the future of america's

PAVING A NEW PATH TO ECONOMIC PROSPERITY

CAPITAL FORMATION & CROWDFUNDING

FORUM

New York, NY

May 17, 2012

“It is time to lead. This doesn’t need to be the sunset on the American Era. We can make it

the dawn of the next great century for America. The only way China ever catches us

is because we let them.”

― DAVID WEILD, FORMER VICE CHAIRMAN OF THE NASDAQ STOCK MARKET

DEDICATION

Today’s event is dedicated to our speakers who continue to enlighten us with their wisdom

and inspire us with their deep commitment to rectifying America’s capital markets.

SPONSORS

Welcome to the Future of

America’s Capital Markets

Support System

Small Cap Analysts

Supportive Small Cap Marketplace

Market Makers willing to risk their own capital

Institutional & Retail Sales force

Boutique Investment Bankers

Receptive Investor pool

•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

MKT. VALUE AT IPO: $123M

MKT. VALUE AT IPO: $52M

MKT. VALUE AT IPO: $188M

MKT. VALUE AT IPO: $226M MKT. VALUE AT IPO: $519M

MKT. VALUE AT IPO: $58M

MKT. VALUE AT IPO: $165M

MKT. VALUE AT IPO: $438M

“The Crown Jewel of Capitalism”

•PROGRAM TRADERS •PIPE FUNDS •SUPERSIZED BANKING CONGLOMERATES •LARGE CAPS WITH LIMITED GROWTH LEFT •MASSIVE INSTITUTIONAL FUNDS

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THE CURRENT FLOW OF CAPITAL CIRCLE OF “BIG”

APRIL 5, 2012

THE DAY THE CAPITAL MARKETS WERE FOREVER ALTERED

Take Everything you know about Wall Street and throw it out the window

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PIPES PROGRAM TRADERS

The Private Markets The new black

CAPITAL FORMATION

Repaving The Path to Capital - brick by brick

20/20 Hindsight

The Rules Are Changing

•The Crowdfund Act •The removal of the solicitation ban •Increased shareholder threshold from 500 to 2,000 •Raising the Regulation A Exemption Ceiling from $5M to $50M

Innovation is Accelerating

Global Communications is Advancing

“Every two days there is more information being created than between the dawn of

civilization and 2003.“- Google CEO Eric Schmidt

Days It Took To Reach 50M Users

0

2000

4000

6000

8000

10000

12000

14000

13870

4645

1460 1325 88 21

Innovation in Mass Media Catalyst for Stock Market Growth

DJIA +657%

DJIA +517%

NASDAQ +629%

Our Stock Markets Are Transforming PRIVATE COMPANY VS. PUBLIC COMPANY GROWTH IN 2011

-10%

90%

190%

290%

390%

490%

590%

PCM NASDAQ

Our Stock Markets Are Transforming

INVESTING BEHAVIORS ARE SHIFTING

The 1700s Tomorrow The past 12 years

The 1990s The 1980s The 1950s The 1920s

“I’m investing in Government bonds because I am patriotic and there are really no other options”

“I’m buying any stock I can on 10% margin”

“I only invest in mutual funds, Daddy-o”

“I only invest in SURE THINGS and I only speak on BIG cell phones”

“I’m trading dotcoms, baby!”

“I just locked in a 300% return on ACDC and I have no idea what the company does!”

“I am investing to help my community and the equity kicker may just send my kid to college!”

The Regulatory Environment is Transitioning

• Via Social Media outlets, “the crowd” was able to detect the fraud within 2 days

• No investor money was lost

Even the Crowd is Evolving

“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

THE GRIM HEADLINES

Friendly Legislation

Next phase of mass communications

20/20 Hindsight

A hungry crowd eager for change

A rapidly expanding, small-cap supportive, untarnished growth marketplace

The Rising Private Markets

Collaborative Markets

Balanced Markets

Pure Growth Markets

Better Markets

Dara Albright, Founder of NowStreet Http://nowstreetjournal.com dsa@nowstreetmedia.com

@nowstreet

Where to go for industry data

Crowdfunding Industry Report:

http://www.crowdsourcing.org/research

Industry Organizations:

• http://cfira.org

• http://crowdfundingprofessional.org/