This power point illustrates how flawed market structure exacerbates wealth disparity and how the JOBS Act is helping to narrow it by transforming our capital markets and creating an abundance of new opportunities for smaller issuers and investors to create wealth.

1. ‘S
EVOLVING CAPITAL MARKETS COCKTAIL EVENT
New Legislation, New Markets, New Opportunities
NEW YORK, NY
JULY 30, 2012
HASHTAG FOR YOU TWEETERS: #financialmarketsreform
Dara Albright, Founder of NowStreet
Twitter: @nowstreet
www.nowstreetjournal.com
dsa@nowstreetevents.com
http://facebook.com/nowstreetevents

2. Sponsors

3. DEDICATION
“I am pleased to see the president signed the 'JOBS' Act into
law today. The American people deserve a government that
upholds the principles of economic freedom and does not
create harmful barriers to free enterprise and capital
formation. For that very reason, the 'JOBS' Act makes
important progress giving job creators the freedom to
achieve prosperity.” ― REP. DAVID SCHWEIKERT
Tonight’s event is dedicated to our legislators including
Congressman Schweikert who were able to put politics
aside and come together to pass the most economic
restorative legislation in modern history.

5. Key Components of the JOBS Act
 Removal of the solicitation ban:
 Allows public advertising and promotion of private securities offerings
 Enables “Emerging Growth Companies” (companies with annual
revenues of up to $1 billion) to be exempt for up to five years from many
of the financial control and reporting requirements instituted by the
Sarbanes-Oxley Act of 2002
 Raises the shareholder threshold from 500 to 2,000 before requiring SEC
reporting
 Allowing a significant expansion of private trading markets
 The legalization of “Crowdfunding” – raising money from large pools of
small investors
 Raises regulation A private offerings from $5M to $50M

7. The Harsh Reality
• DJIA 2011 performance: +5.5%
• Nasdaq 2011 performance: -1.8%
• S&P 2011 performance: FLAT
• Current yield on a 10 yr T-Note: 1.57%
• Savings account interest: 1% (high-end)
• Average yield on a junk bond: 6.95%
• 2011 Inflation Rate: 3.2%

8. Flawed Market Structure Exacerbating the Great Wealth Divide

10. MSFT HISTORIC CHART
Where the
investing
public had
the
opportunity
to invest

11. DELL HISTORIC CHART
Where the
investing
public had
the
opportunity
to invest

12. MKT. VALUE AT IPO: $438M
MKT. VALUE AT IPO: $58M
MKT. VALUE AT IPO: $123M
MKT. VALUE AT IPO: $52M MKT. VALUE AT IPO: $165M
MKT. VALUE AT IPO: $188M
MKT. VALUE AT IPO: $519M
MKT. VALUE AT IPO: $226M
•All IPO’d well under $1B in market cap (average: $217M)
•Average raise at IPO: $37M
•Combined market cap today in excess three quarters of a trillion dollars
•Average 44,443% in investor appreciation
•Employ over 500,000 individuals (532,860 as of February 2012)
•Laid the groundwork for the next evolution of technological innovation

13. “The Crown Jewel of Capitalism”

14. The Small Cap IPO has been dying a
slow death
The 1990s The 2000s
Average Number of 447 102
Annual IPOs
Median Market Cap $130M $1,094B
Per IPO
VCs
PE Funds
Accredited Pre-IPO
Retail Hedge Funds

15. There is no more meat in the public markets!

16. The Private Markets
The new black

17. Where Growth Lives Today
PRIVATE COMPANY VS. PUBLIC COMPANY GROWTH IN 2011
590%
490%
390%
290%
PCM NASDAQ
190%
90%
-10%

18. Our Stock Markets Are Transforming
Era of the social stock market

19. The Social & Mobile Revolution
Fueling the Next Economic Expansion
NASDAQ
+629%
DJIA +517%
DJIA +657%

20. Days It Took To Reach 50M Users
14000
12000
10000
8000
13870
6000
4000
4645
2000
1460 1325
88 21
0

21. “Every two days there is more
information being created
than between the dawn of
civilization and 2003.“-
Google CEO Eric Schmidt

22. HOW DO WE
CAPITALIZE ON THE
INNOVATION OF THE
DAY?

23. Don’t Put All Your Eggs in One Basket

24. Discover The Private Company Marketplace
• Leading PCM Platforms:
– GATE
– SecondMarket
– Sharespost
• Private Share Desks:
– GreenCrest Capital
– Wedbush Securities
– Emerson Equity
– Liquidnet
– du Pasquier & Co., Inc.
– GFI Group
• Emerging Pre-IPO Hedge Funds:
– HighStep Capital
– Magnolia Ventures
– The Social Internet Fund
• Publicly-Traded Funds:
– GSV Capital
– Firsthand Technologies

25. Move to Self-Directed IRAs
• Ability to invest in real estate, rental properties, LLCs, private
stock, hedge funds, mutual funds, and stocks and bonds;
• Increased control over investment strategies and decisions;
• Maximize investment returns by gaining exposure to today’s fastest
growing companies;
• Diversifying outside the public markets;
• As with all IRA investments, taxes on investment returns are
deferred until funds are withdrawn from the account;
• New Account Opener

27. THE GRIM HEADLINES
“Statistics Offer No Solace To Those in
Jobless Line”
– NY Times February 13, 1994
“New Data Suggest Slow Economic Growth”
– NY Times July 2, 1994
“More Hints Of Economic Slowdown”
- NY Times August 31, 1994
“Pessimism Takes Hold On Wall St.”
- NY Times September 22, 1994

28. Regulatory Reform
Transforming Market Structure
Not relying on depleted fiscal policy
A rapidly expanding, small-business supportive,
untarnished growth marketplace
Unprecedented
innovation
New Era of Mass Communications

29. New Legislation
New Markets
New Opportunities
Dara Albright, Founder of NowStreet
Twitter: @nowstreet
www.nowstreetjournal.com
dsa@nowstreetevents.com
http://facebook.com/nowstreetevents