Crowdfunding presentation[2]

Georgia’s New Investment Marketplace

Cutting-Edge Community Finance in Georgia

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Megan [email protected]

Jeff [email protected]

Georgia’s Economic Woes

During the downturn, Georgia leads the nation in bank failures, with

almost a quarter of all banks in the state closing.

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Georgia is credited with the metropolitan area that suffered more

lost jobs than anywhere else in the country.

The New York Times: No End to Housing Bust in ‘Carpet Capital of the World,’ August 20, 2012

Georgia’s Reliance on Small Business

Georgia’s economic recovery depends on the health of its start-up and small business community.

–From 2005-2008, Georgia small businesses created 90% of the new private sector jobs.*

*Small Business Profile: Georgia, U.S. Small Business Administration, Feb. 2013

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−Small businesses represent 97.7 % of Georgia’s employers, employing half of Georgia’s work force.*

Georgia’s Breakthrough Legislation

Georgia arms its business community with a powerful tool to raise capital.

Invest Georgia Exemption

•Passed in December 2011 (amended in Dec. 2012)•Permits equity crowdfunding to non-accredited investors•Businesses can raise up to $1 million annually•Non-accredited investors are capped at $10,000•Georgia is one of only two states with this exemption

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Local Equity Crowdfunding

• $1 spent at a local business generates 3x more of a local economic benefit than $1 spent at a national chain.*

• Imagine the impact of local investing—$30 trillion in retirement funds primarily invested in publicly traded companies.*

• If 1% were shifted to local businesses, $300 billion would be injected into Main Street.*

*Amy Cortese, Locavesting, John Wiley & Sons, Inc. (2011).

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Why Local Crowdfunding Mitigates Fraud

• Access—What is lost in disclosures, an investor gains in ACCESS. By freeing unaccredited investors from the middle-men required to navigate Wall Street, the investor can evaluate the market place first-hand through the internet.

• Accountability—But more importantly, local investing inherently mitigates risk. SparkMarket will link a business in the community with investors from the same community—they can meet face to face or see first-hand the success of a venture that’s just down the street.

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Bring Brickstore Pub to Grant Park

• Community members can shape local development—previously, the exclusive province of banks and businesses that attract Angels and VC’s.

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Bring Brickstore Pub to Grant Park

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There has never been a point of contact between the socially conscious community investor and the small businesses in their neighborhood.

Until now, this has been a woefully ignored and untapped form of capital creation.

Meet the Team

• Megan K. Johnson (CEO) – Megan is a finance/business lawyer and a member of the Georgia Bar. She has over 5 years of experience with commercial litigation, with a perspective enriched by both private practice and public service as the Director of Georgia’s Business Court, and has extensive contacts in the business community in Georgia. Megan is the creative engine behind SparkMarket and has been part of the crowdfunding movement since its earliest introduction in the US.

• Jeffrey A. Bekiares (COO) – Jeff is a securities lawyer and a member of the Georgia Bar. He has over 5 years of experience assisting companies with both public and private capital raising efforts and regularly works with both the SEC and state securities authorities. Jeff is General Counsel of SparkMarket and has leveraged his connections in the legal and regulatory communities in Georgia to win support for the concept and build a base of interest in the business community.

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