CROWDFINANCE: THE PATH TO ECONOMIC DEMOCRACY

WWW.DARAALBRIGHT.COM / DSA@DARAALBRIGHT.COM / TWITTER: @TOTHESTOICS / LINKEDIN.COM/IN/DARAALBRIGHT/

ROSWELL ROTARY LUNCHEON

APRIL 30, 2015 By Dara Albright

www.daraalbright.com | dsa@daraalbright.com

@tothestoics daraalbright

Debunking crowdfinance misconceptions

Source: The New Yorker Magazine

• Crowdfinance is applying social technology to 238 year old U.S. capitalistic principles in order to create an abundance of new opportunity for underwriters, issuers and investors of all sizes

Crowdfinance is NOT scary or new

It is simply conventional finance but instead of capital coming from big institutions or Government entities,

modern technology and new securities regulations have made it possible for businesses to raise capital by pooling small amounts of monies from a large crowd of individuals

Crowdfinance IS just like conventional finance

Crowdfinance can be structured as debt or equity

and it can be broken into three main sub categories:personal (consumer) financeP2P Lending, Peer-2-Peer Lending, Marketplace Lending, Digital

Lendingcorporate financeCrowdfunding, P2B Lending, Peer-2-Business Lending, Peer-2-

Real Estate Lendingpublic finance / Economic development

Just like conventional finance…

Crowdfinance is governed by the same underlying principle that enabled America to transform from a vast farmland into the greatest economic

superpower in the history of the world:

Granting citizens the freedom to invest in the ingenuity of their fellow citizens

And just like conventional finance…

But between bubbles,

scandals, crashes & crisis’,

America lost her way

2,319 pages that helped big financial Institutions grow even larger – at the expense of America’s small businesses &

retail investors!

We need to resolve problems – not create new ones!

IN ORDER FOR ALIBABA’S IPO INVESTORS TO REALIZE THE SAME

RETURN AS INTEL’S IPO INVESTORS,ALIBABA WILL NEED TO BE TRADING

AT A $480 TRILLION MARKET CAPITALIZATION – 6 TIMES MORE

THAN THE GDP OF EVERY COUNTRYON THE PLANET COMBINED!

Equity markets are flawed and unjust

• Small businesses can no longer rely on banks for loans

• Investors can no longer afford to keep money in low interest bearing savings accounts

Credit markets are flawed and unjust

Conventional fixed-income returns are miniscule

Social Security on the brink of bankruptcy

Investors are starving for yield!

According to the Employee Benefit Research Institute: a staggering 83% of the nation’s poorest are at risk for running out

of money

66% of workers having saved less than $50,000 for their retirement

28% have saved less than $1,000

Flawed Markets Leading to Looming Retirement Crisis

Flawed market structure, NOT flawed tax structure, is what is exacerbating the wealth divide

Crowdfinance is righting dysfunctional capital markets by combining modern technology with more

democratic securities regulations

Crowdfinance &

Economic Democracy

Research firm Liberum, has P2P on track to be a $40 billion industry in just the U.S. & U.K. by 2016.

Venture Capital firm, Foundation Capital, predicts that by 2025, $1 trillion in loans will be originated online globally

Online lending is providing solutions to borrowers & lenders

Much more work needs to be done to bring higher yielding fixed-income opportunities to retail

investors!

Equity side of crowdfinance is developing

JOBS Act inspired offering structures will bring growth opportunities back

to retail investors:

Reg A+ becomes effective on June 19, 2015

Regulators focused on venture markets Intrastate crowdfunding laws germinating

state by state Legislators working on viable federal

unaccredited crowdfunding framework

“Since no one is smart enough to predict the ripple effects of game-changing technologies, it’s important that we have a capital markets system that provides opportunity for a wide range of businesses. Only by having lots of balls in the air will we increase our odds of capitalizing that one company that may very well save mankind.” – Dave Weild, Former Vice Chairman of NASDAQ & Chairman of IssuWorks

Thank you!

Reach out anytime!

www.daraalbright.com | dsa@daraalbright.com

@tothestoics daraalbright

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