Keating Capital Reports Fourth Quarter 2013 Results and Announces Distributions for Q1, Q2 and Q3 2014

  Keating Capital Reports Fourth Quarter 2013 Results and Announces
  Distributions for Q1, Q2 and Q3 2014

  *$4.4 million of net realized gains in 2013
  *Total dividends of $0.49 per share in 2013; equivalent to yield of 8.0%
    based on 2013 year-end stock price of $6.15
  *Board adopts new quarterly distribution policy effective Q1 2014
  *Board policy provides distributions payable in cash or shares of Keating
    Capital common stock (at the election of stockholders), subject to
    limitation that no more than 25% of aggregate distribution will be paid in
    cash, with the remainder paid in shares of common stock
  *Board declares regular quarterly distribution of $0.10 per share for each
    of Q1, Q2 and Q3 2014
  *Unless and until stock price exceeds NAV, no new equity issuance planned
    in 2014

Business Wire

GREENWOOD VILLAGE, Colo. -- February 24, 2014

On February 24, 2014, Keating Capital, Inc. (“Keating Capital” or the
“Company”) (Nasdaq: KIPO), a closed-end fund that has elected to be regulated
as a business development company under the Investment Company Act of 1940,
reported financial results for the fourth quarter and year ending December 31,
2013.

Management Commentary

“In 2013, we generated $4.4 million of net realized capital gains, which we
distributed 100% to our stockholders, resulting in total dividends of $0.49
per share.

We expect a majority of our private portfolio companies to complete an IPO or
strategic sale/merger over the course of the next four to eight quarters.
Based on our net realized gains from our four portfolio company sales thus far
(and the 22% weighted-average internal rate of return from these sales^1), we
remain confident that our model has been validated.

Finally, we further believe that our adoption of a quarterly distribution
policy, which is discussed below, will make Keating Capital’s stock more
attractive to both existing and potential new stockholders,” stated Timothy J.
Keating, CEO of Keating Capital, Inc.

2013 Portfolio Activity and Analysis

Investment Activity

During 2013, Keating Capital made investments totaling $3.0 million in one new
portfolio company Deem, Inc., and approximately $1.2 million in two existing
private portfolio companies.

Portfolio Company Sales

The Company defines a “sale” as the disposition of its interest in a portfolio
company that has either completed an IPO (after the expiration of the
customary 180-day lockup) or been acquired. The gains realized in 2013 were
sourced from the sale of Keating Capital’s investments in Corsair Components,
LifeLock and Solazyme. Including the sale of its position in NeoPhotonics in
2012, Keating Capital has sold four portfolio company positions to date.

The overall weighted-average internal rate of return on these portfolio
company sales taken as a whole was 22%, calculated at the portfolio company
level, before giving effect to the Company’s operating expenses (including any
incentive fees). See footnote 1.

Portfolio Company Exits

The Company defines an “exit” as a portfolio company that has either completed
an IPO or been acquired, but which it has not yet sold its position. In 2013,
Keating Capital had two such exits: Tremor Video and Jumptap.

  *Tremor Video

On June 26, 2013, Tremor Video completed the pricing of its IPO of 7,500,000
shares of common stock at a price to the public of $10.00 per share. The cost
basis of Keating Capital’s Tremor common stock is $4 million, or $6.67 per
share.

  *Millennial Media/Jumptap

On November 6, 2013, portfolio company Jumptap, Inc. completed a merger with
Millennial Media, Inc. (NYSE: MM) (“Millennial”). As part of the merger,
Keating Capital received 1,247,893 shares of Millennial common stock, which
have a cost basis of $5 million, or $4.01 per share. As of December 31, 2013,
the fair value of Keating Capital’s investment in Millennial was marked at
$8.1 million based on Millennial’s closing price of $7.27 at year-end,
adjusted for an 11% discount for lack of marketability due to lockup
restrictions.

On February 5, 2014, the lockup restrictions on 415,964 shares of Keating
Capital’s Millennial stock expired. As of February 20, 2014, Keating Capital
had sold 415,964 shares of Millennial at an average price of $7.13 per share,
for net realized gains of $1.3 million. Beginning on or about May 5, 2014, the
lockup restrictions on an additional 696,735 shares will expire. In addition,
a total of 135,194 shares of Millennial are being held in escrow until
November 6, 2014 for potential indemnification obligations.

Portfolio Analysis

Keating Capital holds investments in 17 portfolio companies with a fair value
of $62.0 million and $13.5 million in cash and cash equivalents.

As of December 31, 2013, the net unrealized appreciation of Keating Capital’s
portfolio was $6.4 million, consisting of: (i) ten portfolio company
investments with aggregate unrealized appreciation of $15.3 million (including
Deem which is marked at cost), and (ii) seven portfolio company investments
with aggregate unrealized depreciation of $8.9 million. The unrealized
appreciation (depreciation) of each of Keating Capital’s portfolio companies
as of December 31, 2013, is set forth in the table below.

                                                    
                           December 31, 2013
                                                       
                                                          Unrealized
                                                          Appreciation
Portfolio Company           Cost           Value          (Depreciation)
                                                          
Millennial Media, Inc.      $ 4,999,995    $ 8,074,242    $ 3,074,247
Xtime, Inc.                   3,000,000      5,830,000      2,830,000
Zoosk, Inc.                   2,999,999      5,650,000      2,650,001
SilkRoad, Inc.                6,028,667      8,608,667      2,580,000
Metabolon, Inc.               4,000,000      6,140,000      2,140,000
Glam Media, Inc.              4,999,999      5,750,000      750,001
TrueCar, Inc.                 2,999,996      3,720,000      720,004
Kabam, Inc.                   1,328,860      1,620,000      291,140
Harvest Power, Inc.           2,499,999      2,770,000      270,001
Deem, Inc.                    3,000,000      3,000,000      -
MBA Polymers, Inc.            2,000,000      1,530,000      (470,000   )
Tremor Video, Inc.            4,000,001      3,479,994      (520,007   )
Livescribe, Inc.              606,187        -              (606,187   )
Suniva, Inc.                  2,500,007      1,330,000      (1,170,007 )
BrightSource Energy, Inc.     3,111,033      1,693,902      (1,417,131 )
Agilyx Corporation            4,000,000      1,840,000      (2,160,000 )
Stoke, Inc.                  3,500,000     940,000       (2,560,000 )
                                                          
Total                       $ 55,574,743   $ 61,976,805   $ 6,402,062  
                                                          

Dividends

In 2013, Keating Capital generated $4.4 million of net realized capital gains,
which it distributed 100% to its stockholders resulting in total dividends of
$0.49 per share. The dividend yield on Keating Capital’s stock for 2013 was
8.0%, which is its total dividends declared in 2013 divided by the $6.15 per
share closing stock price as of December 31, 2013. Since its first
distribution in 2011, Keating Capital has now distributed a total of $0.65 per
share to its stockholders.

                                                       
                                   Payment         Amount       Source of
Date Declared     Record Date      Date            Per          Distribution
                                                   Share
                                                                
2013
Dividends:
May 28, 2013      June 14,         June 26,        $  0.24      Capital Gains
                  2013             2013
May 28, 2013      September        September          0.24      Capital Gains
                  13, 2013         25, 2013
December 19,      December 30,     January 13,       0.01      Capital Gains
2013              2013             2014                         (1)
Total - 2013 Dividends                               0.49
                                                                
2012
Dividends:
December 6,       December 14,     December          0.03      Capital Gains
2012              2012             26, 2012
Total - 2012 Dividends                               0.03
                                                                
2011
Dividends:
February 11,      February 15,     February          0.13      Return of
2011              2011             17, 2011                     Capital (2)
Total - 2011 Dividends                               0.13
                                                                
Total - Cumulative                                 $  0.65
                                                                

      Although the dividend of $0.01 per share was paid on January 13, 2014,
(1)  this dividend will be taxable to stockholders as if paid in 2013. For
      income and excise tax purposes, this dividend will be eligible for the
      dividends paid deduction by the Company in 2013.
      
      The February 2011 distribution was a special cash distribution based on
(2)   the unrealized appreciation the Company had recorded on its NeoPhotonics
      investment at the time of the distribution, following NeoPhotonics’
      completion of its IPO.
      

Quarterly Distribution Policy

On February 20, 2014, Keating Capital’s Board of Directors adopted a quarterly
distribution policy where it intends to pay regular quarterly distributions to
its stockholders based on estimated net capital gains for a given calendar
year.

Under the quarterly distribution policy, Keating Capital seeks to maintain a
consistent distribution level that may be paid in part or in full from net
capital gains or a return of capital, or a combination thereof. If Keating
Capital’s actual net capital gains are less than the total amount of its
regular quarterly distributions for the year, the difference will be
distributed from its capital and will constitute a return of capital to
stockholders. Alternatively, if Keating Capital’s actual net capital gains
exceed the total amount of its regular quarterly distributions for a given
year, Keating Capital’s Board of Directors currently intends to adjust or make
an additional distribution in December of each year so that the total
distributions for any given year represent 100% of Keating Capital’s actual
net capital gains in that year. A return of capital is generally not taxable
and, instead, reduces a stockholder's tax basis in his shares of Keating
Capital.

The quarterly distribution policy reflects Keating Capital’s commitment to
stockholders to provide a predictable, but not assured, level of quarterly
distributions based on the estimated amount of net capital gains it projects
to realize during the year. However, due to the uncertainty of portfolio
companies achieving a liquidity event through either an IPO or sale/merger and
the Company’s ability to sell its positions at a gain following a liquidity
event, the Company can give no assurance that it will be able to realize net
capital gains during the year equal to the amount of its regular quarterly
distributions. In addition, the Company can give no assurance that it will be
able to realize any net capital gains from the sale of its portfolio company
investments.

On February 20, 2014, the Board declared a regular distribution for the first,
second and third quarter of 2014 each in the amount of $0.10 per share. The
record and payment dates for these distributions are as follows:

  Regular          Amount      Record Date       Payment Date
    Distributions      per Share
    First Quarter      $0.10         March 6, 2014       April 14, 2014
    Second Quarter     $0.10         May 8, 2014         June 17, 2014
    Third Quarter      $0.10         August 11, 2014     September 18, 2014
                                                         

Each of these quarterly distributions will be paid in cash or common stock at
the election of stockholders. See “Stock Distributions” below.

Stock Distributions

On February 20, 2014, Keating Capital’s Board determined that it intends to
pay regular quarterly distributions in cash or shares of Keating Capital’s
common stock at the election of stockholders, subject to a limitation that no
more than 25% of the aggregate distribution will be paid in cash with the
remainder paid in shares of common stock.

Keating Capital’s Board believes there are a number of benefits from paying
stock distributions and retaining cash for additional portfolio company
investments, including: (i) that increased cash resources would allow Keating
Capital to make investments in a greater number of portfolio companies at
potentially larger investment amounts, (ii) that an increased capital base
would have the effect of reducing Keating Capital’s operating expenses as a
percentage of its net assets, and (iii) that a higher market capitalization
and potentially greater liquidity may make Keating Capital’s common stock more
attractive to investors and help reduce or eliminate its stock price discount
to NAV over time. Keating Capital expects to continue to pay a portion of its
distributions in shares of its common stock until such time as it has
eliminated its stock price discount to NAV and can successfully access the
equity capital markets, or on an ongoing basis.

The Company will be providing additional information to stockholders on their
cash and stock elections for the Q1 2014 distribution on or about March 7,
2014.

Capitalization

As of December 31, 2013, Keating Capital had 9,548,902 shares of common stock
issued and outstanding. There are no options, warrants, or other classes of
securities issued or outstanding. Additionally, it had no debt.

Stock Repurchase Program

In May 2012, as part of an overall discount control management program,
Keating Capital initiated a stock repurchase plan. The Board discontinued the
stock repurchase program in October 2013 in order to make additional capital
available for potential new investment opportunities. During the 17-month
duration of the repurchase program, Keating Capital repurchased 448,441 shares
of its common stock for approximately $3.0 million, or an average price of
$6.61 per share. The total shares repurchased under the program represented
approximately 4.8% of the outstanding shares at the time Keating Capital
commenced the stock repurchase program, and all the purchases were immediately
accretive to NAV. The weighted-average discount to NAV for all repurchased
shares was 17%. As and when Keating Capital has access to additional capital
that does not impair its ability to make additional portfolio company
investments, the Board may consider reauthorizing a stock repurchase program.

Rights Offering and Future Equity Offerings

On December 16, 2013, Keating Capital completed a rights offering, which
resulted in the issuance of 713,652 additional shares of common stock at a
subscription price of $6.00 per share for net proceeds of $3.9 million after
offering costs. The Company intends to use the proceeds from the rights
offering to fund additional portfolio company investments and for general
working capital purposes.

The Company does not intend to raise additional equity capital in 2014 unless
and until its stock price is at or above its net asset value per share.
Capital for additional portfolio company investments will be provided from the
Company’s available cash and the proceeds from its sale of existing portfolio
company investments.

Results of Operations and Balance Sheet

Decrease in Net Asset Value for the Fourth Quarter

As of December 31, 2013, the total fair value of Keating Capital’s 17
portfolio company investments was $62.0 million. The Company also had cash and
cash equivalents of $13.5 million, or $1.42 per share. The Company’s net
assets at December 31, 2013 were $73.0 million, or $7.65 per share, a decline
of $0.28 per share during the fourth quarter.

The components that typically drive the changes in NAV each quarter are: (i)
net investment losses, effectively the Company’s operating expenses, (ii)
realized gains/losses on portfolio company dispositions, (iii) the change in
unrealized appreciation/depreciation on portfolio company investments, and
(iv) distributions paid to stockholders or capital transactions. During the
three months ended December 31, 2013:

  *The Company had net investment loss—effectively the Company’s operating
    expenses (including base management fees and accrued incentive fees)—of
    approximately $740,000, or a loss of $0.08 per share. The Company’s
    operating expenses, excluding base management fees and accrued incentive
    fees, were approximately $412,000 in the fourth quarter. During the fourth
    quarter, the Company recorded a decrease in incentive fee expense of
    approximately $14,000 resulting from a decrease in net unrealized
    appreciation of approximately $70,000 during the fourth quarter.
  *The Company had no realized gains or losses during the fourth quarter
    since it did not dispose of any portfolio company positions.
  *The Company had a net decrease in unrealized appreciation on its portfolio
    company investments of approximately $70,000, or a decrease of less than
    $0.01 per share, as a result of the following:

       *Write-ups during the quarter of approximately $3.5 million in seven
         portfolio companies.
       *Write-downs during the quarter of approximately $3.6 million in six
         portfolio companies.

  *The Company’s NAV decreased by $0.01 per share as a result of its dividend
    paid in December.
  *The Company’s issuance of 713,652 shares of common stock in connection
    with the December 2013 rights offering resulted in a decrease of $0.19 per
    share.

Decrease in Net Asset Value for 2013

In 2013, the Company’s net asset value decreased from $8.00 to $7.65 per
share, a decrease of $0.35. The composition of the $0.35 per share decrease
consisted of the following:

  *The Company had net investment loss of approximately $5.3 million, or a
    loss of $0.59 per share. The Company’s operating expenses, excluding base
    management fees, accrued incentive fees and costs related to the Company’s
    follow-on offering registration statement which was withdrawn in the
    second quarter of 2013, were approximately $2.1 million for 2013, in line
    with its previous estimates.

    As of December 31, 2013, the Company had approximately $2.2 million of
    accrued incentive fees related to net unrealized appreciation and
    cumulative net realized gain on its investments. However, as of December
    31, 2013, the Company’s investment adviser would not be entitled to
    payment of an incentive fee until the Company has achieved cumulative net
    realized gains on its investments in excess of approximately $8.9 million,
    which represents the sum of each portfolio company investment with
    unrealized depreciation as of December 31, 2013. As of December 31, 2013,
    the Company had approximately $4.7 million of cumulative net realized
    gains, resulting from the sale of its positions in NeoPhotonics, Solazyme,
    LifeLock and Corsair.

  *In 2013, the Company generated $4.4 million of net realized capital gains
    for an increase of $0.49 per share. The gains realized in 2013 were
    sourced from the sale of the Company’s investments in Corsair Components,
    LifeLock and Solazyme.
  *The Company had a net increase in unrealized appreciation on its portfolio
    company investments of approximately $3.2 million, or an increase of $0.35
    per share, as a result of the following:

       *Write-ups during the year of approximately $12.8 million in nine
         portfolio companies.
       *Write-downs during the year of approximately $6.4 million in six
         portfolio companies.
       *A reversal of the December 31, 2012 net unrealized appreciation of
         approximately $3.2 million on the three portfolio companies that were
         sold during the year.

  *The Company’s NAV increased by $0.05 per share as a result of its share
    repurchases, which was increased by $0.03 per share to a total of $0.08
    per share to reconcile the change in net asset value per share to the
    other per share information presented in the Company’s financial
    highlights. This increase was offset by the total dividends paid to
    stockholders of $0.49 per share, representing the Company’s net realized
    gains in 2013.
  *Finally, the Company’s issuance of 713,652 shares of common stock in
    connection with the December 2013 rights offering resulted in a decrease
    of $0.19 per share.

As of December 31, 2013, the Company had net unrealized appreciation of
approximately $6.4 million, which is reflected in its year-end NAV of $7.65.


Keating Capital, Inc.
Change in Net Asset Value
                                                              
                         Three Months Ended           Year Ended
                         December 31, 2013            December 31, 2013
                         Amount         Per Share     Amount         Per Share
                                        (1)                          (1)
                                                                     
Net Asset Value,
Beginning of Period      $ 70,031,961   $ 7.93        $ 73,412,940   $ 8.00
(2)
                                                                     
Net Investment Loss      (740,471)      (0.08)        (5,312,835)    (0.59)
                                                                     
Net Realized Gain on
Investments:
Corsair Components,      -              -             675,317        0.07
Inc.
LifeLock, Inc.           -              -             3,675,041      0.41
Solazyme, Inc.           -              -             49,820         0.01
                                                                     
Net Realized Gain on     -              -             4,400,178      0.49
Investments:
                                                                     
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments:
Millennial Media,        874,242        0.10          3,074,247      0.34
Inc.
Zoosk, Inc.              880,000        0.10          2,570,000      0.28
SilkRoad, Inc.           70,000         0.01          1,860,000      0.21
Metabolon, Inc.          1,280,000      0.14          1,610,000      0.18
Xtime, Inc.              (210,000)      (0.02)        1,387,122      0.15
TrueCar, Inc.            70,000         0.01          1,040,000      0.11
Kabam, Inc.              -              -             640,000        0.07
Glam Media, Inc.         -              -             580,000        0.06
Solazyme, Inc.           -              -             342,456        0.04
Suniva, Inc.             (70,000)       (0.01)        50,000         0.01
MBA Polymers, Inc.       350,000        0.04          (200,000)      (0.02)
Tremor Video, Inc.       (1,504,198)    (0.17)        (370,006)      (0.04)
Harvest Power, Inc.      (710,000)      (0.08)        (770,000)      (0.09)
BrightSource Energy,     (180,000)      (0.02)        (1,177,125)    (0.13)
Inc.
Corsair Components,      -              -             (1,599,920)    (0.18)
Inc.
Agilyx Corporation       (930,000)      (0.11)        (1,810,000)    (0.20)
LifeLock, Inc.           -              -             (1,911,002)    (0.21)
Stoke, Inc.              10,000         *             (2,100,000)    (0.23)
                                                                     
Net Change in
Unrealized
Appreciation             (69,956)       -             3,215,772      0.35
(Depreciation) on
Investments (3)
                                                                     
Net Increase in Net
Assets Resulting         (810,427)      (0.08)        2,303,115      0.25
from Operations
                                                                     
Stockholder
Distributions:
Stockholder
distributions paid       (104,072)      (0.01)        (4,400,178)    (0.49)
from net realized
gains
                                                                     
Capital Stock
Transactions:
Issuances of Common      4,281,372      (0.15)        4,281,372      (0.15)
Stock (4)
Offering Costs from
Issuance of Common       (359,364)      (0.04)        (359,364)      (0.04)
Stock
Repurchases of           -              -             (2,198,415)    0.08
Common Stock (5)
                                                                     
Net (Decrease)
Increase in Net          3,922,008      (0.19)        1,723,593      (0.11)
Assets from Capital
Stock Transactions
                                                                     
Net Asset Value, End     $ 73,039,470   $ 7.65        $ 73,039,470   $ 7.65
of Period^2
                                                                     
Weighted Average
Common Shares            8,951,682                    9,033,267
Outstanding During
Period
                                                                     
Common Shares
Outstanding At End       9,548,902                    9,548,902
of Period
                                                                     
* Per share amounts
less than $0.01.

(1)  Unless otherwise indicated, per share data based on weighted average
      common shares outstanding during the period.
      
(2)   Per share data based on total common shares outstanding at the beginning
      and end of the corresponding period.
      
      For purposes of this presentation, the per share amount attributable to
      net increase in unrealized appreciation on investments for the year
      ended December 31, 2013 was decreased by $0.01 per share to a total of
      $0.35 per share to reconcile the net increase in net assets resulting
(3)   from operations per share to the other per share information presented.
      The per share amount attributable to net decrease in unrealized
      appreciation on investments for the three months ended December 31, 2013
      was increased by $0.01 per share to a total of $0.00 per share to
      reconcile the net change in net assets per share to the other per share
      information presented.
      
      Issuance of common stock for the quarter and year ended December 31,
(4)   2013 is based on the change in net asset value attributable to the
      rights offering on December 17, 2013.
      
      The increase in net asset value per share attributable to repurchases of
      common stock for the year ended December 31, 2013 was $0.05 per share.
(5)   However, for purposes of this presentation, the per share amount
      attributable to purchases of common stock was increased by $0.03 per
      share to a total of $0.08 per share to reconcile the change in net asset
      value per share to the other per share information presented.
      

Other Information

The following are attached to this press release:

  *Keating Capital’s statement of assets and liabilities as of December 31,
    2013 and 2012; and
  *Keating Capital’s statement of operations for the years ended December 31,
    2013, 2012 and 2011.

Stockholder Call

Keating Capital invites stockholders, analysts and interested parties to
attend the call. You may pre-register at
https://cc.readytalk.com/r/s0u195znpirh&eom, and participate in the call by
dialing (800) 709-0218.

A slide presentation will accompany the earnings call and is available on the
Company's website at http://ir.keatingcapital.com/events-calendar. Select the
Presentation link to download and print the presentation.

An archived audio replay of the call together with the slide presentation will
be available within approximately three hours after completion of the call at
http://ir.keatingcapital.com/events-calendar. This archived recording will be
available until the Company’s next quarterly conference call which has been
tentatively scheduled for Monday, April 28, 2014.

About Keating Capital, Inc.

Keating Capital (www.KeatingCapital.com) is a closed-end fund (regulated as a
business development company under the Investment Company Act of 1940) that
specializes in making pre-IPO investments in emerging growth companies that
are committed to and capable of becoming public. We provide investors with the
ability to participate in a publicly traded fund that allows our stockholders
to share in the potential value accretion that we believe typically occurs
once a company transforms from private to public status. Keating Capital’s
shares are listed on Nasdaq under the ticker symbol “KIPO.”

Forward-Looking Statements

This press release may contain statements of a forward-looking nature relating
to future events. These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. These statements
reflect Keating Capital’s current beliefs, and a number of important factors
could cause actual results to differ materially from those expressed in this
press release, including the factors set forth in “Risk Factors” set forth in
Keating Capital’s Form 10-K and Form 10-Q filed with the Securities and
Exchange Commission (“SEC”), and subsequent filings with the SEC. Please refer
to Keating Capital’s SEC filings for a more detailed discussion of the risks
and uncertainties associated with its business, including but not limited to
the risks and uncertainties associated with investing in micro- and small-cap
companies. Except as required by the federal securities laws, Keating Capital
undertakes no obligation to revise or update any forward-looking statements,
whether as a result of new information, future events or otherwise. The
reference to Keating Capital’s website has been provided as a convenience, and
the information contained on such website is not incorporated by reference
into this press release.


Keating Capital, Inc.
Statements of Assets and Liabilities
                                                           
                                             December 31,       December 31,
                                             2013               2012
                                                                
Assets
Investments in portfolio company
securities at fair value:
Non-control/non-affiliate investments:
Private portfolio companies
(Cost: $42,574,747 and $47,332,174,          $ 44,282,569       $ 46,819,998
respectively)
Publicly-traded portfolio companies
(Cost: $8,999,996 and $6,505,162,              11,554,236         8,073,708
respectively)
Affiliate investments:
Private portfolio companies
(Cost: $4,000,000 and $8,000,080,             6,140,000        10,130,000 
respectively)
Total, investments in portfolio company        61,976,805         65,023,706
securities at fair value
(Cost: $55,574,743 and $61,837,416,
respectively)
                                                                
Cash and cash equivalents                      13,537,328         8,934,036
Prepaid expenses and other assets              102,421            104,429
Deferred offering costs                       -                322,906    
                                                                
Total assets                                 $ 75,616,554      $ 74,385,077 
                                                                
Liabilities
Base management fees payable to              $ 126,515          $ 128,746
investment adviser
Accrued incentive fees payable to              2,216,888          693,699
investment adviser
Administrative expenses payable to             51,755             51,396
investment adviser
Accounts payable                               47,709             90,139
Dividends payable                              104,072            -
Accrued expenses and other liabilities        30,145           8,157      
                                                                
Total liabilities                             2,577,084        972,137    
                                                                
Net assets
Common stock, $0.001 par value;
200,000,000 authorized; 9,997,343 and
9,283,781 shares issued, respectively        $ 9,997            $ 9,284
Additional paid-in capital                     71,806,893         71,675,244
Treasury stock, at cost, 448,441 and           (2,962,594 )       (764,179   )
108,996 shares held, respectively
Accumulated net investment loss                (2,216,888 )       (693,699   )
Accumulated undistributed net realized         -                  -
gain on investments
Net unrealized appreciation on                6,402,062        3,186,290  
investments
                                                                
Total net assets                             $ 73,039,470      $ 73,412,940 
                                                                
Total liabilities and net assets             $ 75,616,554      $ 74,385,077 
                                                                
Net asset value per share (on 9,548,902
and 9,174,785 shares
outstanding, respectively)                   $ 7.65            $ 8.00       
                                                                             

Keating Capital, Inc.
Statements of Operations
                                                            
                              Years Ended December 31,
                               2013           2012           2011       
                                                                
Investment income
Interest from portfolio
company investments
Non-control/non-affiliate     $ 37,376         $ -              $ -
investments
Interest and dividends from    2,577          3,870          54,348     
cash and cash equivalents
                                                                
Total investment income        39,953         3,870          54,348     
                                                                
Operating expenses
Base management fees            1,462,495        1,533,808        1,153,058
Incentive fees                  1,523,189        425,519          152,757
Administrative expenses
allocated from investment       651,811          633,997          450,019
adviser
Legal and professional fees     613,136          466,465          428,387
Directors fees                  130,000          160,000          129,750
Stock transfer agent fees       58,145           65,108           212,262
Custody fees                    6,000            1,000            1,000
Public and investor             54,544           152,437          91,183
relations expenses
Marketing and advertising       243,704          23,117           116,300
expenses
Printing and production         79,068           92,713           136,606
expenses
Postage and fulfillment         43,458           81,401           195,217
expenses
Stock issuance expenses         -                -                114,388
Travel expenses                 112,530          81,904           346,000
General and administrative     374,708        339,387        237,443    
expenses
                                                                
Total operating expenses       5,352,788      4,056,856      3,764,370  
                                                                
Net investment loss            (5,312,835 )    (4,052,986 )    (3,710,022 )
                                                                
Net realized gain on
investments
Non-control/non-affiliate       3,724,861        282,203          -
investments
Affiliate investments          675,317        -              -          
                                                                
Total net realized gain on     4,400,178      282,203        -          
investments
                                                                
Net change in unrealized
appreciation (depreciation)
on investments
Non-control/non-affiliate       3,205,692        1,325,390        (846,136   )
investments
Affiliate investments          10,080         520,000        1,609,920  
                                                                
Total net change in
unrealized appreciation        3,215,772      1,845,390      763,784    
(depreciation) on
investments
                                                                
Net increase (decrease) in
net assets resulting from     $ 2,303,115     $ (1,925,393 )   $ (2,946,238 )
operations
                                                                
                                                                
Net investment loss per
common share outstanding      $ (0.59      )   $ (0.44      )   $ (0.54      )
(basic and diluted)
                                                                
Net increase (decrease) in
net assets resulting from
operations per
common share outstanding      $ 0.25          $ (0.21      )   $ (0.43      )
(basic and diluted)
                                                                
Weighted average common
shares outstanding (basic      9,033,267      9,198,016      6,921,481  
and diluted)
                                                                             

^1 Portfolio company returns are calculated at the portfolio company level
(net of any selling expenses, including broker commissions); however,
portfolio company returns do not reflect any of the Company’s operating
expenses. Internal rate of return is the annualized rate of return on a
portfolio company investment taking into account the amount and timing of all
cash flows related to such portfolio company investment including the initial
investment, any follow-on investment and the net proceeds from the disposition
of such investment. The weighted-average internal rate of return is the
annualized rate of return on all disposed portfolio company investments taking
into account the amount and timing of the cash flows related to all disposed
portfolio company investments (as a group). These returns represent historical
results. Past performance is not a guarantee of future results.

Contact:

Keating Capital, Inc.
Investor Relations Contact:
Margie L. Blackwell, 720-889-0133
Investor Relations Director
mb@keatinginvestments.com
 
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