the future of america's
DESCRIPTION
HOW THE FUSION OF NEW LEGISLATION, SOCIAL MEDIA AND A CUTTING-EDGE MARKETPLACE FOR PRIVATE COMPANY STOCK IS REVOLUTIONIZING THE CAPITAL MARKETS AND GIVING RISE TO NEW LEADERSHIP ON WALL STREET.TRANSCRIPT
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 [email protected]
@nowstreet
Where to go for industry data
Crowdfunding Industry Report:
http://www.crowdsourcing.org/research
Industry Organizations:
• http://cfira.org
• http://crowdfundingprofessional.org/