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THE NEED FOR
CROWDFUNDING
        2012
   CrowdfundInsider
900



                                                                            Dollars Raised greater than $50M
Number of Offerings




                                                                            Dollars Raised less than $50M
                      675




                      450




                      225




                        0
                            1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011




                                              DECLINE IN IPO’S
                       Access to capital via the public markets is on the decline.
                       Increased regulation, volatile markets and other systemic
                                         challenges play a role.
                        Source: SecondMarket 2012
VC DOLLARS HAVE DECLINED
 The flow of VC capital has slowed although it is still higher than
                        pre 1995 levels.
Source: The Kauffman Foundation May 2012
Loan Growth @ Small Banks by
                              Supervisory Rating
                                                              C&I and CRE loans under
                                                              $1 million at small banks
                                                              according to supervisory
                                                              rating for three time
                                                              periods: the four quarters
                                                              ending in the second
                                                              quarter of 2009; the four
                                                              quarters ending in the
                                                              second quarter of 2010




 BANKS ARE LOANING LESS
Crippled by excessive regulation and risk aversion banks are
              loaning less to small businesses
 Source: Federal Reserve Bank of San Francisco; August 2012
SMALL BUSINESS COUNTS
 According to the SBA - small Business is the growth engine of
                        our economy.
Source: SBA Small Business Advocate August - September 2012
HEY GREECE
              What happens to an economy that does not create an
                 environment for business to grow & prosper?
Source: Pinterest

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The Rise of Crowdfunding to Fill Capital Gaps

  • 1. THE NEED FOR CROWDFUNDING 2012 CrowdfundInsider
  • 2. 900 Dollars Raised greater than $50M Number of Offerings Dollars Raised less than $50M 675 450 225 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 DECLINE IN IPO’S Access to capital via the public markets is on the decline. Increased regulation, volatile markets and other systemic challenges play a role. Source: SecondMarket 2012
  • 3. VC DOLLARS HAVE DECLINED The flow of VC capital has slowed although it is still higher than pre 1995 levels. Source: The Kauffman Foundation May 2012
  • 4. Loan Growth @ Small Banks by Supervisory Rating C&I and CRE loans under $1 million at small banks according to supervisory rating for three time periods: the four quarters ending in the second quarter of 2009; the four quarters ending in the second quarter of 2010 BANKS ARE LOANING LESS Crippled by excessive regulation and risk aversion banks are loaning less to small businesses Source: Federal Reserve Bank of San Francisco; August 2012
  • 5. SMALL BUSINESS COUNTS According to the SBA - small Business is the growth engine of our economy. Source: SBA Small Business Advocate August - September 2012
  • 6. HEY GREECE What happens to an economy that does not create an environment for business to grow & prosper? Source: Pinterest