1. Building an online
marketplace for
investment management
Asheesh Advani, CEO

2. Rise of Marketplaces
Travel Travelocity, Expedia, AirBnB
Education SkillShare, TutorSpree Reasons for Success
Retail Crafts Ebay, Etsy
Pricing Transparency
Work Elance, Crowdspring
Hidden Jewels (“Long Tail”)
Innovation Kickstarter
Quality Filters & Curation
Investment in Brand/Trust
Mortgage Lending LendingTree
“Power Sellers & Buyers”
Consumer Lending LendingClub
Social integration
Insurance Comparison Market
Investing Covestor

3. Vision
Self-Directed
Full Service Marketplace
Brokerage
No Empowerment Total Empowerment Total Empowerment +
Minimum Effort Maximum Effort Minimum Effort

4. Investment Talent on Covestor
Strong performance by managers
on platform
More of our managers consistently beat
their benchmark (e.g. S&P, Russell, etc.)
than portfolio managers in the mutual
fund industry by a factor of 3X
Covestor’s most popular managers (top
10, by number of subscriptions) beat the
S&P by 14% over 1 year time horizon

5. How It Works
Front End
Search and selection of managers
Clients Performance reporting Managers
No lock-up Marketplace: Managers
Control assets in brokerage acct set own fees and
Low minimum investment strategy
Can switch managers anytime
orders
reports
client’s broker manager’s broker
account account
filtered, repl trades
Broker icated Broker
trades
Platform
Verifies manager performance. Routes
and filters trades, reconciles funds.
Manages compliance, fees and reporting

6. •c

7. 7

8. Content Strategy
Content Creation Content Distribution Lead Capture

9. Content Example 1: MarketWatch
Model managers provide unique
content curated by Covestor with
links back.
9

10. Content Example 2:
Yahoo MarketPulse
Link to Manager Profile page
Cost of acquisition = $0

11. Conversion Initiatives
Email Marketing + Videos & Webinars + Sales
Awareness Consideration Trial Purchase Loyalty
11

12. Virtual Conference: March 20-21
• Covestor-created conference
leveraging state-of-the-art
technology
• Mimicking look and feel of a
traditional conference, without
travel time and expense
• Building awareness of our model
managers
• Bringing key business
development partners who want
access to virtual booths
http://covestor.com/NextInvest

13. Thank You
Asheesh Advani
CEO, Covestor
asheesh@covestor.com
http://www.covestor.com/NextInvest
March 20-21, 2012
Registration is free