Exhibit 99.1

Keating Capital Reports Q2 2012 Results

Pre-IPO Investor Provides Financial Update

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--August 10, 2012--On August 10, 2012, Keating Capital, Inc. (“Keating” or the “Company”) (Nasdaq: KIPO) reported financial results for the second quarter ended June 30, 2012.

Management Commentary

"Keating Capital operates a private-to-public valuation arbitrage strategy, seeking to profit from the potential value increase when a private company completes an IPO. Our goal is to make investments that create the potential for a 2x return on our investment once the company is publicly traded and assuming our typical investment horizon of 36 months,” stated Timothy J. Keating, CEO of Keating Capital, Inc. “To that end, we believe we have created a valuable portfolio that is performing well and which is in line with our overall expectations. During the second quarter, we added three new portfolio companies and sold stock in one portfolio company—which resulted in a realized capital gain of $270,701, which represents a return of approximately 1.7x our investment cost,” added Mr. Keating.

Structural Protections

Of our investments in 18 private portfolio companies as of June 30, 2012, we have been provided some structural protection with respect to investments in 10 of these portfolio companies. These structural protections typically include conversion rights upon an IPO 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.

As of June 30, 2012, our structurally protected appreciation on these investments would, if each of these 10 portfolio companies completed an IPO, result in an increase in our unrealized appreciation of $27.0 million at the time of the IPO.

• Five of these portfolio companies (with an aggregate cost of $21.5 million and a fair value of $21.2 million as of June 30, 2012) have structural protections that would, in the event of an IPO, entitle us to receive shares of common stock with a weighted-average aggregate value, at the time of issuance, of 1.53x our investment cost. We refer to this multiple as our structurally protected appreciation multiple.
• Five of these portfolio companies (with an aggregate cost of $18.0 million and an aggregate fair value of $20.6 million as of June, 2012) have a structurally protected appreciation multiple of 2.0x our investment cost upon an IPO.

The structurally protected appreciation is calculated assuming each portfolio company completes an IPO. Further, the structurally protected appreciation is not impacted by the IPO price, since the structural protections are designed to derive such appreciation at any IPO price at the time of the IPO. The only exception is the structural protection provided in the Corsair common stock investment where the structurally protected appreciation of 2.0x of our investment cost begins to decline as the Corsair IPO price falls below $10.00 per share. In each of the ten portfolio company investments that have structural protections, it is possible for us to achieve an unrealized appreciation at IPO in excess of the structurally protected appreciation amount where the portfolio company’s IPO price exceeds a threshold amount.

Our ability to realize the structurally protected appreciation at the time of the IPO will depend on a number of factors including each portfolio company’s completion of an IPO, any adjustment to the special IPO conversion price that may be negotiated prior to or during the IPO process, the possible subsequent issuance of more senior securities that may impact the relative value of the structural protection, and fluctuations in the market price of each portfolio company’s common shares until such time as the common shares received upon conversion can be disposed of following the expiration of a customary 180-day post-IPO lockup period. Accordingly, the structurally protected appreciation would not be available unless each portfolio company completes an IPO. Further, even if an IPO is completed, the structurally protected appreciation would not be realized unless the market price of each portfolio company’s common shares equals or exceeds the IPO price at the time such shares are disposed of following the post-IPO lockup period.

Please refer to our quarterly report on Form 10-Q for the quarter ended June 30, 2012, for additional information on our structurally protected appreciation.

Q2 2012 Portfolio Investment Activity

Acquisitions

Keating Capital invested in the following new portfolio companies during the second quarter of 2012:

• Glam Media, Inc., $5.0 million in Series F Convertible Preferred Stock
• Stoke, Inc., $3.5 million in Common Stock
• Jumptap, Inc., $5.0 million in Series G Convertible Preferred Stock

Two of the new investments were direct investments in the most senior equity securities of the respective issuers and all of these new investments provide Keating Capital with information rights until these companies complete an IPO.

Keating Capital also invested in the following existing portfolio companies during the second quarter of 2012:

• $1.5 million in the second closing of the Series C Convertible Preferred Stock round of SilkRoad
• $18,436 in the in the second tranche closing of the Series C-2 Convertible Preferred Stock round of Livescribe

Dispositions

During the three months ended June 30, 2012, we sold 45,000 shares of Solazyme’s common stock at an average price of $14.87 per share (net of commissions and selling expenses) resulting in a realized gain of $270,701. During the six months ended June 30, 2012, we sold a total of 65,000 shares of Solazyme’s common stock at an average price of $15.06 per share (net of commissions and selling expenses) resulting in an aggregate realized gain of $403,631, which represents an average 1.7x return on our investment in these shares. At June 30, 2012, we continued to own 147,927 shares of Solazyme’s common stock which were valued at approximately $2.1 million, based on Solazyme’s June 30^th closing market price of $13.90 per share, compared to our average cost of $10.18 per share.

Stock Repurchase Program

On May 9, 2012, our Board of Directors approved a stock repurchase program. Under this plan, Keating Capital may repurchase up to $5.0 million of its common stock. The repurchase program does not obligate Keating to acquire any specific number of shares and may be extended, modified or discontinued at any time.

During the three months ended June 30, 2012, the Company repurchased 38,988 shares of its common stock at an average price of $7.11 per share, including commissions, with a total cost of $277,198. The Company’s net asset value per share increased by less than $0.01 per share as a result of the share repurchases during the six months ended June 30, 2012. The 38,988 shares of common stock repurchased under the Company’s stock repurchase program have not been retired or cancelled, remain issued but not outstanding and were held in treasury as of June 30, 2012.

Portfolio Investments

As of June 30, 2012, Keating Capital had a total of 20 portfolio company investments at an aggregate cost of $62.4 million. The fair value of the Company’s portfolio company investments was approximately $64.4 million, which includes approximately $2.0 million of net unrealized appreciation. We had approximately $11.0 million in cash and cash equivalents as of June 30, 2012, or approximately $1.19 per share.

Results of Operations

Change in Net Asset Value Per Share

In the second quarter, our net asset value per share decreased from $8.22 per share as of March 31, 2012, to $8.12 per share as of June 30, 2012, a decrease of $0.10 per share, due primarily to:

• First, a net investment loss—effectively our operating expenses (including base management fees)—of approximately $909,000, or a loss of $0.10 per share.
• Second, a net decrease in net unrealized appreciation on investments of approximately $319,000, or a loss of $0.03 per share; and
• Third, a realized gain on our sale of certain shares of Solazyme of approximately $271,000, or a realized gain of $0.03 per share.

Capitalization

As of June 30, 2012, we had 9,244,793 shares of common stock issued and outstanding. There are no options, warrants, or other classes of securities issued or outstanding. Additionally, we had no debt. There were no capital stock transactions or distributions paid to stockholders in the second quarter of 2012.

Portfolio Analysis and Activity

For the quarter ended June 30, 2012, the net decrease in our unrealized appreciation totaled approximately $319,000. The primary components of this net decrease were:

Other Information

Attached to this press release we have included the following:

• Our portfolio company investment summary as of June 30, 2012;
• Our statement of assets and liabilities (unaudited) as of June 30, 2012 and December 31, 2011; and
• Our statement of operations (unaudited) for the three and six months ended June 30, 2012 and 2011.

Stockholder Call

Keating Capital invites stockholders, analysts and interested parties to attend Keating Capital’s earnings call on August 13, 2012 at 4:00 p.m. Eastern time. You may pre-register at https://cc.readytalk.com/cc/s/showReg?udc=akho3adki473, and participate in the call by dialing (800) 619-2731.

A slide presentation will accompany the earnings call and will be available on August 10, 2012, at http://ir.keatingcapital.com/events.cfm. Select the Q2 2012 Earnings Call Slides link to download and print the presentation.

An archived audio replay of the earnings call together with the slide presentation will be available within approximately three hours after completion of the call at http://ir.keatingcapital.com/events.cfm. This archived recording will be available until the Company’s next quarterly conference call which has been tentatively scheduled for November 15, 2012.

About Keating Capital, Inc.

Keating Capital (www.KeatingCapital.com) is a business development company that specializes in making pre-IPO investments in innovative, emerging growth companies that are committed to and capable of becoming public. We provide investors with the ability to participate in a unique 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.

CONTACT:
Investor Relations Contact:
Keating Capital, Inc.
Margie L. Blackwell
Investor Relations Director
mb@keatinginvestments.com
(720) 889-0133
or
Public Relations Contact:
JCPR, Inc.
Chris Moon
cmoon@jcprinc.com
(973) 850-7304