MediaShares Crowdfunding

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MediaShares provides a methodology for Crowdfunding a NASDAQ IPO

Transcript of MediaShares Crowdfunding

  • 1. All Companies need funding,but lately it is hard to come by

2. There is a new way for companies to get the funding they need: Crowdfunding 3. MediaShares provides a methodology for companies to get the funding they need by selling their stock on their ownWebsites to their fans, customers, users, or affinity group. We call our system a Crowdfunded IPO 4. CrowdfundingUsually thought of as getting smaller amounts of money from alarge crowd of investors. 5. Crowdfunding in 1606 A Copy of the Worlds First Share of Stock 6. Dutch East India Company lasted 200 Years At one point had 4785 Ships 7. May 17, 1792 Buttonwood Agreement Signed due toStockmarket crash in March of 1792! 8. The Birth of the New York Stock Exchangeand Crowdfunding in the U.S.A. 9. Tickertape - First used in 1870Enabled Communication with More Shareholders 10. Tickertape helped the stockmarket, but did very little for ladies fashions. 11. Telephone Invented in 1876 The Crowd Got Larger 12. The Internet Grew! 13. 1991 First Online Brokerage - The Crowd Got Much Larger!September 4, 1998 Google Incorporated 14. Entrepreneurs outside of the U.S. began touse the Internet for crowdfunding 15. Justin Wilson, Formula One Driver, financed his Team by selling stock to his fans 16. Trampoline Systems, first London technology company financed by Crowdfunding 17. Sell-A-Band: Invest $10 online, finance the group, and get the bands album 18. Online Crowdfunding in the U.S. Today: Crowdfunding as Donations (Exempt from SEC investmentregulations): 19. Kickstarter Some huge successes: 20. Word got out that Pabst Beer Company was for sale 21. Pabst Beer and Others Provedthat Crowdfunding Works 22. New IPO Rules in the JOBS ActNew category of issuers:Emerging Growth Companies Under $1BillionRelaxed disclosures for EGCs (No SOX 404)Confidential S-1 SubmissionsRelaxed rules on analyst activitiesTesting the watersThese changes are effective immediately 23. Stock Trading - Perception 24. Stock Trading - Reality 25. Stock Trading - Reality 26. Algorithmic Stock TradingAmount of stock trades as a percentage ofthe overall volume of trading:70 % done by machines (computers)Source: Tabb Group 27. IPOs Have Become An Exit Strategy,Not For Growth Capital At one time, an IPO was for growth capital Intel, Microsoft, and Apple received capital to grow Various factors changed everything Underwriters now looking for easy sell high profilecompanies like Facebook, Twitter Insiders want to cash out and dump to others Popsters not Investors now Secondary Churning/Trading by machines (computers) Growth investors are VCs, Angels, and Private share buyers IPOs now come too late in the growth cycle Crowdfunding can fix the problem 28. MediaShares and Crowdfunding can fix the problem 29. MediaShares Uses a System Already in Place:Direct Registration enables stock sales from a companys own Website or Facebook PageS-3 Filing Shelf OfferingNo need to open and pre-fund an brokerage accountStock purchase uses an ACH checking account debitHeld in book-entry for issuerVery small transaction charge ($1.00 to $3.00) 30. Direct Registration 31. Simple Form to Buy StockQwikShares eliminates pre-fundingthe typical brokerage accountStock is purchased through an ACHchecking account debit, credit card,or other electronic paymentDirect Registration Supplier holds stockin book entry for company & purchaser 32. Form satisfies FINRA suitabilityrequirements for know your customerCompany gains valuable demographics oneach shareholderCompany and broker now have paymentinfo for future purchases!Purchase as little as one shareVery small fee: $1 to $3 for transaction 33. Thank You!Gen