 |                         
|Total acquisition cost                                                              |  | $                                 | 169,281,395 |                         
|Unaffiliated investments at market value                                            |  | $                                 | 32,963,495  | *                       
|Affiliated investments at market value                                              |  |                                   | 25,511,448  |                         
|Controlled investments at market value                                              |  |                                   | 123,803,673 |                         
|Total market value ** (Note 6)                                                      |  |                                   | 182,278,616 |                         
|Cash                                                                                |  |                                   | 20,377      |                         
|Receivable from dividends and interest                                              |  |                                   | 2,215,075   |                         
|Other assets                                                                        |  |                                   | 43,512      |                         
|Total Assets                                                                        |  |                                   | 184,557,580 |                         
|LIABILITIES                                                                         |  |                                   |             |                         
|Incentive fees payable (Note 4)                                                     |  |                                   | 3,865,640   |                         
|Payable to affiliates (Note 4)                                                      |  |                                   | 915,604     |                         
|Consulting fee payable                                                              |  |                                   | 19,500      |                         
|Accrued expenses and other payables                                                 |  |                                   | 193,830     |                         
|Total Liabilities                                                                   |  |                                   | 4,994,574   |                         
|NET ASSETS                                                                          |  | $                                 | 179,563,006 |                         
|Net Assets consist of:                                                              |  |                                   |             |                         
|Common Stock, par value $0.001 per share 100,000,000 shares authorized              |  | $                                 | 7,302       |                         
|Paid-in-capital                                                                     |  |                                   | 180,772,769 |                         
|Accumulated net investment loss                                                     |  |                                   | (4,437,943  | )                       
|Accumulated net realized loss from security transactions                            |  |                                   | (9,776,343  | )                       
|Net unrealized appreciation (depreciation) on investments and warrants transactions |  |                                   | 12,997,221  |                         
|NET ASSETS                                                                          |  | $                                 | 179,563,006 |                         
|Shares of Common Stock outstanding                                                  |  |                                   | 7,302,146   |                         
|Net asset value per share (Note 2)                                                  |  | $                                 | 24.59       |                         



| | * | Includes
Fidelity Investment Money Market Treasury Portfolio - Class I, which invests primarily in U.S. Treasury securities. The yields
as of 03/31/18 and 12/31/17 were 1.49% and 1.14%, respectively. Please see https://fundresearch.fidelity.com/mutual-funds/ summary/316175504
for additional information.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ** | Includes
warrants whose primary exposure is equity risk.
| | -- | --------------------------------------------------------



See
accompanying notes to financial statements

3





Firsthand
Technology Value Fund, Inc.



Consolidated
Statements of Operations (Unaudited)







|                                                                                                       |  | FOR THE THREE MONTHS ENDED
|------------------------------------------------------------------------------------------------------ |  | --------------------------
|                                                                                                       |  | MARCH 31, 2018            
|INVESTMENT INCOME                                                                                      |  |                           
|Unaffiliated interest                                                                                  |  | $                         
|Affiliated/Controlled interest                                                                         |  |                           
|TOTAL INVESTMENT INCOME                                                                                |  |                           
|EXPENSES                                                                                               |  |                           
|Investment advisory fees (Note 4)                                                                      |  |                           
|Administration fees                                                                                    |  |                           
|Custody fees                                                                                           |  |                           
|Transfer agent fees                                                                                    |  |                           
|Registration and filing fees                                                                           |  |                           
|Professional fees                                                                                      |  |                           
|Printing fees                                                                                          |  |                           
|Trustees fees                                                                                          |  |                           
|Compliance fees                                                                                        |  |                           
|Miscellaneous fees                                                                                     |  |                           
|TOTAL GROSS EXPENSES                                                                                   |  |                           
|Incentive fee adjustments (Note 4)                                                                     |  |                           
|TOTAL NET EXPENSES                                                                                     |  |                           
|NET INVESTMENT LOSS                                                                                    |  |                           
|                                                                                                       |  |                           
|Net Realized and Unrealized Gains (Losses) on Investments:                                             |  |                           
|Net realized gains (losses) from security transactions Affiliated/controlled                           |  |                           
|Non-affiliated and other assets                                                                        |  |                           
|Net change in unrealized appreciation (depreciation) on investments                                    |  |                           
|Net change in unrealized appreciation (depreciation) on affiliated/controlled investments              |  |                           
|Net change in unrealized appreciation (depreciation) on affiliated/controlled warrants investments (1) |  |                           
|Net Realized and Unrealized Gains (Losses) on Investments                                              |  |                           
|Net Increase (Decrease) In Net Assets Resulting From Operations                                        |  | $                         
|Net Increase (Decrease) In Net Assets Per Share Resulting From Operations (2)                          |  | $                         



| | (1) | Primary
exposure is equity risk.
| | --- | --------------------------------



| | (2) | Per
share results are calculated based on weighted average shares outstanding for each period.
| | --- | ----------------------------------------------------------------------------------------------



See
accompanying notes to financial statements

4





Firsthand Technology Value
Fund, Inc.

Consolidated Statements of Cash
Flows



|                                                                                                                                               |  | FOR THE 
THREE MONTHS ENDED MARCH 31, 2018 (UNAUDITED) |             |   | FOR THE 
YEAR ENDED 
DECEMBER 31, 2017 |   |             | FOR THE 
YEAR ENDED 
DECEMBER 31, 2016 | 
|---------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------ | ----------- | - | -------------------------------------- | - | ----------- | -------------------------------------- | 
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                           |  |                                                        |             |   |                                        |   |             |                                        | 
|Net increase (decrease) in Net Assets resulting from operations                                                                                |  | $                                                      | 5,569,417   |   |                                        | $ | 26,179,569  |                                        | 
|Adjustments to reconcile net increase (decrease) in Net Assets derived from operations to net cash provided by (used in) operating activities: |  |                                                        |             |   |                                        |   |             |                                        | 
|Purchases of investments                                                                                                                       |  |                                                        | (23,486,160 | ) |                                        |   | (30,958,618 | )                                      | 
|Proceeds from disposition of investments                                                                                                       |  |                                                        | 31,038,824  |   |                                        |   | 34,282,019  |                                        | 
|Net purchases/sales from short-term investments                                                                                                |  |                                                        | (6,675,435  | ) |                                        |   | 65,833      |                                        | 
|(Decrease) increase in dividends, interest, and reclaims receivable                                                                            |  |                                                        | (421,072    | ) |                                        |   | (973,179    | )                                      | 
|(Decrease) increase in restricted cash                                                                                                         |  |                                                        | —           |   |                                        |   | —           |                                        | 
|Increase (decrease) in payable for investment purchased                                                                                        |  |                                                        | —           |   |                                        |   | (395,532    | )                                      | 
|Increase (decrease) in payable to affiliates                                                                                                   |  |                                                        | 36,519      |   |                                        |   | 82,552      |                                        | 
|Increase (decrease) in incentive fees payable                                                                                                  |  |                                                        | 2,174,600   |   |                                        |   | 1,691,040   |                                        | 
|(Decrease) increase in other assets                                                                                                            |  |                                                        | (15,527     | ) |                                        |   | 528         |                                        | 
|Increase (decrease) in accrued expenses and other payables                                                                                     |  |                                                        | 5,454       |   |                                        |   | (2,101      | )                                      | 
|Net realized gain (loss) from investments                                                                                                      |  |                                                        | 4,781,235   |   |                                        |   | (3,541,944  | )                                      | 
|Net unrealized appreciation (depreciation) from investments and warrants transactions                                                          |  |                                                        | (13,097,555 | ) |                                        |   | (27,155,966 | )                                      | 
|Net cash provided by (used in) operating activities                                                                                            |  |                                                        | (89,700     | ) |                                        |   | (725,799    | )                                      | 
|                                                                                                                                               |  |                                                        |             |   |                                        |   |             |                                        | 
|CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                           |  |                                                        |             |   |                                        |   |             |                                        | 
|Cost of shares repurchased                                                                                                                     |  |                                                        | —           |   |                                        |   | (1,098,371  | )                                      | 
|Net cash (used in) financing activities                                                                                                        |  |                                                        | —           |   |                                        |   | (1,098,371  | )                                      | 
|                                                                                                                                               |  |                                                        |             |   |                                        |   |             |                                        | 
|Net increase (decrease) in cash                                                                                                                |  |                                                        | (89,700     | ) |                                        |   | (1,824,170  | )                                      | 
|Cash - beginning of period                                                                                                                     |  |                                                        | 110,077     |   |                                        |   | 1,934,247   |                                        | 
|Cash - end of period                                                                                                                           |  | $                                                      | 20,377      |   |                                        | $ | 110,077     |                                        | 



See accompanying
notes to financial statements

5





Firsthand Technology Value
Fund, Inc.

Consolidated Statements of Changes
in Net Assets



|                                                                                              |  | FOR THE 
THREE MONTHS ENDED MARCH 31, 2018 (UNAUDITED) |             |   | FOR THE 
YEAR ENDED 
DECEMBER 31, 2017 |   |             | FOR THE 
YEAR ENDED 
DECEMBER 31, 2016 | 
|--------------------------------------------------------------------------------------------- |  | ------------------------------------------------------ | ----------- | - | -------------------------------------- | - | ----------- | -------------------------------------- | 
|FROM OPERATIONS:                                                                              |  |                                                        |             |   |                                        |   |             |                                        | 
|Net investment loss                                                                           |  | $                                                      | (2,746,903  | ) |                                        | $ | (4,518,341  | )                                      | 
|Net realized gains (losses) from security transactions and warrants transactions              |  |                                                        | (4,781,235  | ) |                                        |   | 3,541,944   |                                        | 
|Net change in unrealized appreciation (depreciation) on investments and warrants transactions |  |                                                        | 13,097,555  |   |                                        |   | 27,155,966  |                                        | 
|Net increase (decrease) in net assets from operations                                         |  |                                                        | 5,569,417   |   |                                        |   | 26,179,569  |                                        | 
|                                                                                              |  |                                                        |             |   |                                        |   |             |                                        | 
|FROM CAPITAL SHARE TRANSACTIONS:                                                              |  |                                                        |             |   |                                        |   |             |                                        | 
|Value for shares repurchased                                                                  |  |                                                        | —           |   |                                        |   | (1,098,371  | )                                      | 
|Net decrease in net assets from capital share transactions                                    |  |                                                        | —           |   |                                        |   | (1,098,371  | )                                      | 
|TOTAL INCREASE (DECREASE) IN NET ASSETS                                                       |  |                                                        | 5,569,417   |   |                                        |   | 25,081,198  |                                        | 
|                                                                                              |  |                                                        |             |   |                                        |   |             |                                        | 
|NET ASSETS:                                                                                   |  |                                                        |             |   |                                        |   |             |                                        | 
|Beginning of period                                                                           |  |                                                        | 173,993,589 |   |                                        |   | 148,912,391 |                                        | 
|End of period                                                                                 |  | $                                                      | 179,563,006 |   |                                        | $ | 173,993,589 |                                        | 
|Accumulated Net Investment Loss                                                               |  | $                                                      | (4,437,943  | ) |                                        | $ | (1,691,040  | )                                      | 
|                                                                                              |  |                                                        |             |   |                                        |   |             |                                        | 
|COMMON STOCK ACTIVITY:                                                                        |  |                                                        |             |   |                                        |   |             |                                        | 
|Shares repurchased                                                                            |  |                                                        | —           |   |                                        |   | (128,551    | )                                      | 
|Net decrease in shares outstanding                                                            |  |                                                        | —           |   |                                        |   | (128,551    | )                                      | 
|Shares outstanding, beginning of period                                                       |  |                                                        | 7,302,146   |   |                                        |   | 7,430,697   |                                        | 
|Shares outstanding, end of period                                                             |  |                                                        | 7,302,146   |   |                                        |   | 7,302,146   |                                        | 



See accompanying notes to financial
statements

6





Firsthand
Technology Value Fund, Inc.

Financial Highlights

Selected per share data and ratios for a share outstanding
throughout each period



|                                                                        |  | FOR THE THREE MONTHS ENDED MARCH 31, 2018* (UNAUDITED) |       |         | FOR THE 
YEAR ENDED 
DECEMBER 31, 2017* |   |       | FOR THE YEAR ENDED DECEMBER 31, 2016* |  |   | FOR THE YEAR ENDED DECEMBER 31, 2015* |    |  | FOR THE YEAR ENDED DECEMBER 31, 2014 |        |      | FOR THE YEAR ENDED DECEMBER 31, 2013 |  
|----------------------------------------------------------------------- |  | ------------------------------------------------------ | ----- | ------- | --------------------------------------- | - | ----- | ------------------------------------- |  | - | ------------------------------------- | -- |  | ------------------------------------ | ------ | ---- | ------------------------------------ | -
|Net asset value at beginning of period                                  |  | $                                                      | 23.83 |         |                                         | $ | 20.04 |                                       |  | $ | 22.79                                 |    |  | $                                    | 24.49  |      |                                      | $
|Income from investment operations:                                      |  |                                                        |       |         |                                         |   |       |                                       |  |   |                                       |    |  |                                      |        |      |                                      |  
|Net investment loss                                                     |  |                                                        | (0.38 | )       |                                         |   | (0.62 | )                                     |  |   | (0.52                                 | )  |  |                                      | (0.06) | (1)  |                                      |  
|Net realized and unrealized gains (losses) on investments               |  |                                                        | 1.14  |         |                                         |   | 4.21  |                                       |  |   | (2.76                                 | )  |  |                                      | (1.78  | )    |                                      |  
|Total from investment operations                                        |  |                                                        | 0.76  |         |                                         |   | 3.59  |                                       |  |   | (3.28                                 | )  |  |                                      | (1.84  | )    |                                      |  
|                                                                        |  |                                                        |       |         |                                         |   |       |                                       |  |   |                                       |    |  |                                      |        |      |                                      |  
|Distributions from:                                                     |  |                                                        |       |         |                                         |   |       |                                       |  |   |                                       |    |  |                                      |        |      |                                      |  
|Realized capital gains                                                  |  |                                                        | —     |         |                                         |   | —     |                                       |  |   | —                                     |    |  |                                      | —      |      |                                      |  
|Premiums from shares sold in offerings                                  |  |                                                        | —     |         |                                         |   | —     |                                       |  |   | —                                     |    |  |                                      | —      |      |                                      |  
|Anti-dilutive effect from capital share transactions                    |  |                                                        | —     |         |                                         |   | 0.20  |                                       |  |   | 0.53                                  |    |  |                                      | 0.14   |      |                                      |  
|Net asset value at end of period                                        |  | $                                                      | 24.59 |         |                                         | $ | 23.83 |                                       |  | $ | 20.04                                 |    |  | $                                    | 22.79  |      |                                      | $
|Market value at end of period                                           |  | $                                                      | 11.29 |         |                                         | $ | 8.96  |                                       |  | $ | 7.67                                  |    |  | $                                    | 8.17   |      |                                      | $
|                                                                        |  |                                                        |       |         |                                         |   |       |                                       |  |   |                                       |    |  |                                      |        |      |                                      |  
|Total return                                                            |  |                                                        |       |         |                                         |   |       |                                       |  |   |                                       |    |  |                                      |        |      |                                      |  
|Based on Net Asset Value                                                |  |                                                        | 3.19  | %(A)    |                                         |   | 18.91 | %                                     |  |   | (12.07                                | )% |  |                                      | (6.94  | )%   |                                      |  
|Based on Market Value                                                   |  |                                                        | 26.00 | %(A)    |                                         |   | 16.82 | %                                     |  |   | (6.12                                 | )% |  |                                      | (56.19 | )%   |                                      |  
|Net assets at end of period (millions)                                  |  | $                                                      | 180.0 |         |                                         | $ | 174.0 |                                       |  | $ | 148.9                                 |    |  | $                                    | 175.6  |      |                                      | $
|Ratio of total expenses to average net assets                           |  |                                                        | 7.67  | %(B)(3) |                                         |   | 4.13  | %(3)                                  |  |   | 2.90                                  | %  |  |                                      | 1.36   | %(3) |                                      |  
|Ratio of total expenses to average net assets, excluding incentive fees |  |                                                        | 2.68  | %(B)    |                                         |   | 2.98  | %                                     |  |   | 2.90                                  | %  |  |                                      | 2.68   | %    |                                      |  
|Ratio of net investment loss to average net assets                      |  |                                                        | (6.30 | )%(B)   |                                         |   | (3.07 | )%                                    |  |   | (2.36                                 | )% |  |                                      | (0.24  | )%   |                                      |  
|Portfolio turnover rate                                                 |  |                                                        | 45    | %(A)    |                                         |   | 22    | %                                     |  |   | 49                                    | %  |  |                                      | 22     | %    |                                      |  



| | * | Consolidated.
| | - | -------------

| | (1) | Calculated using average shares outstanding.
| | --- | --------------------------------------------

| | (2) | Less than $0.005 per share.
| | --- | ---------------------------

| | (3) | Amount includes the incentive fee. For the period ended March 31, 2018, the year ended December
31, 2017, the year ended December 31, 2015, the year ended December 31, 2014 and the year ended December 31, 2013, the ratio of
the incentive fee to average net assets was 4.99%, 1.15%, (1.32)%, 2.17% and 3.85%, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (A) | Not Annualized.
| | --- | ---------------

| | (B) | Annualized.
| | --- | -----------



See accompanying
notes to financial statements

7





Firsthand
Technology Value Fund, Inc.

Consolidated Schedule of Investments



MARCH 31, 2018 (UNAUDITED)



|PORTFOLIO COMPANY (% OF NET ASSETS) AND
    INDUSTRY |  | TYPE OF INVESTMENT                           |  | ACQUISITION DATE    |  | SHARES/PAR VALUE ($) |            |  | COST BASIS |   |            | VALUE | 
|---------------------------------------------------- |  | -------------------------------------------- |  | ------------------- |  | -------------------- | ---------- |  | ---------- | - | ---------- | ----- | 
|ALIPHCOM, INC. (0.0%)                                |  | Common Stock*(1)(7)                          |  | 08/20/13            |  |                      | 2,128,005  |  |            | $ | 10,108,024 |       | 
|Consumer Electronics                                 |  |                                              |  |                     |  |                      |            |  |            |   |            |       | 
|EQX CAPITAL, INC. (2.2%)                             |  | Common Stock*(1)(2)(7)                       |  | 06/10/16            |  |                      | 100,000    |  |            |   | 20,000     |       | 
|Equipment Leasing                                    |  | Preferred Stock - Series A *(1)(2)(7)        |  | 06/10/16            |  |                      | 4,000,000  |  |            |   | 4,000,000  |       | 
|                                                     |  |                                              |  |                     |  |                      |            |  |            |   |            |       | 
|HERA SYSTEMS, INC. (1.5%)                            |  | Convertible Promissory Note                  |  |                     |  |                      |            |  |            |   |            |       | 
|Aerospace                                            |  | Matures January 2019                         |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)                  |  | 01/19/18            |  |                      | 500,000    |  |            |   | 500,000    |       | 
|                                                     |  | Preferred Stock - Series A*(1)(2)(7)         |  | 09/18/15            |  |                      | 3,642,324  |  |            |   | 2,000,000  |       | 
|                                                     |  | Preferred Stock - Series B*(1)(2)(7)         |  | 08/07/17 - 09/28/17 |  |                      | 2,039,203  |  |            |   | 1,587,102  |       | 
|                                                     |  | Preferred Stock Warrants -Series B*(1)(2)(7) |  | 08/07/17            |  |                      | 6,214,922  |  |            |   | 0          |       | 
|                                                     |  | Preferred Stock Warrants -Series B*(1)(2)(7) |  | 09/28/17            |  |                      | 700,000    |  |            |   | 0          |       | 
|                                                     |  |                                              |  |                     |  |                      |            |  |            |   |            |       | 
|INTRAOP MEDICAL CORP. (14.5%)                        |  | Convertible Note                             |  |                     |  |                      |            |  |            |   |            |       | 
|Medical Devices                                      |  | Matures June 2020                            |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Interest Rate 15% (1)(2)(7)                  |  | 05/31/17            |  |                      | 1,000,000  |  |            |   | 1,000,000  |       | 
|                                                     |  | Convertible Note                             |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Matures June 2020                            |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Interest Rate 15% (1)(2)(7)                  |  | 07/13/17            |  |                      | 1,000,000  |  |            |   | 1,000,000  |       | 
|                                                     |  | Convertible Note                             |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Matures June 2020                            |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Interest Rate 15% (1)(2)(7)                  |  | 09/28/17            |  |                      | 1,500,000  |  |            |   | 1,500,000  |       | 
|                                                     |  | Convertible Note                             |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Matures June 2020                            |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Interest Rate 15% (1)(2)(7)                  |  | 07/08/14            |  |                      | 1,000,000  |  |            |   | 1,000,000  |       | 
|                                                     |  | Convertible Note                             |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Matures June 2020                            |  |                     |  |                      |            |  |            |   |            |       | 
|                                                     |  | Interest Rate 15% (1)(2)(7)                  |  | 03/21/18            |  |                      | 2,000,000  |  |            |   | 2,000,000  |       | 
|                                                     |  | Preferred Stock - Series C *(1)(2)(7)        |  | 07/12/13            |  |                      | 26,856,187 |  |            |   | 26,299,938 |       | 



See accompanying
notes to financial statements

8





Firsthand Technology Value
Fund, Inc.

Consolidated Schedule of Investments
- continued

MARCH 31, 2018 (UNAUDITED)



|PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE OF INVESTMENT                            |  | ACQUISITION DATE    |  | SHARES/PAR VALUE ($) |            |  | COST BASIS |   |            | VALUE | 
|------------------------------------------------ |  | --------------------------------------------- |  | ------------------- |  | -------------------- | ---------- |  | ---------- | - | ---------- | ----- | 
|INTRAOP MEDICAL CORP. (cont’d.)                  |  | Term Note                                     |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Matures February 2020                         |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Interest Rate 8% (1)(2)(7)                    |  | 02/10/17            |  |                      | 2,000,000  |  |            | $ | 2,000,000  |       | 
|                                                 |  | Term Note                                     |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Matures February 2020                         |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Interest Rate 8% (1)(2)(7)                    |  | 02/28/14            |  |                      | 3,000,000  |  |            |   | 3,000,000  |       | 
|                                                 |  |                                               |  |                     |  |                      |            |  |            |   |            |       | 
|NUTANIX, INC. (11.5%)                            |  | Common Stock*                                 |  | 05/15/15 - 08/23/16 |  |                      | 418,772    |  |            |   | 6,638,112  |       | 
|Networking                                       |  |                                               |  |                     |  |                      |            |  |            |   |            |       | 
|PHUNWARE, INC. (8.1%)                            |  | Preferred Stock - Series E*(1)(3)(7)          |  | 03/14/14            |  |                      | 3,257,328  |  |            |   | 9,999,997  |       | 
|Mobile Computing                                 |  |                                               |  |                     |  |                      |            |  |            |   |            |       | 
|PIVOTAL SYSTEMS CORP. (24.8%)                    |  | Common Stock Warrants -                       |  |                     |  |                      |            |  |            |   |            |       | 
|Semiconductor Equipment                          |  | Class B*(1)(2)(7)                             |  | 02/12/16            |  |                      | 18,180,475 |  |            |   | 0          |       | 
|                                                 |  | Preferred Stock Warrants -Series D*(1)(2)(7)  |  | 09/02/16            |  |                      | 4,158,654  |  |            |   | 0          |       | 
|                                                 |  | Preferred Stock - Series A*(1)(2)(7)          |  | 11/28/12 - 04/30/14 |  |                      | 11,914,217 |  |            |   | 6,000,048  |       | 
|                                                 |  | Preferred Stock - Series B*(1)(2)(7)          |  | 04/30/14            |  |                      | 13,065,236 |  |            |   | 6,321,482  |       | 
|                                                 |  | Preferred Stock - Series C*(1)(2)(7)          |  | 12/31/14            |  |                      | 2,291,260  |  |            |   | 2,657,862  |       | 
|                                                 |  | Preferred Stock - Series D*(1)(2)(7)          |  | 09/02/16            |  |                      | 6,237,978  |  |            |   | 3,975,801  |       | 
|                                                 |  |                                               |  |                     |  |                      |            |  |            |   |            |       | 
|QMAT, INC. (11.9%)                               |  | Preferred Stock -Series A*(1)(2)(5)(7)(8)     |  | 12/14/12 - 04/28/16 |  |                      | 16,000,240 |  |            |   | 14,609,819 |       | 
|Advanced Materials                               |  | Preferred Stock - Series B*(1)(2)(7)          |  | 09/28/16 - 11/07/16 |  |                      | 2,000,000  |  |            |   | 2,000,000  |       | 
|                                                 |  | Preferred Stock Warrants -Series A*(1)(2)(7)  |  | 12/14/12            |  |                      | 2,000,000  |  |            |   | 0          |       | 
|                                                 |  | Preferred Stock Warrants -Series C *(1)(2)(7) |  | 02/22/18            |  |                      | 3,482,209  |  |            |   | 0          |       | 
|                                                 |  | Preferred Stock Warrants -Series C *(1)(2)(7) |  | 03/13/18            |  |                      | 350,000    |  |            |   | 0          |       | 
|                                                 |  | Convertible Note                              |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Matures May 2018                              |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Interest Rate 8% (1)(2)(7)                    |  | 02/22/18            |  |                      | 3,482,209  |  |            |   | 3,482,209  |       | 
|                                                 |  | Convertible Note                              |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Matures May 2018                              |  |                     |  |                      |            |  |            |   |            |       | 
|                                                 |  | Interest Rate 8% (1)(2)(7)                    |  | 03/13/18            |  |                      | 350,000    |  |            |   | 350,000    |       | 
|                                                 |  |                                               |  |                     |  |                      |            |  |            |   |            |       | 



See accompanying notes to financial statements

9





Firsthand
Technology Value Fund, Inc.

Consolidated Schedule of Investments
- continued



MARCH 31, 2018 (UNAUDITED)



|PORTFOLIO COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE OF INVESTMENT                        |  | ACQUISITION DATE    |  | SHARES/PAR VALUE ($) |            |  | COST BASIS |   |           | VALUE | 
|------------------------------------------------ |  | ----------------------------------------- |  | ------------------- |  | -------------------- | ---------- |  | ---------- | - | --------- | ----- | 
|QUICKLOGIC CORP. (1.0%)                          |  | Common Stock *                            |  | 12/27/16 - 11/09/17 |  |                      | 1,200,000  |  |            | $ | 1,859,835 |       | 
|Semiconductors                                   |  |                                           |  |                     |  |                      |            |  |            |   |           |       | 
|REVASUM, INC. (9.0%)                             |  | Preferred Stock - Series B* (1)(2)(7)     |  | 10/27/17 - 12/20/17 |  |                      | 313,719    |  |            |   | 2,550,033 |       | 
|Semiconductor Equipment                          |  | Common Stock*(1)(2)(7)                    |  | 11/14/16            |  |                      | 10,000     |  |            |   | 1,000     |       | 
|                                                 |  | Preferred Stock - Series A*(1)(2)(7)      |  | 03/01/17            |  |                      | 441,998    |  |            |   | 1,999,997 |       | 
|                                                 |  | Term Note                                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                 |  | Matures February 2020                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                 |  | Interest Rate 5% (1)(2)(7)                |  | 03/01/17            |  |                      | 1,000,000  |  |            |   | 1,000,000 |       | 
|                                                 |  | Preferred Stock - Series Seed* (1)(2)(7)  |  | 11/14/16            |  |                      | 2,200,000  |  |            |   | 7,275,070 |       | 
|                                                 |  |                                           |  |                     |  |                      |            |  |            |   |           |       | 
|ROKU, INC. (4.3%)                                |  | Common Stock*                             |  | 05/26/15 - 08/06/15 |  |                      | 250,000    |  |            |   | 2,312,500 |       | 
|Consumer Electronics                             |  |                                           |  |                     |  |                      |            |  |            |   |           |       | 
|RORUS, INC. (0.0%)                               |  | Convertible Note                          |  |                     |  |                      |            |  |            |   |           |       | 
|Water Purification                               |  | Matures June 2021                         |  |                     |  |                      |            |  |            |   |           |       | 
|                                                 |  | Interest Rate 2% (1)(7)                   |  | 10/04/16            |  |                      | 50,000     |  |            |   | 50,000    |       | 
|SILICON GENESIS CORP. (3.2%)                     |  | Common Stock*(1)(2)(7)                    |  | 04/18/11            |  |                      | 921,892    |  |            |   | 169,045   |       | 
|Intellectual Property                            |  | Common Stock Warrants*(1)(2)(7)           |  | 04/18/11            |  |                      | 37,982     |  |            |   | 6,678     |       | 
|                                                 |  | Common Stock Warrants*(1)(2)(7)           |  | 10/13/11            |  |                      | 5,000,000  |  |            |   | 0         |       | 
|                                                 |  | Common Stock Warrants*(1)(2)(7)           |  | 02/06/12            |  |                      | 3,000,000  |  |            |   | 0         |       | 
|                                                 |  | Preferred Stock - Series 1-C*(1)(2)(7)    |  | 04/18/11            |  |                      | 82,914     |  |            |   | 109,518   |       | 
|                                                 |  | Preferred Stock - Series 1-D*(1)(2)(7)    |  | 04/18/11            |  |                      | 850,830    |  |            |   | 431,901   |       | 
|                                                 |  | Preferred Stock - Series 1-E*(1)(2)(7)    |  | 04/18/11            |  |                      | 5,704,480  |  |            |   | 2,372,403 |       | 
|                                                 |  | Preferred Stock - Series 1-F*(1)(2)(7)    |  | 04/18/11            |  |                      | 912,453    |  |            |   | 456,389   |       | 
|                                                 |  | Preferred Stock - Series 1-G*(1)(2)(5)(7) |  | 03/10/16            |  |                      | 48,370,793 |  |            |   | 4,500,969 |       | 
|                                                 |  | Preferred Stock - Series 1-H*(1)(2)(7)    |  | 03/10/16            |  |                      | 837,942    |  |            |   | 936,895   |       | 
|                                                 |  |                                           |  |                     |  |                      |            |  |            |   |           |       | 
|SVXR, INC. (1.7%)                                |  | Preferred Stock - Series A*(1)(3)(7)      |  | 01/11/17            |  |                      | 2,013,491  |  |            |   | 1,000,000 |       | 
|Semiconductor Equipment                          |  | Convertible Note                          |  |                     |  |                      |            |  |            |   |           |       | 
|                                                 |  | Matures December 2018                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                 |  | Interest Rate 10% (1)(3)(7)               |  | 12/21/17 - 03/22/18 |  |                      | 2,000,000  |  |            |   | 2,000,000 |       | 
|                                                 |  |                                           |  |                     |  |                      |            |  |            |   |           |       | 



See accompanying notes to financial statements

10





Firsthand
Technology Value Fund, Inc.

Consolidated Schedule of Investments
- continued

MARCH 31, 2018 (UNAUDITED)



|PORTFOLIO COMPANY (% OF NET ASSETS) AND
    INDUSTRY |  | TYPE OF INVESTMENT                   |  | ACQUISITION DATE    |  | SHARES/PAR VALUE ($) |            |  | COST BASIS |   |           | VALUE | 
|---------------------------------------------------- |  | ------------------------------------ |  | ------------------- |  | -------------------- | ---------- |  | ---------- | - | --------- | ----- | 
|TELEPATHY INVESTORS, INC. (0.9%)                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|Consumer Electronics                                 |  | Matures January 2019                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)          |  | 01/29/16            |  |                      | 300,000    |  |            | $ | 300,000   |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures January 2019                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)          |  | 04/20/16            |  |                      | 500,000    |  |            |   | 500,000   |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures January 2019                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)          |  | 06/21/16            |  |                      | 150,000    |  |            |   | 150,000   |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures January 2019                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)          |  | 12/13/16            |  |                      | 500,000    |  |            |   | 500,000   |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures January 2019                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)          |  | 06/23/15            |  |                      | 2,000,000  |  |            |   | 2,000,000 |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures July 2018                    |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 10% (1)(2)(7)          |  | 05/03/17            |  |                      | 300,000    |  |            |   | 300,000   |       | 
|                                                     |  | Preferred Stock - Series A*(1)(2)(7) |  | 07/29/14            |  |                      | 15,238,000 |  |            |   | 3,999,999 |       | 
|                                                     |  |                                      |  |                     |  |                      |            |  |            |   |           |       | 
|UCT COATINGS, INC. (0.4%)                            |  | Common Stock*(1)(3)(7)               |  | 04/18/11            |  |                      | 1,500,000  |  |            |   | 662,235   |       | 
|Advanced Materials                                   |  | Common Stock Warrants*(1)(3)(7)      |  | 04/18/11            |  |                      | 2,283      |  |            |   | 67        |       | 
|                                                     |  |                                      |  |                     |  |                      |            |  |            |   |           |       | 
|VUFINE, INC. (0.9%)                                  |  | Common Stock*(1)(2)(7)               |  | 02/26/15            |  |                      | 750,000    |  |            |   | 15,000    |       | 
|Consumer Electronics                                 |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures July 2019                    |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 6% (1)(2)(7)           |  | 07/10/17            |  |                      | 1,500,000  |  |            |   | 1,500,000 |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures October 2019                 |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 12% (1)(2)(7)          |  | 10/16/17            |  |                      | 250,000    |  |            |   | 250,000   |       | 
|                                                     |  | Convertible Note                     |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Matures July 2019                    |  |                     |  |                      |            |  |            |   |           |       | 
|                                                     |  | Interest Rate 12% (1)(2)(7)          |  | 01/31/18            |  |                      | 350,000    |  |            |   | 350,000   |       | 
|                                                     |  | Preferred Stock - Series A*(1)(2)(7) |  | 03/04/15 - 02/18/16 |  |                      | 22,500,000 |  |            |   | 2,250,000 |       | 
|                                                     |  |                                      |  |                     |  |                      |            |  |            |   |           |       | 



See accompanying notes to financial statements

11





Firsthand
Technology Value Fund, Inc.

Consolidated Schedule of Investments
- continued

MARCH 31, 2018 (UNAUDITED)



|PORTFOLIO COMPANY (% OF NET ASSETS)AND
    INDUSTRY |  | TYPE OF INVESTMENT                                                 |  | ACQUISITION DATE |  | SHARES/PAR VALUE ($) |           |  | COST BASIS |   |             | VALUE | 
|--------------------------------------------------- |  | ------------------------------------------------------------------ |  | ---------------- |  | -------------------- | --------- |  | ---------- | - | ----------- | ----- | 
|WRIGHTSPEED, INC. (4.0%)                            |  | Preferred Stock -                                                  |  | 04/11/13         |  |                      | 2,267,659 |  |            | $ | 6,837,983   |       | 
|Automotive                                          |  | Series C*(1)(3)(4)(5)(7)                                           |  | 12/15/14         |  |                      | 1,100,978 |  |            |   | 3,375,887   |       | 
|                                                    |  | Preferred Stock - Series D *(1)(3)(7)                              |  | 07/10/15         |  |                      | 450,814   |  |            |   | 1,658,996   |       | 
|                                                    |  | Preferred Stock - Series E *(1)(3)(7)                              |  | 08/31/17         |  |                      | 90,707    |  |            |   | 499,995     |       | 
|                                                    |  | Preferred Stock - Series F *(1)(3)(7)                              |  |                  |  |                      |           |  |            |   |             |       | 
|                                                    |  | Preferred Stock Warrants - Series F*(1)(3)(7)                      |  | 02/07/18         |  |                      | 11,338    |  |            |   | 0           |       | 
|                                                    |  | Preferred Stock Warrants - Series F*(1)(3)(7)                      |  | 08/31/17         |  |                      | 18,141    |  |            |   | 0           |       | 
|                                                    |  | Promissory Note                                                    |  |                  |  |                      |           |  |            |   |             |       | 
|                                                    |  | Matures August 2018                                                |  | 02/07/18         |  |                      | 250,000   |  |            |   | 250,000     |       | 
|                                                    |  | Interest Rate 12% (1)(3)(7)                                        |  |                  |  |                      |           |  |            |   |             |       | 
|                                                    |  |                                                                    |  |                  |  |                      |           |  |            |   |             |       | 
|                                                    |  |                                                                    |  |                  |  |                      |           |  |            |   |             |       | 
|INVESTMENT COMPANY (1.6%)                           |  | Fidelity Investments Money Market Treasury Portfolio - Class I (6) |  | Various          |  |                      | 2,798,602 |  |            |   | 2,798,602   |       | 
|TOTAL INVESTMENTS (Cost $169,281,395) — 101.5%      |  |                                                                    |  |                  |  |                      |           |  |            |   | 182,278,616 |      
|LIABILITIES IN EXCESS OF OTHER ASSETS — (1.5)%      |  |                                                                    |  |                  |  |                      |           |  |            |   | (2,715,610  | )    
|NET ASSETS — 100.0%                                 |  |                                                                    |  |                  |  |                      |           |  |            | $ | 179,563,006 |      



| | * | Non-income producing security.
| | - | ------------------------------

| | (1) | Restricted security. Fair Value is determined by or under the direction of the
                                                                                     Company’s Board of Directors (See Note 3). At March 31, 2018, we held $149,315,121 (or 83.2% of net assets) in
                                                                                     restricted securities (See Note 2).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Controlled investments.
| | --- | -----------------------

| | (3) | Affiliated issuer.
| | --- | ------------------

| | (4) | A portion represents position held in Firsthand Holdings,
Ltd. (See Note 1).
| | --- | ----------------------------------------------------------------------------

| | (5) | A portion represents position held in Firsthand Development,
Ltd. (See Note 1).
| | --- | -------------------------------------------------------------------------------

| | (6) | The Fidelity Investments Money Market Portfolio invests
primarily in U.S. Treasury securities.
| | --- | ----------------------------------------------------------------------------------------------

| | (7) | Fair Value Level 3 Security.
| | --- | ----------------------------

| | (8) | A portion represents position held in Firsthand Investments,
Ltd. (See note 1).
| | --- | -------------------------------------------------------------------------------



See accompanying
notes to financial statements

12





Firsthand
Technology Value Fund, Inc.

Consolidated
Schedule of Investments

DECEMBER
31, 2017



|PORTFOLIO
    COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE
    OF INVESTMENT                                              |  | ACQUISITION
    DATE    |  | SHARES/PAR
    VALUE ($) |            |  | COST
    BASIS |   |            | VALUE | 
|---------------------------------------------------- |  | ------------------------------------------------------------------- |  | ----------------------- |  | ------------------------ | ---------- |  | -------------- | - | ---------- | ----- | 
|ALIPHCOM,
    INC. (0.0%)                            |  | Common
    Stock*(1)(7)                                             |  | 08/20/13                |  |                          | 2,128,005  |  |                | $ | 10,108,024 |       | 
|Consumer
    Electronics                             |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|EQX
    CAPITAL, INC. (2.3%)                         |  | Common
    Stock*(1)(2)(7)                                          |  | 06/10/16                |  |                          | 100,000    |  |                |   | 20,000     |       | 
|Equipment
    Leasing                                |  | Preferred
    Stock - Series A *(1)(2)(7)                           |  | 06/10/16                |  |                          | 4,000,000  |  |                |   | 4,000,000  |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|HERA
    SYSTEMS, INC. (1.2%)                        |  | Preferred
    Stock - Series A*(1)(2)(7)                            |  | 09/18/15                |  |                          | 3,642,324  |  |                |   | 2,000,000  |       | 
|Aerospace                                            |  | Preferred
    Stock - Series B*(1)(2)(7)                            |  | 08/07/17
    - 09/28/17 |  |                          | 2,039,203  |  |                |   | 1,587,102  |       | 
|                                                     |  | Preferred
    Stock Warrants - Series B*(1)(2)(7)                   |  | 08/07/17                |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          | 6,214,922  |  |                |   | 0          |       | 
|                                                     |  | Preferred
    Stock Warrants - Series B*(1)(2)(7)                   |  | 09/28/17                |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          | 700,000    |  |                |   | 0          |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|HIGHTAIL,
    INC. (4.9%)                            |  | Preferred
    Stock - Series E *(1)(4)(7)                           |  | 03/27/14                |  |                          | 2,268,602  |  |                |   | 9,620,188  |       | 
|Cloud
    Computing                                  |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|INTRAOP
    MEDICAL CORP. (12.1%)                    |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|Medical
    Devices                                  |  | Convertible
    Note (1)(2)(7) Matures June 2020  Interest Rate 15% |  | 05/31/17                |  |                          | 1,000,000  |  |                |   | 1,000,000  |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures June 2020 Interest Rate 15%  |  | 09/28/17                |  |                          | 1,500,000  |  |                |   | 1,500,000  |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures June 2020 Interest Rate 15%  |  | 07/13/17                |  |                          | 1,000,000  |  |                |   | 1,000,000  |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures June 2020 Interest Rate 15%  |  | 07/08/14                |  |                          | 1,000,000  |  |                |   | 1,000,000  |       | 
|                                                     |  | Preferred
    Stock - Series C *(1)(2)(7)                           |  | 07/12/13                |  |                          | 26,856,187 |  |                |   | 26,299,938 |       | 
|                                                     |  | Term
    Note (1)(2) Matures February 2020 Interest Rate 8%         |  | 02/10/17                |  |                          | 2,000,000  |  |                |   | 2,000,000  |       | 
|                                                     |  | Term
    Note (1)(2)(7) Matures February 2020 Interest Rate 8%      |  | 02/28/14                |  |                          | 3,000,000  |  |                |   | 3,000,000  |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 



See
accompanying notes to financial statements

13





Firsthand
Technology Value Fund, Inc.

Consolidated
Schedule of Investments - continued

DECEMBER
31, 2017



|PORTFOLIO
    COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE
    OF INVESTMENT                                              |  | ACQUISITION
    DATE    |  | SHARES/PAR
    VALUE ($) |            |  | COST
    BASIS |   |            | VALUE | 
|---------------------------------------------------- |  | ------------------------------------------------------------------- |  | ----------------------- |  | ------------------------ | ---------- |  | -------------- | - | ---------- | ----- | 
|NUTANIX,
    INC. (9.3%)                             |  | Common
    Stock*                                                   |  | 05/15/15
    - 08/23/16 |  |                          | 458,772    |  |                | $ | 7,358,112  |       | 
|Networking                                           |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|PHUNWARE,
    INC. (6.9%)                            |  | Preferred
    Stock - Series E*(1)(3)(7)                            |  | 03/14/14                |  |                          | 3,257,328  |  |                |   | 9,999,997  |       | 
|Mobile
    Computing                                 |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|PIVOTAL
    SYSTEMS CORP. (19.9%)                    |  | Common
    Stock Warrants -Class B*(1)(2)(7)                        |  | 02/12/16                |  |                          | 18,180,475 |  |                |   | 0          |       | 
|Semiconductor
    Equipment                          |  | Preferred
    Stock Warrants - Series D*(1)(2)(7)                   |  | 09/02/16                |  |                          | 4,158,654  |  |                |   | 0          |       | 
|                                                     |  | Preferred
    Stock - Series A*(1)(2)(7)                            |  | 11/28/12
    - 04/30/14 |  |                          | 11,914,217 |  |                |   | 6,000,048  |       | 
|                                                     |  | Preferred
    Stock - Series B*(1)(2)(7)                            |  | 04/30/14                |  |                          | 13,065,236 |  |                |   | 6,321,482  |       | 
|                                                     |  | Preferred
    Stock - Series C*(1)(2)(7)                            |  | 12/31/14                |  |                          | 2,291,260  |  |                |   | 2,657,862  |       | 
|                                                     |  | Preferred
    Stock - Series D*(1)(2)(7)                            |  | 09/02/16                |  |                          | 6,237,978  |  |                |   | 3,975,801  |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|QMAT,
    INC. (13.4%)                               |  | Preferred
    Stock - Series A*(1)(2)(7)                            |  | 12/14/12
    - 04/28/16 |  |                          | 16,000,240 |  |                |   | 16,000,240 |       | 
|Advanced
    Materials                               |  | Preferred
    Stock - Series B*(1)(2) (7)                           |  | 09/28/16
    - 11/07/16 |  |                          | 2,000,000  |  |                |   | 2,000,000  |       | 
|                                                     |  | Preferred
    Stock Warrants -Series A*(1)(2)                       |  | 12/14/12                |  |                          | 2,000,000  |  |                |   | 0          |       | 
|                                                     |  | Convertible
    Note  Matures March 2019 Interest Rate 8% (1)(2)(7) |  | 12/29/17                |  |                          | 2,745,485  |  |                |   | 2,745,485  |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|QUICKLOGIC
    CORP. (1.2%)                          |  | Common
    Stock *                                                  |  | 12/27/16
    - 11/09/17 |  |                          | 1,200,000  |  |                |   | 1,859,835  |       | 
|Semiconductors                                       |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 
|REVASUM,
    INC. (8.5%)                             |  | Preferred
    Stock - Series B(1)(2)(7)(8)                          |  | 10/27/17
    - 12/20/17 |  |                          | 313,719    |  |                |   | 2,550,033  |       | 
|Semiconductor
    Equipment                          |  | Common
    Stock*(1)(2)(7)                                          |  | 11/14/16                |  |                          | 10,000     |  |                |   | 1,000      |       | 
|                                                     |  | Preferred
    Stock - Series A*(1)(2)(7)                            |  | 03/01/17                |  |                          | 441,998    |  |                |   | 1,999,997  |       | 
|                                                     |  | Term
    Note (1)(2)(7) Matures February 2020 Interest Rate 5%      |  | 03/01/17                |  |                          | 1,000,000  |  |                |   | 1,000,000  |       | 
|                                                     |  | Preferred
    Stock - Series Seed* (1)(2)(7)                        |  | 11/14/16                |  |                          | 2,200,000  |  |                |   | 7,284,145  |       | 
|                                                     |  |                                                                     |  |                         |  |                          |            |  |                |   |            |       | 



See
accompanying notes to financial statements

14





Firsthand
Technology Value Fund, Inc.

Consolidated
Schedule of Investments - continued

DECEMBER
31, 2017



|PORTFOLIO
    COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE
    OF INVESTMENT                                                           |  | ACQUISITION
    DATE    |  | SHARES/PAR
    VALUE ($) |            |  | COST
    BASIS |   |           | VALUE | 
|---------------------------------------------------- |  | -------------------------------------------------------------------------------- |  | ----------------------- |  | ------------------------ | ---------- |  | -------------- | - | --------- | ----- | 
|ROKU,
    INC. (6.7%) Consumer Electronics           |  | Common
    Stock*(1)(7)                                                          |  | 05/26/15
    - 08/06/15 |  |                          | 250,000    |  |                | $ | 2,312,500 |       | 
|                                                     |  |                                                                                  |  |                         |  |                          |            |  |                |   |           |       | 
|RORUS,
    INC. (0.0%)Water Purification             |  | Convertible
    Note (1)(7) Matures June 2021 Interest Rate 2%                   |  | 10/04/16                |  |                          | 50,000     |  |                |   | 50,000    |       | 
|                                                     |  |                                                                                  |  |                         |  |                          |            |  |                |   |           |       | 
|SILICON
    GENESIS CORP. (3.5%)                     |  | Common
    Stock*(1)(2)(7)                                                       |  | 04/18/11                |  |                          | 921,892    |  |                |   | 169,045   |       | 
|Intellectual
    Property                            |  | Common
    Stock Warrants*(1)(2)(7)                                              |  | 04/18/11                |  |                          | 5,000,000  |  |                |   | 0         |       | 
|                                                     |  | Common
    Stock Warrants*(1)(2)(7)                                              |  | 10/13/11                |  |                          | 37,982     |  |                |   | 6,678     |       | 
|                                                     |  | Common
    Stock Warrants*(1)(2)(7)                                              |  | 02/06/12                |  |                          | 3,000,000  |  |                |   | 0         |       | 
|                                                     |  | Preferred
    Stock - Series 1-C*(1)(2)(7)                                       |  | 04/18/11                |  |                          | 82,914     |  |                |   | 109,518   |       | 
|                                                     |  | Preferred
    Stock - Series 1-D*(1)(2)(7)                                       |  | 04/18/11                |  |                          | 850,830    |  |                |   | 431,901   |       | 
|                                                     |  | Preferred
    Stock - Series 1-E*(1)(2)(7)                                       |  | 04/18/11                |  |                          | 5,704,480  |  |                |   | 2,459,808 |       | 
|                                                     |  | Preferred
    Stock - Series 1-F*(1)(2)(7)                                       |  | 04/18/11                |  |                          | 912,453    |  |                |   | 475,674   |       | 
|                                                     |  | Preferred
    Stock - Series 1-G*(1)(2)(5)(7)                                    |  | 03/10/16                |  |                          | 48,370,793 |  |                |   | 4,583,405 |       | 
|                                                     |  | Preferred
    Stock - Series 1-H*(1)(2)(7)                                       |  | 03/10/16                |  |                          | 837,942    |  |                |   | 946,502   |       | 
|                                                     |  |                                                                                  |  |                         |  |                          |            |  |                |   |           |       | 
|                                                     |  |                                                                                  |  |                         |  |                          |            |  |                |   |           |       | 
|SVXR,
    INC. (1.2%)                                |  | Preferred
    Stock - Series A*(1)(3)(7)                                         |  | 01/11/17                |  |                          | 2,013,491  |  |                |   | 1,000,000 |       | 
|Semiconductor
    Equipment                          |  | Convertible
    Note (1)(2)(7) Matures December 2018 Interest Rate 10% (1)(2)(7) |  | 12/21/17                |  |                          | 1,000,000  |  |                |   | 1,000,000 |       | 
|                                                     |  |                                                                                  |  |                         |  |                          |            |  |                |   |           |       | 



See
accompanying notes to financial statements

15





Firsthand
Technology Value Fund, Inc.

Consolidated
Schedule of Investments - continued

DECEMBER
31, 2017



|PORTFOLIO
    COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE
    OF INVESTMENT                                                |  | ACQUISITION
    DATE    |  | SHARES/PAR
    VALUE ($) |            |  | COST
    BASIS |   |           | VALUE | 
|---------------------------------------------------- |  | --------------------------------------------------------------------- |  | ----------------------- |  | ------------------------ | ---------- |  | -------------- | - | --------- | ----- | 
|TELEPATHY
    INVESTORS, INC. (0.9%)                 |  | Convertible
    Note (1)(2)(7) Matures January 2018 Interest Rate 10% |  | 01/29/16                |  |                          | 300,000    |  |                | $ | 300,000   |       | 
|Consumer
    Electronics                             |  | Convertible
    Note (1)(2)(7) Matures January 2018 Interest Rate 10% |  | 04/20/16                |  |                          | 500,000    |  |                |   | 500,000   |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures January 2018 Interest Rate 10% |  | 06/21/16                |  |                          | 150,000    |  |                |   | 150,000   |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures January 2018 Interest Rate 10% |  | 12/13/16                |  |                          | 500,000    |  |                |   | 500,000   |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures January 2018 Interest Rate 10% |  | 06/23/15                |  |                          | 2,000,000  |  |                |   | 2,000,000 |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures January 2018 Interest Rate 10% |  | 05/03/17                |  |                          | 300,000    |  |                |   | 300,000   |       | 
|                                                     |  | Preferred
    Stock - Series A*(1)(2)(7)                              |  | 07/29/14                |  |                          | 15,238,000 |  |                |   | 3,999,999 |       | 
|                                                     |  |                                                                       |  |                         |  |                          |            |  |                |   |           |       | 
|UCT
    COATINGS, INC. (0.5%)                        |  | Common
    Stock*(1)(3)(7)                                            |  | 04/18/11                |  |                          | 1,500,000  |  |                |   | 662,235   |       | 
|Advanced
    Materials                               |  | Common
    Stock Warrants*(1)(3)(7)                                   |  | 04/18/11                |  |                          | 2,283      |  |                |   | 67        |       | 
|                                                     |  |                                                                       |  |                         |  |                          |            |  |                |   |           |       | 
|VUFINE,
    INC. (0.8%)                              |  | Common
    Stock*(1)(2)(7)                                            |  | 02/26/15                |  |                          | 750,000    |  |                |   | 15,000    |       | 
|Consumer
    Electronics                             |  | Convertible
    Note (1)(2)(7) Matures July 2019 Interest Rate 6%     |  | 07/10/17                |  |                          | 1,500,000  |  |                |   | 1,500,000 |       | 
|                                                     |  | Preferred
    Stock - Series A*(1)(2)(7)                              |  | 03/04/15
    - 02/18/16 |  |                          | 22,500,000 |  |                |   | 2,250,000 |       | 
|                                                     |  | Convertible
    Note (1)(2)(7) Matures October 2019 Interest Rate 12% |  | 10/16/17                |  |                          | 250,000    |  |                |   | 250,000   |       | 
|                                                     |  |                                                                       |  |                         |  |                          |            |  |                |   |           |       | 
|WRIGHTSPEED,
    INC. (6.2%)                         |  | Preferred
    Stock - Series C*(1)(3)(4)(7)                           |  | 04/11/13                |  |                          | 2,267,659  |  |                |   | 6,837,983 |       | 
|Automotive                                           |  | Preferred
    Stock - Series D *(1)(3)(7)                             |  | 12/15/14                |  |                          | 1,100,978  |  |                |   | 3,375,887 |       | 
|                                                     |  | Preferred
    Stock - Series E *(1)(3)(7)                             |  | 07/10/15                |  |                          | 450,814    |  |                |   | 1,658,996 |       | 
|                                                     |  | Preferred
    Stock - Series F *(1)(3)(7)                             |  | 08/31/17                |  |                          | 90,707     |  |                |   | 499,995   |       | 
|                                                     |  | Preferred
    Stock Warrants - Series F*(1)(3)(7)                     |  | 08/31/17                |  |                          |            |  |                |   |           |       | 
|                                                     |  |                                                                       |  |                         |  |                          | 18,141     |  |                |   | 0         |       | 
|                                                     |  |                                                                       |  |                         |  |                          |            |  |                |   |           |       | 



See
accompanying notes to financial statements

16





Firsthand
Technology Value Fund, Inc.

Consolidated
Schedule of Investments - continued

DECEMBER
31, 2017



|PORTFOLIO
    COMPANY (% OF NET ASSETS) AND INDUSTRY |  | TYPE
    OF INVESTMENT                                                 |  | ACQUISITION
    DATE |  | SHARES/PAR
    VALUE ($) |           |  | COST
    BASIS |   |             | VALUE | 
|---------------------------------------------------- |  | ---------------------------------------------------------------------- |  | -------------------- |  | ------------------------ | --------- |  | -------------- | - | ----------- | ----- | 
|INVESTMENT
    COMPANY (1.0%)                        |  | Fidelity
    Investments Money Market Treasury Portfolio - Class I (6) |  | Various              |  |                          | 1,705,375 |  |                | $ | 1,705,375   |       | 
|                                                     |  |                                                                        |  |                      |  |                          |           |  |                |   |             |       | 
|TOTAL
    INVESTMENTS (Cost $174,939,859) — 100.5%   |  |                                                                        |  |                      |  |                          |           |  |                |   | 174,839,525 |      
|                                                     |  |                                                                        |  |                      |  |                          |           |  |                |   |             |       | 
|LIABILITIES
    IN EXCESS OF OTHER ASSETS — (0.5)%   |  |                                                                        |  |                      |  |                          |           |  |                |   | (845,936    | )    
|                                                     |  |                                                                        |  |                      |  |                          |           |  |                |   |             |       | 
|NET
    ASSETS — 100.0%                              |  |                                                                        |  |                      |  |                          |           |  |                | $ | 173,993,589 |      



| | * | Non-income
                                         producing security.
| | - | -----------------------------------------------------------------------



| | (1) | Restricted
                                         security. Fair Value is determined by or under the direction of the Company’s Board
                                         of Directors (see Note 3). At December 31, 2017, we held $154,860,674 (or 89.0% of net
                                         assets) in restricted securities (see Note 2).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | Controlled
                                         Investments.
| | --- | ----------------------------------------------------------------



| | (3) | Affiliated
                                         issuer.
| | --- | -----------------------------------------------------------



| | (4) | A
                                         portion represents position held in Firsthand Holdings, Ltd. (see Note 1).
| | --- | ---------------------------------------------------------------------------------------------------------------------



| | (5) | A
                                         portion represents position held in Firsthand Development, Ltd. (see Note 1).
| | --- | ------------------------------------------------------------------------------------------------------------------------



| | (6) | The
                                         Fidelity Investments Money Market Portfolio invests primarily in U.S. Treasury securities.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------

| | (7) | Fair
                                         Value Level 3 Security.
| | --- | ---------------------------------------------------------------------



| | (8) | A
                                         portion represents position held in Firsthand Investments, Ltd. (see Note 1).
| | --- | ------------------------------------------------------------------------------------------------------------------------



See
accompanying notes to financial statements

17





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements

MARCH
31, 2018 (UNAUDITED)



NOTE
1. THE COMPANY



Firsthand
Technology Value Fund, Inc. (the “Company,” “us,” “our,” and “we”), is a Maryland
corporation and an externally managed, non-diversified, closed-end management investment company that has elected to be treated
as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”).
The Company acquired its initial portfolio of securities through the reorganization of Firsthand Technology Value Fund, a series
of Firsthand Funds, into the Company. The reorganization was completed on April 15, 2011. The Company commenced operations on
April 18, 2011. Under normal circumstances, the Company will invest at least 80% of its assets for investment purposes in technology
companies, which are considered to be those companies that derive at least 50% of their revenues from products and/ or services
within the information technology sector or the “cleantech” sector. Information technology companies include, but
are not limited to, those focused on computer hardware, software, telecommunications, networking, Internet, and consumer electronics.
While there is no standard definition of cleantech, it is generally regarded as including goods and services designed to harness
renewable energy and materials, eliminate emissions and waste, and reduce the use of natural resources. In addition, under normal
circumstances we will invest at least 70% of our assets in privately held companies and in public companies with market capitalizations
less than $250 million. Our portfolio is primarily composed of equity and equity derivative securities of technology and cleantech
companies (as defined above). These investments generally range between $1 million and $10 million each, although the investment
size will vary proportionately with the size of the Company’s capital base. The Company’s shares are listed on the
NASDAQ Global Market under the symbol “SVVC.”



The
Company is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification Topic 946.



CONSOLIDATION
OF SUBSIDIARIES. On May 8, 2015, the Board of Directors of the Company approved the formation of a fully owned and controlled
subsidiary (as defined by the 1940 Act) of the Company named Firsthand Venture Investors (“FVI”), a California general
partnership formed on March 30, 2015. After the closing of business on June 30, 2015, the Company contributed substantially all
of its assets to FVI in return for a controlling general partner ownership interest in FVI. The transaction was completed July
1, 2015. Under this new structure, we will have all or substantially all of our investment activities conducted through our fully
owned subsidiary, FVI.



On
June 10, 2016, the Board of Directors of the Company approved the formation of a fully owned and controlled subsidiary (as defined
by the 1940 Act) of FVI named Firsthand Holdings, Ltd. (“FHL”), a Cayman Islands corporation formed on May 4, 2016.
Under this structure, we may from time to time transfer investments in the Company held in the Company or FVI to FHL in return
for ownership interests in FHL. The net assets of FHL at March 31, 2018, were $2,421,576 or 1.3% of the Company’s consolidated
net assets. On September 27, 2016, the Board of Directors of the Company approved the formation of a fully owned and controlled
subsidiary (as defined by the 1940 Act) of FVI named Firsthand Development, Ltd (“FDL”), a Cayman Islands corporation
formed on September 22, 2016. Under this structure, we may from time to time transfer investments in the Company held in the Company
or FVI to FDL in return for ownership interests in FDL. The net assets of FDL at March 31, 2018, were $8,197,651 or 4.6% of the
Company’s consolidated net assets. On November 10, 2017, the Board of Directors of the Company approved the formation of
a fully owned and controlled subsidary (as defined by the 1940 Act) of FVI named Firsthand Investments, Ltd. (“FIL”),
a Cayman Islands corporation formed on November 15, 2017. The net assets of FIL at March 31, 2018, were $8,534,135 or 4.8% of
the Company’s consolidated net assets. The financial statements of the Company, FVI, FHL, FDL, and FIL are presented in
the report on a consolidated basis.



FHL,
FDL, and FIL are all treated as controlled foreign corporations under the Internal Revenue Code and are not expected to be subject
to U.S. federal income tax. FVI is treated as a U.S. shareholder of each of FHL, FDL, and FIL. As a result, FVI is required to
include in gross income for U.S. federal tax purposes all of FHL, FDL, and FIL’s income, whether or not such income is distributed
by FHL, FDL, or FIL. If a net loss is realized by FHL, FDL, or FIL, such loss is not generally available to offset the income
earned by FVI.

18





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



NOTE
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



The
following is a summary of significant accounting policies followed in the preparation of the Company’s financial statements
included in this report:



USE
OF ESTIMATES. The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results
could differ from those estimates.



PORTFOLIO
INVESTMENT VALUATIONS.Investments are stated at “value” as defined in the 1940 Act and in the applicable regulations
of the Securities and Exchange Commission and in accordance with GAAP. Value, as defined in Section 2(a)(41) of the 1940 Act,
is (i) the market value of those securities for which a market quotation is readily available and (ii) the fair value as determined
in good faith by, or under the direction of, the board of directors for all other securities and assets. On March 31, 2018, our
financial statements include venture capital investments valued at approximately $149.3 million. The fair values of our venture
capital investments were determined in good faith by, or under the direction of, the Board. Upon sale of these investments, the
values that are ultimately realized may be different from what is presently estimated. The difference could be material. Also
see note 6 regarding the fair value of the company’s investments.



CASH
AND CASH EQUIVALENTS. The Company considers liquid assets deposited with a bank, investments in money market funds, and certain
short-term debt instruments with maturities of three months or less to be cash equivalents. These investments represent amounts
held with financial institutions that are readily accessible to pay our expenses or purchase investments. Cash and cash equivalents
are valued at cost plus accrued interest, which approximates market value.



RESTRICTED
SECURITIES. At March 31, 2018 and December 31, 2017, we held $149,315,121 and $154,860,674 in restricted
securities, respectively.



INCOME
RECOGNITION. Dividend income is recorded on the ex-dividend date. Interest income is accrued as earned. Discounts and premiums
on securities purchased are amortized over the lives of the respective securities. Other non-cash dividends are recognized as
investment income at the fair value of the property received. When debt securities are determined to be non-income producing,
the Company ceases accruing interest and writes off any previously accrued interest. These write-offs are recorded as a reduction
to interest income.



SHARE
VALUATION. The net asset value (“NAV”) per share of the Fund is calculated by dividing the sum of the value of
the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the
total number of shares outstanding of the Fund, rounded to the nearest cent.



REALIZED
GAIN OR LOSS AND UNREALIZED APPRECIATION OR DEPRECIATION OF PORTFOLIO INVESTMENTS. A realized gain or loss is recognized when
an investment is disposed of and is computed as the difference between the Company’s cost basis in the investment at the
disposition date and the net proceeds received from such disposition. Realized gains and losses are calculated on a specific identification
basis. Unrealized appreciation or depreciation is computed as the difference between the fair value of the investment and the
cost basis of such investment.



INCOME
TAXES. As we intend to continue to qualify as a regulated investment company (“RIC”) under Subchapter M of the
Internal Revenue Code of 1986, as amended (the “Code”), the Company does not provide for income taxes. The Company
recognizes interest and penalties in income tax expense.



FOREIGN
CURRENCY TRANSLATION. The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated
in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on
the date of valuation.

19





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



SECURITIES
TRANSACTIONS. Securities transactions are accounted for on the date of the transaction for the purchase or sale of the
securities entered into by the Company (i.e., trade date).



CONCENTRATION
OF CREDIT RISK. The Company places its cash and cash equivalents with financial institutions and, at times, cash held in checking
accounts may exceed the Federal Deposit Insurance Corporation insured limit.



OPTIONS.The Company is subject to equity price risk in the normal course of pursuing its investment objectives and may enter into
options written to hedge against changes in the value of equities. The Company may purchase put and call options to attempt to
provide protection against adverse price effects from anticipated changes in prevailing prices of securities or stock indices.
The Company may also write put and call options. When the Company writes an option, an amount equal to the premium received by
the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written.



Premiums
received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from
investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction,
as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security
or currency in determining whether the Company has realized a gain or loss. The Company as writer of an option bears the market
risk of an unfavorable change in the price of the security underlying the written option.



The
Company had no option transactions for the three months ended March 31, 2018.



The
average volume of the Company’s derivatives during the three months ended March 31, 2018, is as follows:



|                                          | PURCHASED
    OPTIONS (CONTRACTS) | WARRANTS
    (NOTIONAL VALUE) | WRITTEN
    OPTIONS (CONTRACTS)
|----------------------------------------- | --------------------------------- | ----------------------------- | -------------------------------
|Firsthand
    Technology Value Fund, Inc. | —                                 | 13,132,150                    | —                              



NOTE
3. BUSINESS RISKS AND UNCERTAINTIES



We
plan to invest a substantial portion of our assets in privately-held companies, the securities of which are inherently illiquid.
We also seek to invest in small publicly-traded companies that we believe have exceptional growth potential and to make opportunistic
investments in publicly-traded companies, both large and small. In the case of investments in small publicly-traded companies,
although these companies are publicly traded, their stock may not trade at high volumes, and prices can be volatile, which may
restrict our ability to sell our positions. These privately held and publicly traded businesses tend to lack management depth,
have limited or no history of operations and typically have not attained profitability. Because of the speculative nature of our
investments and the lack of public markets for privately held investments, there is greater risk of loss than is the case with
traditional investment securities.



We
do not choose investments based on a strategy of diversification. We also do not rebalance the portfolio should one of our portfolio
companies increase in value substantially relative to the rest of the portfolio. Therefore, the value of our portfolio may be
more vulnerable to events affecting a single sector, industry or portfolio company and, therefore, may be subject to greater volatility
than a company that follows a diversification strategy.



Because
there is typically no public or readily-ascertainable market for our interests in the small privately-held companies in which
we invest, the valuation of those securities is determined in good faith by the Valuation Committee, comprised of all members
of the Board who are not “interested persons” of the Company, as such term is defined in Section 2(a)(19) of the 1940
Act, in accordance with our Valuation Procedures and is subject to significant estimates and judgments. The determined value of
the securities in our portfolio may differ significantly from the values that would be placed on these securities if a ready market
for the securities existed. Any changes in valuation are recorded in our Statement of Operations as “Net increase (decrease)
in unrealized appreciation on investments.” Changes in valuation of any of our investments in privately-held companies from
one period to another may be volatile.

20





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



The
Board may, from time to time, engage an independent valuation firm to provide it with valuation assistance with respect to certain
of our portfolio investments. The Company intends to continue to engage an independent valuation firm to provide us with assistance
regarding our determination of the fair value of select portfolio investments each quarter unless directed by the Board to cancel
such valuation services. The scope of the services rendered by an independent valuation firm is at the discretion of the Board.
The Board is ultimately and solely responsible for determining the fair value of the Company’s investments in good faith.



With
respect to investments for which market quotations are not readily available or when such market quotations are deemed not to
represent fair value, the Board has approved a multi-step valuation process to be followed each quarter, as described below:



| | (1) | each
                                         quarter the valuation process begins with each portfolio company or investment being
                                         initially valued by the Adviser Valuation Committee or the independent valuation firm;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | the
                                         Valuation Committee of the Board on a quarterly basis reviews the preliminary valuation
                                         of the Adviser Valuation Committee and that of the independent valuation firms and makes
                                         the fair value determination, in good faith, based on the valuation recommendations of
                                         the Adviser Valuation Committee and the independent valuation firms; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | at
                                         each quarterly Board meeting, the Board considers the valuations recommended by the Adviser
                                         Valuation Committee and the independent valuation firms that were previously submitted
                                         to the Valuation Committee of the Board and ratifies the fair value determinations made
                                         by the Valuation Committee of the Board.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



NOTE
4. INVESTMENT MANAGEMENT FEE



The
Company has entered into an investment management agreement (the “Investment Management Agreement”) with Firsthand
Capital Management, Inc., which was previously known as SiVest Group, Inc. (“FCM” or the “Adviser”), pursuant
to which the Company will pay FCM a fee for providing investment management services consisting of two components—a base
management fee and an incentive fee.



The
base management fee will be calculated at an annual rate of 2.00% of our gross assets. For services rendered under the Investment
Management Agreement, the base management fee will be payable quarterly in arrears. The base management fee will be calculated
based on the average of (1) the value of our gross assets at the end of the current calendar quarter and (2) the value of the
Company’s gross assets at the end of the preceding calendar quarter; and will be appropriately adjusted for any share issuances
or repurchases during the current calendar quarter. Base management fees for any partial month or quarter will be pro-rated.



The
incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment
Management Agreement, as of the termination date), commencing on April 15, 2011, and equals 20% of the Company’s realized
capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized
capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive
fees, provided that the incentive fee determined as of December 31, 2017, will be calculated for a period of shorter than twelve
calendar months to take into account any realized gains computed net of all realized capital losses and unrealized capital depreciation
from inception. As of March 31, 2018, there was an incentive fee expensed for $2,174,600. As of December 31, 2017, there was an
incentive fee expensed for $1,691,040. As of December 31, 2016, there was an incentive fee expensed for $0. As of December 31,
2015, there was an incentive fee expensed for $(2,478,204).

21





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



NOTE
5. DEBT



The
Company currently has no plan to use leverage and does not have any significant outstanding debt obligations (other than normal
operating expense accruals).



NOTE
6. FAIR VALUE



Securities
traded on stock exchanges, or quoted by NASDAQ, are valued according to the NASDAQ Stock Market, Inc. (“NASDAQ”) official
closing price, if applicable, or at their last reported sale price as of the close of trading on the New York Stock Exchange (“NYSE”)
(normally 4:00 P.M. Eastern Time). If a security is not traded that day, the security will be valued at its most recent bid price.



Securities
traded in the over-the-counter market, but not quoted by NASDAQ, are valued at the last sale price (or, if the last sale price
is not readily available, at the most recent closing bid price as quoted by brokers that make markets in the securities) at the
close of trading on the NYSE.



Securities
traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative
market.



Securities
and other assets that do not have market quotations readily available are valued at their fair value as determined in good faith
by the Board of Directors of the Company (the “Board”) in accordance with the Valuation Procedures adopted by the
Valuation Committee, a committee of the Board.



In
pricing illiquid, privately placed securities, the Board of Directors is responsible for (1) determining overall valuation guidelines
and (2) ensuring that the investments of the Company are valued within the prescribed guidelines.



The
Valuation Committee, comprised of all of the independent Board members, is responsible for determining the valuation of the Company’s
assets within the guidelines established by the Board of Directors. The Valuation Committee receives information and recommendations
from the Adviser and an independent valuation firm.



The
values assigned to these investments are based on available information and do not necessarily represent amounts that might ultimately
be realized when that investment is sold, as such amounts depend on future circumstances and cannot reasonably be determined until
the individual investments are actually liquidated or become readily marketable.



APPROACHES
TO DETERMINING FAIR VALUE. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date (exit price). In effect, GAAP applies
fair value terminology to all valuations whereas the 1940 Act applies market value terminology to readily marketable assets and
fair value terminology to other assets.



The
main approaches to measuring fair value utilized are the market approach, the income approach, and the asset-based approach. The
choice of which approach to use in a particular situation depends on the specific facts and circumstances associated with the
company, as well as the purpose for which the valuation analysis is being conducted. Firsthand and the independent valuation firm
rely primarily on the market approach. We also considered the income and asset-based approaches in our analysis because certain
of the portfolio companies do not have substantial operating earnings relative to the value of their underlying assets.

22





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



| | - | Market
                                         Approach (M): The market approach uses prices and other relevant information generated
                                         by market transactions involving identical or comparable assets or liabilities. For example,
                                         the market approach often uses market multiples derived from a set of comparables. Multiples
                                         might lie in ranges with a different multiple for each comparable. The selection of where
                                         within the range each appropriate multiple falls requires the use of judgment in considering
                                         factors specific to the measurement (qualitative and quantitative).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Income
                                         Approach (I): The income approach uses valuation techniques to convert future amounts
                                         (for example, cash flows or earnings) to a single present value amount (discounted).
                                         The measurement is based on the value indicated by current market expectations about
                                         those future amounts. Those valuation techniques include present value techniques; option-pricing
                                         models, such as the Black-Scholes-Merton formula (a closed-form model) and a binomial
                                         model (a lattice model), which incorporate present value techniques; and the multi-period
                                         excess earnings method, which is used to measure the fair value of certain assets.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Asset-Based
                                         Approach (A): The asset-based approach examines the value of a company’s assets
                                         net of its liabilities to derive a value for the equity holders.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



FAIR
VALUE MEASUREMENT. In accordance with the guidance from the Financial Accounting Standards Board on fair value measurements
and disclosures under GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs
to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to valuations
based upon unobservable inputs that are significant to the valuation (Level 3 measurements).



The
guidance establishes three levels of the fair value hierarchy as follows:



| | Level
                                         1 - | Unadjusted
                                         quoted prices in active markets for identical assets or liabilities that the Company
                                         has the ability to access at the date of measurement.
| | -------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Level
                                         2 - | Observable
                                         inputs other than quoted prices included in Level 1 that are observable for the asset
                                         or liability, either directly or indirectly. These inputs may include quoted prices for
                                         the identical instrument in an inactive market, prices for similar instruments in an
                                         active or inactive market, interest rates, prepayment speeds, credit risks, yield curves,
                                         default rates, and similar data.
| | -------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Level
                                         3 - | Unobservable
                                         inputs for the asset or liability, to the extent relevant observable inputs are not available,
                                         representing the Company’s own assumptions about the assumptions a market participant
                                         would use in valuing the asset or liability based on the best information available.
| | -------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including,
for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets,
and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less
observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment
exercised in determining fair value is greatest for instruments categorized in Level 3.

23





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



The
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.



The
inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those
securities. The following is a summary of the inputs used to value the Company’s net assets as of March 31, 2018:



|                            |  | LEVEL
    1 QUOTED PRICES |            |  | LEVEL
    2 
OTHER SIGNIFICANT OBSERVABLE INPUTS |   |   | LEVEL
    3 SIGNIFICANT UNOBSERVABLE INPUTS | 
|--------------------------- |  | ------------------------- | ---------- |  | ------------------------------------------------ | - | - | ------------------------------------------- | 
|ASSETS                      |  |                           |            |  |                                                  |   |   |                                             | 
|Common
    Stocks           |  |                           |            |  |                                                  |   |   |                                             | 
|Advanced
    Materials      |  | $                         | —          |  |                                                  | $ | — |                                             | 
|Consumer
    Electronics    |  |                           | 7,775,000  |  |                                                  |   | — |                                             | 
|Equipment
    Leasing       |  |                           | —          |  |                                                  |   | — |                                             | 
|Intellectual
    Property   |  |                           | —          |  |                                                  |   | — |                                             | 
|Networking                  |  |                           | 20,565,893 |  |                                                  |   | — |                                             | 
|Semiconductors              |  |                           | 1,824,000  |  |                                                  |   | — |                                             | 
|Semiconductor
    Equipment |  |                           | —          |  |                                                  |   | — |                                             | 
|Total
    Common Stocks     |  |                           | 30,164,893 |  |                                                  |   | — |                                             | 
|Preferred
    Stocks        |  |                           |            |  |                                                  |   |   |                                             | 
|Advanced
    Materials      |  |                           | —          |  |                                                  |   | — |                                             | 
|Aerospace                   |  |                           | —          |  |                                                  |   | — |                                             | 
|Automotive                  |  |                           | —          |  |                                                  |   | — |                                             | 
|Consumer
    Electronics    |  |                           | —          |  |                                                  |   | — |                                             | 
|Equipment
    Leasing       |  |                           | —          |  |                                                  |   | — |                                             | 
|Intellectual
    Property   |  |                           | —          |  |                                                  |   | — |                                             | 
|Medical
    Devices         |  |                           | —          |  |                                                  |   | — |                                             | 
|Mobile
    Computing        |  |                           | —          |  |                                                  |   | — |                                             | 
|Semiconductor
    Equipment |  |                           | —          |  |                                                  |   | — |                                             | 
|Total
    Preferred Stocks  |  |                           | —          |  |                                                  |   | — |                                             | 
|Asset
    Derivatives *     |  |                           |            |  |                                                  |   |   |                                             | 
|Equity
    Contracts        |  |                           | —          |  |                                                  |   | — |                                             | 
|Total
    Asset Derivatives |  |                           | —          |  |                                                  |   | — |                                             | 
|Convertible
    Notes       |  |                           |            |  |                                                  |   |   |                                             | 
|Advanced
    Materials      |  |                           | —          |  |                                                  |   | — |                                             | 
|Aerospace                   |  |                           | —          |  |                                                  |   | — |                                             | 
|Automotive                  |  |                           | —          |  |                                                  |   | — |                                             | 
|Consumer
    Electronics    |  |                           | —          |  |                                                  |   | — |                                             | 
|Medical
    Devices         |  |                           | —          |  |                                                  |   | — |                                             | 
|Semiconductor
    Equipment |  |                           | —          |  |                                                  |   | — |                                             | 
|Total
    Convertible Notes |  |                           | —          |  |                                                  |   | — |                                             | 
|Mutual
    Funds            |  |                           | 2,798,602  |  |                                                  |   | — |                                             | 
|Total                       |  | $                         | 32,963,495 |  |                                                  | $ | — |                                             | 



| | * | Asset
                                         derivatives include warrants.
| | - | ----------------------------------------------------------------------------

24





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



At
the end of each calendar quarter, management evaluates the Level 2 and Level 3 assets and liabilities for changes in liquidity,
including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices
from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates
the Level 1 and Level 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.
Transfers in and out of the levels are recognized at the value at the end of the period. There were no transfers between Levels
1 and 2 as of March 31, 2018.



Following
is a reconciliation of Level 3 assets (at either the beginning or the ending of the quarter) for which significant unobservable
inputs were used to determine fair value.



|INVESTMENTS
    AT FAIR 
VALUE USING 
SIGNIFICANT 
UNOBSERVABLE 
INPUTS (LEVEL 3) |  | BALANCE
    AS OF 12/31/17 |            |  | NET
    PURCHASES/ CONVERSION |   |            | NET
    SALES/ CONVERSION |  |   | NET
    REALIZED GAINS/ (LOSSES) |   |  | NET
    UNREALIZED APPRECIATION (DEPRECIATION) (1) |            |   | TRANSFERS
    IN (OUT) OF LEVEL 3 |   |            | BALANCE
    AS OF 3/31/18 | 
|--------------------------------------------------------------------------------- |  | -------------------------- | ---------- |  | ----------------------------- | - | ---------- | ------------------------- |  | - | -------------------------------- | - |  | -------------------------------------------------- | ---------- | - | --------------------------------- | - | ---------- | ------------------------- | 
|Common
    Stocks                                                                 |  |                            |            |  |                               |   |            |                           |  |   |                                  |   |  |                                                    |            |   |                                   |   |            |                           | 
|Advanced
    Materials                                                            |  | $                          | 922,050    |  |                               | $ | —          |                           |  | $ | —                                |   |  | $                                                  | —          |   |                                   | $ | (193,950   | )                         | 
|Consumer
    Electronics                                                          |  |                            | 11,650,500 |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | (3,875,500 | )                         | 
|Equipment
    Leasing                                                             |  |                            | 44,810     |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 730        |                           | 
|Intellectual
    Property                                                         |  |                            | 16,871     |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | (1,660     | )                         | 
|Semiconductor
    Equipment                                                       |  |                            | 29,908     |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 3,366      |                           | 
|Preferred
    Stocks                                                              |  |                            |            |  |                               |   |            |                           |  |   |                                  |   |  |                                                    |            |   |                                   |   |            |                           | 
|Advanced
    Materials                                                            |  |                            | 19,526,941 |  |                               |   | 14,609,819 |                           |  |   | (14,609,819                      | ) |  |                                                    | (1,390,421 | ) |                                   |   | (1,786,224 | )                         | 
|Aerospace                                                                         |  |                            | 608,114    |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 2,914      |                           | 
|Automotive                                                                        |  |                            | 10,686,932 |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | (3,777,051 | )                         | 
|Cloud
    Computing                                                               |  |                            | 8,561,704  |  |                               |   | —          |                           |  |   | (5,462,741                       | ) |  |                                                    | (4,157,447 | ) |                                   |   | 1,058,484  |                           | 
|Consumer
    Electronics                                                          |  |                            | 937,137    |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 99,047     |                           | 
|Equipment
    Leasing                                                             |  |                            | 3,975,200  |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 11,200     |                           | 
|Intellectual
    Property                                                         |  |                            | 6,059,741  |  |                               |   | —          |                           |  |   | (198,731                         | ) |  |                                                    | —          |   |                                   |   | (167,019   | )                         | 
|Medical
    Devices                                                               |  |                            | 11,479,677 |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 3,095,981  |                           | 
|Mobile
    Computing                                                              |  |                            | 12,018,563 |  |                               |   | —          |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | 2,572,638  |                           | 
|Semiconductor
    Equipment                                                       |  |                            | 40,067,044 |  |                               |   | 6,725,070  |                           |  |   | (6,725,070                       | ) |  |                                                    | (9,075     | ) |                                   |   | 6,916,686  |                           | 

25





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



|INVESTMENTS
    AT FAIR 
VALUE USING 
SIGNIFICANT 
UNOBSERVABLE 
INPUTS (LEVEL 3) |  | BALANCE
    AS OF 12/31/17 |             |  | NET
    PURCHASES/ CONVERSION |   |            | NET
    SALES/ CONVERSION |  |   | NET
    REALIZED GAINS /(LOSSES) |   |  | NET
    UNREALIZED APPRECIATION (DEPRECIATION) (1) |            |   | TRANSFERS
    IN (OUT) OF LEVEL 3 |   |           | BALANCE
    AS OF 3/31/18 | 
|--------------------------------------------------------------------------------- |  | -------------------------- | ----------- |  | ----------------------------- | - | ---------- | ------------------------- |  | - | -------------------------------- | - |  | -------------------------------------------------- | ---------- | - | --------------------------------- | - | --------- | ------------------------- | 
|Asset
    Derivatives                                                             |  |                            |             |  |                               |   |            |                           |  |   |                                  |   |  |                                                    |            |   |                                   |   |           |                           | 
|Equity
    Contracts                                                              |  | $                          | 12,029,324  |  |                               | $ | —          |                           |  | $ | —                                |   |  | $                                                  | —          |   |                                   | $ | 4,411,302 |                           | 
|Convertible
    Notes                                                             |  |                            |             |  |                               |   |            |                           |  |   |                                  |   |  |                                                    |            |   |                                   |   |           |                           | 
|Advanced
    Materials                                                            |  |                            | 2,745,485   |  |                               |   | 3,832,209  |                           |  |   | (2,745,485                       | ) |  |                                                    | —          |   |                                   |   | —         |                           | 
|Aerospace                                                                         |  |                            | —           |  |                               |   | 500,000    |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | —         |                           | 
|Automotive                                                                        |  |                            | —           |  |                               |   | 250,000    |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | —         |                           | 
|Consumer
    Electronics                                                          |  |                            | 2,000,673   |  |                               |   | 350,000    |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | (109,806  | )                         | 
|Medical
    Devices                                                               |  |                            | 9,500,000   |  |                               |   | 2,000,000  |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | —         |                           | 
|Semiconductor
    Equipment                                                       |  |                            | 2,000,000   |  |                               |   | 1,000,000  |                           |  |   | —                                |   |  |                                                    | —          |   |                                   |   | —         |                           | 
|Total                                                                             |  | $                          | 154,860,674 |  |                               | $ | 29,267,098 |                           |  | $ | (29,741,846                      | ) |  | $                                                  | (5,556,943 | ) |                                   | $ | 8,261,138 |                           | 



| | (1) | The
                                         net change in unrealized depreciation from Level 3 instruments held as of March 31, 2018,
                                         was $11,078,149.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
below chart represents quantitative disclosure about significant unobservable inputs for Level 3 fair value measurements at March
31, 2018.

|                                                           |                           |                                                                                                                                                                                                                                                                                       |                                                                                                                                              |                                                                                                                               
|---------------------------------------------------------- | ------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------
|                                                           | FAIR
    VALUE AT 3/31/18 | VALUATION
    TECHNIQUES                                                                                                                                                                                                                                                              | UNOBSERVABLE
    INPUTS                                                                                                                      | RANGE
    (WEIGHTED AVG.)                                                                                                     
|Direct venture capital investments: Advanced
    Materials | $22.2M                    | Market Comparable Companies
                                                       Prior Transaction Analysis
                                                       Probability-Weighted Expected Return
                                                       Option Pricing Model | EBITDA Multiple
    Years to Maturity
    Volatility
    Risk-Free Rate
    Going Concern Probability
    Discount for Lack of Marketability | 10.3x - 11.6x (11.0x)
    5 years (5 years)
    50.0% (50.0%)
    2.56% (2.56%)
    90% - 100% (90.0%)
    0.0% - 22.7% (0.7%)
|Direct venture capital investments: Aerospace              | $2.6M                     | Prior Transaction Analysis
                                                       Option Pricing Model                                                                                                                                                                                | Years to Maturity
    Volatility
    Risk-Free Rate                                                                                          | 5 years (5 years)
    60.0% (60.0%)
    2.56% (2.56%)                                                                         
|Direct venture capital investments: Automotive             | $7.2M                     | Prior Transaction Analysis
                                                       Option Pricing Model                                                                                                                                                                                | Years to Maturity
    Volatility
    Risk-Free Rate                                                                                          | 3 years (3 years)
    55.0% (55.0%)
    2.39% (2.39%)                                                                         

26





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)

|                                                              |                          |                                                                                                                                                                                                                                                                                                                                           |                                                                                                                               |                                                                                                                                  
|------------------------------------------------------------- | ------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------
|continued                                                     | FAIR
    VALUEAT 3/31/18 | VALUATION
    TECHNIQUES                                                                                                                                                                                                                                                                                                                  | UNOBSERVABLE
    INPUTS                                                                                                       | RANGE(WEIGHTED AVG.)                                                                                                             
|Direct venture capital investments: Consumer
    Electronics  | $3.3M                    | Market Comparable Companies
                                                       Probability-Weighted Expected Return
                                                       Invested Capital
                                                       (Cost)
                                                       Option Pricing Model | Revenue Multiple
    Going Concern Probability
    Years to Maturity
    Volatility
    Risk-Free Rate                        | 1.3x - 1.8x (1.6x)
    30% - 100% (67%)
    1 year - 5 years (3.1 years)
    60.0% - 70.0% (64.8%)
    2.09% - 2.56% (2.34%)     
|Direct venture capital investments: Equipment
    Leasing     | $4.0M                    | Prior Transaction Analysis
                                                       Option Pricing Model                                                                                                                                                                                                                                    | Years to Maturity
    Volatility
    Risk-Free Rate                                                                           | 5 years (5 years)
    50.0% (50.0%)
    2.56% (2.56%)                                                                            
|Direct venture capital investments: Intellectual
    Property | $5.7M                    | Prior Transaction Analysis
                                                       Option Pricing Model                                                                                                                                                                                                                                    | Years to Maturity
    Volatility
    Risk-Free Rate
    Discount for Lack of Marketability
    Adjustment for Market Movement | 5 years (5 years)
    55.0% (55.0%)
    2.56% (2.56%)
    24.3% (24.3%)
    -25.6% (-25.6%)                                      
|Direct venture capital investments: Medical
    Devices       | $26.1M                   | Market Comparable Companies
                                                       Option Pricing Model                                                                                                                                                                                                                                   | Revenue Multiple
    Years to Maturity
    Volatility
    Risk-Free Rate                                                      | 2.9x - 3.0x (2.9x)
    4 years (4 years)
    50.0% (50.0%)
    2.48% (2.48%)                                                     
|Direct venture capital investments: Mobile Computing          | $14.6M                   | Prior Transaction Analysis
                                                       Probability-Weighted Expected Return
                                                       Option Pricing Model                                                                                                                                        | Years to Maturity
    Volatility
    Risk-Free Rate
    Transaction Completion Probability                                    | 2 years (2 years)
    60.0% (60.0%)
    2.27% (2.27%)
    90.0% (90.0%)                                                          
|Direct venture capital investments: Semiconductor Equipment   | $63.6M                   | Market Comparable Companies
                                                       Prior Transaction Analysis
                                                       Option Pricing Model                                                                                                                                                 | Revenue Multiple
    Years to Maturity
    Volatility
    Risk-Free Rate
    Discount for Lack of Marketability               | 1.1x - 3.6x (2.7x)
    2 years - 5 years (2.9 years)
    40.0% - 60.0% (52.1%)
    2.27% - 2.56%) (2.36%)
    0.0% - 25.8% (3.0%)

27





Firsthand
Technology Value Fund, Inc.

Consolidated
Notes to Financial Statements - continued

MARCH
31, 2018 (UNAUDITED)



NOTE
7. FEDERAL INCOME TAXES



The
Company has elected, and intends to qualify annually, for the special tax treatment afforded regulated investment companies under
the Internal Revenue Code of 1986, as amended (the “Code”). As provided in the Code, in any fiscal year in which a
BDC so qualifies and distributes at least 90% of its taxable net income, the BDC (but not the shareholders) will be relieved of
federal income tax on the income distributed. Accordingly, no provision for income taxes has been made. To avoid imposition of
the excise tax applicable to regulated investment companies, the Company intends to declare as dividends in each calendar year
at least 98% of its net investment income (earned during the calendar year) and 98.2% of its net realized capital gains (earned
during the 12 months ended October 31) plus undistributed amounts, if any, from prior years.



The
reorganization described in Note 1 (the formation of FVI as a fully owned subsidiary for investment activities) was structured
to avoid any adverse tax consequences for the Company and its shareholders. The Company’s engaging in investment activities
through FVI does not, in our view, jeopardize the Company’s ability to continue to qualify as a RIC under the Code.



The
following information is based upon the federal income tax cost of portfolio investments as of March 31, 2018.



|Gross unrealized appreciation |  | $ | 57,583,932  |  
|----------------------------- |  | - | ----------- | -
|Gross unrealized depreciation |  |   | (44,586,711 | )
|Net unrealized appreciation   |  | $ | 12,997,221  |  
|Federal income tax cost       |  | $ | 169,281,395 |  



The
Company is subject to tax provisions that establish a minimum threshold for recognizing, and a system for measuring, the benefits
of a tax position taken or expected to be taken in a tax return. Taxable years ending 2014, 2015, 2016, and 2017 remain open to
federal and state audit. As of December 31, 2017, management has evaluated the application of these provisions to the Company
and has determined that no provision for income tax is required in the Company’s financial statements for uncertain tax
provisions.



NOTE
8. INVESTMENT TRANSACTIONS



Investment
transactions (excluding short-term investments) were as follows for the three months ended March 31, 2018.



|PURCHASES AND SALES                                         |  |   |           
|----------------------------------------------------------- |  | - | ----------
|Purchases of investment securities                          |  | $ | 23,486,160
|Proceeds from sales and maturities of investment securities |  | $ | 31,038,824



NOTE
9. SHARE BUYBACK/TENDER OFFER



SHARE
BUYBACKS. On April 26, 2016, the Board of Directors of the Company approved a discretionary share repurchase plan (the “Plan”).
Pursuant to the Plan, the Company was authorized to purchase in the open market up to $2 million worth of its common stock. The
Plan allowed the Company to acquire its own shares at certain thresholds below its net asset value (NAV) per share, in accordance
with the guidelines specified in Rule 10b-18 of the Securities Act of 1934, as amended. The intent of the Plan was to increase
NAV per share and thereby enhance shareholder value. The Company completed the repurchase plan in September 2016, having repurchased
and retired a total of 272,008 shares of stock, at a total cost of approximately $2 million.





28





Firsthand
Technology Value Fund, Inc.



Consolidated
Notes to Financial Statements - continued



MARCH
31, 2018 (UNAUDITED)



On
November 10, 2017, the Board of Directors of the Company approved a discretionary share purchase plan (the “Plan”).
Pursuant to the Plan, the Company was authorized to purchase in the open market up to $2 million worth of its common stock. The
Plan allowed the Company to acquire its own shares in accordance with the guidelines specified in Rule 10b-18 of the Securities
Act of 1934, as amended. The intent of the Plan was to increase NAV per share and thereby enhance shareholder value. Through the
closing of the Plan at the end of March, we had repurchased and retired 128,551 shares of stock at a total cost of approximately
$1.1 million. Purchases under the Plan were restricted during certain months in order to comply with SEC rules regarding material
nonpublic information. As of March 31, 2018, the Company had 7,302,146 shares outstanding.



TENDER
OFFER. In connection with our agreement with a shareholder, we agreed to commence an issuer tender offer for up to $20 million
of our shares of common stock at a purchase price per share equal to 95% of the Company’s net asset value per share (“NAV”)
as of the close of ordinary trading on the NASDAQ Global Market on December 31, 2014 (the “Offer”). On December 22,
2014, the Company commenced a tender offer to purchase up to $20 million of its issued and outstanding common shares for cash
at a price per share equal to 95% of the NAV determined on December 31, 2014 ($23.2702 per share). The tender offer, which expired
on January 22, 2015 at 12:00 midnight, New York City time, was oversubscribed. Because the number of shares tendered exceeded
the maximum amount of its offer, the Company purchased shares from tendering shareholders on a pro-rata basis based on the number
of shares properly tendered. Of the 5,044,728 shares properly tendered, the Company purchased 859,468 shares of common stock pursuant
to the tender offer.



NOTE
10. INVESTMENTS IN AFFILIATES AND CONTROLLED INVESTMENTS



Under
the 1940 Act, the Company is required to identify investments where it owns greater than 5% (but less than 25%) of the portfolio
company’s outstanding voting shares as an affiliate of the Company. Also, under the 1940 Act, the Company is required to
identify investments where it owns greater than 25% of the portfolio company’s outstanding voting shares as a controlled
investment of the Company. A summary of the Company’s investments in affiliates and controlled investments for the period
from December 31, 2017, through March 31, 2018, is noted below:



|AFFILIATE/
CONTROLLED INVESTMENTS*        |  | VALUE AT 12/31/17 |            |  | PURCHASES/
MERGER |   |         | INTEREST |  |   | SALES/
MATURITY/
EXPIRATION |  |  | REALIZED GAIN (LOSS) |   |  | CHANGE IN APPRECIATION/
DEPRECIATION |   |   | VALUE 03/31/18 |  |   | SHARES HELD/PAR VALUE AT 3/31/18 | 
|----------------------------------------- |  | ----------------- | ---------- |  | ----------------- | - | ------- | -------- |  | - | --------------------------- |  |  | -------------------- | - |  | ------------------------------------ | - | - | -------------- |  | - | -------------------------------- | 
|EQX, Inc. Common Stock*                   |  | $                 | 44,810     |  |                   | $ | —       |          |  | $ | —                           |  |  | $                    | — |  |                                      | $ | — |                |  | $ | 730                              | 
|EQX, Inc. Preferred Stock - Series A*     |  |                   | 3,975,200  |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | 11,200                           | 
|Hera Systems, Inc. Series A Preferred*    |  |                   | 154,799    |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | 2,913                            | 
|Hera Systems Convertible Promissory Note* |  |                   | —          |  |                   |   | 500,000 |          |  |   | 10,000                      |  |  |                      | — |  |                                      |   | — |                |  |   | —                                | 
|Hera Systems, Inc. Series B Preferred*    |  |                   | 453,315    |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | —                                | 
|Hera Systems, Inc. Series B Warrants*     |  |                   | 155,540    |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | —                                | 
|Hera Systems, Inc. Series B Warrants*     |  |                   | 1,380,956  |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | —                                | 
|IntraOp Medical Corp. Series C Preferred* |  |                   | 11,479,677 |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | —                                | 

29





Firsthand
Technology Value Fund, Inc.



Consolidated
Notes to Financial Statements - continued



MARCH
31, 2018 (UNAUDITED)



|AFFILIATE/
CONTROLLED INVESTMENTS*                 |  | VALUE AT 12/31/17 |            |  | PURCHASES/
MERGER |   |            | INTEREST |  |   | SALES/
MATURITY/
EXPIRATION |  |  | REALIZED GAIN (LOSS) |             |   | CHANGE IN APPRECIATION/
DEPRECIATION |   |            | VALUE 03/31/18 |  |   | SHARES HELD/PAR VALUE AT 3/31/18 |  
|-------------------------------------------------- |  | ----------------- | ---------- |  | ----------------- | - | ---------- | -------- |  | - | --------------------------- |  |  | -------------------- | ----------- | - | ------------------------------------ | - | ---------- | -------------- |  | - | -------------------------------- | -
|IntraOp Medical Corp. Convertible Note*            |  | $                 | 1,000,000  |  |                   | $ | —          |          |  | $ | 56,272                      |  |  | $                    | —           |   |                                      | $ | —          |                |  | $ | —                                |  
|IntraOp Medical Corp. Convertible Note*            |  |                   | 1,000,000  |  |                   |   | —          |          |  |   | 36,986                      |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  
|IntraOp Medical Corp. Convertible Note*            |  |                   | 1,500,000  |  |                   |   | —          |          |  |   | 55,479                      |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  
|IntraOp Medical Corp. Convertible Note*            |  |                   | 1,000,000  |  |                   |   | —          |          |  |   | 36,986                      |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  
|IntraOp Medical Corp. Convertible Note*            |  |                   | —          |  |                   |   | 2,000,000  |          |  |   | 9,041                       |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  
|IntraOp Medical Corp. Term Note*                   |  |                   | 3,000,000  |  |                   |   | —          |          |  |   | 59,178                      |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  
|IntraOp Medical Corp. Term Note*                   |  |                   | 2,000,000  |  |                   |   | —          |          |  |   | 39,452                      |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  
|Phunware, Inc. Preferred Stock - Series E          |  |                   | 12,018,563 |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 2,572,638                        |  
|Pivotal Systems, Series A Preferred*               |  |                   | 8,453,614  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 2,136,099                        |  
|Pivotal Systems, Series B Preferred*               |  |                   | 9,270,308  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 2,342,466                        |  
|Pivotal Systems, Series C Preferred*               |  |                   | 2,560,254  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 138,392                          |  
|Pivotal Systems, Series D Preferred*               |  |                   | 5,009,720  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 933,825                          |  
|Pivotal Systems, Series D Warrants*                |  |                   | 618,392    |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 499,870                          |  
|Pivotal Systems, Common Stocks Warrants - Class B* |  |                   | 8,741,172  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 3,760,450                        |  
|QMAT, Preferred Stock Series A*                    |  |                   | 17,394,341 |  |                   |   | 14,609,819 |          |  |   | —                           |  |  |                      | (14,609,819 | ) |                                      |   | (1,390,421 | )              |  |   | (1,630,424                       | )
|QMAT, Preferred Stock Series B*                    |  |                   | 2,132,600  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | (155,800                         | )
|QMAT, Series A Warrant*                            |  |                   | 1,086,600  |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | (320,000                         | )
|QMAT, Preferred Stock Warrants - Series B*         |  |                   | —          |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 426,222                          |  
|QMAT, Preferred Stock Warrants - Series C*         |  |                   | —          |  |                   |   | —          |          |  |   | —                           |  |  |                      | —           |   |                                      |   | —          |                |  |   | 42,840                           |  
|QMAT Convertible Note*                             |  |                   | —          |  |                   |   | 3,482,209  |          |  |   | 29,002                      |  |  |                      | —           |   |                                      |   | —          |                |  |   | —                                |  

30





Firsthand
Technology Value Fund, Inc.



Consolidated
Notes to Financial Statements - continued



MARCH
31, 2018 (UNAUDITED)



|AFFILIATE/
CONTROLLED INVESTMENTS*           |  | VALUE AT 12/31/17 |           |  | PURCHASES/
MERGER |   |           | INTEREST |  |   | SALES/
MATURITY/
EXPIRATION |  |  | REALIZED GAIN (LOSS) |            |   | CHANGE IN APPRECIATION/
DEPRECIATION |   |        | VALUE 03/31/18 |  |   | SHARES HELD/PAR VALUE AT 3/31/18 |  
|-------------------------------------------- |  | ----------------- | --------- |  | ----------------- | - | --------- | -------- |  | - | --------------------------- |  |  | -------------------- | ---------- | - | ------------------------------------ | - | ------ | -------------- |  | - | -------------------------------- | -
|QMAT, Convertible Note*                      |  | $                 | 2,745,485 |  |                   | $ | —         |          |  | $ | —                           |  |  | $                    | (2,745,485 | ) |                                      | $ | —      |                |  | $ | —                                |  
|QMAT Convertible Note*                       |  |                   | —         |  |                   |   | 350,000   |          |  |   | 1,459                       |  |  |                      | —          |   |                                      |   | —      |                |  |   | —                                |  
|Revasum, Preferred Stock, Series B*          |  |                   | 2,550,033 |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | 119,277                          |  
|Revasum, Term Note*                          |  |                   | 1,000,000 |  |                   |   | —         |          |  |   | 12,500                      |  |  |                      | —          |   |                                      |   | —      |                |  |   | —                                |  
|Revasum, Common Stock*                       |  |                   | 29,908    |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | 3,366                            |  
|Revasum, Preferred Stock - Series Seed*      |  |                   | 8,966,760 |  |                   |   | 6,725,070 |          |  |   | —                           |  |  |                      | (6,725,070 | ) |                                      |   | (9,075 | )              |  |   | 1,011,395                        |  
|Revasum, Preferred Stock Series A*           |  |                   | 2,256,355 |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | 235,232                          |  
|Silicon Genesis Corp., 
Common *             |  |                   | 16,871    |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | (1,660                           | )
|Silicon Genesis Corp., Common Warrants*      |  |                   | 357       |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | (38                              | )
|Silicon Genesis Corp., Common Warrants*      |  |                   | 11,000    |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | (1,000                           | )
|Silicon Genesis Corp., Common Warrants*      |  |                   | 6,600     |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | (600                             | )
|Silicon Genesis Corp., Series 1-C Preferred* |  |                   | 74,258    |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | (5,871                           | )
|Silicon Genesis Corp., Series 1-D Preferred* |  |                   | 205,646   |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | (16,677                          | )
|Silicon Genesis Corp., Series 1-E Preferred* |  |                   | 2,063,310 |  |                   |   | —         |          |  |   | —                           |  |  |                      | (87,402    | ) |                                      |   | —      |                |  |   | 1,265                            |  
|Silicon Genesis Corp., Series 1-F Preferred* |  |                   | 456,318   |  |                   |   | —         |          |  |   | —                           |  |  |                      | (19,285    | ) |                                      |   | —      |                |  |   | (7,085                           | )
|Silicon Genesis Corp., Series 1-G Preferred* |  |                   | 3,023,658 |  |                   |   | —         |          |  |   | —                           |  |  |                      | (82,436    | ) |                                      |   | —      |                |  |   | (134,265                         | )
|Silicon Genesis Corp., Series 1-H Preferred* |  |                   | 236,551   |  |                   |   | —         |          |  |   | —                           |  |  |                      | (9,606     | ) |                                      |   | —      |                |  |   | (4,388                           | )
|SVXR, Inc., Preferred Stock Series A         |  |                   | 1,000,000 |  |                   |   | —         |          |  |   | —                           |  |  |                      | —          |   |                                      |   | —      |                |  |   | —                                |  
|SVXR, Inc. Convertible Note                  |  |                   | 1,000,000 |  |                   |   | 1,000,000 |          |  |   | 52,329                      |  |  |                      | —          |   |                                      |   | —      |                |  |   | —                                |  
|Telepathy Investors, Inc. Convertible Note*  |  |                   | 302,140   |  |                   |   | —         |          |  |   | 59,686                      |  |  |                      | —          |   |                                      |   | —      |                |  |   | (18,680                          | )

31





Firsthand
Technology Value Fund, Inc.



Consolidated
Notes to Financial Statements - continued



MARCH
31, 2018 (UNAUDITED)



|AFFILIATE/
CONTROLLED INVESTMENTS*            |  | VALUE 
AT 12/31/17 |           |  | PURCHASES/
MERGER |   |         | INTEREST |  |   | SALES/
MATURITY/
EXPIRATION |  |  | REALIZED GAIN (LOSS) |   |  | CHANGE IN APPRECIATION/
DEPRECIATION |   |   | VALUE 03/31/18 |  |   | SHARES HELD/PAR VALUE AT 3/31/18 |  
|--------------------------------------------- |  | ------------------ | --------- |  | ----------------- | - | ------- | -------- |  | - | --------------------------- |  |  | -------------------- | - |  | ------------------------------------ | - | - | -------------- |  | - | -------------------------------- | -
|Telepathy Investors, Inc. Convertible Note*   |  | $                  | 45,321    |  |                   | $ | —       |          |  | $ | 7,500                       |  |  | $                    | — |  |                                      | $ | — |                |  | $ | (2,802                           | )
|Telepathy Investors, Inc. Convertible Note*   |  |                    | 22,661    |  |                   |   | —       |          |  |   | 4,069                       |  |  |                      | — |  |                                      |   | — |                |  |   | (1,402                           | )
|Telepathy Investors, Inc. Convertible Note*   |  |                    | 75,535    |  |                   |   | —       |          |  |   | 13,562                      |  |  |                      | — |  |                                      |   | — |                |  |   | (4,670                           | )
|Telepathy Investors, Inc. Convertible Note*   |  |                    | 45,321    |  |                   |   | —       |          |  |   | 8,700                       |  |  |                      | — |  |                                      |   | — |                |  |   | (2,802                           | )
|Telepathy Investors, Inc. Convertible Note*   |  |                    | 75,535    |  |                   |   | —       |          |  |   | 13,562                      |  |  |                      | — |  |                                      |   | — |                |  |   | (4,670                           | )
|Telepathy Investors, Inc. Series A Preferred* |  |                    | 937,137   |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | 99,047                           |  
|Vufine, Inc., Convertible Note*               |  |                    | 1,229,280 |  |                   |   | —       |          |  |   | 44,384                      |  |  |                      | — |  |                                      |   | — |                |  |   | (8,295                           | )
|Vufine, Inc., Convertible Note*               |  |                    | 204,880   |  |                   |   | —       |          |  |   | 7,397                       |  |  |                      | — |  |                                      |   | — |                |  |   | (1,382                           | )
|Vufine, Inc., Convertible Note*               |  |                    | —         |  |                   |   | 350,000 |          |  |   | 6,904                       |  |  |                      | — |  |                                      |   | — |                |  |   | (65,103                          | )
|UCT Coatings, Inc. Common Stock               |  |                    | 922,050   |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | (193,950                         | )
|UCT Coatings, Inc. Common Stock Warrants      |  |                    | 4         |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | (2                               | )
|Wrightspeed, Inc., Series C Preferred Stock   |  |                    | 5,704,296 |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | (1,993,952                       | )
|Wrightspeed, Inc., Series D Preferred Stock   |  |                    | 3,161,018 |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | (1,128,282                       | )
|Wrightspeed, Inc., Series E Preferred Stock   |  |                    | 1,350,323 |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | (484,760                         | )
|Wrightspeed, Inc., Series F Preferred Stock   |  |                    | 471,295   |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | — |                |  |   | (170,057                         | )

32





Firsthand
Technology Value Fund, Inc.



Consolidated
Notes to Financial Statements - continued



MARCH
31, 2018 (UNAUDITED)



|AFFILIATE/
CONTROLLED INVESTMENTS*          |  | VALUE 
AT 
12/31/17 |             |  | PURCHASES/
MERGER |   |         | INTEREST |  |   | SALES/
MATURITY/
EXPIRATION |  |  | REALIZED GAIN (LOSS) |   |  | CHANGE IN APPRECIATION/
DEPRECIATION |   |            | VALUE 03/31/18 |  |   | SHARES HELD/PAR VALUE AT 3/31/18 |  
|------------------------------------------- |  | ------------------- | ----------- |  | ----------------- | - | ------- | -------- |  | - | --------------------------- |  |  | -------------------- | - |  | ------------------------------------ | - | ---------- | -------------- |  | - | -------------------------------- | -
|Wrightspeed, Inc. Series F Warrants         |  | $                   | 28,703      |  |                   | $ | —       |          |  | $ | —                           |  |  | $                    | — |  |                                      | $ | —          |                |  | $ | (8,848                           | )
|Wrightspeed, Inc. Series F Warrants         |  |                     | —           |  |                   |   | —       |          |  |   | —                           |  |  |                      | — |  |                                      |   | —          |                |  |   | 12,409                           |  
|Wrightspeed Convertible Promissory Note     |  |                     | —           |  |                   |   | 250,000 |          |  |   | 4,356                       |  |  |                      | — |  |                                      |   | —          |                |  |   | —                                |  
|Total Affiliates and Controlled Investments |  | $                   | 134,648,470 |  |                   |   |         |          |  | $ | 568,804                     |  |  |                      |   |  |                                      | $ | (1,399,496 | )              |  | $ | 11,078,152                       |  
|Total Affiliates                            |  |                     | 25,656,252  |  |                   |   |         |          |  |   | 56,685                      |  |  |                      |   |  |                                      |   | —          |                |  |   | (1,394,804                       | )
|Total Controlled Investments                |  | $                   | 108,992,218 |  |                   |   |         |          |  | $ | 512,119                     |  |  |                      |   |  |                                      | $ | (1,399,496 | )              |  | $ | 12,472,956                       |  



| | * | Controlled
investment.
| | - | ----------------------



As
of March 31, 2018, Kevin Landis represents the Company and sits on the board of directors of Hera Systems, Inc.; IntraOp Medical,
Inc.; Pivotal Systems, Inc.; QMAT, Inc.; Revasum, Inc.; Silicon Genesis Corp.; Telepathy Investors, Inc.; Vufine, Inc.; and Wrightspeed,
Inc. Serving on boards of directors of portfolio companies may cause conflicts of interest. The Adviser has adopted various procedures
to ensure that the Company will not be unfavorably affected by these potential conflicts.



NOTE
11. SUBSEQUENT EVENTS



Management
has evaluated the impact of all subsequent events on the Company through the date that financial statements were issued and has
determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

33





ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.






FORWARD-LOOKING
STATEMENTS

The
matters discussed in this report, as well as in future oral and written statements by management of the Company, include forward-looking
statements based on current management expectations that involve substantial risks and uncertainties which could cause actual
results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements
related to future events or our future financial performance. We generally identify forward-looking statements by terminology
such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,”
“could,” “intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “potential,” or “continue” or the negative of these terms
or other similar words. Important assumptions include our ability to originate new investments and to achieve certain margins
and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion
of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or
objectives will be achieved. The forward-looking statements contained in this report include, without limitations, statements
as to:



| | • | our
future operating results;
| | - | -----------------------------

| | • | our
business prospects and the prospects of our prospective portfolio companies;
| | - | --------------------------------------------------------------------------------

| | • | the
impact of investments that we expect to make;
| | - | -------------------------------------------------

| | • | the
impact of a protracted decline in the liquidity of the credit markets on our business;
| | - | ------------------------------------------------------------------------------------------

| | • | our
informal relationships with third parties;
| | - | ----------------------------------------------

| | • | the
expected market for venture capital investments and our addressable market;
| | - | -------------------------------------------------------------------------------

| | • | the
dependence of our future success on the general economy and its impact on the industries in which we invest;
| | - | ----------------------------------------------------------------------------------------------------------------

| | • | our
ability to access the equity market;
| | - | ----------------------------------------

| | • | the
ability of our portfolio companies to achieve their objectives;
| | - | -------------------------------------------------------------------

| | • | our
expected financings and investments;
| | - | ----------------------------------------

| | • | our
regulatory structure and tax status;
| | - | ----------------------------------------

| | • | our
ability to operate as a business development company and a regulated investment company;
| | - | --------------------------------------------------------------------------------------------

| | • | the
adequacy of our cash resources and working capital;
| | - | -------------------------------------------------------

| | • | the
timing of cash flows, if any, from the operation of our portfolio companies;
| | - | --------------------------------------------------------------------------------

| | • | the
timing, form, and amount of any dividend distributions;
| | - | -----------------------------------------------------------

| | • | impact
of fluctuation of interest rates on our business;
| | - | --------------------------------------------------------

| | • | valuation
of any investments in portfolio companies particularly those having no liquid trading market; and
| | - | -----------------------------------------------------------------------------------------------------------

| | • | our
ability to recover unrealized losses.
| | - | -----------------------------------------



You
should not place undue reliance on these forward-looking statements. The forward-looking statements made in this report relate
only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement
to reflect events or circumstances occurring after the date of this report.



The
following discussion should be read in conjunction with our consolidated financial statements and related notes and other
financial information appearing elsewhere in this prospectus. In addition to historical information, the following discussionand
other parts of this prospectus contain forward-looking information that involves risks and uncertainties. Our actual results
could differ materially from those anticipated by such forward-looking information due to the factors discussed under
“Risk Factors” and “Forward-Looking Statements” appearing elsewhere herein.



OVERVIEW

We
are an externally managed, closed-end, non-diversified management investment company organized as a Maryland corporation that
has elected to be treated as a BDC under the 1940 Act. As such, we are required to comply with certain regulatory requirements.
For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities
of private or micro-cap public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, for tax purposes we have elected to be treated as a RIC under Subchapter M
of the Code. FCM serves as our investment adviser and manages the investment process on a daily basis.

34





Our
investment objective is to seek long-term growth of capital, principally by seeking capital gains on our equity and equity-related investments. There can be no assurance that we will achieve our investment objective. Under normal circumstances, we
invest at least 80% of our net assets for investment purposes in technology companies. We consider technology companies to be
those companies that derive at least 50% of their revenues from products and/or services within the information technology
sector or in the “cleantech” sector. Information technology companies include, but are not limited to, those
focused on computer hardware, software, telecommunications, networking, Internet, and consumer electronics. While there is no
standard definition of cleantech, it is generally regarded as including goods and services designed to harness renewable
energy and materials, eliminate emissions and waste, and reduce the use of natural resources. In addition, under normal
circumstances we invest at least 70% of our total assets in privately held companies and public companies with market
capitalizations of less than $250 million. Our portfolio is primarily composed of equity and equity derivative securities of
technology and cleantech companies (as defined above). These investments generally range between $1 million and $10 million
each, although the investment size will vary proportionately with the size of our capital base. We acquire our investments
through direct investments in private companies, negotiations with selling shareholders, and in organized secondary
marketplaces for private securities.



While
our primary focus is to invest in illiquid private technology and cleantech companies, we also may invest in micro-cap
publicly traded companies. In addition, we may invest up to 30 percent of the portfolio in opportunistic investments that do
not constitute the private companies and micro-cap public companies described above. These other investments may include
investments in securities of public companies that are actively traded or in actively traded derivative securities such as
options on securities or security indices. These other investments may also include investments in high-yield bonds,
distressed debt, or securities of public companies that are actively traded and securities of companies located outside of
the United States. Our investment activities are managed by FCM.



PORTFOLIO
COMPOSITION

The
following table summarizes the fair value of our investment portfolio by industry sector as of March 31, 2018, and December
31, 2017.





|                                   | March 31, 2018 | December 31, 2017
|---------------------------------- | -------------- | -----------------
|Semiconductor Equipment            | 35.5%          | 29.6%            
|Medical Devices                    | 14.5%          | 12.1%            
|Advanced Materials                 | 12.3%          | 13.9%            
|Networking                         | 11.5%          | 9.3%             
|Mobile Computing                   | 8.1%           | 6.9%             
|Consumer Electronics               | 6.1%           | 8.4%             
|Automotive                         | 4.0%           | 6.2%             
|Intellectual Property              | 3.2%           | 3.5%             
|Equipment Leasing                  | 2.2%           | 2.3%             
|Aerospace                          | 1.5%           | 1.2%             
|Semiconductor                      | 1.0%           | 1.2%             
|Cloud Computing                    | 0.0%           | 4.9%             
|Water Purification                 | 0.0%           | 0.0%             
|Exchange-Traded/Money Market Funds | 1.6%           | 1.0%             
|(Liabilities)/Other Assets         | (1.5%)         | (0.5%)           
|Net Assets                         | 100.0%         | 100.0%           





MATURITY
OF PRIVATE COMPANIES IN THE CURRENT PORTFOLIO

The
Fund invests in private companies at various stages of maturity. As our portfolio companies mature, they move from the “early
(development) stage” to the “middle (revenue) stage” and then to the “late stage.” We expect that
this continuous progression may create a pipeline of potential exit opportunities through initial public offerings (IPOs) or
acquisitions. Of course, some companies do not progress.

35





The
illustration on the next page describes typical characteristics of companies at each stage of maturity and where we believe our
current portfolio companies fit within these categories. We expect some of our portfolio companies to transition between stages
of maturity over time. The transition may be forward if the company is maturing and is successfully executing its business plan
or may be backward if the company is not successfully executing its business plan or decides to change its business plan substantially
from its original plan.



|EARLY
    STAGE                                                                                         | MIDDLE
    STAGE                                                  | LATE STAGE                                                                         
|------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | -----------------------------------------------------------------------------------
|Developing product or service for market, high level of research and development, little or no revenue. | Established product, customers, business model; limited revenues. | Appreciable revenue; may
be break-even or profitable; IPO or acquisition candidate.







| |  | 
| |  | 







RESULTS
OF OPERATIONS



The
following information is a comparison for the three months ended March 31, 2018, March 31, 2017, and March 31, 2016



INVESTMENT
INCOME

For
the three months ended March 31, 2018, we had investment income of $597,515 primarily attributable to interest accrued on convertible/term
note investments with QMAT, Revasum, Vufine, Telepathy Investors and IntraOp Medical Corp.



For
the three months ended March 31, 2017, we had investment income of $260,798 primarily attributable to interest accrued on convertible/term
note investments with QMAT, Revasum, Vufine, Telepathy Investors and IntraOp Medical Corp.



For
the three months ended March 31, 2016, we had investment income of $159,915 primarily attributable to interest accrued on convertible/term
note investments with Pivotal Systems, Telepathy Investors and IntraOp Medical Corp.



The
higher level of investment income in the three months ended March 31, 2018, compared to the three months ended March 31, 2017
was due to the Fund’s increased investments in convertible/term notes.

36







OPERATING
EXPENSES

Net
operating expenses totaled approximately $3,344,418 during the three months ended March 31, 2018, $1,008,188 during the three
months ended March 31, 2017, and $1,201,927 during the three months ended March 31, 2016.



Significant
components of gross operating expenses for the three months ended March 31, 2018, were management fee expense of $890,949, professional
fees (audit, legal, and consulting) of $88,468, and incentive fees (which were accrued but are not payable until gains in the
portfolio are realized) of $2,174,600. Significant components of gross operating expenses for the three months ended March 31,
2017, were management fee expense of $741,152 and professional fees (audit, legal, and consulting) of $116,141. Significant components
of operating expenses for the three months ended March 31, 2016, were management fee expense of $860,821 and professional fees
(audit, legal, and consulting) of $180,688.



The
higher level of gross operating expenses for the three months ended March 31, 2018, compared to the three months ended March 31,
2017 is primarily attributable to the incentive fee accrual in the three months ended March 31, 2018, which is a quarterly accrual
based on what the incentive fee would be if the entire portfolio were liquidated at fair market value.



The
lower level of gross operating expenses for the three months ended March 31, 2017, compared to the three months ended March
31, 2016 is primarily attributable to a decrease in our total net assets, on which the investment advisory fees are
based.



NET
INVESTMENT LOSS

The
net investment loss was $(2,746,903) for the three months ended March 31, 2018, $(747,390) for the three months ended March
31, 2017, and $(1,042,012) for the three months ended March 31, 2016.



The
greater net investment loss in the three months ended March 31, 2018, compared to the three months ended March 31, 2017 is
primarily due to the accrual of an incentive fee in the first quarter of 2018 which was accrued but is not payable until
gains in the portfolio are realized.



The
lesser net investment loss in the three months ended March 31, 2017, compared to the three months ended March 31, 2016 is
primarily due to a decrease in our total net assets, on which the investment advisory fees are based and an increase to
investment income from convertible/term notes.



NET
INVESTMENT REALIZED GAINS AND LOSSES AND UNREALIZED APPRECIATION AND DEPRECIATION

A
summary of the net realized and unrealized gains and loss on investments for the three month periods ended March 31, 2018, March
31, 2017, and March 31, 2016, is shown below.



|                                                          |                                   
|--------------------------------------------------------- | ----------------------------------
|                                                          | Three Months Ended 
March 31, 2018
|Realized losses                                           | $                                 
|Net change in unrealized appreciation on investments      |                                   
|Net realized and unrealized gains/(losses) on investments | $                                 
|                                                          |                                   
|                                                          |                                   
|Gross unrealized appreciation on portfolio investments    | $                                 
|Gross unrealized depreciation on portfolio investments    |                                   
|Net unrealized appreciation on portfolio investments      | $                                 

37





|                                                              | Three
    Months Ended 
March 31, 2017
|------------------------------------------------------------- | --------------------------------------
|Realized
    losses                                           | $                                     
|Net
    change in unrealized depreciation on investments      |                                       
|Net
    realized and unrealized gains/(losses) on investments | $                                     
|                                                              |                                       
|                                                              | As of 
March 31, 2017                 
|Gross
    unrealized appreciation on portfolio investments    | $                                     
|Gross
    unrealized depreciation on portfolio investments    |                                       
|Net
    unrealized depreciation on portfolio investments      | $                                     
|                                                              |                                       
|                                                              | Three Months Ended 
March 31, 2016    
|Realized
    gains                                            | $                                     
|Net
    change in unrealized depreciation on investments      |                                       
|Net
    realized and unrealized gains/(losses) on investments | $                                     
|                                                              |                                       
|                                                              | As of 
March 31, 2016                 
|Gross
    unrealized appreciation on portfolio investments    | $                                     
|Gross
    unrealized depreciation on portfolio investments    |                                       
|Net
    unrealized depreciation on portfolio investments      | $                                     



During
the three months ended March 31, 2018, we recognized net realized losses of approximately $4,781,235 from thesale of
investments, primarily Hightail. Realized losses were higher than those in the year-ago period due to the sale of
Hightail.



During
the three months ended March 31, 2018, net unrealized appreciation on total investments increased by $13,097,555. The change in
net unrealized appreciation and depreciation of our private investments is based on portfolio asset valuations determined in good
faith by our Board of Directors. This change in net unrealized appreciation was primarily composed of an increase in the fair
value of our portfolio companies, notably Pivotal.



During
the three months ended March 31, 2017, we recognized net realized losses of approximately $1,072,452 from the sale of investments.
Realized losses were substantially higher than those in the year-ago period due to the sale of Intevac, Sunrun and Pure Storage.



During
the three months ended March 31, 2017, net unrealized depreciation on total investments decreased by $1,724,383. The change in
net unrealized appreciation and depreciation of our private investments is based on portfolio asset valuations determined in good
faith by our Board of Directors. This change in net unrealized depreciation was primarily composed of an increase in the fair
value of our portfolio companies, notably Turn and Hera.



During
the three months ended March 31, 2016, we recognized net realized gains of approximately $3,314,843 from the sale of investments,
notably the sale of TapAd to Telenor.



During
the three months ended March 31, 2016, net unrealized depreciation on total investments increased by $10,288,930. The change in
net unrealized appreciation and depreciation of our private investments is based on portfolio asset valuations determined in good
faith by our Board of Directors. This change in net unrealized depreciation was primarily composed of a decrease in the fair value
of our portfolio companies, notably Sunrun, Turn and Aliphcom.

38





INCOME
AND EXCISE TAXES

It
is our intent to continue to qualify as a RIC under Subchapter M of the Code; accordingly, the Company does not provide for income
taxes. The Company does, however, recognize interest and penalties in income tax expense.



NET
INCREASE/(DECREASE) IN ASSETS RESULTING FROM OPERATIONS AND CHANGE IN NET ASSETS PER SHARE

For
the three months ended March 31, 2018, the net increase in net assets resulting from operations totaled $5,569,417 and basic and
fully diluted net change in net assets per share for the three months ended March 31, 2018, was $0.76.



For
the three months ended March 31, 2017, the net decrease in net assets resulting from operations totaled $95,459 and basic and
fully diluted net change in net assets per share for the three months ended March 31, 2017, was $(0.01).



For
the three months ended March 31, 2016, the net decrease in net assets resulting from operations totaled $8,016,099 and basic and
fully diluted net change in net assets per share for the three months ended March 31, 2016, was $(1.04).



The
increase in net assets resulting from operations for the three months ended March 31, 2018, as compared to the three months ended
March 31, 2017, is due primarily to an increase in unrealized appreciation from investments, most notably Pivotal.



The
lesser decrease in net assets resulting from operations for the three months ended March 31, 2017, as compared to the three months
ended March 31, 2016, is due primarily to a decrease in unrealized depreciation from investments, most notably Turn and Hera.



DISTRIBUTION
POLICY

Our
board of directors will determine the timing and amount, if any, of our distributions. We intend to pay distributions on an
annual basis out of assets legally available therefore. In order to qualify as a RIC and to avoid corporate-level tax on our
income, we must distribute to our stockholders at least 90% of our ordinary income and realized net short-term capital gains
in excess of realized net long-term capital losses, if any, on an annual basis. In addition, we also intend to distribute any
realized net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses)
at least annually.



CONTRACTUAL
OBLIGATIONS

The
Fund does not have any Contractual Obligations that meet the requirements for disclosure under Item 303 of Regulation
S-K.



OFF-BALANCE
SHEET ARRANGEMENTS

The
Fund does not have any Off-Balance Sheet Arrangements.



CRITICAL
ACCOUNTING POLICIES

This
discussion of our financial condition and results of operations is based upon our financial statements, which are prepared
in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of
these financial statements will require management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters
used in determining such estimates could cause actual results to differ. In addition to the discussion below, we will
describe our critical accounting policies in the notes to our future financial statements.



Valuation
of Portfolio Investments

As
a business development company, we generally invest in illiquid equity and equity derivatives of securities of venture capital
stage technology companies. Under written procedures established by our board of directors, securities traded on stock exchanges,
or quoted by NASDAQ, are valued according to the NASDAQ Stock Market, Inc. (“NASDAQ”) official closing price, if applicable,
or at their last reported sale price as of the close of trading on the New York Stock Exchange (“NYSE”) (normally
4:00 P.M. Eastern Time). If a security is not traded that day, the security will be valued at its most recent bid price. Securities
traded in the over-the-counter market, but not quoted by NASDAQ, are valued at the last sale price (or, if the last sale price
is not readily available, at the most recent closing bid price as quoted by brokers that make markets in the securities) at the
close of trading on the NYSE. Securities traded both in the over-the-counter market and on a stock exchange are valued according
to the broadest and most representative market. We obtain these market values from an independent pricing service or at the mean
between the bid and ask prices obtained from at least two brokers or dealers (if available, otherwise by a principal market maker
or a primary market dealer). In addition, a large percentage of our portfolio investments are in the form of securities that are
not publicly traded. The fair value of securities and other investments that are not publicly traded may not be readily determinable.
We value these securities quarterly at fair value as determined in good faith by our board of directors. Our board of directors
may use the services of a nationally recognized independent valuation firm to aid it in determining the fair value of these securities.
The methods for valuing these securities may include: fundamental analysis (sales, income, or earnings multiples, etc.), discounts
from market prices of similar securities, purchase price of securities, subsequent private transactions in the security or related
securities, or discounts applied to the nature and duration of restrictions on the disposition of the securities, as well as a
combination of these and other factors. Because such valuations, and particularly valuations of private securities and private
companies, are inherently uncertain, may fluctuate over short periods of time, and may be based on estimates, our determinations
of fair value may differ materially from the values that would have been used if a ready market for these securities existed.
Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially
higher than the values that we ultimately realize upon the disposal of such securities.

39





Revenue
Recognition

We
record interest or dividend income on an accrual basis to the extent that we expect to collect such amounts. We do not accrue
as a receivable interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination
fees, original issue discount, and market discount are capitalized, and we amortize any such amounts as interest income. Upon
the prepayment of a loan or debt security, any unamortized loan origination is recorded as interest income. We will record prepayment
premiums on loans and debt securities as interest income when we receive such amounts.



Net
Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

We
measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the cost basis of the
investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation
or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously
recorded unrealized appreciation or depreciation, when gains or losses are realized.



Recently
Issued Accounting Standards

From
time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as
of the specified effective date. We believe that the impact of recently issued standards that are not yet effective will not have
a material impact on our financial statements upon effectiveness.



Inflation

Inflation
has not had a significant effect on our results of operations in any of the reporting periods presented herein. However, our
portfolio companies have experienced, and may in the future experience, the impacts of inflation on their operating results.



SUBSEQUENT
EVENTS



Subsequent
to the close of the fiscal quarter on March 31, 2018, and through the date of the issuance of the financial statements
included herein, a number of material events related to our portfolio of investments occurred, consisting primarily of the
purchase and sale of public and private securities. Since that date, we have purchased private securities with an aggregate
cost of approximately $3.5 million and public securities with an aggregate cost of approximately $48,000. Since that date, we
have sold public securities with an aggregate value of approximately $858,000.

40





ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.






The
Company’s business activities contain elements of risk. We consider the principal types of market risk to be valuation risk
and small company investment risk.



VALUATION
RISK

Value,
as defined in Section 2(a)(41) of the 1940 Act, is (i) the market price for those securities for which market quotations are readily
available and (ii) fair value as determined in good faith by, or under the direction of, the Board of Directors for all other
assets.



Because
there is typically no public market for our interests in the small privately-held companies in which we invest, the
valuation of the securities in that portion of our portfolio is determined in good faith by our Board of Directors with the
assistance of our Valuation Committee, comprised of the independent members of our Board of Directors, in accordance with our
Valuation Procedures. In addition, the Board of Directors may use the services of a nationally recognized independent
valuation firm to aid it in determining the fair value of some of these securities. In the absence of a readily ascertainable
market value, the determined value of our portfolio of securities may differ significantly from the values that would be
placed on the portfolio if a ready market for such securities existed. Determining fair value requires that judgment be
applied to the specific facts and circumstances of each portfolio investment, although our valuation policy is intended to
provide a consistent basis for determining fair value of the portfolio investments. The methods for valuing these securities
may include: fundamental analysis (sales, income, or earnings multiples, etc.), discounts from market prices of similar
securities, purchase price of securities, subsequent private transactions in the security or related securities, or
discounts applied to the nature and duration of restrictions on the disposition of the securities, as well as a combination
of these and other factors. Because such valuations, and particularly valuations of private securities and private companies,
are inherently uncertain, may fluctuate over short periods of time, and may be based on estimates, our determinations of fair
value may differ materially from the values that would have been used if a ready market for these
securities existed.



Furthermore,
changes in valuation of any of our investments in privately-held companies from one period to another may be volatile.



Investments
in privately held, immature companies are inherently more volatile than investments in more mature businesses. Such immature businesses
are inherently fragile and easily affected by both internal and external forces.



Our
portfolio companies can lose much or all of their value suddenly in response to an internal or external adverse event. Conversely,
these immature businesses can gain suddenly in value in response to an internal or external positive development.



The
values assigned to our assets are based on available information and do not necessarily represent amounts that might ultimately
be realized, as these amounts depend on future circumstances and cannot be reasonably determined until the individual investments
are actually liquidated or become readily marketable. Upon sale of investments, the values that are ultimately realized may
be different from what is presently estimated. This difference could be material.



PRIVATELY
PLACED SMALL COMPANIES RISK

The
Company invests in small companies, and its investments in these companies are considered speculative in nature. The Company’s
investments often include securities that are subject to legal or contractual restrictions on resale that adversely affect the
liquidity and marketability of such securities. As a result, the Company is subject to risk of loss which may prevent our shareholders
from achieving price appreciation, dividend distributions and return of capital.



WE
CURRENTLY HOLD A PORTION OF OUR ASSETS IN CASH

As
of March 31, 2018, a portion of the Company’s assets (1.6%) was invested in cash and/or cash equivalents, which are expected to earn low yields. Given the current low interest rate environment, to the extent the management fee and other operating expenses exceed interest income on the cash holdings of the Company, the Company may experience losses. Furthermore, the investment
advisory fee payable by us will not be reduced while our assets are invested in cash-equivalent securities.

41





In
some cases, particularly for primary transactions, it is to our advantage to hold sufficient cash reserve so that we can make
additional subsequent investments in these companies in order to (a) avoid having our earlier investments become diluted in future
dilutive financings, (b) invest additional capital into existing portfolio companies in case additional investments are necessary,
and/or (c) exercise warrants, options, or convertible securities that were acquired as part of the earlier transactions. For this
reason, in the case of primary transactions (as opposed to secondary transactions where we do not buy the securities from the
issuing companies but instead from existing stockholders), we typically reserve cash in an amount at least equal to our initial
investment for such follow-on opportunities. Cash reserves held with respect to a particular investment should, therefore, decline
as it is held longer, and will typically not be needed once that portfolio company becomes public or we determine it is no longer
in our best interest to make investments in such portfolio company.



We
may from time to time liquidate various investments. We are required to distribute substantially all of our net realized gains
to stockholders on an annual basis and, therefore, will generally hold the proceeds of liquidated investments in cash pending
its distribution.



ITEM
4. CONTROLS AND PROCEDURES.








|(a) Evaluation
of Disclosure Controls and Procedures     | As
                                         of the end of the period covered by this Quarterly Report on Form 10-Q, our management,
                                         with the participation of our Chief Executive Officer and Chief Financial Officer, conducted
                                         an evaluation of the effectiveness of our disclosure controls and procedures (as defined
                                         in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange
                                         Act”)). Based upon this evaluation, our Chief Executive Officer and Chief Financial
                                         Officer concluded that our disclosure controls and procedures were effective and provided
                                         reasonable assurance that information required to be disclosed by us in the reports that
                                         we file or submit under the Exchange Act is recorded, processed, summarized, and reported
                                         within the time periods specified in the Securities and Exchange Commission’s rules
                                         and forms, and that such information is accumulated and communicated to our management,
                                         including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions
                                         regarding required disclosure.
|-------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) Changes in Internal
Control Over Financial Reporting | There
                                         have been no changes in our internal control over financial reporting, as defined in
                                         Rule 13a-15(f ) under the Exchange Act, that occurred during the fiscal quarter ended
                                         March 31, 2018, that have materially affected, or are reasonably likely to materially
                                         affect, our internal control over financial reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

42





PART
II. OTHER INFORMATION




43





ITEM
1. LEGAL PROCEEDINGS.








We
are not a party to any material pending legal proceeding, and no such proceedings are known to be contemplated.





ITEM
1A. RISK FACTORS.








There
have been no material changes from risk factors as previously disclosed in our Form 10-K for the period ended March

31,
2018, in response to Item 1A of Part 1 of Form 10-K.



ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.








None.



ITEM
3. DEFAULTS UPON SENIOR SECURITIES.








None.



ITEM
4. MINE SAFETY DISCLOSURES.






None.



ITEM
5. OTHER INFORMATION.






None.



ITEM
6. EXHIBITS.










|EXHIBIT NUMBER | DESCRIPTION                                                                                                                                                                                                                                                                                                                            
|-------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1           | Chief
                                         Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act
                                         of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                           
|31.2           | Chief
                                         Financial Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act
                                         of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                           
|32.            | Chief
                                         Executive Officer and Chief Financial Officer Certification Pursuant to Section 1350,
                                         Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the
                                         Sarbanes-Oxley Act of 2002

44





SIGNATURES



Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

|                    | FIRSTHAND
TECHNOLOGY VALUE FUND, INC.
|------------------- | -------------------------------------
|                    |                                      
|Dated:
May 10, 2018 | By:                                  
|                    |                                      



|Dated:
May 10, 2018 | By: |                                      
|------------------- | --- | -------------------------------------
|                    |     | Omar BillawalaChief
Financial Officer







EXHIBIT
INDEX



|EXHIBIT NUMBER | DESCRIPTION                                                                                                                                                                                                 
|-------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1           | Chief Executive Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                  
|31.2           | Chief Financial Officer Certification Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                  
|32.            | Chief Executive Officer and Chief Financial Officer Certification Pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



45