MediaShares provides a methodology for Crowdfunding a NASDAQ IPO

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

5. There is a new way for companies to get the funding they need:
“Crowdfunding”

6. MediaShares provides a methodology for companies to get
the funding they need by selling their stock on their own
Websites to their fans, customers, users, or affinity group.
We call our system a “Crowdfunded IPO”

7. Crowdfunding
Usually thought of as getting smaller amounts of money from a
large crowd of investors.

8. Crowdfunding in 1606 – A Copy of the World’s First Share of Stock

10. Dutch East India Company lasted 200 Years –
At one point had 4785 Ships

11. May 17, 1792 – Buttonwood Agreement – Signed due to
Stockmarket crash in March of 1792!

12. The Birth of the New York Stock Exchange
and Crowdfunding in the U.S.A.

13. Tickertape - First used in 1870
Enabled Communication with More Shareholders

14. Tickertape helped the stockmarket, but did very little for ladies fashions.

15. Telephone Invented in 1876 – The Crowd Got Larger

17. The Internet Grew!

18. 1991 – First Online Brokerage - The Crowd Got Much Larger!
September 4, 1998 Google Incorporated

19. Entrepreneurs outside of the U.S. began to
use the Internet for crowdfunding…

20. Justin Wilson, Formula One Driver, financed his Team by selling stock to his fans

21. Trampoline Systems, first London technology company financed by Crowdfunding

22. Sell-A-Band: Invest $10 online, finance the group, and get the band’s album

23. Online Crowdfunding in the U.S. Today:
• Crowdfunding as Donations (Exempt from SEC investment
regulations):
– Kickstarter.com
– IndieGoGo.com
– RocketHub.com

25. Kickstarter – Some huge successes:

26. Word got out that Pabst Beer Company was for sale

28. Pabst Beer and Others Proved
that Crowdfunding Works

30. New IPO Rules in the JOBS Act
New category of issuers:
“Emerging Growth Companies” – Under $1Billion
•Relaxed disclosures for EGCs (No SOX 404)
•Confidential S-1 Submissions
•Relaxed rules on analyst activities
•“Testing the waters”
•These changes are effective immediately

31. Stock Trading - Perception

32. Stock Trading - Reality

33. Stock Trading - Reality

34. Algorithmic Stock Trading
Amount of stock trades as a percentage of
the overall volume of trading:
70 % done by machines (computers)
Source: Tabb Group

35. IPO’s 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 profile
companies 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 VC’s, Angels, and Private share buyers
• IPO’s now come too late in the growth cycle
• Crowdfunding can fix the problem

37. MediaShares and Crowdfunding can fix the problem…

39. MediaShares Uses a System Already in Place:
•Direct Registration enables stock sales from
a company’s own Website or Facebook Page
•S-3 Filing – Shelf Offering
•No need to open and pre-fund an brokerage account
•Stock purchase uses an ACH checking account debit
•Held in book-entry for issuer
•Very small transaction charge ($1.00 to $3.00)

41. Direct Registration

42. Simple Form to Buy Stock
QwikShares eliminates pre-funding
the typical brokerage account
Stock is purchased through an ACH
checking account debit, credit card,
or other electronic payment
Direct Registration Supplier holds stock
in book entry for company & purchaser

43. Form satisfies FINRA “suitability”
requirements for “know your customer”
Company gains valuable demographics on
each shareholder
Company and broker now have payment
info for future purchases!
Purchase as little as one share
Very small fee: $1 to $3 for transaction

46. Thank You!
Gen