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Utilizing hindsight to rebuild the capital markets feb 2012


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In this remarkable moment in history, the U.S. regulatory environment, its capital markets and the innovation that drives those markets are simultaneously on the threshold of dramatic change. We are currently witnessing the embryonic period of a cutting-edge stock market just as we usher in a new era of mass media. At the same time, new legislation aimed at facilitating capital formation is being introduced to support this modern infrastructure. There has never been a more opportunistic time to capitalize on change.

Published in: Economy & Finance, Business
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Utilizing hindsight to rebuild the capital markets feb 2012

  1. 1. Utilizing Hindsight To Rebuild The Capital Markets Infrastructure
  2. 2. 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) •Laid the groundwork for the next evolution of technological innovation
  3. 3. Support System Back Analyst officeInvestmentBanker MarketingInstitutional & RetailSales force Market Maker
  4. 4. THE SPREADS • Provided After-market support • Paid for small cap research • Incentivized brokers • Forced longer-term investment strategies
  5. 5. “The Crown Jewel of Capitalism”
  6. 6. Reckless Abandonment
  7. 7. Current Flow of Capital The Circle of “BIG”
  8. 8. The Changing Regulatory Environment • H.R. 2930 – Crowdfunding bill • H.R. 2940 – removal of the solicitation ban • H.R. 2167 / S 1824 – change shareholder threshold as well as shareholder definition • H.R. 1965 – changes shareholder threshold for a bank or bank holding company Now bundled into: H.R. 3606 - Jumpstart Our Business Startups Act (the JOBS Act) – Passed the HOUSE on March 7, 2012 - 390 to 23 – DON’T LET IT DIE IN THE SENATE!
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  10. 10. “Those who cannot learn from history are doomed to repeat it.” G. Santayana
  11. 11. 1929 1987 2001 2008
  12. 12. Innovation in Mass MediaCatalyst for Stock Market Growth NASDAQ +629% DJIA +517% DJIA +657%
  13. 13. Days It Took To Reach 50M Users 14000 12000 10000 8000 13870 6000 4000 4645 2000 1460 1325 88 21 0
  14. 14. And How We Pay For Our STUFF
  15. 15. and HOW WEPAY FOR IT
  16. 16. The Olden Days
  17. 17. The Roaring 20s
  18. 18. The Great Depression
  19. 19. The Longest Bull Market in History 1947 to 1957
  20. 20. The 60’s and 70’s
  21. 21. The 1980s
  22. 22. The 1990s – Internet 1.0 The Dress Rehearsal
  23. 23. Nowadays
  24. 24. Our Public Markets
  25. 25. PRIVATE COMPANY VS. PUBLIC COMPANY GROWTH IN 2011 590% 490% 390% 290% PCM NASDAQ 190% 90% -10%
  27. 27. TODAY’S SOCIAL AND MOBILE REVOLUTION Living Outside a bubble The Bubble
  28. 28. Not Your Daddy’s Dot Com Today’s Social Media company is generating real revenue and in many instances PROFITABLE  Facebook will generate $4.27 billion in revenue this year, more than double the billion made in 2010 - EMarketer Inc.  Zynga is expected to generate $1.2 billion in revenue this year, doubling the $597M it made in 2010 - Greencrest Capital Today online advertising is the reality not the hope  Social media advertising spending will increase from $2.1 billion in 2010 to $8.3 billion by 2015 - Direct Marketing News  Facebook will get $3.8 billion from advertising this year, up 104 percent from $1.86 billion in 2010 - EMarketer Inc. Virtual Goods Market is exploding  The global market for virtual goods, which more than tripled from $2.3 billion in 2007 to $7.1 billion in 2010, is expected to double by 2014 – In-Stat  Facebook is expected to make $470 million from Facebook Credits, a virtual- currency program that lets users buy items in games, more than triple the $140 million it made last year - EMarketer Inc.  Zynga generated approximately $364M in virtual good sales in 2010 and is expected to top $804M in virtual good sales in 2011 – Greencrest Capital
  29. 29. SUPER BOWL ADS SAY IT ALLInstead of spending money on ads, today’s Internet company is profiting from them Ads of yesteryear Ads today It’s all about SOCIAL and “We just wasted $2M” CONNECTIVITY
  30. 30. The PCM - Not Your Daddy’s Stock MarketNOT A CREDIT-FUELED BUBBLE No Margin No Shorting No Derivatives No Manipulation Just a pure growth market comprised of real revenue generating companies whose prices are based on supply and demand!
  31. 31. Tomorrow
  32. 32. 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
  33. 33. “Every two days there is more information being created than between the dawn of civilization and 2003.“ Lee Odden, TopRank
  34. 34. Evolution of Mass Media sound Sight & Search Social Sound SPECIALIZED CUSTOMIZED PERSONALIZEDTell Show and Tell Search Social sharing
  35. 35. The “Do-Over”
  36. 36. The time is NOW for thePrivate Company Marketplace (PCM) A Different Market A Fairer Market A Better Market