Restoring Trust in the IPO Process

* IRevolution ECONOMIC |<0.2% GDP FedEx. EQUIDITY ANNUAL VC INVESTMENT AND RESTORING TRUST IN THE IPO PROCESS JOB GROWTH The IPO process is broken, but together we can fix it. Equidity is a member-only professional social network that connects directly the top IPO-track companies to the best, long-term growth investors with full transparency, visibility, & direct access. Equidity is designed to replace lost stock marketing infrastructure needed for IPO optimal performance, critical for capital formation, economic growth & job creation. A well-functioning IPO market cannot return without intervention ENGINE ebay LLLLLLL ENTREPRENEURSHIP INDUSTRY 21% OF GDP = 10,500% ROIL Innovation has a disproportionate effect on the economy, with a multiplier of five new additional local jobs created from each new high-tech job about three times the multiplier effect of each new manufacturing job. SOURCES: EQUIDITY IHS GLOBAL I NATIONAL VENTURE CAPITAL ASSOCIATION THE IPO EVOLUTION IPOS of the Past, Present, and Future IPOS OF TODAY IPOS OF THE PAST INFRASTRUCTURE SHIFTS IPOS OF THE FUTURE EQUIDITY SOLUTIONS Source: ©The New Geography of Jobs, Enrico Moretti, Phd., 2012. THE NUMBER OF VENTURE-BACKED IPOS HAS FALLEN Number of Issues 92% of job creation Occurs post-IPO. VDR TRANSPARENCY VISIBILITY IPOS WE CAN FROM MORE THAN 250 IN 1996 TO JUST 32 IN 2009. Transactions IPO VALUATIONS CONFIDENCE TRUST 300 DETACHED FROM INTERNET BUBBLE BURST FUNDAMENTALS 200 Source: Venture Impact 2007, 2008, 2009, & 2010 by IHS Global VETS, VALUES Insight; IPO Task Force August 2011 CEO Survey. 4.74 YEARS 10 YEARS PIPO* 100 TO IPO TO IPO & INCUBATES IPOS TODAY'S IPO PROCESS IS BROKEN SARBOX The markets'infrastructure shifts have made the IPO process obsolete, while disrupting the venture industry, economic growth & life as we know it. BALANCE *93 94 '95 96 97 98 99 '00 01 '02 *03 04 '05 06 '07 "08 09 10 LONG-TERM SHORT-TERM INVESTING TRADING Souroe: Weikt Investments 2012, Al Rights Reserved RISE OF HEDGE FUNDS TRADING, EQUIDITY STABILITY & LIQUIDITY LONG-TERM MARKETS GROWTH QIBS ONLY any variables came together at the end of the 90's in a SUCCESS RATE OF IPOS MAINTAINING ISSUE PRICE ONE MONTH AFTER GOING PUBLIC: perfect storm, permanently altering the financial AFTER MARKET PERFORMANCE 100% market's infrastructure and its ability to support young IPOS, which turbo-charge the U.S. economic & job growth engine. 80% RESEARCH The result of these market changes? A 5+ year increase in the B TO B 60% MARKETING amount of time needed to go public and an ever-rising bar for ANALYST REGULATIONS company size and maturity, which are reflective of our lost 40% confidence and trust in IPOS. IR PLATFORM LOSS OF STOCK SALES + MARKETING 20% BROKERS Worst, the few companies that achieve IPO often suffer "pump & dump" scenarios common in our today's trading-dominated INFRASTRUCTURE DECIMALIZATION OL, 60. 80. L0. 90. S0. v0. E0. 20. 10. 00. 66, 86. L6, 96, S6. 16. E6. without a stable shareholder base for these young, important markets that do not support optimal aftermarket performance B TO C Source: Capital Markets Advisory Partners LLC, All rights reserved Includes only corporate issuers, excluding funds, MLPS, SPACS and REITS. companies. The PIPOM corrects for these market dynamics. BRANDING MARKET MAKING GROWTHSTARS AWARD Equidity's Platform & the PIPO™ are designed to restore trust, transparency, and common sense to the IPO BULGE BRACKET BANK DOMINANCE markets, ushering in an era of sustainable IPO success, job growth, & fundamentals-based relationships between companies & investors for true value creation, which grows healthy economies and societies. The PIPO -- Public Investors in Private Offerings -- provides a new IPO on-ramp. Professional, long-term QIB investors vet & value these companies early, investing at a discount to public valuations while assuming the risk. PIPOS incubate a more mature, stable IPO with shareholder base stability needed for today's trading dominated markets. Valuations are aligned with long-term value creation vs. short-term, unsustainable valuation "pops"that destroy investor confidence trust, & economic growth from the resulting uncertainty in valuations.