1. ‘S
volving apital arkets & rowdfunding
Symposium
New Legislation, New Markets, New Opportunities
ATLANTA, GA – AUGUST 21, 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
“There's no chance that the iPhone is going to get any
significant market share. No chance.”
― STEVE BALLMER 2007
Today’s event is dedicated to the naysayers. To the ones
who’ve said that you can’t buck the Wall Street
establishment. To those who proclaim that Crowdfund
investing will never have a beneficial impact on our
society, capital markets nor economic future. We thank
you for your cynicism, for it gives us the impetus to
persevere. We look forward to proving you wrong.

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
• S&P Average Annual Return 1990 – 1999: 19%
• S&P Average Annual Return 2000 – 2009: 1%
• 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 99% of Microsoft’s
public had
the
opportunity
appreciation was realized
to invest
AFTER it had gone public!

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: $165M
MKT. VALUE AT IPO: $52M
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)

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 Evolving
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. • Like the important human eras that have come before,
such as the Stone Age that lasted 3.4 million years, the
Iron Age or the Industrial Age, the Internet Age will
transform society and the economy for hundreds of
years to come.
• With more than 2 billion Internet users globally (and
almost 1 billion on Facebook alone), the Internet is the
most disruptive technology in the history of the world.
-American Revolution 2.0, white paper by GSV Asset Management

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

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

24. Rule 1: Don’t Put All Your Eggs in One
Basket

25. Discover The Private Company Marketplace
PCM PLATFORMS: CROWDFUNDING / P2P LENDING:
PRIVATE SHARE DESKS: FUNDS:

26. 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

28. 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

29. 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

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