Spotify (SPOT) expects to direct list the stock on the NYSE on April 3 with a market valuation in excess of $20 billion. The company has an interesting music subscription business with over 71 million subscribers drawing comparisons to Netflix (NFLX) in the video sector. The fast growth rate will no doubt appeal to investors, but the company is still losing money and the music industry has not proven profitable for other streaming players like Pandora Media (P). Not to mention, the CRB recently bumped up music royalty rates. GSV Capital (GSVC) provides a small way to play the IPO as the investment company owns about $31 million worth of stock. The stock trades below NAV and any jump in Spotify would boost NAV though the position only amounts to about 14% of the investments. No doubt, Spotify has appeal with a large hoard of subscribers, but the market doesn't like money losing IPOs. Don't chase a hot IPO. Look to buy on weakness knowing that the stock doesn't have an IPO lockup so investors like GSV Capital might look to unload the stock on any initial pop. Spotify might face weakness not typical of standard IPOs, but the company might have the ability to replicate the long-term success of Netflix that is now worth over $140 billion. Disclosure: Long GSVC