And the Coming Local Capital

Revolution

The End of Wall Street

The Competitiveness of Small

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Self-Employees<100 Employees100-499 Employees500+ Employees

Our Current Investment Strategy

Investment Apartheid

The Impact of $15 Trillion Shift

How Can We End Wall Street’s Free Ride?

The Revolution Evolution

Local

Securities

Local Exchanges

Local Funds

Pensions

The JOBS Act5 April 2012

• <$1 million

• <$100k $2k/5%

• >$100k 10%

• Portal Required

• State Preemption

Community PortalProposed Regulations

• BD or Portal Operator

• Success Fee

• License from SEC & FINRA

• Annual Cost– SEC: $417k– Mission Markets: $100k

Status Report

Tasks for Community Portal

• Entrepreneurship Ecosystem

• Facilitate Information

• Mobilize Investors

• Mobilize Businesses

• Transactions (Pending)

What’s Next?

Next State Reforms

(1) Municipal Markets

List Self-Directed IRA Agents

(2) The $100 Exemption

(3) Local Stock Exchange

(4) Community Investment Funds

The Nova Scotia Model

(5) Tax Credit

One Simple Federal Ask (That the SEC Can’t Refuse)

“Hey…what stays intra-state…ain’t none of your damn business….”

For More Information:

Michael Shuman

202-669-1220shuman@igc.org

www.michaelhshuman.com