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| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| Maryland                 | 26-2582882                              |
|--------------------------|-----------------------------------------|
| (State of Incorporation) | (I.R.S. Employer Identification Number) |

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| Title of Each Class Registered           |   | Name of Each Exchange on Which Registered |
|------------------------------------------|--------|-------------------------------------------|
| Common stock, par value $0.001 per share |   | Nasdaq Capital Market                     |

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| Large accelerated filer     ̈ |                       Accelerated filer     ̈ |   |
|-------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Non-accelerated filer    x        |                Smaller reporting company     ̈                                   |   |

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|     |          |                                                                                                               |   |
|----------|---------------|--------------------------------------------------------------------------------------------------------------------|--------|
|     |          |                                                                                                               | Page   |
| Part I   |          |                                                                                                               |   |
|     | Item 1.       | Business                                                                                                           | 1      |
|     | Item 1A.      | Risk Factors                                                                                                       | 24     |
|     | Item 1B.      | Unresolved Staff Comments                                                                                          | 42     |
|     | Item 2.       | Properties                                                                                                         | 42     |
|     | Item 3.       | Legal Proceedings                                                                                                  | 42     |
|     | Item 4.       | Mine Safety Disclosures                                                                                            | 42     |
|     |          |                                                                                                               |   |
| Part II  |          |                                                                                                               |   |
|     | Item 5.       | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 43     |
|     | Item 6.       | Selected Financial Data                                                                                            | 45     |
|     | Item 7.       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 46     |
|     | Item 7A.      | Quantitative and Qualitative Disclosures About Market Risk                                                         | 70     |
|     | Item 8.       | Financial Statements and Supplementary Data                                                                        | 71     |
|     | Item 9.       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 96     |
|     | Item 9A. | Controls and Procedures                                                                                            | 96     |
|     | Item 9B. | Other Information                                                                                                  | 96     |
|     |          |                                                                                                               |   |
| Part III |          |                                                                                                               |   |
|     | Item 10.      | Directors, Executive Officers and Corporate Governance                                                             | 97     |
|     | Item 11.      | Executive Compensation                                                                                             | 97     |
|     | Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 97     |
|     | Item 13.      | Certain Relationships and Related Transactions, and Director Independence                                          | 97     |
|     | Item 14.      | Principal Accountant Fees and Services                                                                             | 97     |
|     |          |                                                                                                               |   |
| Part IV  |          |                                                                                                               |   |
|     | Item 15.      | Exhibits and Financial Statement Schedules                                                                         | 98     |
|     |          |                                                                                                               |
|     | Signatures    | 100                                                                                                                |

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PART I

Item 1.  Business

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|   | ● | Publicly traded investment vehicle. We believe we are the first and only publicly listed investment fund dedicated to pre-IPO investing in the U.S.  Unlike private venture capital funds, we believe that our fund is transparent and provides liquidity to our stockholders who may buy or sell our common stock on the Nasdaq Capital Market. |
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|   | ● | Access to qualified pre-IPO opportunities. We provide access to later stage, pre-IPO investments in innovative, emerging growth companies that would otherwise be inaccessible to most individual investors and to institutional investors that either do not, or are not permitted to, invest in private companies at any stage.  In addition, we believe many institutional investors would prefer to leverage our investment adviser’s highly developed network to access these private, pre-IPO investment opportunities and its experience in negotiating, structuring and closing these specialized transactions with issuers and selling stockholders. |
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|   | ● | Non-controlling structure drives deal flow.  Because of our profile as a flexible, non-controlling investor, we believe we are well positioned to participate in the last round of private financing that high growth companies typically need before they complete an IPO. We believe we can be a provider of choice for pre-IPO financing rounds and, if requested, establish the price and other terms where existing venture capital investors, who are also likely to have board seats and as such may be conflicted, prefer to have a new investor lead the financing round without granting a board seat to us. |
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|   | ● | IPO market insights. We believe our investment adviser’s experience in taking companies public and its insights on the trends affecting the IPO market and what contributes to a successful IPO positions us to evaluate prospective deals in a disciplined manner based on current pricing trends, investor sentiments, favored or out-of-favored industries or sectors, marketing and distribution concerns, etc. |
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|   | ● | Patient investor. Finally, we believe that the perpetual nature of our corporate structure enables us to be a patient investor in our portfolio companies, allowing them flexibility to access what may be shorter and more unpredictable IPO windows when the timing and pricing may be best for the company and us.  In the event of a prolonged closure of the IPO markets, we can be flexible as our portfolio companies wait for a market recovery or seek alternative exit strategies.  We are not subject to requirements to return invested capital to investors nor do we have a finite investment horizon. Capital providers that are subject to such limitations are often required to seek a liquidity event more quickly than they otherwise might, which can result in a lower overall return on an investment. |
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|   | ● | Companies staying private longer.  The ventured-backed companies that we typically target are staying private significantly longer than in the past. For example, the median time from initial equity funding to IPO completion for ventured-back companies was 5.6 years in 2004, rising to 8.7 years in 2008, and then falling to 6.5 years in 2011.  While there are many reasons for companies staying private longer, we believe that the volatile equity markets, a lack of investment research coverage for smaller companies, the increased public company compliance obligations, and certain structural changes and distribution inefficiencies have all contributed.  As a result, we believe there is a growing pipeline of more mature private companies that are currently able to satisfy investor demands for growth and greater visibility to profitability.  Our pre-IPO financing focus should make these companies attractive investment opportunities for us. |
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|   | ● | Need for pre-IPO financing.  As a result of the changing IPO market conditions over the last several years, we believe micro- and small-cap companies generally must demonstrate an ability to raise private capital prior to an IPO to be successful in the IPO process. We believe these pre-IPO rounds evidence existing investors’ continuing commitment to the company, validate increased pre-money valuations to the extent new investors price the pre-IPO round, and strengthen the company’s balance sheet as it prepares for the IPO process.   We also believe the increased cash position that these pre-IPO rounds provide affords greater flexibility as these companies may face shorter and unpredictable IPO windows.  With venture capital investments for later stage companies reaching about 60% of total investments in 2011, higher than the average of 50% for the period 2003-2009, and with the median cumulative pre-IPO financing of venture-backed companies completing IPOs in 2011 increasing to $85 million, the highest amount since 2003, we believe the pre-IPO financing volume will continue to be strong. |
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|   | ● | Non-controlling investment structure.  We believe we can be a provider of choice for pre-IPO financing rounds.     Since we do not require board seats, observation rights, or other control provisions, we allow the current management and board to remain focused on executing the company’s business strategy.  As a non-controlling pre-IPO investor, we believe we are well positioned to participate in the final round of pre-IPO financing before these micro- and small-cap companies go public. Furthermore, we believe our ability to typically make investment decisions in a relatively short time frame is attractive to the company’s existing management and institutional investors and therefore makes us a desirable partner in a transaction with other institutional investors. In addition to participating in financings led by other investors, we are able to act as a lead investor, in which case we would establish the price and other terms on our own behalf and on behalf of other investors.  We believe that our willingness to lead an investment round may be attractive to certain existing venture capital investors, who may wish to avoid conflicts of interest presented by their board seats or other control rights. |
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|   | ● | Size.  We focus on companies with an equity value of typically between $100 million and $1 billion – companies we believe are better positioned to achieve our targeted return on our investment once the company is publicly traded.  We believe that larger, highly-publicized, private companies may create the risk to a prospective purchaser of being either fully or, in certain cases, over-valued relative to publicly traded peers.  We believe this greatly diminishes the opportunity for the potential value accretion that we believe exists as issuers transform from private to public status. |
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|   | ● | Source.  We focus on prospective portfolio companies where we can purchase securities directly from an issuer or from a selling stockholder in a negotiated transaction and can obtain business and financial information on the portfolio company.  The disciplined approach we use to assess our initial investment and monitor our portfolio investments relies primarily on the detailed financial and business information we receive about the company and our access to and discussions with management, both prior to and after our investment. |
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|   | ● | Securities.  We focus on acquiring equity securities that are typically the issuer’s most senior preferred stock at the time of our investment or, in cases where we acquire common shares, the issuer typically has only common stock outstanding.  We believe that investing in an issuer’s most senior equity securities or negotiating certain structural protections is one way to potentially mitigate the otherwise high risks associated with pre-IPO investing.  Since the equity securities that we acquire directly from selling stockholders are typically common stock and may not represent the most senior equity securities of the issuer, we may seek to negotiate terms, such as warrants or other structural protections, that are intended to provide some additional value protection in the event of an IPO. Although we seek to invest in the most senior class of securities or obtain other structural protections, the seniority and other protections provided in these types of investments may be diminished if the portfolio company issues more senior securities in a subsequent financing round. |
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|   | ● | Valuation.  We are focused on the acquisition of private securities at a valuation that creates the potential for our targeted return on our investment once the company is publicly traded.  We believe that the existence of an active market in the common stock of a private company on the trading platforms of a private secondary marketplace, where there is active trading in meaningful volumes, may diminish the opportunity to participate in the potential value accretion that we believe is typically associated with a company’s transformation from private to public status. |
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| ●   | High quality growth companies.  We seek to invest primarily in micro-cap and small-cap companies that are already generating annual revenue in excess of $10 million on a trailing 12-month basis and which we believe have growth potential.  However, in certain opportunistic situations, we may invest in development stage, pre-revenue stage and early revenue stage companies if there is a clear and verifiable path to generating meaningful revenue within the next 12 months.  We examine the market segment in which each prospective portfolio company is operating, including its size, geographic focus and competition, to determine whether that company is likely to meet its projected growth rate prior to investing.  In response to the recent IPO market volatility, we also assess with the company’s management team the prospects for future growth and attempt to validate the company’s visibility to profitability.  Most of the companies that we have invested in, and intend to invest in the future, will have operating histories that are unprofitable or marginally profitable at the time of our investment. |
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| ●   | Commitment to complete IPO.  We seek to invest in public ready micro-cap and small-cap companies whose management teams are committed to, and capable of, becoming public companies, whose businesses we believe will benefit from status as public companies, and that we believe are capable of completing IPOs and obtaining exchange listings typically within 18 months after we complete our investments. In order to determine a potential portfolio company’s commitment to going public, our investment adviser seeks to determine whether the issuer’s major stakeholders (i.e., management, independent directors, and major stockholders) have expressed a commitment to complete an IPO within our targeted 18-month time frame. We assess whether a private company is capable of going public by considering whether it is generally meeting performance milestones consistent with our investment adviser’s understanding of the market expectations for the types of companies that will likely be successful in completing IPOs.  We generally also require that our portfolio companies have in place, or be committed to hiring, a qualified chief financial officer, have complete or near-complete audited financial statements for a minimum of two years, and satisfy or be committed to satisfying certain governance requirements for an exchange listing (including the appointment of an independent board and an audit committee). We also use our initial and ongoing discussions with our portfolio company management teams to validate and monitor their commitment to completing an IPO and, when requested, to provide our insights on the current IPO market and what we believe are the key differentiators for successful IPOs. |
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| ●   | Potential for return on investment.  Because of the value differential which we believe exists between public and private companies as a result of the liquidity premium, we seek to make investments that create the potential for a 2x return on our investment once the company is publicly traded and assuming our expected investment horizon of 36 months.  We may also pursue investments with a shorter expected investment horizon, where we believe the portfolio company may file for an IPO sooner than 12 months or has a registration statement filed at the time of our investment, in which case our targeted return may be correspondingly reduced.  However, there can be no assurance that we will be able to achieve our targeted return on each of our portfolio company investments. |
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| ●   | Technology.  We classify “technology” companies as those that manufacture and/or market products or services that require advanced technologies, including, but not limited to, telecommunications infrastructure and equipment, networking systems, semiconductors,  capital equipment, electronic equipment, instruments and components, commercial electronic data processing, business process outsourcing services, back-office automation, consumer electronics and other technology-based consumer products, and providers or developers of analytics, testing and diagnostics in the life sciences. |
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| ●   | Internet and software.  We classify “Internet and software” companies as those companies developing and marketing software and/or providing Internet services including mobile applications, cloud computing, data science and analytics, online databases and interactive services, digital and social media, database construction, Internet design services, retail goods or services, commercial and business-to-business services, and wholesale and distribution services, home entertainment software applications and systems, and specialized applications and software for the business or consumer markets. |
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| ●   | Cleantech.  We classify “cleantech” companies as those that seek to improve performance, productivity or efficiency, and to reduce environmental impact, waste, cost, energy consumption or raw materials, with particular focus on energy generation (solar, wind, advanced biofuels, hydro), energy storage (batteries, utility scale storage, fuel cells), energy efficiency (building materials, windows, lighting), energy management software and systems, energy infrastructure (grid hardware and smart metering), and waste recycling and repurposing. |
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| ●   | Venture capital firms.  We believe that a majority of our investment opportunities will come from venture capital firms with existing portfolio companies seeking later stage, pre-IPO financing.  We have positioned ourselves to be a source of financing that can, if requested, establish the price and other terms for a private company’s final private financing round where existing institutional investors, who are also likely to have board seats and as such may be conflicted, prefer to have a new investor lead the financing round.  We believe our targeted investment size is attractive to existing institutional investors who prefer a smaller and less dilutive final private round to strengthen the balance sheet.  In addition, by not seeking out board seats, observation rights or other control features, we allow the private company’s existing management and board to focus on executing its business strategy.  We will, however, make available managerial assistance to our portfolio companies upon request. |
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| ●   | Investment banks.  We also expect to source our investment opportunities from investment banks that are focused on innovative, emerging growth companies that meet our investment criteria.  We have developed, and expect to continue building, relationships with the large, “bulge bracket,” investment bank investment banking firms and middle market firms that are recognized as leaders in these sectors.  We also have relationships with the investment banking divisions of the recognized private secondary marketplaces to access negotiated transactions in which they are acting as the adviser to the issuer in a private offering or to the selling stockholders of qualified issuers.  We expect our investment banking relationships to source both direct investments in prospective portfolio companies as well as investments through private secondary transactions with selling stockholders in companies meeting our investment criteria.  In private secondary transactions, we typically purchase our targeted investment amount in a single negotiated transaction from current or former management or early stage investors, or from current or former non-management employees where the company or its management is coordinating the transaction process.  In such cases, we typically require an opportunity to conduct due diligence discussions with the portfolio company’s management, as well as to have access to the portfolio company’s business and financial information in connection with our investment and on an ongoing basis.  We may also seek to negotiate terms, such as warrants or other structural protections, that are intended to provide some additional value protection in the event of an IPO. Our ability to consummate negotiated private secondary transactions may be restricted by contractual transfer restrictions and company policies, which may impose strict limits on transfer such as veto rights and rights of first refusal. |
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| ●   | Qualification. We obtain information from the company’s management and/or placement agent and conduct a preliminary evaluation of the opportunity with primary focus on understanding the business, historical and projected financial information, industry, competition and valuation to ascertain whether we believe the prospective portfolio company will be able to satisfy our targeted return on investment once the company is publicly.  The results of this preliminary evaluation are presented to our investment adviser’s Investment Committee, and typically a decision is made whether to pursue the opportunity further based on the relative attractiveness of the opportunity, the expected investment horizon and our assessment of the potential return on our investment, and our core investment criteria, compared to other opportunities currently in our deal pipeline.  The Investment Committee typically selects those portfolio company investment opportunities that meet our investment criteria and present the greatest potential for achieving our target return on investment. |
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| ●   | Analysis. Once the Investment Committee selects a portfolio company investment opportunity for further analysis, we will conduct research on the company’s prospects and industry, participate in additional discussions with the company’s management, placement agent and existing investors, and prepare an internal investment memorandum which discusses our evaluation findings and recommendations, together with an internal valuation analysis outlining our acceptable valuation ranges for an investment.  As part of our analysis, we typically have discussions with the company’s management and advisers, and we usually request to have access to the company’s major stockholders.  These discussions generally are centered on a review of the company’s financial history and projections to understand key supporting assumptions, verification of the company’s commitment to go public and the timing thereof, and the primary considerations, metrics and milestone achievements being used by the company to justify its pre-money valuation.  At this stage, we prepare an in-depth valuation analysis focused primarily on comparable private transactions, market multiples of public companies that we believe are most comparable, and a discounted cash flow analysis.  Based on our comprehensive valuation assessment, the Investment Committee typically makes a decision whether to proceed with an investment and, if we are the lead investor, the terms and conditions that we will propose for further negotiation.  Each new portfolio company investment that we make requires the unanimous approval of our investment adviser’s three-person Investment Committee. |
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| ●   | Terms.  We believe that investing in an issuer’s most senior equity securities or negotiating investment terms that are expected to provide an enhanced return upon an IPO event is one important way to mitigate the otherwise high risks associated with pre-IPO investing.  Examples of such structural protections include conversion rights which would result in our receiving shares of common stock at a discount to the IPO price upon conversion at the time of the IPO, or warrants that would result in our receiving additional shares for a nominal exercise price at the time of an IPO.  In some circumstances, these structural protections will apply only if the IPO price is below stated levels.  In some cases, our decision to pursue an investment opportunity will be dependent on obtaining some structural protections that are expected to enhance our ability to meet our targeted return on the investment.  Of our investments in 12 private portfolio companies as of December 31, 2011, we have been provided some structural protection with respect to investments in six of these portfolio companies. |
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| ●   | Due Diligence and Closing.  Prior to closing an investment, we conduct further due diligence with a focus on verifying or validating the primary considerations used by our investment adviser’s Investment Committee in approving the investment, contacting where possible key suppliers, customers or industry sources, and verifying the company’s capitalization table and equity structure. The consummation of each investment will be subject to the satisfactory completion of our due diligence investigation, our confirmation and acceptance of the investment pricing and structure, our review and acceptance of definitive agreements and, in the case of private secondary transactions, the exercise of any applicable veto rights or rights of first refusal. |
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|   | ● | The target price determined by our investment adviser based on its business judgment and what it believes to be the portfolio company’s intrinsic value. |
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|   | ● | The application of public company multiples and our proprietary analysis to a variety of operating metrics for each portfolio company. The primary operating metrics that we typically consider are revenue, EBITDA and net income. |
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|   | ● | Other factors that may be adversely or favorably affecting a particular portfolio company’s stock price, including overall market conditions, industry cyclicality, or issues specific to the portfolio company. |
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|   | ● | Determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes; |
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|   | ● | Determines which securities we will purchase, retain or sell; |
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|   | ● | Identifies, evaluates and negotiates the structure of the investments we make; and |
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|   | ● | Closes, monitors and services the investments we make. |
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|   | ● | Have in effect at all times during each taxable year an election to be regulated as a business development company under the 1940 Act;                                                                                                                                                                                                                                                                                                                         |
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|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | ● | Derive in each taxable year at least 90% of our gross income from (i) dividends, interest, payments with respect to certain securities loans, gains from the sale of stock or other securities, or other income derived with respect to our business of investing in such stock or securities and (ii) net income derived from an interest in a “qualified publicly traded limited partnership” (the “90% Income Test”); and |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | ● | Diversify our holdings so that at the end of each quarter of the taxable year:                                                                                                                                                                                                                                                                                                                                                                                 |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |    | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                        | at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of such issuer; and |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |    | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                        | no more than 25% of the value of our assets is invested in (i) securities (other than U.S. government securities or securities of other RICs) of one issuer, (ii) securities of two or more issuers that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or similar or related trades or businesses, or (iii) securities of one or more “qualified publicly traded partnerships” (the “Diversification Tests”). |

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|   | 1.     | No federal income taxation at the Company level.                                                                                                                |
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|   |   |                                                                                                                                                            |
|   | 2.     | Taxable stockholders receive a $1.00 per share dividend and pay federal income tax at a rate not in excess of 15%* or $.15 per share, retaining $.85 per share. |
|   |   |                                                                                                                                                            |
|   | 3.     |  Non-taxable stockholders that file a federal tax return receive a $1.00 per share dividend and pay no federal income tax, retaining $1.00 per share.      |

|   | 1. | The Company pays a corporate-level federal income tax of 35% on the undistributed gain or $.35 per share and retains 65% of the gain or $.65 per share. |
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|   | 2.     |  Taxable stockholders increase their cost basis in their stock by $.65 per share. They are liable for federal income tax at a rate not in excess of 15%* on 100% of the undistributed gain of $1.00 per share or $.15 per share in tax. Offsetting this tax, stockholders receive a tax credit equal to the $.35 per share tax paid by us, which offsets the $.15 per share tax liability, resulting in an excess tax credit of $.20 per share for each such stockholder. |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3.     |  Non-taxable stockholders that file a federal income tax return receive a tax refund equal to $0.35 per share.                                                                                                                                                                                                                                                                                                                                                            |

|   | 1.     | The Company pays a corporate-level federal income tax of 35% on the retained gain or $.35 per share. |
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|   |   |                                                                                                 |
|   | 2.     |  There is no tax consequence at the stockholder level.                                          |

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|   | (1) | Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which: |
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|   | (a) | is organized under the laws of, and has its principal place of business in, the United States; |
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|   | (b) | is not an investment company (other than a small business investment company wholly owned by the business development company) or a company that would be an investment company but for certain exclusions under the 1940 Act; and |
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|   | (c) | Satisfies any of the following: |
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|   | (i) | does not have any class of securities that is traded on a national securities exchange; |
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|   | (ii) | has a class of securities listed on a national securities exchange, but has an aggregate market value of outstanding voting and non-voting common equity of less than $250 million; |
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|   | (iii) | is controlled by a business development company or group of companies including a business development company and the business development company has an affiliated person who is a director of the eligible portfolio company; or |
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|   | (iv) | is a small and solvent company having gross assets of not more than $4.0 million and capital and surplus of not less than $2.0 million. |
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|   | (2) | Securities of any eligible portfolio company that we control. |
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|   | (3) | Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements. |
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|   | (4) | Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company. |
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|   | (5) | Securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities. |
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|   | (6) | Cash, cash equivalents, certificates of deposit, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment. |
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|   | ● | Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), our Chief Executive Officer and Chief Financial Officer must certify the accuracy of the financial statements contained in our periodic reports; |
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|   | ● | Pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures; |
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|   | ● | Pursuant to Rule 13a-15 of the Exchange Act, our management must prepare an annual report regarding its assessment of our internal controls over financial reporting and, once our public float exceeds $75 million, must obtain an audit of the effectiveness of internal controls over financial reporting performed by our independent registered public accounting firm; |
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|   | ● | Pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the Exchange Act, our periodic reports must disclose whether there were significant changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses; and |
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|   | ● | Pursuant to Section 404 of the Sarbanes-Oxley Act and Rule 13a-15 of the Exchange Act, we are required to include in our annual report on Form 10-K a report from our management on internal controls over financial reporting, including a statement that our management is responsible for establishing and maintaining adequate internal control over financial reporting as well as our management's assessment of the effectiveness of our internal control over financial reporting. |
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Item 1A.  Risk Factors

|   | ● | They typically have limited operating histories, narrower, less established product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions, market conditions and consumer sentiment in respect of their products or services, as well as general economic downturns. Substantially all of our portfolio companies may experience operating losses, which may be substantial, and there can be no assurance when or if such companies will operate at a profit. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | They may have limited financial resources and may be unable to meet their obligations under their existing credit facilities (to the extent that such facilities exist), which may lead to equity financings, possibly at discounted valuations, in which we could be substantially diluted if we do not or cannot participate, bankruptcy or liquidation and the reduction or loss of our equity investment.  The companies in which we invest may have substantial debt loads and, in such cases, our equity investments would typically be last in line behind any creditors in a bankruptcy or liquidation. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | At the time of our investment, there is generally little publicly available information about these businesses since they are primarily privately owned; therefore, although our investment adviser’s representatives will perform due diligence investigations on these portfolio companies, their operations and their prospects, we may not learn all of the material information we need to know regarding these businesses.  At the time of our investment, we may only have access to the portfolio company’s actual financial results as of and for the most recent quarter end or, in certain cases, the quarter end preceding the most recent quarter end.  There can be no assurance that the information that we do obtain with respect to any investment is reliable. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | They are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | They generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Continued global economic uncertainty could also result in investors becoming more risk-averse, which in turn could reduce the amount of growth capital available to our portfolio companies from both existing and new investors, could adversely affect their operating performance, and could delay liquidity paths (for example, IPO or strategic sale) for our portfolio companies. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ●   | a decrease in the value of our investments would have a greater negative impact on the value of our common shares than if we did not use leverage, therefore, shares of our common stock are exposed to incremental risk of loss; |
|--------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ●   | adverse changes in interest rates could reduce or eliminate the incremental income we make with the proceeds of any leverage; |
|--------|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

|   | ●   | our ability to pay dividends on our common stock will be restricted if our asset coverage ratio is not at least 200% and any amounts used to service indebtedness or preferred stock may not be available for such dividends; |
|--------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ●   | such indebtedness would be governed by an indenture or other instrument containing covenants restricting our operating flexibility; |
|--------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | ●   | we, and indirectly our stockholders, would bear the cost of issuing and paying interest or dividends on such securities; and |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------|

|   | ●   | any convertible or exchangeable securities that we issue may have rights, preferences and privileges more favorable than those of our common stock. |
|--------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | ● | price and volume fluctuations in the overall stock market from time to time; |
|--------|---------|------------------------------------------------------------------------------|

|   | ● | investor demand for our shares; |
|--------|---------|---------------------------------|

|   | ● | significant volatility in the market price and trading volume of securities of regulated investment companies, business development companies or other financial services companies; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | changes in regulatory policies or tax guidelines with respect to regulated investment companies or business development companies; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | failure to qualify as a RIC for a particular taxable year, or the loss of RIC status; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | ● | actual or anticipated changes in our earnings, fluctuations in our operating results and net asset  value, or changes in the expectations of securities analysts; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | general economic conditions and trends; |
|--------|---------|-----------------------------------------|

|   | ● | fluctuations in the valuation of our portfolio investments; |
|--------|---------|-------------------------------------------------------------|

|   | ● | public perception of the value of our portfolio companies; |
|--------|---------|------------------------------------------------------------|

|   | ● | operating performance of companies comparable to us; |
|--------|---------|------------------------------------------------------|

|   | ● | market sentiment against the industry sectors in which invest in such as technology, Internet and software, and cleantech; or |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | ● | departures of any of the principals or other investment professionals of Keating Investments. |
|--------|---------|-----------------------------------------------------------------------------------------------|

----

----

Item 1B.  Unresolved Staff Comments

Item 2.  Properties

Item 3.  Legal Proceedings

Item 4.  Mine Safety Disclosures

----

PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

|              |    | Price Range |
|-------------------|--------------|-------------|
| Quarter Ended     |    | High        |   | Low |
| December 31, 2011 |    | $           | 10.73 |    | $ | 8.00 |   |
|              |         |        |   |   |   |   |

----

----

Item 6.  Selected Financial Data

|                                                                       |   |                       |       |    |           |   |          |         |   |   | At December 31, 2008 |   |
|----------------------------------------------------------------------------|--------|----------------------------|------------|---------|----------------|--------|---------------|--------------|--------|--------|----------------------|--------|
|                                                                       |   |                       |       |    |           |   |          |         |   |   | and for the Period   |   |
|                                                                       |   |                       |       |    |           |   |          |         |   |   | from May 9, 2008     |   |
|                                                                       |   | At and for the Years Ended |       |    | (Inception) to |   |
|                                                                       |   | December 31,               |       |    | December 31,   |   |          | December 31, |   |   | December 31,         |   |
|                                                                       |   | 2011                       |       |    | 2010           |   |          | 2009         |   |   | 2008                 |   |
|                                                                       |   |                       |       |    |           |   |          |         |   |   |                 |   |
| Statement of Operations Data:                                              |   |                       |       |    |           |   |          |         |   |   |                 |   |
|  Total investment income                                              |   | $                          | 54,348     |    |           | $      | 54,009        |         |   | $      | 10,637               |   |   | $ | 14,005 |   |
|  Base management fees                                                 |   |                       | 1,153,058  |    |           |   | 218,876       |         |   |   | 90,904               |   |   |   | 11,990 |   |
|  Incentive fees                                                       |   |                       | 152,757    |    |           |   | 115,423       |         |   |   | -                    |   |   |   | - |   |
|  Administrative expenses allocated from investment adviser            |   |                       | 450,019    |    |           |   | 404,633  |         |   |   | 269,384         |   |   |   | 28,041  |   |
|  Total operating expenses                                             |   |                       | 3,764,370  |    |           |   | 2,031,002     |         |   |   | 1,006,615            |   |   |   | 542,965 |   |
|  Net investment (loss)                                                |   |                       | (3,710,022 | )       |           |   | (1,976,993    | )            |   |   | (995,978             | )      |   |   | (528,960 | ) |
|  Net change in unrealized appreciation on investments                 |   |                       | 763,784    |    |           |   | 577,116       |         |   |   | -                    |   |   |   | - |   |
|  Net (decrease) in net assets resulting from operations               |   |                       | (2,946,238 | )  |           |   | (1,399,877    | )            |   |   | (995,978        | )      |   |   | (528,960  | ) |
|                                                                       |   |                       |       |    |           |   |          |         |   |   |                 |   |   |   |   |   |
| Per Share Data:                                                            |   |                       |       |    |           |   |          |         |   |   |                 |   |   |   |   |   |
|  Net asset value per common share                                     |   | $                          | 8.23       |    |           | $      | 7.85          |         |   | $      | 6.53                 |   |   | $ | 8.27 |   |
|  Net investment (loss) (1)                                            |   |                       | (0.54      | )       |           |   | (1.43         | )            |   |   | (1.75                | )      |   |   | (1.79 | ) |
|  Net (decrease) in net assets resulting from operations (1)           |   |                       | (0.43      | )       |           |   | (1.01         | )            |   |   | (1.75                | )      |   |   | (1.79 | ) |
|  Distributions declared (1)                                           |   |                       | 0.06       |    |           |   | -             |         |   |   | -                    |   |   |   | - |   |
|                                                                       |   |                       |       |    |           |   |          |         |   |   |                 |   |   |   |   |   |
| Balance Sheet Data at Period End:                                          |   |                       |       |    |           |   |          |         |   |   |                 |   |   |   |   |   |
|    Investment in portfolio company securities at fair value |   |                       | 37,273,980 |    |           | $      | 4,177,607     |         |   | $      | -                    |   |   | $ | - |   |
|  Short-term investments at fair value                                 |   |                       | -          |    |           |   | 13,500,000    |         |   |   | 3,000,000            |   |   |   | 4,411,127 |   |
|  Cash and cash equivalents                                            |   |                       | 39,606,512 |    |           |   | 4,753,299     |         |   |   | 367,918              |   |   |   | 367,588 |   |
|  Total assets                                                         |   |                       | 76,943,238 |    |           |   | 22,856,713    |         |   |   | 3,903,387            |   |   |   | 4,810,163 |   |
|  Total liabilities                                                    |   |                       | 558,523    |    |           |   | 400,313       |         |   |   | 183,891              |   |   |   | 94,689 |   |
|  Net assets                                                           |   |                       | 76,384,715 |    |           |   | 22,456,400    |         |   |   | 3,719,496            |   |   |   | 4,715,474 |   |
|  Common shares outstanding                                            |   |                       | 9,283,781  |    |           |   | 2,860,299     |         |   |   | 569,900              |   |   |   | 569,900 |   |
|                                                                       |   |                       |       |    |           |   |          |         |   |   |                 |   |   |   |   |   |

----

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

|   | ● | our future operating results; |
|--------|---------|-------------------------------|

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

|   | ● | the impact of the investments we expect to make; |
|--------|---------|--------------------------------------------------|

|   | ● | our ability to identify future portfolio companies that meet our investment criteria; |
|--------|---------|---------------------------------------------------------------------------------------|

|   | ● | the impact of a protracted decline in the IPO market on our business; |
|--------|---------|-----------------------------------------------------------------------|

|   | ● | our relationships with venture capital firms and investment banks that are the primary sources of our investment opportunities; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ● | the expected market for venture capital investments in later stage, private, pre-IPO companies; |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | ● | 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 markets to raise capital to fund future portfolio company investments; |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | ● | the ability of our portfolio companies to achieve their operating performance objectives and complete an IPO within our targeted timeframe; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | our ability to invest at valuations which allow us to achieve our targeted returns within our expected holding periods; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | ● | our regulatory structure and tax status, including any changes in laws and regulations; |
|--------|---------|-----------------------------------------------------------------------------------------|

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

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

|   | ● | our ability to generate realized capital gains from the disposition of our  portfolio company interests after they have completed an IPO; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

|   | ● | High quality growth companies.  We seek to invest primarily in micro-cap and small-cap companies that are already generating annual revenue in excess of $10 million on a trailing 12-month basis and which we believe have growth potential. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Commitment to complete IPO.  We seek to invest in public ready micro-cap and small-cap companies whose management teams are committed to, and capable of, becoming public companies, whose businesses we believe will benefit from status as public companies, and that we believe are capable of completing IPOs and obtaining exchange listings typically within 18 months after we complete our investments. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Potential for return on investment.  Because of the value differential which we believe exists between public and private companies as a result of the liquidity premium, as discussed below, we seek to make investments that create the potential for a 2x return on our investment once the company is publicly traded and assuming our expected investment horizon of 36 months. We may also pursue investments with a shorter expected investment horizon, where we believe the portfolio company may file for an IPO sooner than 12 months or has a registration statement filed at the time of our investment, in which case our targeted return may be correspondingly reduced. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | ● | The target price determined by our investment adviser based on its business judgment and what it believes to be the portfolio company’s intrinsic value. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The application of public company multiples and our proprietary analysis to a variety of operating metrics for each portfolio company. The primary operating metrics that we typically consider are revenue, EBITDA and net income.   |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Other factors that may be adversely or favorably affecting a particular portfolio company’s stock price, including overall market conditions, industry cyclicality, or issues specific to the portfolio company. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                              |   |       |   |                                            |    | December 31, 2011 |      |
|-----------------------------------------------------------------------------------|--------|------------|--------|-------------------------------------------------|---------|-------------------|-----------|
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   | Unrealized |   |
|                                                                              |   | Investment |   |                                            | Shares/ |              |      | Cost |   |   |   |   |   |   |   |   | Appreciation |   |
| Portfolio Company                                                                 |   | Date       |   | Investment Description                          |    | Warrants          |      |   | (Per Share) |   |   | Cost |   |   | Value |   |   | (Depreciation) |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Publicly Traded Portfolio Companies:                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |
|   NeoPhotonics Corporation                                                   |   | Jan-10     |   | Common Stock                                    |    |              | 160,000   |   |   | $ | 6.25 |   |   | $ | 1,000,000 |   |   | $ | 732,800 |   |   | $ | (267,200 | ) |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Solazyme, Inc.                                                             |   | Jul-10     |   | Common Stock                                    |    |              | 112,927   |   |   |   | 8.86 |   |   |   | 999,991 |   |   |   | 1,343,831 |   |   |   | 343,840 |   |
|   Solazyme, Inc.                                                             |   | Q4 2011    |   | Common Stock - Open Market Purchases            |    |              | 50,000    |   |   |   | 11.07 |   |   |   | 553,259 |   |   |   | 595,000 |   |   |   | 41,741 |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total - Publicly Traded Portfolio Companies                    |   |       |   |                                            |    |              |      |   |   | $ | 2,553,250 |   |   | $ | 2,671,631 |   |   | $ | 118,381 |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private Portfolio Companies That Have Filed for an IPO:                           |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   BrightSource Energy, Inc.                                                  |   | Feb-11     |   | Series E Convertible Preferred Stock            |    |              | 288,531   |   |   |   | 8.66 |   |   | $ | 2,500,006 |   |   | $ | 2,500,006 |   |   | $ | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Corsair Components, Inc.                                                   |   | Jul-11     |   | Common Stock                                    |    |              | 3,200,000 |   |   |   | 1.07 |   |   |   | 3,411,080 |   |   |   | 5,400,000 |   |   |   | 1,988,920 |   |
|                                                                              |   | Jul-11     |   | Common Stock Warrants                           |    |              | 800,000   |   |   |   | 0.74 |   |   |   | 589,000 |   |   |   | 210,000 |   |   |   | (379,000 | ) |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total - Private Portfolio Companies That have Filed for an IPO |   |       |   |                                            |    |              |      |   |   | $ | 6,500,086 |   |   | $ | 8,110,006 |   |   | $ | 1,609,920 |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private Portfolio Companies:                                                      |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Livescribe, Inc.                                                     |   | Jul-10     |   | Series C Convertible Preferred Stock            |    |              | 1,000,000 |   |   |   | 0.47 |   |   | $ | 471,295 |   |   | $ | 139,000 |   |   | $ | (332,295 | ) |
|                                                                              |   | Jul-10     |   | Series C Convertible Preferred Stock Warrants   |    |              | 125,000   |   |   |   | 0.23 |   |   |   | 29,205 |   |   |   | 1,140 |   |   |   | (28,065 | ) |
|                                                                              |   | Jul-11     |   | Series C-1 Convertible Preferrred Stock         |    |              | 54,906    |   |   |   | 0.47 |   |   |   | 25,925 |   |   |   | 7,637 |   |   |   | (18,288 | ) |
|                                                                              |   | Jul-11     |   | Series C-1 Convertible Preferred Stock Warrants |    |              | 6,863     |   |   |   | 0.23 |   |   |   | 1,556 |   |   |   | 100 |   |   |   | (1,456 | ) |
|                                                                              |   | Nov-11     |   | Series C-1 Convertible Preferrred Stock         |    |              | 45,754    |   |   |   | 0.47 |   |   |   | 21,603 |   |   |   | 6,364 |   |   |   | (15,239 | ) |
|                                                                              |   | Nov-11     |   | Series C-1 Convertible Preferred Stock Warrants |    |              | 5,719     |   |   |   | 0.23 |   |   |   | 1,297 |   |   |   | 83 |   |   |   | (1,214 | ) |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    MBA Polymers, Inc.                                                   |   | Oct-10     |   | Series G Convertible Preferred Stock            |    |              | 1,100,000 |   |   |   | 1.00 |   |   |   | 1,100,000 |   |   |   | 1,100,000 |   |   |   | - |   |
|                                                                              |   | Feb-11     |   | Series G Convertible Preferred Stock            |    |              | 900,000   |   |   |   | 1.00 |   |   |   | 900,000 |   |   |   | 900,000 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Harvest Power, Inc.                                                  |   | Mar-11     |   | Series B Convertible Preferred Stock            |    |              | 580,496   |   |   |   | 4.31 |   |   |   | 2,499,999 |   |   |   | 2,499,999 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Suniva, Inc.                                                         |   | Mar-11     |   | Series D Convertible Preferred Stock            |    |              | 197,942   |   |   |   | 12.63 |   |   |   | 2,500,007 |   |   |   | 2,500,007 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Xtime, Inc.                                                          |   | Jun-11     |   | Series F Convertible Preferred Stock            |    |              | 1,573,234 |   |   |   | 1.91 |   |   |   | 3,000,000 |   |   |   | 3,000,000 |   |   |   | - |   |
|                                                                              |   | Aug-11     |   | Common Stock Warrants                           |    |              | 22,581    |   |   |   | - |   |   |   | - |   |   |   | 9,156 |   |   |   | 9,156 |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Metabolon, Inc.                                                      |   | Aug-11     |   | Series D Convertible Preferred Stock            |    |              | 2,229,021 |   |   |   | 1.79 |   |   |   | 4,000,000 |   |   |   | 4,000,000 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Kabam, Inc.                                                          |   | Aug-11     |   | Series D Convertible Preferred Stock            |    |              | 1,046,017 |   |   |   | 1.27 |   |   |   | 1,328,860 |   |   |   | 1,328,860 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Tremor Video, Inc.                                                   |   | Sep-11     |   | Series F Convertible Preferred Stock            |    |              | 642,994   |   |   |   | 6.22 |   |   |   | 4,000,001 |   |   |   | 4,000,001 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    TrueCar, Inc.                                                        |   | Sep-11     |   | Common Stock                                    |    |              | 566,037   |   |   |   | 5.30 |   |   |   | 2,999,996 |   |   |   | 2,999,996 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Agilyx Corporation                                                   |   | Dec-11     |   | Series C Convertible Preferred Stock            |    |              | 1,092,956 |   |   |   | 3.66 |   |   |   | 4,000,000 |   |   |   | 4,000,000 |   |   |   | - |   |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total - Private Portfolio Companies                 |   |       |   |                                            |    |              |      |   |   |   | $ | 26,879,744 |   |   | $ | 26,492,343 |   |   | $ | (387,401 | ) |
|                                                                              |   |       |   |                                            |    |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total - All Portfolio Companies                                                   |   |       |   |                                            |    |              |      |   |   |   |   | $ | 35,933,080 |   |   | $ | 37,273,980 |   |   | $ | 1,340,900 |   |

----

----

----

----

|                                                    |   | December 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                    |   |              |       |   |              |   |   | Percentage |   |   |   |   |   |   |   |   | Percentage |   |
| Investment Type                                         |   | Cost              |       |   | Fair Value        |   |   | of Portfolio |   |   | Cost |   |   | Fair Value |   |   | of Portfolio |   |
|                                                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private Portfolio Companies:                            |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Convertible Preferred Stock          |   | $                 | 26,347,696 |   |              | $      | 25,981,874 |   |   |   | 69.70 | % |   | $ | 3,571,286 |   |   | $ | 4,149,991 |   |   |   | 99.34 | % |
|     Convertible Preferred Stock Warrants |   |              | 32,058     |   |              |   | 1,323 |   |   |   | 0.00 | % |   |   | 29,205 |   |   |   | 27,616 |   |   |   | 0.66 | % |
|     Common Stock                         |   |              | 6,411,076  |   |              |   | 8,399,996 |   |   |   | 22.54 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|     Common Stock Warrants                |   |              | 589,000    |   |              |   | 219,156 |   |   |   | 0.59 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publicly Traded Portfolio Companies:                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Common Stock                         |   |              | 2,553,250  |   |              |   | 2,671,631 |   |   |   | 7.17 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |   |   |   | 100.00 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |
|                                                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | December 31, 2011 |       |   | December 31, 2010 |   |
|-------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                    |   |              |       |   |              |   |   | Percentage |   |   |   |   |   |   |   |   | Percentage |   |
| Industry Classification |   | Cost              |       |   | Fair Value        |   |   | of Portfolio |   |   | Cost |   |   | Fair Value |   |   | of Portfolio |   |
|                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Internet & Software |   | $                 | 11,328,857 |   |              | $      | 11,338,013 |   |   |   | 30.42 | % |   | $ | - |   |   | $ | - |   |   |   | - |   |
| Cleantech               |   |              | 15,053,262 |   |              |   | 15,438,843 |   |   |   | 41.42 | % |   |   | 2,099,991 |   |   |   | 2,099,991 |   |   |   | 50.27 | % |
| Technology              |   |              | 9,550,961  |   |              |   | 10,497,124 |   |   |   | 28.16 | % |   |   | 1,500,500 |   |   |   | 2,077,616 |   |   |   | 49.73 | % |
|                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                   |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |   |   |   | 100.00 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |
|                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                     |   | December 31, 2011 |       |   | December 31, 2010 |   |
|--------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                     |   |              |       |   |              |   |   | Percentage |   |   |   |   |   |   |   |   | Percentage |   |
| Geographic Location      |   | Cost              |       |   | Fair Value        |   |   | of Portfolio |   |   | Cost |   |   | Fair Value |   |   | of Portfolio |   |
|                     |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| West                     |   | $                 | 22,933,073 |   |              | $      | 24,273,973 |   |   |   | 65.12 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |
| Northeast                |   |              | 6,500,000  |   |              |   | 6,500,000 |   |   |   | 17.44 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Southeast                |   |              | 6,500,007  |   |              |   | 6,500,007 |   |   |   | 17.44 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|                     |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |   |   |   | 100.00 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |
|                     |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|   | ● | whether the portfolio company has filed a registration within 12 months of our initial investment; |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | ● | whether the portfolio company has completed an IPO within 18 months of our initial investment; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | ● | whether we were able to liquidate our portfolio company interests within 36 months of our initial investment; |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   | ● | whether we were able to achieve our targeted 2x unrealized return on our portfolio company investment at the time of its IPO based on the IPO price; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | whether we were able to dispose of our portfolio company interests to achieve our targeted 2x realized return upon sale of our investment. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | ● | costs of calculating our net asset value, including the cost of any third-party valuation services; |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | ● | costs of effecting sales and repurchases of shares of our common stock and other securities; |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | ● | fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | costs related to organization and offerings; |
|--------|---------|----------------------------------------------|

|   | ● | transfer agent and custodial fees; |
|--------|---------|------------------------------------|

|   | ● | fees and expenses associated with marketing efforts; |
|--------|---------|------------------------------------------------------|

|   | ● | federal and state registration fees; |
|--------|---------|--------------------------------------|

|   | ● | any stock exchange listing fees; |
|--------|---------|----------------------------------|

|   | ● | applicable federal, state and local taxes; |
|--------|---------|--------------------------------------------|

|   | ● | independent directors’ fees and expenses; |
|--------|---------|-------------------------------------------------|

|   | ● | brokerage commissions; |
|--------|---------|------------------------|

----

|   | ● | costs of proxy statements, stockholders’ reports and notices; |
|--------|---------|---------------------------------------------------------------------|

|   | ● | fidelity bond, directors and officers/errors and omissions liability insurance and other insurance premiums; |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | ● | direct costs such as printing, mailing, and long distance telephone; |
|--------|---------|----------------------------------------------------------------------|

|   | ● | fees and expenses associated with independent audits and outside legal costs; |
|--------|---------|-------------------------------------------------------------------------------|

|   | ● | costs associated with our reporting and compliance obligations under the 1940 Act, Sarbanes-Oxley Act, and applicable federal and state securities laws; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | all other expenses incurred by either Keating Investments or us in connection with administering our business, including payments under the Investment Advisory and Administrative Services Agreement that will be based upon our allocable portion of overhead and other expenses incurred by Keating Investments in performing its obligations under the Investment Advisory and Administrative Services Agreement, including our allocable portion of the compensation of our Chief Financial Officer and Chief Compliance Officer, and their respective staff. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                         |   | Year Ended   |      |   |         |   |
|------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------------|--------|
|                                                                         |   | December 31, |      |   | December 31, |   |   | Increase / |   |
|                                                                         |   | 2011         |      |   | 2010         |   |   | (Decrease) |   |
| Operating Expenses                                                           |   |         |      |   |         |   |   |   |   |
|     Base management fees                                      |   | $            | 1,153,058 |   |         | $      | 218,876 |   |   | $ | 934,182 |   |
|     Incentive fees                                            |   |         | 152,757   |   |         |   | 115,423 |   |   |   | 37,334 |   |
|     Administrative expenses allocated from investment adviser |   |         | 450,019   |   |         |   | 404,633 |   |   |   | 45,386 |   |
|     Legal and professional fees                               |   |         | 579,751   |   |         |   | 335,839 |   |   |   | 243,912 |   |
|     Directors' fees                                           |   |         | 130,289   |   |         |   | 108,000 |   |   |   | 22,289 |   |
|     Stock transfer agent fees                                 |   |         | 212,262   |   |         |   | 192,306 |   |   |   | 19,956 |   |
|     Printing and fulfillment expenses                         |   |         | 185,536   |   |         |   | 108,192 |   |   |   | 77,344 |   |
|     Postage and delivery expenses                             |   |         | 146,287   |   |         |   | 98,907 |   |   |   | 47,380 |   |
|     Stock issuance expenses                                   |   |         | 114,388   |   |         |   | 156,941 |   |   |   | (42,553 | ) |
|     Travel and entertainment expenses                         |   |         | 345,461   |   |         |   | 125,617 |   |   |   | 219,844 |   |
|     General and administrative expenses                       |   |         | 294,562   |   |         |   | 166,268 |   |   |   | 128,294 |   |
|                                                                         |   |         |      |   |         |   |   |   |   |   |   |   |
|       Total Operating Expenses                      |   | $            | 3,764,370 |   |         | $      | 2,031,002 |   |   | $ | 1,733,368 |   |

----

|                                                                         |   | Year Ended   |      |   |         |   |
|------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------------|--------|
|                                                                         |   | December 31, |      |   | December 31, |   |   | Increase / |   |
|                                                                         |   | 2010         |      |   | 2009         |   |   | (Decrease) |   |
| Operating Expenses                                                           |   |         |      |   |         |   |   |   |   |
|     Base management fees                                      |   | $            | 218,876   |   |         | $      | 90,904 |   |   | $ | 127,972 |   |
|     Incentive fees                                            |   |         | 115,423   |   |         |   | - |   |   |   | 115,423 |   |
|     Administrative expenses allocated from investment adviser |   |         | 404,633   |   |         |   | 269,384 |   |   |   | 135,249 |   |
|     Legal and professional fees                               |   |         | 335,839   |   |         |   | 254,572 |   |   |   | 81,267 |   |
|     Directors' fees                                           |   |         | 108,000   |   |         |   | 99,000 |   |   |   | 9,000 |   |
|     Stock transfer agent fees                                 |   |         | 192,306   |   |         |   | 133,554 |   |   |   | 58,752 |   |
|     Printing and fulfillment expenses                         |   |         | 108,192   |   |         |   | 25,501 |   |   |   | 82,691 |   |
|     Postage and delivery expenses                             |   |         | 98,907    |   |         |   | 16,908 |   |   |   | 81,999 |   |
|     Stock issuance expenses                                   |   |         | 156,941   |   |         |   | - |   |   |   | 156,941 |   |
|     Travel and entertainment expenses                         |   |         | 125,617   |   |         |   | 27,420 |   |   |   | 98,197 |   |
|     General and administrative expenses                       |   |         | 166,268   |   |         |   | 89,372 |   |   |   | 76,896 |   |
|                                                                         |   |         |      |   |         |   |   |   |   |   |   |   |
|       Total Operating Expenses                      |   | $            | 2,031,002 |   |         | $      | 1,006,615 |   |   | $ | 1,024,387 |   |

----

----

|                                 |   | December 31, 2011 |       |   | December 31, 2010 |   |       |           |   |
|--------------------------------------|--------|-------------------|------------|--------|-------------------|--------|------------|----------------|--------|
|                                 |   |              |       |   |              |   |       |           |   |   |   |   |   |   |   |   |   |   |   | Change In |   |
|                                 |   |              |       |   |              |   |       | Unrealized     |   |   |   |   |   |   |   |   | Unrealized |   |   | Unrealized |   |
|                                 |   |              |       |   |              |   |       | Appreciation   |   |   |   |   |   |   |   |   | Appreciation |   |   | Appreciation |   |
| Portfolio Company                    |   | Cost              |       |   | Value             |   |       | (Depreciation) |   |   | Cost |   |   | Value |   |   | (Depreciation) |   |   | (Depreciation) |   |
|                                 |   |              |       |   |              |   |       |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private Portfolio Companies:         |   |              |       |   |              |   |       |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Livescribe, Inc.                     |   | $                 | 550,881    |   |              | $      | 154,324    |           |   | $ | (396,557 | ) |   | $ | 500,500 |   |   | $ | 527,616 |   |   | $ | 27,116 |   |   | $ | (423,673 | ) |
| MBA Polymers, Inc.                   |   |              | 2,000,000  |   |              |   | 2,000,000  |           |   |   | - |   |   |   | 1,100,000 |   |   |   | 1,100,000 |   |   |   | - |   |   |   | - |   |
| BrightSource Energy, Inc.            |   |              | 2,500,006  |   |              |   | 2,500,006  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Harvest Power, Inc.                  |   |              | 2,499,999  |   |              |   | 2,499,999  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Suniva, Inc.                         |   |              | 2,500,007  |   |              |   | 2,500,007  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Xtime, Inc.                          |   |              | 3,000,000  |   |              |   | 3,009,156  |           |   |   | 9,156 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,156 |   |
| Corsair Components, Inc.             |   |              | 4,000,080  |   |              |   | 5,610,000  |           |   |   | 1,609,920 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,609,920 |   |
| Metabolon, Inc.                      |   |              | 4,000,000  |   |              |   | 4,000,000  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Kabam, Inc.                          |   |              | 1,328,860  |   |              |   | 1,328,860  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Tremor Video, Inc.                   |   |              | 4,000,001  |   |              |   | 4,000,001  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| TrueCar, Inc.                        |   |              | 2,999,996  |   |              |   | 2,999,996  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Agylix Corporation                   |   |              | 4,000,000  |   |              |   | 4,000,000  |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                 |   |              |       |   |              |   |       |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Publicly Traded Portfolio Companies: |   |              |       |   |              |   |       |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NeoPhotonics Corporation (1)         |   |              | 1,000,000  |   |              |   | 732,800    |           |   |   | (267,200 | ) |   |   | 1,000,000 |   |   |   | 1,550,000 |   |   |   | 550,000 |   |   |   | (817,200 | ) |
| Solazyme, Inc. (1)                   |   |              | 1,553,250  |   |              |   | 1,938,831  |           |   |   | 385,581 |   |   |   | 999,991 |   |   |   | 999,991 |   |   |   | - |   |   |   | 385,581 |   |
|                                 |   |              |       |   |              |   |       |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |           |   | $ | 1,340,900 |   |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   | $ | 577,116 |   |   | $ | 763,784 |   |

| (1) | NeoPhotonics and Solazyme were considered private portfolio companies as of December 31, 2010 as NeoPhotonics and Solazyme did not complete their initial public offerings until February 2, 2011 and May 27, 2011, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | December 31, 2010 |      |   | December 31, 2009 |   |      |           |   |
|------------------------------|--------|-------------------|-----------|--------|-------------------|--------|-----------|----------------|--------|
|                         |   |              |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   | Change In |   |
|                         |   |              |      |   |              |   |      | Unrealized     |   |   |   |   |   |   |   |   | Unrealized |   |   | Unrealized |   |
|                         |   |              |      |   |              |   |      | Appreciation   |   |   |   |   |   |   |   |   | Appreciation |   |   | Appreciation |   |
| Portfolio Company            |   | Cost              |      |   | Value             |   |      | (Depreciation) |   |   | Cost |   |   | Value |   |   | (Depreciation) |   |   | (Depreciation) |   |
|                         |   |              |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Private Portfolio Companies: |   |              |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NeoPhotonics Corporation (1) |   | $                 | 1,000,000 |   |              | $      | 1,550,000 |           |   | $ | 550,000 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 550,000 |   |
| Solazyme, Inc. (1)           |   |              | 999,991   |   |              |   | 999,991   |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Livescribe, Inc.             |   |              | 500,500   |   |              |   | 527,616   |           |   |   | 27,116 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 27,116 |   |
| MBA Polymers, Inc.           |   |              | 1,100,000 |   |              |   | 1,100,000 |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                         |   |              |      |   |              |   |      |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                        |   | $                 | 3,600,491 |   |              | $      | 4,177,607 |           |   | $ | 577,116 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 577,116 |   |

| (1) | NeoPhotonics and Solazyme were considered private portfolio companies as of December 31, 2010 as NeoPhotonics and Solazyme did not complete their initial public offerings until February 2, 2011 and May 27, 2011, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| · | Level 1: Observable inputs such as unadjusted quoted prices in active markets; |
|--------|--------------------------------------------------------------------------------|

----

| · | Level 2: Includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                       |
| · | Level 3: Unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.                                                      |

| · | Our quarterly valuation process begins with each portfolio company investment being initially valued by the senior investment professionals of Keating Investments, our investment adviser, responsible for the portfolio investment;                                                                                                                                                                                                                |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | Third-party valuation firms engaged by our Board of Directors review these preliminary valuations at such times as determined by our Board of Directors, provided, however, that a review will be conducted by a third-party valuation firm for each new portfolio company investment made during a calendar quarter, at such time as the valuation for a specific portfolio company investment is increased, and at least once every twelve months; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | Our Valuation Committee reviews the preliminary valuations, and our investment adviser and the third-party valuation firms respond and supplement the preliminary valuation to reflect any comments provided by our Valuation Committee; and                                                                                                                                                                                                    |

----

| · | Our Board of Directors discusses the valuations and determines, in good faith, the fair value of each investment in our portfolio for which market quotations are not readily available based on the input of our investment adviser, the third-party valuation firms, and our Valuation Committee. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

----

Item 8.   Financial Statements and Supplementary Data

| Financial Statements                                                                     |   |
|------------------------------------------------------------------------------------------|--------|
|                                                                                     |   |
| Report of Independent Registered Public Accounting Firm                                  | 72     |
|                                                                                     |   |
| Statements of Assets and Liabilities as of December 31, 2011 and 2010                    | 73     |
|                                                                                     |   |
| Statements of Operations for the Years Ended December 31, 2011, 2010 and 2009            | 74     |
|                                                                                     |   |
| Statements of Changes in Net Assets for the Years Ended December 31, 2011, 2010 and 2009 | 75     |
|                                                                                     |   |
| Statements of Cash Flows for the Years Ended December 31, 2011, 2010 and 2009            | 76     |
|                                                                                     |   |
| Schedule of Investments as of December 31, 2011                                          | 77     |
|                                                                                     |   |
| Schedule of Investments as of December 31, 2010                                          | 79     |
|                                                                                     |   |
| Notes to Financial Statements                                                            | 80     |

----

----

----

|                                                                          |   | December 31, |       |   | December 31, |   |
|-------------------------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|
|                                                                          |   | 2011         |       |   | 2010         |   |
|                                                                          |   |         |       |   |         |   |
| Assets                                                                        |   |         |       |   |         |   |
| Investments in portfolio company securities at fair value:                    |   |
| Non-control/non-affiliate investments:                                        |   |         |       |   |         |   |
| Private portfolio companies                                                   |   |         |       |   |         |   |
| (Cost: $25,379,750 and $3,600,491, respectively)                              |   | $            | 24,992,349 |   |         | $      | 4,177,607 |   |
| Publicly-traded portfolio companies                                           |   |         |       |   |         |   |   |   |
| (Cost: $2,553,250 and $0, respectively)                                       |   |         | 2,671,631  |   |         |   | - |   |
| Affiliate investments:                                                        |   |         |       |   |         |   |   |   |
| Private portfolio companies                                                   |   |         |       |   |         |   |   |   |
| (Cost: $8,000,080 and $0, respectively)                                       |   |         | 9,610,000  |   |         |   | - |   |
| Total, investments in portfolio company securities at fair value              |   |         | 37,273,980 |   |         |   | 4,177,607 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Short-term investments at fair value                                          |   |         |       |   |         |   |   |   |
| (Cost: $0 and $13,500,000, respectively)                                      |   |         | -          |   |         |   | 13,500,000 |   |
| Cash and cash equivalents                                                     |   |         | 39,606,512 |   |         |   | 4,753,299 |   |
| Prepaid expenses and other assets                                             |   |         | 62,746     |   |         |   | 92,125 |   |
| Deferred offering costs                                                       |   |         | -          |   |         |   | 333,682 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Total assets                                                                  |   | $            | 76,943,238 |   |         | $      | 22,856,713 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Liabilities                                                                   |   |         |       |   |         |   |   |   |
| Base management fees payable to investment adviser                            |   | $            | 130,969    |   |         | $      | 90,631 |   |
| Accrued incentive fees payable to investment adviser                          |   |         | 268,180    |   |         |   | 115,423 |   |
| Administrative expenses payable to investment adviser                         |   |         | 47,285     |   |         |   | 41,348 |   |
| Reimbursable expenses payable to investment adviser                           |   |         | -          |   |         |   | 3,068 |   |
| Accounts payable                                                              |   |         | 70,602     |   |         |   | 80,275 |   |
| Accrued expenses and other liabilities                                        |   |         | 41,487     |   |         |   | 69,568 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Total liabilities                                                             |   |         | 558,523    |   |         |   | 400,313 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Net assets                                                                    |   |         |       |   |         |   |   |   |
| Common stock, par value                                                       |   | $            | 9,284      |   |         | $      | 2,860 |   |
| Additional paid-in capital                                                    |   |         | 75,302,711 |   |         |   | 21,991,847 |   |
| Accumulated net investment loss                                               |   |         | (268,180   | )      |         |   | (115,423 | ) |
| Net unrealized appreciation on investments                                    |   |         | 1,340,900  |   |         |   | 577,116 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Total net assets                                                              |   | $            | 76,384,715 |   |         | $      | 22,456,400 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Total liabilities and net assets                                              |   | $            | 76,943,238 |   |         | $      | 22,856,713 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Shares of common stock outstanding ($0.001 par value, 200,000,000 authorized) |   |         | 9,283,781  |   |         |   | 2,860,299 |   |
|                                                                          |   |         |       |   |         |   |   |   |
| Net asset value per share                                                     |   | $            | 8.23       |   |         | $      | 7.85 |   |
|                                                                          |   |         |       |   |         |   |   |   |

----

----

|                                                                                      |   | Years Ended December 31, |       |
|-------------------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                                      |   | 2011                     |       |   | 2010 |   |   | 2009 |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |
| Investment income                                                                         |   |                     |       |   |   |   |   |   |   |
| Interest and dividend income:                                                             |   |                     |       |   |   |   |   |   |   |
| Certificate of deposit and money market investments                                       |   | $                        | 54,348     |   |   | $ | 44,009 |   |   | $ | 10,637 |   |
| Other income                                                                              |   |                     | -          |   |   |   | 10,000 |   |   |   | - |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Total investment income                                                                   |   |                     | 54,348     |   |   |   | 54,009 |   |   |   | 10,637 |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                        |   |                     |       |   |   |   |   |   |   |   |   |   |
| Base management fees                                                                      |   |                     | 1,153,058  |   |   |   | 218,876 |   |   |   | 90,904 |   |
| Incentive fees                                                                            |   |                     | 152,757    |   |   |   | 115,423 |   |   |   | - |   |
| Administrative expenses allocated from investment adviser                                 |   |                     | 450,019    |   |   |   | 404,633 |   |   |   | 269,384 |   |
| Legal and professional fees                                                               |   |                     | 579,751    |   |   |   | 335,839 |   |   |   | 254,572 |   |
| Directors fees                                                                            |   |                     | 130,289    |   |   |   | 108,000 |   |   |   | 99,000 |   |
| Stock transfer agent fees                                                                 |   |                     | 212,262    |   |   |   | 192,306 |   |   |   | 133,554 |   |
| Printing and fulfillment expenses                                                         |   |                     | 185,536    |   |   |   | 108,192 |   |   |   | 25,501 |   |
| Postage and delivery expenses                                                             |   |                     | 146,287    |   |   |   | 98,907 |   |   |   | 16,908 |   |
| Stock issuance expenses                                                                   |   |                     | 114,388    |   |   |   | 156,941 |   |   |   | - |   |
| Travel and entertainment expenses                                                         |   |                     | 345,461    |   |   |   | 125,617 |   |   |   | 27,420 |   |
| General and administrative expenses                                                       |   |                     | 294,562    |   |   |   | 166,268 |   |   |   | 89,372 |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                                                  |   |                     | 3,764,370  |   |   |   | 2,031,002 |   |   |   | 1,006,615 |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net investment loss                                                                       |   |                     | (3,710,022 | ) |   |   | (1,976,993 | ) |   |   | (995,978 | ) |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net change in unrealized appreciation (depreciation) on investments                       |   |                     |       |   |   |   |   |   |   |
| Non-control/non-affiliate investments                                                     |   |                     | (846,136   | ) |   |   | 577,116 |   |   |   | - |   |
| Affiliate investments                                                                     |   |                     | 1,609,920  |   |   |   | - |   |   |   | - |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Total net change in unrealized appreciation (depreciation) on investments                 |   |                     | 763,784    |   |   |   | 577,116 |   |   |   | - |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net decrease in net assets resulting from operations                                      |   | $                        | (2,946,238 | ) |   | $ | (1,399,877 | ) |   | $ | (995,978 | ) |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net investment loss per common share (basic and diluted)                                  |   | $                        | (0.54      | ) |   | $ | (1.43 | ) |   | $ | (1.75 | ) |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net decrease in net assets resulting from operations per common share (basic and diluted) |   | $                        | (0.43      | ) |   | $ | (1.01 | ) |   | $ | (1.75 | ) |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding (basic and diluted)                            |   |                     | 6,921,481  |   |   |   | 1,383,537 |   |   |   | 569,900 |   |
|                                                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |

----

----

|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   | Unrealized     |       |   | Distributions |   |      |   |   |
|--------------------------------------------------------------------------------|--------------|-----------|--------|------------|--------|--------|-----------------|--------|--------|---------------|--------|--------|----------------|------------|--------|---------------|--------|-----------|--------|--------|
|                                                                           |         |      |   |       |   |   |            |   |   | Accumulated   |   |   | Appreciation   |       |   | In Excess of  |   |      |   |   |
|                                                                           | Common Stock |      |   | Additional |   |   | Net Investment  |   |   | on            |   |   | Net Investment |       |   | Net           |   |
|                                                                           | Shares       |      |   | Par Value  |   |   | Paid-in Capital |   |   | Income (Loss) |   |   | Investments    |       |   | Income        |   |      | Assets |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |
| Balance at December 31, 2008 (2)(3)                                            |         | 569,900   |   |       | $      | 570    |            |   | $      | 4,714,904     |   |   | $              | -          |   |          | $      | -         |   |   | $ | - |   |   | $ | 4,715,474 |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |
|   Net increase (decrease) in net assets from operations                   |         | -         |   |       |   | -      |            |   |   | -             |   |   |           | (995,978   | )      |          |   | -         |   |   |   | - |   |   |   | (995,978 | ) |
|   Reclassification of permanent book to tax differences (3)               |         | -         |   |       |   | -      |            |   |   | (995,978      | )      |   |           | 995,978    |   |          |   | -         |   |   |   | - |   |   |   | - |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009 (2)                                               |         | 569,900   |   |       | $      | 570    |            |   | $      | 3,718,926     |   |   | $              | -          |   |          | $      | -         |   |   | $ | - |   |   | $ | 3,719,496 |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |
|   Net increase (decrease) in net assets from operations                   |         | -         |   |       |   | -      |            |   |   | -             |   |   |           | (1,976,993 | )      |          |   | 577,116   |   |   |   | - |   |   |   | (1,399,877 | ) |
|   Issuance of common stock, net of offering costs of $2,196,066 (1)       |         | 2,290,399 |   |       |   | 2,290  |            |   |   | 20,611,297    |   |   |           | -          |   |          |   | -         |   |   |   | - |   |   |   | 20,613,587 |   |
|   Amortization of deferred offering costs                                 |         |      |   |       |   |   |            |   |   | (476,806      | )      |   |           |       |   |          |   |      |   |   |   |   |   |   |   | (476,806 | ) |
|   Reclassification of permanent book to tax differences (3)               |         | -         |   |       |   | -      |            |   |   | (1,861,570    | )      |   |           | 1,861,570  |   |          |   | -         |   |   |   | - |   |   |   | - |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010 (2)                                               |         | 2,860,299 |   |       | $      | 2,860  |            |   | $      | 21,991,847    |   |   | $              | (115,423   | )      |          | $      | 577,116   |   |   | $ | - |   |   | $ | 22,456,400 |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |
|   Net increase (decrease) in net assets from operations                   |         | -         |   |       |   | -      |            |   |   | -             |   |   |           | (3,710,022 | )      |          |   | 763,784   |   |   |   | - |   |   |   | (2,946,238 | ) |
|   Issuance of common stock, net of offering costs of $6,180,594 (1)       |         | 6,423,482 |   |       |   | 6,423  |            |   |   | 57,803,330    |   |   |           | -          |   |          |   | -         |   |   |   | - |   |   |   | 57,809,753 |   |
|   Amortization of deferred offering costs                                 |         |      |   |       |   |   |            |   |   | (488,363      | )      |   |           |       |   |          |   |      |   |   |   |   |   |   |   | (488,363 | ) |
|   Distributions in excess of net investment income and net realized gains |         | -         |   |       |   | -      |            |   |   | -             |   |   |           | -          |   |          |   | -         |   |   |   | (446,837 | ) |   |   | (446,837 | ) |
|   Classification of distributions as a return of capital (3)              |         | -         |   |       |   | -      |            |   |   | (446,837      | )      |   |           | -          |   |          |   | -         |   |   |   | 446,837 |   |   |   | - |   |
|   Reclassification of permanent book to tax differences (3)               |         | -         |   |       |   | -      |            |   |   | (3,557,265    | )      |   |           | 3,557,265  |   |          |   | -         |   |   |   | - |   |   |   | - |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2011 (2)                                               |         | 9,283,781 |   |       | $      | 9,284  |            |   | $      | 75,302,711    |   |   | $              | (268,180   | )      |          | $      | 1,340,900 |   |   | $ | - |   |   | $ | 76,384,715 |   |
|                                                                           |         |      |   |       |   |   |            |   |   |          |   |   |           |       |   |          |   |      |   |   |   |   |   |   |   |   |   |

| (1)    | All shares were sold at a price of either $9.30 or $10.00, depending on whether or not sales commissions were waived by the dealer manager.                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                 |
| (2)    | Net assets at December 31, 2011, 2010, 2009 and 2008 include no accumulated undistributed net investment income and no accumulated undistributed net realized gains. |
|   |                                                                                                                                                                 |
| (3)    | See Note 2 - Reclassifications and Note 2 - Income Taxes.                                                                                                            |
|   |                                                                                                                                                                 |

----

----

|                                                                                                                    |   | Years Ended December 31, |        |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                                                    |   | 2011                     |        |   | 2010 |   |   | 2009 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |
| Cash flows from operating activities                                                                                    |   |                     |        |   |   |   |   |   |   |
| Net decrease in net assets resulting from operations                                                                    |   | $                        | (2,946,238  | ) |   | $ | (1,399,877 | ) |   | $ | (995,978 | ) |
| Adjustments to reconcile net decrease in net assets resulting from operations to net cash used in operating activities: |   |
| Net change in unrealized (appreciation) on investments                                                                  |   |                     | (763,784    | ) |   |   | (577,116 | ) |   |   | - |   |
| Changes in operating assets and liabilities:                                                                            |   |                     |        |   |   |   |   |   |   |
| Decrease (increase) in prepaid expenses and other assets                                                                |   |                     | 29,379      |   |   |   | (58,553 | ) |   |   | (2,124 | ) |
| Increase in base management fees payable to investment adviser                                                          |   |                     | 40,338      |   |   |   | 61,163 |   |   |   | 17,478 |   |
| Increase in accrued incentive fees payable to investment adviser                                                        |   |                     | 152,757     |   |   |   | 115,423 |   |   |   | - |   |
| Increase (decrease) in administrative expenses payable to investment adviser                                            |   |                     | 5,937       |   |   |   | (25,788 | ) |   |   | 39,095 |   |
| (Decrease) increase in reimbursable expenses payable to investment adviser                                              |   |                     | (3,068      | ) |   |   | (14,995 | ) |   |   | 4,188 |   |
| (Decrease) increase in accounts payable                                                                                 |   |                     | (9,673      | ) |   |   | 48,162 |   |   |   | (3,670 | ) |
| (Decrease) increase in accrued expenses and other liabilities                                                           |   |                     | (28,081     | ) |   |   | 32,457 |   |   |   | 32,111 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
|        Net cash used in operating activities                                         |   |                     | (3,522,433  | ) |   |   | (1,819,124 | ) |   |   | (908,900 | ) |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Investments in portfolio companies                                                                                      |   |                     | (32,332,589 | ) |   |   | (3,600,491 | ) |   |   | - |   |
| Purchases of short-term investments                                                                                     |   |                     | (89,000,000 | ) |   |   | (84,000,000 | ) |   |   | (16,703,814 | ) |
| Proceeds from maturities of short-term investments                                                                      |   |                     | 102,500,000 |   |   |   | 73,500,000 |   |   |   | 18,114,941 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
|        Net cash (used in) provided by investing activities                      |   |                     | (18,832,589 | ) |   |   | (14,100,491 | ) |   |   | 1,411,127 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Gross proceeds from issuance of common stock                                                                            |   |                     | 63,990,347  |   |   |   | 22,809,653 |   |   |   | - |   |
| Offering costs from issuance of common stock                                                                            |   |                     | (6,180,594  | ) |   |   | (2,196,066 | ) |   |   | - |   |
| Additions to deferred stock offering costs                                                                              |   |                     | (154,681    | ) |   |   | (308,591 | ) |   |   | (501,897 | ) |
| Stockholder distributions                                                                                               |   |                     | (446,837    | ) |   |   | - |   |   |   | - |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
|        Net cash provided by (used in) financing activities                           |   |                     | 57,208,235  |   |   |   | 20,304,996 |   |   |   | (501,897 | ) |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                               |   |                     | 34,853,213  |   |   |   | 4,385,381 |   |   |   | 330 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                                                          |   |                     | 4,753,299   |   |   |   | 367,918 |   |   |   | 367,588 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                                                |   | $                        | 39,606,512  |   |   | $ | 4,753,299 |   |   | $ | 367,918 |   |
|                                                                                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash financing activities                                                                |   |                     |        |   |   |
| Amortization of deferred offering costs                                                                                 |   | $                        | 488,363     |   |   | $ | 476,806 |   |   | $ | - |   |

----

----

|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   | Value      |      |
|----------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|---------------------------------------------------------------|--------|------------|-----------|----------|--------|-----------|--------|------------|-----------|
|                                                                                                                 |   |                                               |       |                                                          |   | Shares /   |      |     |   |      |   | as % of    |      |
| Portfolio Company                                                                                                    |   | Industry / Description (1)                         |       | Type of Investment (2)                                        |   | Warrants   |      | Cost (3) |   | Value (4) |   | Net Assets |      |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |
| Non-Control/Non-Affiliate Investments (5)                                                                            |   |                                               |       |                                                          |   |       |      |     |   |      |   |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |
|    Private Portfolio Companies:                                                                            |   |                                               |       |                                                          |   |       |      |     |   |      |   |
|    Livescribe, Inc.                                                                                        |   | Technology - Consumer Electronics                  |       | Series C Convertible Preferred Stock                          |   |       | 1,000,000 |     | $      | 471,295   |   | $          | 139,000   |   |   | 0.18 | % |
|                                                                                                                 |   |                                               |       | Series C Convertible Preferred Stock Warrants                 |   |       | 125,000   |     |   | 29,205    |   |       | 1,140     |   |   | 0.00 | % |
|                                                                                                                 |   |                                               |       |    Exercise price $0.50 per share; expire 6/30/2015 |   |       |      |     |   |      |   |       |      |   |   |   |   |
|                                                                                                                 |   |                                               |       | Series C-1 Convertible Preferred Stock                        |   |       | 100,660   |     |   | 47,528    |   |       | 14,001    |   |   | 0.02 | % |
|                                                                                                                 |   |                                               |       | Series C-1 Convertible Preferred Stock Warrants               |   |       | 12,582    |     |   | 2,853     |   |       | 183       |   |   | 0.00 | % |
|                                                                                                                 |   |                                               |       |    Exercise price $0.50 per share; expire 7/8/2016  |   |       |      |     |   |      |   |       |      |   |   |   |   |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    MBA Polymers, Inc.                                                                                      |   | Cleantech - Plastics Recycling                     |       | Series G Convertible Preferred Stock                          |   |       | 2,000,000 |     |   | 2,000,000 |   |       | 2,000,000 |   |   | 2.62 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    BrightSource Energy, Inc.                                                                               |   | Cleantech - Solar Thermal Energy                   |       | Series E Convertible Preferred Stock                          |   |       | 288,531   |     |   | 2,500,006 |   |       | 2,500,006 |   |   | 3.27 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Harvest Power, Inc.                                                                                     |   | Cleantech - Waste Management                       |       | Series B Convertible Preferred Stock                          |   |       | 580,496   |     |   | 2,499,999 |   |       | 2,499,999 |   |   | 3.27 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Suniva, Inc.                                                                                            |   | Cleantech - Solar Photovoltaic Cells               |       | Series D Convertible Preferred Stock                          |   |       | 197,942   |     |   | 2,500,007 |   |       | 2,500,007 |   |   | 3.27 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Xtime, Inc.                                                                                             |   | Internet & Software - Software as a Service    |       | Series F Convertible Preferred Stock                          |   |       | 1,573,234 |     |   | 3,000,000 |   |       | 3,000,000 |   |   | 3.93 | % |
|                                                                                                                 |   |                                               |       | Common Stock Warrants                                         |   |       | 22,581    |     |   | -         |   |       | 9,156     |   |   | 0.01 | % |
|                                                                                                                 |   |                                               |       |    Exercise price $0.01 per share; expire 8/24/2018 |   |       |      |     |   |      |   |       |      |   |   |   |   |
|                                                                                                                 |   |                                               |       |    Subject to restrictions on exercisability        |   |       |      |     |   |      |   |       |      |   |   |   |   |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Kabam, Inc.                                                                                             |   | Internet & Software - Online Multiplayer Games |       | Series D Convertible Preferred Stock                          |   |       | 1,046,017 |     |   | 1,328,860 |   |       | 1,328,860 |   |   | 1.74 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Tremor Video, Inc.                                                                                      |   | Internet & Software - Online Video Advertising |       | Series F Convertible Preferred Stock                          |   |       | 642,994   |     |   | 4,000,001 |   |       | 4,000,001 |   |   | 5.24 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    TrueCar, Inc.                                                                                           |   | Internet & Software - Consumer Website         |       | Common Stock                                                  |   |       | 566,037   |     |   | 2,999,996 |   |       | 2,999,996 |   |   | 3.93 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Agilyx Corporation                                                                                      |   | Cleantech - Renewable Oils                         |       | Series C Convertible Preferred Stock                          |   |       | 1,092,956 |     |   | 4,000,000 |   |       | 4,000,000 |   |   | 5.24 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|       Subtotal - Non-Control/Non-Affiliate Investments, Private Portfolio Companies         |   | $                                                  | 25,379,750 |                                                          | $      | 24,992,349 |      |     | 32.72  | %         |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Publicly Traded Portfolio Companies:                                                                    |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |
|    NeoPhotonics Corporation                                                                                |   | Technology - Communications Equipment              |       | Common Stock                                                  |   |       | 160,000   |     |   | 1,000,000 |   |       | 732,800   |   |   | 0.96 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|    Solazyme, Inc.                                                                                          |   | Cleantech - Renewable Oils and Bioproducts         |       | Common Stock                                                  |   |       | 162,927   |     |   | 1,553,250 |   |       | 1,938,831 |   |   | 2.54 | % |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |
|       Subtotal - Non-Control/Non-Affiliate Investments, Publicly Traded Portfolio Companies |   | $                                                  | 2,553,250  |                                                          | $      | 2,671,631  |      |     | 3.50   | %         |
|                                                                                                                 |   |                                               |       |                                                          |   |       |      |     |   |      |   |       |      |   |   |   |   |

----

----

|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       | Value   |            |
|------------------------------------------------------------------------|--------|-------------------------------------------------|--------|-------------------------------------------------|------------|-----------------|--------|------------|-----------|------------|---------|-----------------|
|                                                                   |   |                                            |   | Shares /                                        |       |            |   |       |      |       | as % of |            |
| Portfolio Company                                                      |   | Industry / Description (1)                      |   | Type of Investment (2)                          |       | Warrants        |   | Cost (3)   |      | Value (4)  |    |            | Net Assets |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |
| Affiliate Investments (5)                                              |   |                                            |   |                                            |       |            |   |       |      |       |    |            |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |
|    Private Portfolio Companies:                              |   |                                            |   |                                            |       |            |   |       |      |       |    |            |
|    Metabolon, Inc.                                           |   | Technology - Molecular Diagnostics and Services |   | Series D Convertible Preferred Stock            |       | 2,229,021       |   |       | 4,000,000 |       |    | 4,000,000       |   |   | 5.24 | % |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|    Corsair Components, Inc.                                  |   | Technology - PC Gaming Hardware                 |   | Common Stock                                    |       |  3,200,000 |   |       | 3,411,080 |       |    |  5,400,000 |   |   | 7.07 | %  |
|                                                                   |   |                                            |   | Common Stock Warrants                           |       | 800,000         |   |       | 589,000   |       |    | 210,000         |   |   | 0.27 | %  |
|                                                                   |   |                                            |   | Exercise price $0.01 per share; expire 7/6/2016 |       |            |   |       |      |       |    |            |   |   |   |   |
|                                                                   |   |                                            |   | Subject to restrictions on exercisability       |       |            |   |       |      |       |    |            |   |   |   |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|   Subtotal - Affiliate Investments, Private Portfolio Companies   |   |                                            |   | $                                               | 8,000,080  |            | $      | 9,610,000  |      |       | 12.58   | %               |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|   Total - Investments in Portfolio Company Securities (6)         |   |                                            |   | $                                               | 35,933,080 |            | $      | 37,273,980 |      |       | 48.80   | %               |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   | % of |   |
| Reconciliation to Net Assets                                           |   |                                            |   |                                            |       |            |   |       |      | Amount     |    |            | Net Assets |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|    Investments in portfolio company securities at fair value |   |                                            |   |                                            |       |            | $      | 37,273,980 |      |       | 48.80   | %               |
|    Cash and cash equivalents                                 |   |                                            |   |                                            |       |            |   |       |      | 39,606,512 |    |            | 51.85 | % |
|    Prepaid expenses and other assets                         |   |                                            |   |                                            |       |            |   |       |      | 62,746     |    |            | 0.08 | % |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|    Less: Total Liabilities                                   |   |                                            |   |                                            |       |            |   |       |      | (558,523   | )       |            | (0.73 | %) |
|                                                                   |   |                                            |   |                                            |       |            |   |       |      |       |    |            |   |   |   |   |
|    Net Assets                                                |   |                                            |   |                                            |       |            |   |       |      |       | $       | 76,384,715      |   |   | 100.00 | % |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | The Company classifies its portfolio companies into three industries: (i) technology, (ii) Internet and software, and (iii) cleantech.  The further description generally identifies the types of products or services provided by each portfolio company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)    | Convertible preferred, common stock, warrants and equity interests are generally non-income producing.  Except for the convertible preferred stock in Harvest Power, Inc., all convertible preferred stock investments carry a non-cumulative, preferred dividend payable when and if declared by the portfolio company's board of directors.   In the case of Harvest Power, Inc., the shares of convertible preferred stock carry a cumulative preferred dividend, which is payable only when declared by the portfolio company's board of directors or upon a qualifying liquidation event.  Since no dividends have been declared or paid, or are expected to be declared or paid, with respect to these convertible preferred stock investments, these investments are considered to be non-income producing. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (3)    | Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes totaled $2,383,657, $1,042,757 and $1,340,900, respectively. The tax cost of investments is $35,933,080.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (4)    | Except for common stock in two publicly traded portfolio companies, all investments were valued at fair value as determined in good faith by the Board of Directors and are subject to legal restrictions on transfer (including lockup and other contractual restrictions) as of December 31, 2011.  See Valuation of Investments under Note 2 of the Notes to Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (5)    | Control Investments are defined by the Investment Company Act of 1940, as amended (the "1940 Act"), as investments in which the Company owns more than 25% of the voting securities or where the Company has the ability to nominate greater than 50% of the board representation.  Affiliate Investments are defined by the 1940 Act as investments in which the Company owns between 5% and 25% of the voting securities.  Non-Control/Non-Affiliate Investments are defined by the 1940 Act as investments that are neither Control Investments nor Affiliate Investments.                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (6)    | All portfolio company investments constituted qualifying investments under Section 55(a) of the 1940 Act as of December 31, 2011, with the exception of 50,000 shares of Solazyme, Inc. common stock with a cost and value of $553,259 and $595,000, respectively, purchased in open market transactions during the fourth quarter of 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

----

|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   | Value      |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|---------------------------------------------------------------|--------|----------|------------|--------|----------|--------|------------|-----------|--------|--------|------------|--------|
|                                                                                        |   |                                       |       |                                                          |   | Shares / |       |   |     |   |       |      |   |   | as % of    |   |
| Portfolio Company                                                                           |   | Industry / Description (1)                 |       | Type of Investment (2)                                        |   | Warrants |       |   | Cost (3) |   |       | Value (4) |   |   | Net Assets |   |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |
| Non-Control/Non-Affiliate Investments (5)                                                   |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |
|    Private Portfolio Companies:                                                   |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |
|    NeoPhotonics Corporation                                                       |   | Technology - Communications Equipment      |       | Series X Convertible Preferred Stock                          |   |     | 10,000     |   |     | $      | 1,000,000  |      |   | $      | 1,550,000  |   |   |   | 6.90 | % |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Livescribe, Inc.                                                               |   | Technology - Consumer Electronics          |       | Series C Convertible Preferred Stock                          |   |     | 1,000,000  |   |     |   | 471,295    |      |   |   | 500,000    |   |   |   | 2.23 | % |
|                                                                                        |   |                                       |       | Series C Convertible Preferred Stock Warrants                 |   |     | 125,000    |   |     |   | 29,205     |      |   |   | 27,616     |   |   |   | 0.12 | % |
|                                                                                        |   |                                       |       |    Exercise price $0.50 per share; expire 6/30/2015 |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Solazyme, Inc.                                                                 |   | Cleantech - Renewable Oils and Bioproducts |       | Series D Convertible Preferred Stock                          |   |     | 112,927    |   |     |   | 999,991    |      |   |   | 999,991    |   |   |   | 4.45 | % |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    MBA Polymers, Inc.                                                             |   | Cleantech - Plastics Recycling             |       | Series G Convertible Preferred Stock                          |   |     | 1,100,000  |   |     |   | 1,100,000  |      |   |   | 1,100,000  |   |   |   | 4.90 | % |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|      Total - Investments in Portfolio Company Securities                |   | $                                          | 3,600,491  |                                                          |   | $        | 4,177,607  |   |     |   | 18.60      | %         |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
| Short-Term Investments                                                                      |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Certificates of Deposit Maturing on January 6, 2011                            |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |
|    Annual Percentage Yield of 0.45%                                               |   |                                       |       |                                                          |   | $        | 13,500,000 |   |     | $      | 13,500,000 |      |   |   | 60.12      | %      |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Total - Short-Term Investments                                                 |   |                                       |       |                                                          |   | $        | 13,500,000 |   |     | $      | 13,500,000 |      |   |   | 60.12      | %      |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Total - Investments in Portfolio Company Securities and Short-Term Investments |   | $                                          | 17,100,491 |                                                          |   | $        | 17,677,607 |   |     |   | 78.72      | %         |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   | % of |   |
| Reconciliation to Net Assets                                                                |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   | Amount |       |   | Net Assets |   |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Investments in portfolio company securities and short-term investments         |   |                                       | $          | 17,677,607                                                    |   |     |       | 78.72  | %        |
|    Cash and cash equivalents                                                      |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   | 4,753,299  |   |   |   | 21.17 | % |
|    Prepaid expenses and other assets                                              |   |                                       |       |                                                          |   |     |       |   |     |   | 92,125     |      |   |   | 0.41       | %      |
|    Deferred offering costs                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   | 333,682    |   |   |   | 1.49 | % |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|    Less: Total Liabilities                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   | (400,313   | )      |   |   | -1.78 | % |
|                                                                                        |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   |   |       |   |   |   |   |   |
|  Net Assets                                                                            |   |                                       |       |                                                          |   |     |       |   |     |   |       |      |   | $      | 22,456,400 |   |   |   | 100.00 | % |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (1)    | The Company classifies its portfolio companies into three industries: (i) technology, (ii) Internet and software, and (iii) cleantech.  The further description generally identifies the types of products or services provided by each portfolio company.                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (2)    | Preferred and common stock, warrants, and equity interests are generally non-income producing.   All preferred stock investments carry a non-cumulative, preferred dividend payable when and if declared by the portfolio company's board of directors.   Since no dividends have been declared or paid, or are expected to be declared or paid, with respect to these preferred stock investments, these investments are considered to be non-income producing.                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (3)    | Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes totaled $578,705, $1,589 and $577,116, respectively. The tax cost of investments in portfolio company securities is $3,600,491.                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (4)    | Except for certificates of deposit, all investments were valued at fair value as determined in good faith by the Board of Directors and are subject to legal restrictions on transfer (including lockup and other contractual restrictions) as of December 31, 2010.  The fair value of certificates of deposit reflects amortized cost as of December 31, 2010.  See Valuation of Investments under Note 1 of the Notes to Financial Statements.                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (5)    | Control Investments are defined by the Investment Company Act of 1940, as amended (the "1940 Act"), as investments in which the Company owns more than 25% of the voting securities or where the Company has the ability to nominate greater than 50% of the board representation.  Affiliate Investments are defined by the 1940 Act as investments in which the Company owns between 5% and 25% of the voting securities.  Non-Control/Non-Affiliate Investments are defined by the 1940 Act as investments that are neither Control Investments nor Affiliate Investments. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (6)    | All portfolio company investments constituted qualifying investments under Section 55(a) of the 1940 Act as of December 31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

----

| 1.     | Description of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Keating Capital, Inc. (the “Company”) was incorporated on May 9, 2008 under the laws of the State of Maryland and is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”), as of November 20, 2008. The Company commenced its portfolio company investment activities in January 2010.  The shares of the Company's common stock were listed on the Nasdaq Capital Market beginning December 12, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | The Company’s investment objective is to maximize capital appreciation. The Company seeks to accomplish its capital appreciation objective by making investments in the equity securities of later stage, typically venture capital-backed, pre-IPO companies that are committed to and capable of becoming public. The Company generally acquires equity securities, including preferred stock that is convertible into common stock, common stock, and warrants exercisable into common or preferred stock.  The Company may in some cases invest in debentures or loans that are convertible into or settled with common stock; however, as of December 31, 2011 and 2010, none of the Company’s investments were convertible debentures or loans.  The Company’s investments are made principally through direct investments in prospective portfolio companies.  However, the Company may also purchase equity securities in private secondary transactions from current or former management or early stage investors in private companies that meet its investment criteria.                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Keating Investments, LLC (“Keating Investments”), or the ”investment adviser,” serves as the Company’s external investment adviser and also provides the Company with administrative services necessary for it to operate.  In this capacity, Keating Investments is primarily responsible for the selection, evaluation, structure, valuation and administration of the Company’s investment portfolio, subject to the supervision of the Company’s Board of Directors.  Keating Investments is a registered investment adviser under the Investment Advisers Act of 1940, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.     | Basis of Presentation; Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Under the 1940 Act rules and the regulations pursuant to Article 6 of Regulation S-X, the Company is precluded from consolidating any entity other than another investment company or an operating company that provides substantially all of its services and benefits to the Company. The Company’s financial statements include only the accounts of Keating Capital as the Company has no subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Reclassifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | For the year ended December 31, 2011, the Company separately classified travel and entertainment expenses as an individual line item in its Statement of Operations.  Travel and entertainment expenses were previously included as a component of general and administrative expenses in the Statement of Operations.  For comparative purposes, this line item has been separately classified in the Company’s Statement of Operations for the years ended December 31, 2010 and 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | For the year ended December 31, 2011 and 2010, the Company separately classified stock transfer agent fees, printing and fulfillment expenses, and postage and delivery expenses as individual line items in its Statement of Operations.  For the year ended December 31, 2009, stock transfer agent fees were previously included as a component of legal and professional fees, and printing and fulfillment expenses and postage and delivery expenses were previously included as components of general and administrative expenses in the Statement of Operations.  For comparative purposes, these line items have also been separately classified in the Company’s Statement of Operations for the year ended December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | As of December 31, 2011, the Company classified components of net assets in the Statements of Assets and Liabilities between stockholder capital and distributable earnings, or accumulated net investment loss, to reflect the Company’s election to be treated for tax purposes as a regulated investment company, or RIC, under the Internal Revenue Code of 1986, as amended (the “Code”).  As of December 31, 2010, 2009 and 2008, the net assets were classified in the Statements of Assets and Liabilities as if the Company was treated as a corporation under Subchapter C of the Code since, as of December 31, 2010 and the filing of the Company’s annual report for 2010 with the Securities and Exchange Commission (the “SEC”), the Company had not made its election to be treated as RIC effective for the 2010 taxable year.  For comparative purposes, the components of net assets in the Statements of Assets and Liabilities have been classified in the Company’s Statements of Assets and Liabilities as of December 31, 2010 and the Company’s Statements of Changes in Net Assets for the years ended December 31, 2010, 2009 and 2008 as if the Company were a RIC since inception. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s 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 reported period. Such estimates and judgments could change in the future as more information becomes known, and actual results could differ from these estimates and the differences could be material.  The Company considers its significant estimates to include the fair value of investments in portfolio company securities (see Note 3).                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Valuation of Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Investments are stated at value as defined under the 1940 Act, in accordance with the applicable regulations of the SEC, and in accordance with Accounting Standards Codification Topic 820, “Fair Value Measurement and Disclosures,” (“ASC 820”).  Value, as defined in Section 2(a)(41) of the 1940 Act, is: (i) the market price for 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 assets (see Note 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | At December 31, 2011 and 2010, approximately 45.0% and 18.3%, respectively, of the Company’s gross assets represented investments in portfolio companies that are valued at fair value by the Board of Directors.  The Company makes investments in later stage, typically venture capital-backed, private, pre-IPO companies in technology, Internet and software, and cleantech.  Given the nature of investing in the securities of private companies, the Company’s investments are generally considered Level 3 assets under ASC 820 until these portfolio companies become public and begin trading on a stock exchange and these securities are no longer subject to any post-IPO lockup restrictions.  As such, the Company values all of its investments, other than unrestricted securities in publicly traded portfolio companies, at fair value as determined in good faith by the Company’s Board of Directors, pursuant to a consistent valuation policy in accordance with the provisions of ASC 820 and the 1940 Act. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Determination of fair values involves subjective judgments and estimates. Due to the inherent uncertainty in determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments determined in good faith by its Board may differ significantly from the value that would have been used had a ready market existed for such investments, and the differences could be material.  Changes in valuation of these equity securities are recorded in our Statement of Operations as “Net change in unrealized appreciation (depreciation) on investments.”                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The 1940 Act requires periodic valuation of each investment in the Company’s portfolio to determine the Company’s net asset value. Under the 1940 Act, unrestricted securities with readily available market quotations are to be valued at the closing market price on the valuation date; all other assets must be valued at fair value as determined in good faith by or under the direction of the Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Equity investments for which market quotations are readily available are generally valued at the most recently available closing market prices.  However, equity investments for which market quotations are readily available, but which are subject to lockup provisions restricting the resale of such investments for a specified period of time, are valued at a discount to the most recently available closing market prices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | With respect to investments for which market quotations are not readily available, the Company’s Board of Directors undertakes a multi-step valuation process each quarter, as described below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

|   | ● | The Company’s quarterly valuation process begins with each portfolio company investment being initially valued by Keating Investments’ senior investment professionals responsible for the portfolio investment;                                                                                                                                                                                                                                                         |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | ● | Third-party valuation firms engaged by the Company’s Board of Directors review these preliminary valuations at such times as determined by the Company’s Board of Directors, provided, however, that a review will be conducted by a third-party valuation firm for each new portfolio company investment made during a calendar quarter, at such time as the valuation for a specific portfolio company investment is increased, and at least once every twelve months; |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | ● | The Company’s Valuation Committee reviews the preliminary valuations, and the Company’s investment adviser and the third-party valuation firms respond and supplement the preliminary valuation to reflect any comments provided by the Valuation Committee; and                                                                                                                                                                                                    |

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|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | The Company’s Board of Directors discusses the valuations and determines, in good faith, the fair value of each investment in the Company’s portfolio for which market quotations are not readily available based on the input of the Company’s investment adviser, the third-party valuation firms, and the Company’s Valuation Committee. |

|   | Investment Categories and Approaches to Determining Fair Value                                                                                                                                                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ASC 820 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 accordance with ASC 820, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: |

|   | ● | Level 1:  Observable inputs such as unadjusted quoted prices in active markets;                                                                                                  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                       |
|   | ● | Level 2: Includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and |
|   |    |                                                                                                                                                                                       |
|   | ● | Level 3: Unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.                                                      |

|   | The Company applies the framework for determining fair value as described above to the valuation of investments in each of the following categories:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Short-Term Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Short-term investments, which were composed of investments in certificates of deposit with original maturities of 90 days or less at December 31, 2010, are valued at amortized cost, which approximates fair value. The amortized cost method involves recording a security at its cost (i.e., principal amount plus any premium and less any discount) on the date of purchase and thereafter amortizing/accreting that difference between the principal amount due at maturity and cost assuming a constant yield to maturity as determined at the time of purchase.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | As of December 31, 2011, the Company had cash and cash equivalents of $39,606,512.  The Company primarily invests its cash on hand in money market funds that invest primarily in U.S. Treasury securities, U.S. Government agency securities, and repurchase agreements fully-collateralized by such securities.  During the year ended December 31, 2011, as the Company’s investments in four-week certificates of deposit matured, the Company invested the proceeds into these money market funds.    Accordingly, as of December 31, 2011, the Company no longer held any certificates of deposit classified as short-term investments.  Cash needed to fund the Company’s near-term operating expenses is held in a bank depository account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Equity Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Equity investments for which market quotations are readily available in an active market are generally valued at the most recently available closing market prices and are classified as Level 1 assets.  However, equity investments for which market quotations are readily available, but which are subject to lockup provisions restricting the resale of such investments for a specified period of time, are valued at a discount to the most recently available closing market prices and, accordingly, are classified as Level 3 assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The fair values of the Company’s equity investments for which market quotations are not readily available (including investments in convertible preferred stock) are determined based on various factors and are classified as Level 3 assets.  To determine the fair value of a portfolio company for which market quotations are not readily available, the Company analyzes the portfolio company’s most recently available historical and projected financial results, public market comparables, and other factors.  The Company also considers other events, including the transaction in which we acquired our securities, subsequent equity sales by the portfolio company, mergers or acquisitions affecting the portfolio company, or the completion of an IPO by the portfolio company.  In addition, the Company considers the trends of the portfolio company’s basic financial metrics from the time of its original investment until the measurement date, with material improvement of these metrics indicating a possible increase in fair value, while material deterioration of these metrics may indicate a possible reduction in fair value.  The fair values of the Company’s portfolio company securities are generally discounted for lack of marketability or when the securities are illiquid, such as when there are restrictions on resale or the lack of an established trading market which will generally be the case for pre-IPO companies, as well as during any lockup period to which the Company is subject with respect to public companies in its portfolio. |

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|   |                                                                                                                                                                                                                                                                                                                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The fair value of common and preferred stock warrants is generally determined by using option pricing models, such as the Black-Scholes model or, in cases of certain warrants where the Company’s ability to exercise may be contingent or be subject to certain metrics, a Monte Carlo simulation.   |
|   |                                                                                                                                                                                                                                                                                                                   |
|   | Fair Value of Investments                                                                                                                                                                                                                                                                                              |
|   | The following table categorizes the Company’s cash equivalents, short-term investments, and portfolio company investments measured at fair value based upon the lowest level of significant input used in the valuation as of December 31, 2011 and 2010:                                                        |

| Description                                                                       |   | Quoted PricesIn ActiveMarkets ForIdentical Assets(Level 1) |       | SignificantOtherObservableInputs (Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |   | Total FairValue |       |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------|------------|--------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------|------------|
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |
| As of December 31, 2011                                                           |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |
| Private Portfolio Company Securities:                                             |   |                                                       |       |                                       |   |   |                                    |   |   |            |
| Convertible Preferred Stock                                                       |   | $                                                          | -          |                                       |   | $      | -                                       |   |   | $               | 25,981,874 |   |   | $ | 25,981,874 |   |
| Convertible Preferred Stock Warrants                                              |   |                                                       | -          |                                       |   |   | -                                       |   |   |            | 1,323      |   |   |   | 1,323 |   |
| Common Stock                                                                      |   |                                                       | -          |                                       |   |   | -                                       |   |   |            | 8,399,996  |   |   |   | 8,399,996 |   |
| Common Stock Warrants                                                             |   |                                                       | -          |                                       |   |   | -                                       |   |   |            | 219,156    |   |   |   | 219,156 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Publicly Traded Portfolio Company Securities:                                     |   |                                                       |       |                                       |   |   |                                    |   |   |
| Common Stock                                                                      |   |                                                       | 2,671,631  |                                       |   |   | -                                       |   |   |            | -          |   |   |   | 2,671,631 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Cash Equivalents:                                                                 |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Money Market Funds                                                                |   |                                                       | 39,505,875 |                                       |   |   | -                                       |   |   |            | -          |   |   |   | 39,505,875 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Total                                                                             |   | $                                                          | 42,177,506 |                                       |   | $      | -                                       |   |   | $               | 34,602,349 |   |   | $ | 76,779,855 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| As of December 31, 2010                                                           |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Private Portfolio Company Securities:                                             |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |
| Convertible Preferred Stock                                                       |   | $                                                          | -          |                                       |   | $      | -                                       |   |   | $               | 4,149,991  |   |   | $ | 4,149,991 |   |
| Convertible Preferred Stock Warrants                                              |   |                                                       | -          |                                       |   |   | -                                       |   |   |            | 27,616     |   |   |   | 27,616 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Short-Term Investments:                                                           |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Certificates of Deposit (1)                                                       |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| (Maturing on January 6, 2011)                                                     |   |                                                       | -          |                                       |   |   | 13,500,000                              |   |   |            | -          |   |   |   | 13,500,000 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| Total                                                                             |   | $                                                          | -          |                                       |   | $      | 13,500,000                              |   |   | $               | 4,177,607  |   |   | $ | 17,677,607 |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |
| (1)    Fair value reflects amortized cost as of December 31, 2010. |   |                                                       |       |                                       |   |   |
|                                                                              |   |                                                       |       |                                       |   |   |                                    |   |   |            |       |   |   |   |   |   |

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|   | The following table provides a reconciliation of the changes in fair value for the Company’s portfolio company investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2011: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                   |   | Level 3 PortfolioCompanyInvestments(PreferredStock) |       |   | Level 3 PortfolioCompanyInvestments(PreferredWarrants) |   |    | Level 3 PortfolioCompanyInvestments(CommonStock) |   |   | Level 3 Portfolio CompanyInvestments(CommonWarrants) |   |   | Total  |     |
|------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|--------|--------------------------------------------------------|--------|---------|--------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|--------|----------|
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |
| Fair Value at December 31, 2010                                        |   | $                                                   | 4,149,991  |   |                                                   | $      | 27,616  |                                             |   | $      | -                                                    |   |   | $      | -        |   |   | $ | 4,177,607 |   |
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
| New investments in Level 3 portfolio company securities at cost        |   |                                                | 24,776,401 |   |                                                   |   | 2,853   |                                             |   |   | 6,411,076                                            |   |   |   | 589,000  |   |   |   | 31,779,330 |   |
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
| Gross transfers out of Level 3 to Level 1                              |   |                                                | (2,549,991 | )      |                                                   |   | -       |                                             |   |   |                                                 |   |   |   | -        |   |   |   | (2,549,991 | ) |
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
| Total unrealized (depreciation) appreciation on Level 3 portfolio |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |
|  company securities included in change in net assets              |   |                                                | (394,527   | )      |                                                   |   | (29,146 | )                                                |   |   | 1,988,920                                            |   |   |   | (369,844 | ) |   |   | 1,195,403 |   |
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
| Fair Value at December 31, 2011                                        |   | $                                                   | 25,981,874 |   |                                                   | $      | 1,323   |                                             |   | $      | 8,399,996                                            |   |   | $      | 219,156  |   |   | $ | 34,602,349 |   |
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
| Total unrealized (depreciation) appreciation on Level 3 portfolio |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
|  company securities included in change in net assets that were    |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |
|  still held by the Company at December 31, 2011.                  |   | $                                                   | (394,527   | )      |                                                   | $      | (29,146 | )                                                |   | $      | 1,988,920                                            |   |   | $      | (369,844 | ) |   | $ | 1,195,403 |   |
|                                                                   |   |                                                |       |   |                                                   |   |    |                                             |   |   |                                                 |   |   |   |     |   |   |   |   |   |

|   | The Company’s investments in securities of private companies are generally considered Level 3 assets under ASC 820 until these portfolio companies become public and begin trading on a stock exchange and until such time as these securities are no longer subject to any post-IPO lockup restrictions, at which time the Company transfers the value of these securities as of the prior year-end into Level 1 assets.   For the year ended December 31, 2011, transfers out of Level 3 – “Portfolio Company Investments (Preferred Stock)” resulted from two of the Company’s portfolio companies, NeoPhotonics Corporation (“NeoPhotonics”) and Solazyme, Inc. (“Solazyme”) completing an initial public offering and the Company’s securities in these portfolio companies being converted into common stock with the lockup restrictions on these common shares subsequently lapsing during 2011.  As of December 31, 2010, the Company’s convertible preferred stock investments in NeoPhotonics and Solazyme had a fair value of $1,550,000 and $999,991, respectively, as determined in good faith by the Company’s Board of Directors and were included as a component of Level 3 – “Portfolio Company Investments (Preferred Stock).”  These investments were transferred into Level 1 within the fair value hierarchy during 2011. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The following table provides a reconciliation of the changes in fair value for the Company’s portfolio company investments measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2010:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

|                                                                |   | Level 3 PortfolioCompanyInvestments(PreferredStock) |      |   | Level 3 PortfolioCompanyInvestments(PreferredWarrants) |   |   | Level 3 PortfolioCompanyInvestments(CommonStock) |   |   | Level 3 Portfolio Company Investments (Common Warrants) |   |   | Total  |   |
|---------------------------------------------------------------------|--------|-----------------------------------------------------|-----------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|--------|--------|
|                                                                |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |
| Fair Value at December 31, 2009                                     |   | $                                                   | -         |   |                                                   | $      | -      |                                             |   | $      | -                                                       |   |   | $      | -      |   |   | $ | - |   |
|                                                                |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
| New investments in Level 3 portfolio company securities at cost     |   |                                                | 3,571,286 |   |                                                   |   | 29,205 |                                             |   |   | -                                                       |   |   |   | -      |   |   |   | 3,600,491 |   |
|                                                                |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
| Total unrealized appreciation (depreciation) on Level 3 portfolio   |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
|  company securities included in change in net assets           |   |                                                | 578,705   |   |                                                   |   | (1,589 | )                                                |   |   | -                                                       |   |   |   | -      |   |   |   | 577,116 |   |
|                                                                |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
| Fair Value at December 31, 2010                                     |   | $                                                   | 4,149,991 |   |                                                   | $      | 27,616 |                                             |   | $      | -                                                       |   |   | $      | -      |   |   | $ | 4,177,607 |   |
|                                                                |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
| Total unrealized appreciation (depreciation) on Level 3 portfolio   |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
|  company securities included in change in net assets that were |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |
|  still held by the Company at December 31, 2010.               |   | $                                                   | 578,705   |   |                                                   | $      | (1,589 | )                                                |   | $      | -                                                       |   |   | $      | -      |   |   | $ | 577,116 |   |
|                                                                |   |                                                |      |   |                                                   |   |   |                                             |   |   |                                                    |   |   |   |   |   |   |   |   |   |

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|   | Valuation of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The Company believes that the carrying amounts of its financial instruments, consisting of cash and cash equivalents (including money market funds), receivables, accounts payable and accrued liabilities approximate the fair values of such items due to the short maturity of such instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Portfolio Company Investment Classification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The Company classifies its portfolio company investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in which the Company owns more than 25% of the voting securities or has rights to nominate greater than 50% of the board representation. Under the 1940 Act, “Affiliate Investments” are defined as investments in which the Company owns between 5% and 25% of the voting securities. Under the 1940 Act, “Non-Control/Non-Affiliate Investments” are defined as investments that are neither Control Investments nor Affiliate Investments.                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | At December 31, 2011, the Company had two portfolio company investments, Metabolon, Inc. and Corsair Components, Inc., which were Affiliate Investments, and no Control Investments.  No income was derived from these Affiliate Investments as both are non-incoming producing equity investments.  At December 31, 2010, the Company had no Affiliate Investments or Control Investments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Cash and cash equivalents are composed of demand deposits with original maturities of 90 days or less and investments in money market funds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Deferred Offering Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Offering expenses directly related to the Company’s continuous public offering, which concluded June 30, 2011, totaling $965,169 on a cumulative basis were initially deferred and subsequently amortized and charged against the gross proceeds of the continuous public offering, as a reduction to additional paid-in capital, on a straight-line basis beginning with the closing of the first common stock issuance on January 11, 2010 and continuing through the conclusion of the offering period on June 30, 2011.  During the year ended December 31, 2010, deferred offering costs totaling $476,806 were amortized and charged as a reduction to additional paid-in capital.  During the year ended December 31, 2011, deferred offering costs totaling $488,363 were amortized and charged as a reduction to additional paid-in capital. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Offering expenses incurred subsequent to January 11, 2010 associated with maintaining the registration of the continuous public offering (e.g., legal, accounting, printing and blue sky) were expensed as incurred.  During the years ended December 31, 2011 and 2010, $114,388 and $156,941, respectively, in offering expenses associated with maintaining the registration of the continuous public offering were expensed as incurred and were classified as Stock Issuance Expenses in the accompanying Statement of Operations.                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Concentration of Credit Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The Company may place its cash and cash equivalents with various financial institutions and, at times, cash held in depository accounts at such institutions may exceed the Federal Deposit Insurance Corporation insured limit.  The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Securities Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Securities transactions are accounted for on the date the transaction for the purchase or sale of the securities is entered into by the Company (i.e., trade date).  Securities transactions outside conventional channels, such as private transactions, are recorded as of the date the Company obtains the right to demand the securities purchased or to collect the proceeds from a sale, and incurs an obligation to pay for securities purchased or to deliver securities sold, respectively.                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Interest and Dividend Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Interest income from certificates of deposit and other short-term investments is recorded on an accrual basis to the extent such amounts are expected to be collected, and accrued interest income is evaluated periodically for collectability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | The Company’s preferred equity investments may pay fixed or adjustable rate, non-cumulative dividends and will generally have a “preference” over common equity in the payment of non-cumulative dividends and the liquidation of a portfolio company's assets. In order to be payable, non-cumulative distributions on such preferred equity must be declared by the portfolio company's board of directors.  Non-cumulative dividend income from preferred equity investments in portfolio companies is recorded when such dividends are declared or at the point an obligation exists for a portfolio company to make a distribution.                                                                                                                                                                                                            |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | In limited instances, the Company’s preferred equity investments may include cumulative dividend provisions, where such cumulative dividends, whether or not declared, accrue at a specified rate from the original investment date, have a “preference” over other classes of preferred equity and common equity with respect to payment, and are payable only when declared by a portfolio company’s board of directors or upon a qualifying liquidation event.  Cumulative dividends are recorded when such dividends are declared by the portfolio company’s board of directors, or when a specified event occurs triggering an obligation to pay such dividends.  When recorded, cumulative dividends are added to the balance of the preferred equity investment and are recorded as dividend income in the statement of operations.                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The Company’s preferred and common stock, warrants, and equity interests are generally non-income producing.  Except for the convertible preferred stock investment in Harvest Power, Inc. (“Harvest Power”), all convertible preferred stock investments carry a non-cumulative, preferred dividend payable when and if declared by the portfolio company's board of directors. In the case of Harvest Power, Inc., the shares of convertible preferred stock carry a cumulative preferred dividend, which is payable only when declared by the portfolio company's board of directors or upon a qualifying liquidation event.  Since no dividends have been declared or paid, or are expected to be declared or paid, with respect to these convertible preferred stock investments, these investments are considered to be non-income producing.                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | During the years ended December 31, 2011, 2010 and 2009, there were no non-cumulative or cumulative dividends recorded.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Other Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Other income is composed of fees, if any, for due diligence and management assistance that may be rendered to portfolio companies and prospective portfolio companies.  For services that are separately identifiable from the Company’s investment, income is recognized as earned, which is generally when the investment or other applicable transaction closes, or when the services are rendered if payment is not subject to the closing of an investment transaction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | During the year ended December 31, 2010, the Company recorded $10,000 in other income representing a non-refundable due diligence fee received from a prospective portfolio company in December of 2009, which was initially recorded as deferred income and was subsequently recognized as income when the proposed investment transaction failed to close in February 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Realized Gain or Loss and Unrealized Appreciation or Depreciation of Portfolio Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 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 on investment transactions are determined by specific identification.  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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | From incorporation through December 31, 2009, the Company was treated as a corporation under Subchapter C of the Code.  Effective January 1, 2010, the Company elected to be treated for tax purposes as a RIC under the Code.  The Company intends to operate so as to qualify as a RIC.  To maintain RIC tax treatment, the Company must meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of its investment company taxable income.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | As a RIC, the Company generally will not have to pay corporate-level federal income taxes on any investment company taxable income (which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses) or any realized net capital gains (which is generally net realized long-term capital gains in excess of net realized short-term capital losses) that the Company distributes to its stockholders as dividends.  Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. In addition, taxable income generally excludes any unrealized appreciation or depreciation in the Company’s portfolio company investments, because gains and losses are not included in taxable income until they are realized and required to be recognized. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The Company is not required to distribute its realized net capital gains, if any, to stockholders to maintain RIC tax treatment.  However, the Company generally will have to pay corporate-level federal income taxes on any realized net capital gains that the Company does not distribute to its stockholders. In the event the Company retains any of its realized net capital gains, including amounts retained to pay incentive fees to the investment adviser or to pay annual operating expenses, the Company may designate the retained amount as a deemed distribution to stockholders and will be required to pay corporate-level tax on the retained amount.                                                                                                                                                                                                                                                                                                |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The Company would also be subject to certain excise taxes imposed on RICs if it fails to distribute during each calendar year an amount at least equal to the sum of: (i) 98% of its ordinary income for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year, and (iii) any ordinary income and net capital gains for preceding years that were not distributed during such years.  The Company will not be subject to this excise tax on amounts on which the Company is required to pay corporate income tax (such as retained realized net capital gains).                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Provision for federal income taxes or excise taxes has not been made since the Company has elected to be taxed as a RIC and intends to comply with the provisions of the Code applicable to RICs and has not earned any investment company taxable income or realized net capital gains. Because federal income tax regulations differ from accounting principles generally accepted in the United States, distributions from net realized gains for financial reporting purposes may include short-term capital gains which are included in ordinary income for tax purposes.  Accounting principles generally accepted in the United States require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting.  These reclassifications have no effect on the net assets or net asset value per share and are intended to enable the Company’s stockholders to determine the amount of accumulated and undistributed earnings they potentially could receive in the future and on which they could be taxed. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | As of December 31, 2011, the Company’s net investment loss of $3,557,265, representing the Company’s 2011 ordinary loss for tax purposes which may not be carried forward to future years by a RIC, was charged to additional paid-in capital.  In addition, as of December 31, 2011, the Company’s distribution during 2011 of $446,837, which was treated as a tax return of capital to stockholders, was classified as a return of capital and thus charged to additional paid-in capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | For comparative purposes, the Company made the following reclassifications of its components of net assets for book purposes to reflect permanent book to tax differences as of December 31, 2010: (i) net investment loss of $1,861,570, representing the Company’s 2010 ordinary loss for tax purposes which may not be carried forward to future years by a RIC, was charged to additional paid-in capital, (ii) net investment loss of $995,978, representing the Company’s 2009 net operating loss as a C corporation for tax purposes which may not be carried forward to future years by a RIC, was charged to additional paid-in capital, and (iii) net investment loss of $528,960, representing the Company’s 2008 net operating loss as a C corporation for tax purposes which may not be carried forward to future years by a RIC, was charged to additional paid-in capital.                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The aggregate gross unrealized appreciation and depreciation, the net unrealized appreciation, and the aggregate cost of the Company’s portfolio company securities for federal income tax purposes as of December 31, 2011 and 2010 were as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

|   |                                                          |   | December 31, |       |   | December 31, |   |
|--------|---------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|
|   |                                                          |   | 2011         |       |   | 2010         |   |
|   |                                                          |   |         |       |   |         |   |
|   | Aggregate cost of portfolio company securities                |   |         |       |   |         |   |
|   | for federal income tax purposes                               |   | $            | 35,933,080 |   |         | $      | 3,600,491 |   |
|   |                                                          |   |         |       |   |         |   |   |   |
|   | Gross unrealized appreciation of portfolio company securities |   |         | 2,383,657  |   |         |   | 578,705 |   |
|   | Gross unrealized depreciation of portfolio company securities |   |         | (1,042,757 | )      |         |   | (1,589 | ) |
|   |                                                          |   |         |       |   |         |   |   |   |
|   | Net unrealized appreciation of portfolio company securities   |   | $            | 1,340,900  |   |         | $      | 577,116 |   |
|   |                                                          |   |         |       |   |         |   |   |   |

|   | As of December 31, 2011, the Company had no undistributed ordinary income, undistributed long-term capital gains or capital loss carryforwards for federal income tax purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The Company evaluates tax positions taken or expected to be taken in the course of preparing its tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the applicable period.  Although the Company files federal and state tax returns, its major tax jurisdiction is federal. The 2008, 2009, 2010 and 2011 federal tax years for the Company remain subject to examination by the Internal Revenue Service.  The 2008, 2009, 2010 and 2011 state tax years for the Company remain subject to examination by the Colorado Department of Revenue. |

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|   | As of December 31, 2011 and 2010, the Company had not recorded a liability for any unrecognized tax positions.  Management’s evaluation of uncertain tax positions may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof.  The Company’s policy is to include interest and penalties related to income taxes, if applicable, in general and administrative expenses.  There were no such expenses for the years ended December 31, 2011, 2010 and 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Dividends and Distributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Dividends and distributions to common stockholders must be approved by the Company’s Board of Directors and any dividend payable is recorded on the ex-dividend date. On February 11, 2011, the Company’s Board of Directors declared a special cash distribution of $446,837, or $0.13 per share outstanding on the record date.  The distribution was paid on February 17, 2011 to the Company’s stockholders of record as of February 15, 2011. This special cash distribution was based on the unrealized appreciation the Company had recorded on its investment in NeoPhotonics Corporation (“NeoPhotonics”) at the time of the distribution, following NeoPhotonics’ completion of its IPO.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | For income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital, long term capital gains or a combination thereof. The Company’s distribution of $446,837 to stockholders in February 2011 was characterized as a return of capital for income tax purposes since the Company did not generate any investment company taxable income or realized net capital gains during the year ended December 31, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The Company has adopted an “opt out” dividend reinvestment plan that provides for reinvestment of dividends and distributions on behalf of the Company’s stockholders, unless a stockholder elects to receive cash. As a result, if the Board of Directors authorizes, and the Company declares a cash dividend or distribution, then the Company’s stockholders who have not “opted out” of the dividend reinvestment plan will have their cash dividend automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash dividends or distributions. The Company’s distribution of $446,837 to stockholders in February 2011 was not eligible for reinvestment under the dividend reinvestment plan since the Company’s shares of common stock had not been listed on a stock exchange at the time of the distribution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Distributions to the Company’s stockholders will be payable only when and as declared by the Company’s Board of Directors and will be paid out of assets legally available for distribution.  All distributions will be paid at the discretion of the Board of Directors.  The Board of Directors maintains a distribution policy with the objective of distributing the Company’s net capital gains (which are defined as the Company’s realized capital gains in excess of realized capital losses during the year, without regard to the long-term or short-term character of such gains or losses), if any, after reduction for any incentive fees payable to the Company’s investment adviser, the Company’s operating expenses, and any other retained amounts.  Since the Company’s portfolio company investments will typically not generate current income (i.e., dividends or interest income), the Company does not typically expect to generate net ordinary income from which it could make distributions to its stockholders.  Distributions will also depend on our financial condition, maintenance of our RIC status, corporate-level income and excise tax planning, compliance with applicable business development company regulations and such other factors as the Company’s Board of Directors may deem relevant from time to time. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | In the event the Company retains some or all of its realized net capital gains, including amounts retained to pay incentive fees to the investment adviser or operating expenses, the Company may designate the retained amount as a deemed distribution to stockholders. In such case, among other consequences, the Company will pay corporate-level tax on the retained amount, each U.S. stockholder will be required to include its share of the deemed distribution in income as if it had been actually distributed to the U.S. stockholder, and the U.S. stockholder will be entitled to claim a credit or refund equal to its allocable share of the corporate-level tax the Company pays on the retained realized net capital gain.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Per Share Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Net changes in net assets resulting from operations per common share, or basic earnings per share, are calculated using the weighted average number of common shares outstanding for the period presented. Diluted earnings per share are not presented as there are no potentially dilutive securities outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Recently Issued Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standards setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial statements upon adoption.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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|   | In May 2011, the FASB issued Accounting Standards Update No. 2011-04 Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, or ASU 2011-04.  ASU 2011-04 clarifies the application of existing fair value measurement and disclosure requirements, changes the application of some requirements for measuring fair value and requires additional disclosure for fair value measurements. In addition, the disclosure requirements are expanded to include for fair value measurements categorized in Level 3 of the fair value hierarchy:  (i) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement; (ii) a description of the valuation processes in place; and (iii) a narrative description of the sensitivity of the fair value to changes in unobservable inputs and interrelationships between those inputs.  ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011, for public entities.  The Company is evaluating the impact that the adoption of this update may have on its financial position, results of operations and related disclosures. |
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| 3.     | Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The Company’s investments in portfolio companies consist of securities issued by private and publicly traded companies consisting of convertible preferred stock, common stock, and warrants to purchase convertible preferred stock and common stock. During the year ended December 31, 2011, the Company made investments totaling $30.8 million in 10 new private portfolio companies, $0.9 million in two existing private portfolio companies, and $0.6 million in Solazyme, Inc., one of our existing publicly traded portfolio companies, in open market transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | See the accompanying schedule of investments for the fair value of the Company’s investments in portfolio companies. The methodology for the determination of the fair value of the Company’s investments in portfolio companies is discussed in Note 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The following table summarizes the composition of the Company’s investment portfolio, excluding short-term investments in certificates of deposit, by type of security at cost and fair value as of December 31, 2011 and 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

|   |                                        |   | December 31, 2011 |       |   | December 31, 2010 |   |
|--------|---------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|   |                                        |   |              |       |   |              |   |   | Percentage |   |   |   |   |   |   |   |   | Percentage |   |
|   | Investment Type                             |   | Cost              |       |   | Fair Value        |   |   | of Portfolio |   |   | Cost |   |   | Fair Value |   |   | of Portfolio |   |
|   |                                        |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Private Portfolio Companies:                |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |   Convertible Preferred Stock          |   | $                 | 26,347,696 |   |              | $      | 25,981,874 |   |   |   | 69.70 | % |   | $ | 3,571,286 |   |   | $ | 4,149,991 |   |   |   | 99.34 | % |
|   |   Convertible Preferred Stock Warrants |   |              | 32,058     |   |              |   | 1,323 |   |   |   | 0.00 | % |   |   | 29,205 |   |   |   | 27,616 |   |   |   | 0.66 | % |
|   |   Common Stock                         |   |              | 6,411,076  |   |              |   | 8,399,996 |   |   |   | 22.54 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|   |   Common Stock Warrants                |   |              | 589,000    |   |              |   | 219,156 |   |   |   | 0.59 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|   |                                        |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Publicly Traded Portfolio Companies:        |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |   Common Stock                         |   |              | 2,553,250  |   |              |   | 2,671,631 |   |   |   | 7.17 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|   |                                        |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                                       |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |   |   |   | 100.00 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |

|   | The following table summarizes the composition of the Company’s investment portfolio, excluding short-term investments in certificates of deposit, by industry classification at cost and fair value as of December 31, 2011 and 2010. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                    |   | December 31, 2011 |       |   | December 31, 2010 |   |
|--------|-------------------------|--------|-------------------|------------|--------|-------------------|--------|
|   |                    |   |              |       |   |              |   |   | Percentage |   |   |   |   |   |   |   |   | Percentage |   |
|   | Industry Classification |   | Cost              |       |   | Fair Value        |   |   | of Portfolio |   |   | Cost |   |   | Fair Value |   |   | of Portfolio |   |
|   |                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Internet & Software |   | $                 | 11,328,857 |   |              | $      | 11,338,013 |   |   |   | 30.42 | % |   | $ | - |   |   | $ | - |   |   |   | - |   |
|   | Cleantech               |   |              | 15,053,262 |   |              |   | 15,438,843 |   |   |   | 41.42 | % |   |   | 2,099,991 |   |   |   | 2,099,991 |   |   |   | 50.27 | % |
|   | Technology              |   |              | 9,550,961  |   |              |   | 10,497,124 |   |   |   | 28.16 | % |   |   | 1,500,500 |   |   |   | 2,077,616 |   |   |   | 49.73 | % |
|   |                    |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total                   |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |   |   |   | 100.00 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |

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|   | The following table summarizes the composition of the Company’s investment portfolio, excluding short-term investments in certificates of deposit, by geographic region of the United States at cost and fair value as of December 31, 2011 and 2010.  The geographic composition is determined by the location of the corporate headquarters of the portfolio company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                |   | December 31, 2011 |       |   | December 31, 2010 |   |
|--------|---------------------|--------|-------------------|------------|--------|-------------------|--------|
|   |                |   |              |       |   |              |   |   | Percentage |   |   |   |   |   |   |   |   | Percentage |   |
|   | Geographic Location |   | Cost              |       |   | Fair Value        |   |   | of Portfolio |   |   | Cost |   |   | Fair Value |   |   | of Portfolio |   |
|   |                |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | West                |   | $                 | 22,933,073 |   |              | $      | 24,273,973 |   |   |   | 65.12 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |
|   | Northeast           |   |              | 6,500,000  |   |              |   | 6,500,000 |   |   |   | 17.44 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|   | Southeast           |   |              | 6,500,007  |   |              |   | 6,500,007 |   |   |   | 17.44 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|   |                |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total               |   | $                 | 35,933,080 |   |              | $      | 37,273,980 |   |   |   | 100.00 | % |   | $ | 3,600,491 |   |   | $ | 4,177,607 |   |   |   | 100.00 | % |
|   |                |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 4.     | Related Party Agreements and Transactions                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Investment Advisory and Administrative Services Agreement                                                                                                                                                                                                                                                                    |
|   | Subject to the overall supervision of the Company’s Board of Directors, the investment adviser manages the Company’s day-to-day operations and provides the Company with investment advisory services. Under the terms of the Investment Advisory and Administrative Services Agreement, the investment adviser: |

|   | ● | Determines the composition of the Company’s investment portfolio, the nature and timing of the changes to the  investment portfolio and the manner of implementing such changes; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                             |
|   | ● | Determines which securities the Company will purchase, retain or sell;                                                                                                                           |
|   |    |                                                                                                                                                                                             |
|   | ● | Identifies, evaluates and negotiates the structure of investments the Company makes, including performing due diligence on prospective portfolio companies; and                             |
|   |    |                                                                                                                                                                                             |
|   | ● | Closes, monitors and services the investments the Company makes.                                                                                                                                 |

|   | The investment adviser’s services under the Investment Advisory and Administrative Services Agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to the Company are not impaired.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The Company pays the investment adviser a fee for its investment advisory services under the Investment Advisory and Administrative Services Agreement consisting of two components: (i) a base management fee, and (ii) an incentive fee. The Company’s officers do not receive any compensation directly from the Company.  However, the principals and officers of the investment adviser who also serve as the Company’s officers receive compensation from, or may have financial interests in, the investment adviser, which may be funded by or economically related to the investment advisory fees paid by the Company to the investment adviser under to the Investment Advisory and Administrative Services Agreement. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Base Management Fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The base management fee (the “Base Fee”) is calculated at an annual rate of 2% of the Company’s gross assets, where gross assets include any borrowings for investment purposes.  The Company did not have any borrowings for the years ended December 31, 2011 or 2010.  The Base Fee is payable monthly in arrears, and is calculated based on the value of the Company’s gross assets at the end of the most recently completed calendar quarter, and adjusted for any equity capital raises or repurchases during the current calendar quarter.                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The Company recorded Base Fees of $1,153,058, $218,876 and $90,904 for the years ended December 31, 2011, 2010 and 2009, respectively.  As of December 31, 2011 and 2010, Base Fees payable to the investment adviser were $130,969 and $90,631, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Incentive Fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory and Administrative Services Agreement, as of the termination date), 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, with respect to each of the investments in the Company’s portfolio.  For purposes of determining the incentive fee to be paid, realized capital gains, realized capital losses and unrealized capital depreciation are each determined without regard to the holding period for the Company’s investments and include both long-term (held more than 12 months) and short-term holdings.  The investment adviser is not entitled to an incentive fee on investment income generated from interest or dividends on its portfolio company investments. For purposes of calculating the incentive fee, realized capital gains and losses include both short-term and long-term capital gains and losses.                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | During the years ended December 31, 2011, 2010 and 2009, no incentive fees were earned by or payable to the investment adviser in accordance with the contractual terms of the Investment Advisory and Administrative Services Agreement since the Company did not generate any realized capital gains during such periods.  However, during the years ended December 31, 2011 and 2010, the Company recorded $152,757 and $115,423 in incentive fee expense, respectively, resulting from the increase in net unrealized appreciation on its portfolio company investments of $763,784 and $577,116 during the years ended December 31, 2011 and 2010, respectively.  Additionally, as of December 31, 2011 and 2010, the Company had recorded accrued incentive fees payable to the investment adviser in the amounts of $268,180 and $115,423, respectively, with respect to $1,340,900 and $577,116 of net unrealized appreciation on its portfolio company investments as of December 31, 2011 and 2010, respectively.  Since the incentive fee is only payable based on realized short-term and long-term capital gains (after reduction for realized short-term and long-term capital losses and unrealized depreciation), the accrued incentive fee of $268,180 as of December 31, 2011 may differ from the actual incentive fee that may be paid to the investment adviser depending on whether the Company is ultimately able to dispose of its portfolio company investments and generate realized capital gains at least commensurate with the unrealized appreciation recorded. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Administrative Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Pursuant to the Investment Advisory and Administrative Services Agreement, the investment adviser furnishes the Company with office facilities, equipment, and clerical, bookkeeping and record-keeping services. The investment adviser also performs, or facilitates the performance of, certain administrative services, which includes being responsible for the financial records which the Company is required to maintain, and preparing reports to the Company’s stockholders and reports filed with the SEC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | In addition, the investment adviser assists the Company with its portfolio accounting and bookkeeping, managing portfolio collections and reporting, performing stockholder and investor relations services, determining and publishing its net asset value, overseeing the preparation and filing of its tax returns, printing and disseminating reports to its stockholders, providing support for its risk management efforts and generally overseeing the payment of its expenses and performance of administrative and professional services rendered to the Company by others.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The Company reimburses the investment adviser for the allocable portion of overhead and other expenses incurred by the investment adviser in performing its administrative obligations under the Investment Advisory and Administrative Services Agreement, including the allocable portion of compensation of the Company’s Chief Financial Officer and Chief Compliance Officer, and their respective staff.  However, during the year ended December 31, 2011, no portion of the Company’s Chief Compliance Officer’s compensation was allocated to the Company since he is also a member of the investment adviser’s Investment Committee.  Allocated administrative expenses are payable to the investment adviser monthly in arrears.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The Company recorded allocated administrative expenses of $450,019, $404,633 and $269,384 for the years ended December 31, 2011, 2010 and 2009 respectively.  As of December 31, 2011 and 2010, allocated administrative expenses payable to the investment adviser were $47,285 and $41,348, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The Company has agreed to reimburse the investment adviser for separation payments due to the Company’s former Chief Financial Officer. In consideration for certain separation services, the former Chief Financial Officer will be paid a separation payment equal to $8,000 per month (prorated for any partial month) for the period commencing on November 16, 2011 and continuing until April 30, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Reimbursable Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Reimbursable expenses payable to the investment adviser totaling $0 and $3,068 in the accompanying Statement of Assets and Liabilities at December 31, 2011 and 2010, respectively, represent amounts owed to investment adviser for direct expenses of the Company that were paid on its behalf by the investment adviser.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Duration and Termination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | An amended and restated version of the Investment Advisory and Administrative Services Agreement, which is presently in effect, was approved by the Company’s Board of Directors on April 17, 2009, and by the Company’s stockholders on May 14, 2009.  The current Investment Advisory and Administrative Services Agreement was in effect through April 17, 2011 and was renewed by the Board of Directors (including the non-interested directors) for an additional year at its meeting held on April 12, 2011.  The current Investment Advisory and Administrative Services Agreement will remain in effect from year to year thereafter if approved annually by (i) the vote of the Board of Directors, or by the vote of a majority of the Company’s outstanding voting securities, and (ii) the vote of a majority of the directors who are not interested persons. An affirmative vote of the holders of a majority of the Company’s outstanding voting securities is also necessary in order to make material amendments to the current Investment Advisory and Administrative Services Agreement.                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The Investment Advisory and Administrative Services Agreement automatically terminates in the event of its assignment. As required by the 1940 Act, the Investment Advisory and Administrative Services Agreement provides that the Company may terminate the agreement without penalty upon 60 days’ written notice to the investment adviser.  If the investment adviser wishes to voluntarily terminate the Investment Advisory and Administrative Services Agreement, it must give stockholders a minimum of 120 days’ notice prior to termination and must pay all expenses associated with its termination. The Investment Advisory and Administrative Services Agreement may also be terminated, without penalty, upon the vote of a majority of the Company’s outstanding voting securities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | License Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | The Company entered into a license agreement with the investment adviser, pursuant to which the investment adviser granted the Company a non-exclusive license to use the name “Keating.” Under the license agreement, the Company has the right to use the “Keating” name and logo for so long as Keating Investments or one of its affiliates remains the Company’s investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Keating” name or logo. The License Agreement will remain in effect for as long as the Investment Advisory and Administrative Services Agreement with the investment adviser is in effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Joint Liability Insurance Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The Company maintains a directors and officers liability insurance policy covering the directors and officers of the Company, insuring the Company against loss that it may be required or permitted to pay as indemnities of the directors and officers of the Company, and insuring the Company for certain securities claims.  The Company also maintains an additional policy providing for excess coverage in the case of non-indemnifiable claims, covering its directors and officers.  The coverages under these polices in certain cases extend to the officers, managers and employees of the investment adviser, and to the investment adviser’s Investment Committee.  On November 4, 2011, the Company and the investment adviser entered into a joint liability insurance agreement, which was approved by the Company’s non-interested directors, that allocates the premium cost of the directors and officers liability insurance policy and the excess coverage policy between the Company and the investment adviser and provides for the allocation of any deductibles and losses in excess of applicable insurance limits.  For the directors and officers liability insurance policy covering the policy year ending August 28, 2012, the joint liability insurance agreement specifies that 10% of the total premium under this policy be allocated to the investment adviser.  None of the premium under the excess coverage policy is allocated to the investment adviser. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 5.     | Capital Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | The Company’s authorized capital stock consists of 200,000,000 shares of stock, par value $0.001 per share, all of which has initially been designated as common stock.  Each share of common stock entitles the holder to one vote.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | From January 11, 2010 through June 30, 2011, the Company raised $78,423,340, net of issuance costs, in a continuous public offering of 8,713,705 shares of its common stock, with the final closing of escrowed funds from subscribing investors occurring July 11, 2011.   The shares of common stock were offered at $10.00 per share, adjusted for volume discounts and commission waivers.  All shares in the continuous public offering were sold at a price of either $9.30 or $10.00, depending on whether or not sales commissions were waived by the dealer manager.  The continuous public offering resulted in gross proceeds of $86,800,000, or an average price of $9.96 per share.  The investment adviser purchased 564 shares of common stock in the continuous public offering at a price of $10.00 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.     | Commitments and Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | In the normal course of business, the Company may enter into investment agreements under which it commits to make an investment in a portfolio company at some future date or over a specified period of time.  At December 31, 2011, the Company had not entered into any investment agreements which required it to make a future investment in a portfolio company. However, subsequent to December 31, 2011, the Company made a $18,435 investment in the Series C-2 convertible preferred stock of Livescribe, Inc. (“Livescribe”), an existing portfolio company in which the Company had previously invested $550,881. The Company has also committed to make an additional investment of $36,871 in the Series C-2 convertible preferred stock of Livescribe as part of a two additional closings that are expected to occur during 2012.  (See Note 10 - Subsequent Events). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The Company has also agreed to reimburse the investment adviser for separation payments due to the Company’s former Chief Financial Officer. In consideration for certain separation services, the former Chief Financial Officer will be paid a separation payment equal to $8,000 per month (prorated for any partial month) for the period commencing on November 16, 2011 and continuing until April 30, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The Company maintains a directors and officers insurance policy and an excess coverage policy for non-indemnifiable claims covering us and our officers and directors.  The Company has also agreed to indemnify its directors and officers to the maximum extent permitted by Maryland law subject to the restrictions in the 1940 Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | As of December 31, 2011, the Company was not a party to any material legal proceedings. However, from time to time, we may be party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 7.     | Changes in Net Assets Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The following table sets forth the computation of the basic and diluted per share net decrease in net assets resulting from operations for the years ended December 31, 2011, 2010 and 2009:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|   |                                                   |   | Years Ended December 31, |       |
|--------|--------------------------------------------------------|--------|--------------------------|------------|
|   |                                                   |   | 2011                     |       |   | 2010 |   |   | 2009 |   |
|   |                                                   |   |                     |       |   |   |   |   |   |   |
|   | Net decrease in net assets resulting from operations   |   | $                        | (2,946,238 | ) |   | $ | (1,399,877 | ) |   | $ | (995,978 | ) |
|   |                                                   |   |                     |       |   |   |   |   |   |   |   |   |   |
|   | Basic and diluted weighted average shares              |   |                     | 6,921,481  |   |   |   | 1,383,537 |   |   |   | 569,900 |   |
|   |                                                   |   |                     |       |   |   |   |   |   |   |   |   |   |
|   | Basic and diluted net decrease in net assets per share |   |                     |       |   |   |   |   |   |   |   |   |   |
|   |     resulting from operations           |   | $                        | (0.43      | ) |   | $ | (1.01 | ) |   | $ | (1.75 | ) |

|   | During the years ended December 31, 2011, 2010 and 2009, the Company had no dilutive securities outstanding.                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                        |
| 8.     | Financial Highlights                                                                                                                                                                        |
|   |                                                                                                                                                                                        |
|   | The following is a schedule of financial highlights for each of the three years in the period ended December 31, 2011 and for the period from May 9, 2008 (Inception) to December 31, 2008. |

----

----

|                                                                           |   |                     |       |   |         |   |       |   |   |   | Period from    |   |
|--------------------------------------------------------------------------------|--------|--------------------------|------------|--------|--------------|--------|------------|--------|--------|--------|----------------|--------|
|                                                                           |   |                     |       |   |         |   |       |   |   |   | May 9, 2008    |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   | (Inception) to |   |
|                                                                           |   | Years Ended December 31, |       |   | December 31, |   |
|                                                                           |   | 2011                     |       |   | 2010         |   |       | 2009   |   |   | 2008           |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |
| Per common share data                                                          |   |                     |       |   |         |   |       |   |   |   |           |   |
|   Net asset value, beginning of period                               |   | $                        | 7.85       |   |         | $      | 6.53       |   |   | $      | 8.27           |   |   | $ | - |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
| Net investment loss*                                                           |   |                     | (0.54      | )      |         |   | (1.43      | )      |   |   | (1.75          | )      |   |   | (0.93 | ) |
| Net change in unrealized appreciation on investments*                          |   |                     | 0.11       |   |         |   | 0.42       |   |   |   | -              |   |   |   | - |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Net decrease in net assets resulting from operations                    |   |                     | (0.43      | )      |         |   | (1.01      | )      |   |   | (1.75          | )      |   |   | (0.93 | ) |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
| Stockholder distributions:                                                     |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Distributions in excess of net realized gains on investments*      |   |                     | (0.06      | )      |         |   | -          |   |   |   | -              |   |   |   | - |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Net decrease in net assets resulting for stockholder distributions |   |                     | (0.06      | )      |         |   | -          |   |   |   | -              |   |   |   | - |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
| Capital stock transactions:                                                    |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Issuance of common stock in continuous public offering (1)         |   |                     | 1.83       |   |         |   | 4.26       |   |   |   | -              |   |   |   | 10.00 |   |
|   Offering costs from issuance of common stock*                      |   |                     | (0.89      | )      |         |   | (1.59      | )      |   |   | -              |   |   |   | - |   |
|   Amortization of deferred offering costs*                           |   |                     | (0.07      | )      |         |   | (0.34      | )      |   |   | -              |   |   |   | (0.80 | ) |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Net increase in net assets from capital stock transactions         |   |                     | 0.87       |   |         |   | 2.33       |   |   |   | -              |   |   |   | 9.20 |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Net asset value, end of period                                     |   | $                        | 8.23       |   |         | $      | 7.85       |   |   | $      | 6.53           |   |   | $ | 8.27 |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
| Ratios and supplemental data:                                                  |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |
|   Per share market price, end of period (2)                          |   | $                        | 8.46       |   |         |   | -          |   |   |   | -              |   |   |   | - |   |
|   Total return based on change in net asset value (3), (4)           |   |                     | 5.61       | %      |         |   | 20.21      | %      |   |   | (21.04         | %)     |   |   | (11.08 | %) |
|   Total return based on stock price (5)                              |   |                     | (14.46     | %)     |         |   | -          |   |   |   | -              |   |   |   | - |   |
|   Common shares outstanding, end of period                           |   |                     | 9,283,781  |   |         |   | 2,860,299  |   |   |   | 569,900        |   |   |   | 569,900 |   |
|   Weighted average common shares outstanding during period           |   |                     | 6,921,481  |   |         |   | 1,383,537  |   |   |   | 569,900        |   |   |   | 294,824 |   |
|   Net assets, end of period                                          |   | $                        | 76,384,715 |   |         | $      | 22,456,400 |   |   | $      | 3,719,496      |   |   | $ | 4,715,474 |   |
|   Ratio of operating expenses to average net assets (6)              |   |                     | 7.62       | %      |         |   | 15.52      | %      |   |   | 23.87          | %      |   |   | 35.62 | % |
|   Ratio of net investment loss to average net assets (6)             |   |                     | (7.51      | %)     |         |   | (15.11     | %)     |   |   | (23.62         | %)     |   |   | (34.70 | %) |
|   Weighted average debt per common share (7)                         |   | $                        | -          |   |         | $      | -          |   |   | $      | -              |   |   | $ | - |   |
|   Portfolio turnover (8)                                             |   |                     | -          |   |         |   | -          |   |   |   | -              |   |   |   | - |   |
|                                                                           |   |                     |       |   |         |   |       |   |   |   |           |   |   |   |   |   |

| *      | Based on weighted average shares outstanding during the period.                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (1)    | Represents the average increase in net asset value attributable to each share issued during the years ended December 31, 2011, 2010, and 2009.                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (2)    | The shares of the Company's common stock were listed on the Nasdaq Capital Market beginning December 12, 2011.  Accordingly, there was no market price for the shares as of December 31, 2010 and 2009.                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (3)    | For the years ended December 31, 2011, 2010 and 2009, total return based on change in net asset value equals the change in the end of the period net asset value over the beginning of the period net asset value plus distributions paid per weighted average share during the period, divided by the beginning of the period net asset value.                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (4)    | For the period from May 9, 2008 (Inception) through December 31, 2008, total return based on change in net asset value equals the change in the end of the period net asset value over the $9.30 per share offering price per share in the Company's initial private placement (net of placement agent commissions), divided by the initial private placement offering price of $9.30 per share.  This return calculation has not been annualized. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (5)    | Total return based on stock price equals the change in the end of the period stock price over the $9.96 per share average selling price of the Company's common stock in its continuous public offering (which concluded June 30, 2011) divided by the $9.96 per share average selling price in the continuous public offering.  This return calculation has not been annualized and includes the February 2011 distribution paid to stockholders. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (6)    | Ratios for the period from May 9, 2008 (Inception) to December 31, 2008 have been annualized.                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (7)    | During 2011, 2010 and 2009, the Company did not have any debt.                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (8)    | The only investment activity subject to the calculation of portfolio turnover was the Company's purchase of portfolio company investments during 2011 and 2010.  Since there were no sales of portfolio company investments during these periods, there was no portfolio turnover.                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

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| 9.     | Selected Quarterly Financial Data (Unaudited)                                                                                                                                                                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                           |
|   | The following tables set forth certain quarterly financial information for each of the last eight quarters ended December 31, 2011. This information was derived from our unaudited financial statements. Results for any quarter are not necessarily indicative of results for the full year or for any further quarter. |

|   |               |   |       |   |   |           |   |   |                          |   |   |            |   |   | Net Change |   |   | Net (Decrease) |   |
|--------|--------------------|--------|------------|--------|--------|----------------|--------|--------|-------------------------------|--------|--------|-----------------|--------|--------|------------|--------|--------|----------------|--------|
|   |               |   | Investment |   |   | Net Investment |   |   | in Unrealized Appreciation    |   |   | in Net Assets   |   |
|   |               |   | Income     |   |   | Loss           |   |   | (Depreciation) on Investments |   |   | from Operations |   |
|   |               |   |       |   |   |           |   |   |                          |   |   |            |   |   |       |   |   |           |   |   |   |   |   |   |   |
|   |               |   |       |   |   | Per            |   |   |                          |   |   | Per             |   |   |       |   |   | Per            |   |   |   |   |   | Per |   |
|   | Quarter Ended      |   | Total      |   |   | Share (1)      |   |   | Total                         |   |   | Share (1)       |   |   | Total      |   |   | Share (1)      |   |   | Total |   |   | Share (1) |   |
|   |               |   |       |   |   |           |   |   |                          |   |   |            |   |   |       |   |   |           |   |   |   |   |   |   |   |
|   | March 31, 2010     |   |       | 15,725 |   |           |   | 0.02   |                          |   |   | (309,532        | )      |   |       | (0.42  | )      |           |   | 550,000 |   |   |   | 0.75 |   |   |   | 240,468 |   |   |   | 0.33 |   |
|   | June 30, 2010      |   |       | 7,894  |   |           |   | 0.01   |                          |   |   | (503,859        | )      |   |       | (0.48  | )      |           |   | - |   |   |   | - |   |   |   | (503,859 | ) |   |   | (0.48 | ) |
|   | September 30, 2010 |   |       | 12,428 |   |           |   | 0.01   |                          |   |   | (414,186        | )      |   |       | (0.28  | )      |           |   | 27,364 |   |   |   | 0.02 |   |   |   | (386,822 | ) |   |   | (0.26 | ) |
|   | December 31, 2010  |   |       | 17,962 |   |           |   | 0.01   |                          |   |   | (749,416        | )      |   |       | (0.34  | )      |           |   | (248 | ) |   |   | * |   |   |   | (749,664 | ) |   |   | (0.34 | ) |
|   |               |   |       |   |   |           |   |   |                          |   |   |            |   |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | March 31, 2011     |   |       | 24,091 |   |           |   | 0.01   |                          |   |   | (859,278        | )      |   |       | (0.24  | )      |           |   | 77,915 |   |   |   | 0.02 |   |   |   | (781,363 | ) |   |   | (0.22 | ) |
|   | June 30, 2011      |   |       | 19,187 |   |           |   | *      |                          |   |   | (1,123,755      | )      |   |       | (0.20  | )      |           |   | 684,683 |   |   |   | 0.12 |   |   |   | (439,072 | ) |   |   | (0.08 | ) |
|   | September 30, 2011 |   |       | 6,382  |   |           |   | *      |                          |   |   | (583,214        | )      |   |       | (0.06  | )      |           |   | (776,954 | ) |   |   | (0.09 | ) |   |   | (1,360,168 | ) |   |   | (0.15 | ) |
|   | December 31, 2011  |   |       | 4,688  |   |           |   | *      |                          |   |   | (1,143,775      | )      |   |       | (0.12  | )      |           |   | 778,140 |   |   |   | 0.08 |   |   |   | (365,635 | ) |   |   | (0.04 | ) |

|   | *      | Per share amounts less than $0.01.                                                                           |
|--------|--------|--------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                         |
|   | (1)    | Per share amounts are calculated using weighted average shares outstanding during the quarterly period. |

| 10.    | Subsequent Events                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | On January 12, 2012, the Company made a $18,435 investment in the Series C-2 convertible preferred stock of Livescribe, an existing portfolio company in which the Company had previously invested $550,881. The Company has also committed to make an additional investment of $36,871 in the Series C-2 convertible preferred stock of Livescribe as part of two additional closings that are expected to occur during 2012. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | During January 2012, the Company purchased 50,000 shares of Solazyme’s common stock in open market transactions for an aggregate purchase price of $527,500, or $10.55 per share, including commissions.                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | On January 27, 2012, the Company made a $3,000,000 investment in the Series E convertible preferred stock of Zoosk, Inc., an online dating community.                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | On February 7, 2012, the Company entered into an agreement to make a $5,000,000 investment in the convertible preferred stock of a private company.                                                                                                                                                                                                                                                                            |

----

Item 9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A. Controls and Procedures

Item 9B. Other Information

----

PART III

Item 10.  Directors, Executive Officers and Corporate Governance

Item 11.  Executive Compensation

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13.  Certain Relationships and Related Transactions, and Director Independence

Item 14.  Principal Accountant Fees and Services

----

PART IV

Item 15.

| Financial Statements                                                                      |   |
|-------------------------------------------------------------------------------------------|--------|
|                                                                                      |   |
| Report of Independent Registered Public Accounting Firm                                   | 72     |
|                                                                                      |   |
| Statements of Assets and Liabilities as of December 31, 2011 and 2010                     | 73     |
|                                                                                      |   |
| Statements of Operations for the Years Ended December 31, 2011, 2010, and 2009            | 74     |
|                                                                                      |   |
| Statements of Changes in Net Assets for the Years Ended December 31, 2011, 2010, and 2009 | 75     |
|                                                                                      |   |
| Statements of Cash Flows for the Years Ended December 31, 2011, 2010, and 2009            | 76     |
|                                                                                      |   |
| Schedule of Investments as of December 31, 2011                                           | 77     |
|                                                                                      |   |
| Schedule of Investments as of December 31, 2010                                           | 79     |
|                                                                                      |   |
| Notes to Financial Statements                                                             | 80     |

----

| 3.1   | Amended and Restated Articles of Incorporation (Incorporated by reference to Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form N-2 (File No. 333-157217), filed on April 21, 2010)                         |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2   | Articles of Amendment to Amended and Restated Articles of Incorporation (Incorporated by reference to Post-Effective Amendment No. 3 to the Registrant’s Registration Statement on Form N-2 (File No. 333-157217), filed on May 27, 2010)  |
| 3.3   | Amended and Restated Bylaws (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 0-53504), filed on April 23, 2009)                                                                                         |
| 3.4   | Amendment to Bylaws dated August 5, 2010 (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 0-53504), filed on August 9, 2010)                                                                            |
| 3.5   | Amendment to Bylaws dated October 22, 2010 (Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 0-53504), filed on October 26, 2010)                                                                        |
| 3.6   | Amended and Restated Dividend Reinvestment Plan (Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q (File No. 0-53504), filed on August 12, 2011)                                                                 |
| 4.1   | Form of Share Certificate (Incorporated by reference to the Registrant’s Annual Report on Form 10-K (File No. 0-53504), filed on March 9, 2009)                                                                                            |
| 10.1  | Form of Amended and Restated Investment Advisory and Administrative Services Agreement (Incorporated by reference to Amendment No. 1 to the Registrant’s Registration Statement on Form N-2 (File No. 333-157217), filed on May 1, 2009)   |
| 10.2  | License Agreement between the Company and Keating Investments, LLC (Incorporated by reference to the Registrant’s Registration Statement on Form 10 (File No. 0-53504), filed on November 20, 2008)                                        |
| 10.3  | Form of Indemnification Agreement for Directors (Incorporated by reference to Amendment No. 2 to the Registrant’s Registration Statement on Form N-2 (File No. 333-157217), filed on June 5, 2009)                                         |
| 10.4  | Custody Agreement between the Company and Steele Street Bank & Trust (Incorporated by reference to the Registrant’s Registration Statement on Form 10 (File No. 0-53504), filed on November 20, 2008)                                  |
| 11    | Computation of Per Share Earnings (included in the notes to the unaudited financial statements contained in this report)                                                                                                                         |
| 31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.                                                                                                                             |
| 31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.                                                                                                                             |
| 32.1* | Certification of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.                                                                                                                                              |
| 32.2* | Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.                                                                                                                                              |
| *     | Filed herewith.                                                                                                                                                                                                                                       |

----

SIGNATURES

|                                |                                                                                    |
|-------------------------------------|-----------------------------------------------------------------------------------------|
|                                | KEATING CAPITAL, INC.                                                                   |
|                                |                                                                                    |
| Date:  March 1, 2012 | /S/    Timothy J. Keating        |
|                                | Timothy J. KeatingPresident and Chief Executive Officer                                 |

|                                | /s/    Timothy J. Keating                                   |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
| Date:  March 1, 2012 | Timothy J. KeatingPresident, Chief Executive Officer andChairman of the Board of Directors(Principal Executive Officer) |
|                                |                                                                                                                    |
|                                | /s/   Stephen M. Hills                                           |
| Date:  March 1, 2012 | Stephen M. HillsChief Financial Officer and Treasurer(Principal Accounting and Financial Officer)                       |
|                                |                                                                                                                    |
|                                | /s/    Frederic M. Schweiger                                                    |
| Date:  March 1, 2012 | Frederic M. SchweigerDirector                                                                                           |
|                                |                                                                                                                    |
|                                | /s/    J. Taylor Simonton                                   |
| Date:  March 1, 2012 | J. Taylor SimontonDirector                                                                                              |
|                                |                                                                                                                    |
|                                | /s/    Andrew S. Miller                                     |
| Date:  March 1, 2012 | Andrew S. MillerDirector                                                                                                |
|                                |                                                                                                                    |
|                                | /s/    Laurence W. Berger                                   |
| Date:  March 1, 2012 | Laurence W. BergerDirector                                                                                              |
|                                |                                                                                                                    |
|                                | /s/    Brian P. Alleman                                               |
| Date:  March 1, 2012 | Brian P. AllemanDirector                                                                                                |