All Companies need funding,but lately it is hard to come by…
There is a new way for companies to get the funding they need: “Crowdfunding”
MediaShares provides a methodology for companies to get the funding they need by selling their stock on their ownWebsites to their fans, customers, users, or affinity group. We call our system a “Crowdfunded IPO”
CrowdfundingUsually thought of as getting smaller amounts of money from a large crowd of investors.
Crowdfunding in 1606 – A Copy of the World’s First Share of Stock
Dutch East India Company lasted 200 Years –At one point had 4785 Ships
May 17, 1792 – Buttonwood Agreement – Signed due toStockmarket crash in March of 1792!
The Birth of the New York Stock Exchangeand Crowdfunding in the U.S.A.
Tickertape - First used in 1870Enabled Communication with More Shareholders
Tickertape helped the stockmarket, but did very little for ladies fashions.
Telephone Invented in 1876 – The Crowd Got Larger
Word got out that Pabst Beer Company was for sale
Pabst Beer and Others Proved that Crowdfunding Works
New IPO Rules in the JOBS ActNew category of issuers:“Emerging Growth Companies” – Under $1Billion •Relaxed disclosures for EGCs (No SOX 404) •Confidential S-1 Submissions •Relaxed rules on analyst activities •“Testing the waters” •These changes are effective immediately
Algorithmic Stock TradingAmount of stock trades as a percentage of the overall volume of trading: 70 % done by machines (computers) Source: Tabb Group
IPO’s Have Become An Exit Strategy, Not For Growth Capital• At one time, an IPO was for growth capital• Intel, Microsoft, and Apple received capital to grow• Various factors changed everything• Underwriters now looking for easy sell – high profile companies like Facebook, Twitter• Insiders want to cash out and dump to others• “Popsters” not Investors now• Secondary Churning/Trading by machines (computers)• Growth investors are VC’s, Angels, and Private share buyers• IPO’s now come too late in the growth cycle• Crowdfunding can fix the problem
MediaShares and Crowdfunding can fix the problem…
MediaShares Uses a System Already in Place: •Direct Registration enables stock sales from a company’s own Website or Facebook Page •S-3 Filing – Shelf Offering •No need to open and pre-fund an brokerage account •Stock purchase uses an ACH checking account debit •Held in book-entry for issuer •Very small transaction charge ($1.00 to $3.00)
Simple Form to Buy StockQwikShares eliminates pre-fundingthe typical brokerage accountStock is purchased through an ACHchecking account debit, credit card,or other electronic paymentDirect Registration Supplier holds stockin book entry for company & purchaser
Form satisfies FINRA “suitability”requirements for “know your customer”Company gains valuable demographics oneach shareholderCompany and broker now have paymentinfo for future purchases!Purchase as little as one shareVery small fee: $1 to $3 for transaction