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‘S              volving apital arkets &                  rowdfunding                          Symposium                   ...
Sponsors
DEDICATION“Theres no chance that the iPhone is going to get any          significant market share. No chance.”            ...
Key Components of the JOBS Act Removal of the solicitation ban:     Allows public advertising and promotion of private s...
The Harsh Reality•   DJIA 2011 performance: +5.5%•   Nasdaq 2011 performance: -1.8%•   S&P 2011 performance: FLAT•   S&P A...
Flawed Market Structure Exacerbating the Great Wealth Divide
MSFT HISTORIC CHARTWhere theinvesting            99% of Microsoft’spublic hadtheopportunity                     appreciati...
DELL HISTORIC CHARTWhere theinvestingpublic hadtheopportunityto invest
MKT. VALUE AT IPO: $438M                                                                                     MKT. VALUE AT...
“The Crown Jewel of Capitalism”
The Small Cap IPO has been dying a              slow death                    The 1990s               The 2000sAverage Num...
There is no more meat in the public markets!
The Private Markets  The new black
Where Growth Lives Today       PRIVATE COMPANY VS. PUBLIC COMPANY GROWTH IN 2011590%490%390%290%                          ...
Our Stock Markets Are Evolving                       Era of the social stock market
The Social & Mobile RevolutionFueling the Next Economic Expansion                                 NASDAQ                  ...
Days It Took To Reach 50M Users 14000 12000 10000  8000         13870  6000  4000                 4645  2000              ...
• Like the important human eras that have come before,  such as the Stone Age that lasted 3.4 million years, the  Iron Age...
“Every two days there is more   information being created   than between the dawn of civilization and 2003.“-             ...
HOW DO WE CAPITALIZE ON THEINNOVATION OF THE       DAY?
Rule 1: Don’t Put All Your Eggs in One               Basket
Discover The Private Company Marketplace   PCM PLATFORMS:       CROWDFUNDING / P2P LENDING: PRIVATE SHARE DESKS:          ...
Move to Self-Directed IRAs• Ability to invest in real estate, rental properties, LLCs, private stock,  hedge funds, mutual...
THE GRIM HEADLINES“Statistics Offer No Solace To Those in              Jobless Line”           – NY Times February 13, 199...
Regulatory Reform                                                Transforming Market Structure                            ...
New Legislation  New MarketsNew Opportunities   Dara Albright, Founder of NowStreet   Twitter: @nowstreet   www.nowstre...
Repairing market structure restoring american prosperity
Repairing market structure restoring american prosperity
Repairing market structure restoring american prosperity
Repairing market structure restoring american prosperity
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Repairing market structure restoring american prosperity

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Repairing market structure restoring american prosperity

  1. 1. ‘S volving apital arkets & rowdfunding Symposium New Legislation, New Markets, New Opportunities ATLANTA, GA – AUGUST 21, 2012 HASHTAG FOR YOU TWEETERS: #financialmarketsreformDara Albright, Founder of NowStreetTwitter: @nowstreetwww.nowstreetjournal.comdsa@nowstreetevents.comhttp://facebook.com/nowstreetevents
  2. 2. Sponsors
  3. 3. DEDICATION“Theres 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.
  4. 4. 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
  5. 5. 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%
  6. 6. Flawed Market Structure Exacerbating the Great Wealth Divide
  7. 7. MSFT HISTORIC CHARTWhere theinvesting 99% of Microsoft’spublic hadtheopportunity appreciation was realizedto invest AFTER it had gone public!
  8. 8. DELL HISTORIC CHARTWhere theinvestingpublic hadtheopportunityto invest
  9. 9. 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: $188MMKT. 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)
  10. 10. “The Crown Jewel of Capitalism”
  11. 11. The Small Cap IPO has been dying a slow death The 1990s The 2000sAverage Number of 447 102Annual IPOsMedian Market Cap $130M $1,094BPer IPO VCs PE Funds Accredited Pre-IPO Retail Hedge Funds
  12. 12. There is no more meat in the public markets!
  13. 13. The Private Markets The new black
  14. 14. Where Growth Lives Today PRIVATE COMPANY VS. PUBLIC COMPANY GROWTH IN 2011590%490%390%290% PCM NASDAQ190%90%-10%
  15. 15. Our Stock Markets Are Evolving Era of the social stock market
  16. 16. The Social & Mobile RevolutionFueling the Next Economic Expansion NASDAQ +629% DJIA +517% DJIA +657%
  17. 17. Days It Took To Reach 50M Users 14000 12000 10000 8000 13870 6000 4000 4645 2000 1460 1325 88 21 0
  18. 18. • 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
  19. 19. “Every two days there is more information being created than between the dawn of civilization and 2003.“- Google CEO Eric Schmidt
  20. 20. HOW DO WE CAPITALIZE ON THEINNOVATION OF THE DAY?
  21. 21. Rule 1: Don’t Put All Your Eggs in One Basket
  22. 22. Discover The Private Company Marketplace PCM PLATFORMS: CROWDFUNDING / P2P LENDING: PRIVATE SHARE DESKS: FUNDS:
  23. 23. 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
  24. 24. 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
  25. 25. Regulatory Reform Transforming Market Structure Not relying on depleted fiscal policy A rapidly expanding, small-business supportive, untarnished growth marketplace Unprecedented innovationNew Era of Mass Communications
  26. 26. New Legislation New MarketsNew Opportunities Dara Albright, Founder of NowStreet Twitter: @nowstreet www.nowstreetjournal.com dsa@nowstreetevents.com http://facebook.com/nowstreetevents

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