Dara Albright, Founder of NowStreet Twitter: @nowstreet www.nowstreetjournal.com dsa@nowstreetevents.com http://facebook.com/nowstreetevents

‘S volving apital arkets & rowdfunding

Symposium

New Legislation, New Markets, New Opportunities

ATLANTA, GA – AUGUST 21, 2012

HASHTAG FOR YOU TWEETERS: #financialmarketsreform

Sponsors

DEDICATION

“There's no chance that the iPhone is going to get any significant market share. No chance.”

― STEVE BALLMER 2007

Today’s event is dedicated to the naysayers. To the ones who’ve said that you can’t buck the Wall Street

establishment. To those who proclaim that Crowdfund investing will never have a beneficial impact on our

society, capital markets nor economic future. We thank you for your cynicism, for it gives us the impetus to persevere. We look forward to proving you wrong.

Key Components of the JOBS Act

Removal of the solicitation ban: Allows public advertising and promotion of private securities offerings

Enables “Emerging Growth Companies” (companies with annual revenues of up to $1 billion) to be exempt for up to five years from many of the financial control and reporting requirements instituted by the Sarbanes-Oxley Act of 2002

Raises the shareholder threshold from 500 to 2,000 before requiring SEC reporting Allowing a significant expansion of private trading markets

The legalization of “Crowdfunding” – raising money from large pools of small investors

Raises regulation A private offerings from $5M to $50M

The Harsh Reality

• DJIA 2011 performance: +5.5% • Nasdaq 2011 performance: -1.8% • S&P 2011 performance: FLAT • S&P Average Annual Return 1990 – 1999: 19% • S&P Average Annual Return 2000 – 2009: 1% • Current yield on a 10 yr T-Note: 1.57% • Savings account interest: 1% (high-end) • Average yield on a junk bond: 6.95%

• 2011 Inflation Rate: 3.2%

Flawed Market Structure Exacerbating the Great Wealth Divide

MSFT HISTORIC CHART

Where the investing public had the opportunity to invest

99% of Microsoft’s appreciation was realized

AFTER it had gone public!

DELL HISTORIC CHART

Where the investing public had the opportunity to invest

•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)

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”

The Small Cap IPO has been dying a slow death

The 1990s The 2000s Average Number of 447 102 Annual IPOs Median Market Cap $130M $1,094B Per IPO

PE Funds VCs

Pre-IPO Hedge Funds

Accredited Retail

There is no more meat in the public markets!

The Private Markets The new black

Where Growth Lives Today PRIVATE COMPANY VS. PUBLIC COMPANY GROWTH IN 2011

-10%

90%

190%

290%

390%

490%

590%

PCM NASDAQ

Our Stock Markets Are Evolving

Era of the social stock market

The Social & Mobile Revolution Fueling the Next Economic Expansion

DJIA +657%

DJIA +517%

NASDAQ +629%

Days It Took To Reach 50M Users

0

2000

4000

6000

8000

10000

12000

14000

13870

4645

1460 1325 88 21

• Like the important human eras that have come before, such as the Stone Age that lasted 3.4 million years, the Iron Age or the Industrial Age, the Internet Age will transform society and the economy for hundreds of years to come.

• With more than 2 billion Internet users globally (and almost 1 billion on Facebook alone), the Internet is the most disruptive technology in the history of the world.

-American Revolution 2.0, white paper by GSV Asset Management

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

civilization and 2003.“- Google CEO Eric Schmidt

HOW DO WE CAPITALIZE ON THE

INNOVATION OF THE DAY?

Rule 1: Don’t Put All Your Eggs in One Basket

Discover The Private Company Marketplace

PCM PLATFORMS:

PRIVATE SHARE DESKS: FUNDS:

CROWDFUNDING / P2P LENDING:

Move to Self-Directed IRAs

• Ability to invest in real estate, rental properties, LLCs, private stock, hedge funds, mutual funds, and stocks and bonds;

• Increased control over investment strategies and decisions;

• Maximize investment returns by gaining exposure to today’s fastest growing companies;

• Diversifying outside the public markets; • As with all IRA investments, taxes on investment returns are

deferred until funds are withdrawn from the account;

• New Account Opener

“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

Regulatory Reform

Transforming Market Structure Not relying on depleted fiscal policy

Unprecedented innovation

New Era of Mass Communications

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

New Legislation

New Markets

New Opportunities

Dara Albright, Founder of NowStreet Twitter: @nowstreet www.nowstreetjournal.com dsa@nowstreetevents.com http://facebook.com/nowstreetevents