Much has been said about disintermediation in markets, made possible by new technologies & more efficient systems. In the past, this has in actuality been an introduction of new intermediation forms, leading to more numerous & complex intermediation functions. The truer disintermediation has yet to take place, but, like its antecedents, this too will be a transference to intermediation of a new order: Networks & their ecosystem of services will be new intermediaries, augmenting roles previously dominated by institutions & serving to open a previously enclosed environment. This presentation illustrates some of the historical, current & anticipated trends described. It is not a comprehensive review of industry activities or a survey of competitors. Nor is it an analysis or set of recommendations for purposes of assessing any investment, public or private.

2. CONVERGENCE OF FINANCE & MEDIA:
TRANSFORMATION OF COMPLEX MARKETS
Much has been said about disintermediation in markets, made possible by new
technologies & more efficient systems. In the past, this has in actuality been an
introduction of new intermediation forms, leading to more numerous & complex
intermediation functions. The truer disintermediation has yet to take place, but, like its
antecedents, this too will be a transference to intermediation of a new order: Networks &
their ecosystem of services will be new intermediaries, augmenting roles previously
dominated by institutions & serving to open a previously enclosed environment.
This presentation illustrates some of the historical, current & anticipated trends
described. It is not a comprehensive review of industry activities or a survey of
competitors. Nor is it an analysis or set of recommendations for purposes of assessing
any investment, public or private.
MARCH / 2013 UPDATE

3. BACKGROUND & BASICS:
MARKET INTERMEDIATION & ITS GROWTH
MARCH / 2013 UPDATE

4. MARKETS ARE THE INTERSECTION OF SOURCES & USERS OF
CAPITAL, MANY OF WHICH PLAY COMPLEX ROLES IN
OVERLAPPING WAYS
BUSINESS
CORPORATIONS VENTURES
CAPITAL SOURCES
CAPITAL USERS
PRIVATE
INVESTORS
INSTITUTIONS
/FUNDS SOVEREIGNS
BANKS
MUNICIPALITIES
CONSUMERS
4 MARCH / 2013 UPDATE

5. INTERMEDIARIES SERVE A CHANNELING FUNCTION, ENABLING
THE FLOW OF CAPITAL IN ITS MOST OPTIMAL DIRECTION
Investors Banks Issuers
Money Credit
Lenders Managers Card Cos Borrowers
Buyers Brokers Merchants Sellers
Traders Analysts
Consumers Builders
Advisors
PRINCIPAL AGENT PRINCIPAL
5 MARCH / 2013 UPDATE

6. THE INTERMEDIATION FUNCTION IS DRIVEN BY SCALE
ECONOMIES & INFORMATION EFFICIENCY BASED ON VOLUME
& SPECIALIZATION
Banks
Investors Issuers
Money Credit
Lenders Managers Card Cos Borrowers
Buyers Brokers Merchants Sellers
Consumers Builders
Traders Analysts
Advisors
6 MARCH / 2013 UPDATE

7. IN INSTITUTIONAL MARKETS, THESE AGENCY EFFICIENCIES
HAVE LED TO NEW INTERMEDIATION VEHICLES IN THE FORM
OF SPECIALIZED FUNDS
Private Hedge Funds
Equity
Venture Mutual Funds
Capital
Corporate REITs &
Credit Other Vehicles
PRIVATE PUBLIC
7 MARCH / 2013 UPDATE

8. IN CONSUMER MARKETS THE SAME HAS LED TO EXPANSION
OF INTERMEDIATED PRODUCTS & THE INTRODUCTION OF
NEW INTERMEDIATED INSTRUMENTS
Credit
cards
Securitization
Debit Mortgages
cards
Pools SPV
Student
loans Car loans
CDS
Annuities
& policies
PRODUCTS INSTRUMENTS
8 MARCH / 2013 UPDATE

9. THIS CORE GROUP OF INTERMEDIATION ENTITIES ARE
LARGELY FUNDED FROM WITHIN A UNIVERSE OF OTHER
INSTITUTIONAL SOURCES...
BANKS
INSURANCE
ENDOWMENTS
COMPANIES
Private Equity
REITs
SPVs
Finance Co’s
Hedge Funds
PENSIONS Venture Capital SOVEREIGNS
Mutual Funds
CORPORATIONS FAMILY OFFICES
9 MARCH / 2013 UPDATE

10. ... WHICH ARE OFTEN THEMSELVES PROFESSIONALLY
MANAGED INTERMEDIARIES & OTHER AGENTS
ASSOCIATIONS Banks SOVEREIGNS
Insurance Endowments
Companies Private Equity
Hedge Funds
Corporate Credit
Venture Capital
Mutual Funds
Family Offices Pensions
CORPORATIONS BANKS
10 MARCH / 2013 UPDATE

11. AS RISKLESS COMPENSATION FOR AGENCY SERVICES IS A
CAPITAL DRAIN FROM THE MARKET (OFFSET BY THE UNIQUE
VALUE-ADDED OF THE AGENCY FUNCTION)...
$- compensation
Principal Agent Principal
$
11 MARCH / 2013 UPDATE

12. ... THERE IS INCENTIVE TO DISINTERMEDIATE CAPITAL FLOWS
& SIMPLIFY COMPLEX MARKETS
BUSINESS
CORPORATIONS VENTURES
CAPITAL SOURCES
CAPITAL USERS
PRIVATE
INVESTORS
INSTITUTIONS
/FUNDS SOVEREIGNS
BANKS
MUNICIPALITIES
CONSUMERS
12 MARCH / 2013 UPDATE

13. BUT INFORMATION EFFICIENCY WILL ALWAYS BE CENTRAL
TO A PROPERLY FUNCTIONING CAPITAL ENVIRONMENT
BANKS
information
$
CREDIT CARD CO’S $
$
INSURANCE information
COMPANIES information
HEDGE FUNDS $
$
$
ENDOWMENTS $
PRIVATE
information
$
EQUITY $
CORPORATE $ $
VENTURE CREDIT $
CAPITAL information $
MUTUAL FUNDS $
SOVEREIGNS $
information
PENSIONS
information $ $
CORPORATIONS $
$ $ $
FAMILY OFFICES TRANSFORMATION $ $
information
13 MARCH / 2013 UPDATE

14. THE FUTURE BANK WILL BE
A MEDIA CONGLOMERATE:
INGREDIENTS CURRENTLY IN PLACE
MARCH / 2013 UPDATE

15. VARIATIONS OF MEDIA (SYNONYMOUS WITH INFORMATION
FLOW) ARE AT THE CORE OF EFFECTIVE INTERMEDIATION
information information
Principal Agent Principal
information information
15 MARCH / 2013 UPDATE

16. WHEREAS BANKS HAVE TRADITIONALLY BEEN BUILT ON THE
FOUNDATION OF CAPITAL, THEIR VALUE IS BASED ON
ACCESS, ANALYSIS & PACKAGING OF INFORMATION
information information
Data
Analysis
[BANK]
Networks
Ideas [MEDIA CO.]
Advice
information information
CONTENT DISTRIBUTION
16 MARCH / 2013 UPDATE

17. THE OPEN WEB HAS ENHANCED & BROADENED THE FLOW OF
INFORMATION & ITS ACCESS
Facebook Google
Amazon Apple
17 MARCH / 2013 UPDATE

18. THE PERVASIVENESS OF SOCIAL MEDIA HAS EXPANDED THE
REACH & SCOPE OF INFORMATION
Facebook Google
Amazon Apple
18 MARCH / 2013 UPDATE

19. MOBILITY & APPS HAVE FACILITATED THE IMMEDIACY OF
INFORMATION DELIVERY
Facebook Google
Amazon Apple
19 MARCH / 2013 UPDATE

20. TRANSACTIONAL PLATFORMS ARE BEING PERFECTED &
CONSUMERS HAVE BECOME ACCUSTOMED TO ELECTRONIC
COMMERCE
Facebook Google
Amazon Apple
20 MARCH / 2013 UPDATE

21. AS TECHNICAL CAPABILITIES & CONSUMER PREFERENCES
COMBINE FOR A DEMOCRATIZED & FRAGMENTED MARKET TO
THRIVE...
INF
L OR
IA
M
C
AT
SO
IO
N
Facebook Google
Wikipedia
Yahoo!
Gilt
Amazon Apple
NT
TRA
ME
NS
C IN
A
RT
A
TI
ON E
AL ENT
21 MARCH / 2013 UPDATE

22. ... KEY FUNCTIONAL ELEMENTS ARE ALSO EVOLVING...
SECURITY ANALYTICS
DATA
EDUCATION VISUALIZATION
22 MARCH / 2013 UPDATE

23. ... & REGULATORY ACTIVITY APPEARS TO BE IN TUNE WITH
THE SOCIAL ENVIRONMENT
FINRA Opens Door for Social Media
with New Rules
Socialware, January 9, 2012
http://blog.socialware.com/2012/01/09/finra-opens-door-for-social-
media-with-new-rules/
JOBS Act would make crowd funding
of small businesses legal for people
who aren’t accredited investors
PandoDaily, March 17, 2012
http://pandodaily.com/2012/03/17/after-some-initial-doubts-im-sold-
on-the-jobs-act/
23 MARCH / 2013 UPDATE

24. INGREDIENTS ARE THUS FALLING INTO PLACE FOR
ENHANCED & COST-EFFECTIVE INFORMATION FLOW &
CAPITAL ACCESS...
INF
L OR
IA
M
M
C
A
AT
SO
I
IO
N
Wikipedia
SECURITY ANALYTICS
Yahoo!
DATA
EDUCATION VISUALIZATION
REGULATION
REFORM RELAXATION
Gilt
NT
TRA
ME
NS
IN
C
A
TI A
R T
ON TE
AL EN
24 MARCH / 2013 UPDATE

25. ... FACILITATING DISINTERMEDIATION AT A QUICKENING PACE
& THE DIRECT INTEGRATION OF FINANCE & MEDIA
INF
L OR
IA
M
M
C
A
AT
SO
I
IO
N
Wikipedia
Yahoo!
FINANCE
Gilt
NT
TRA
ME
NS
IN
C
A
TI A
R T
ON TE
AL EN
25 MARCH / 2013 UPDATE

26. DEVELOPMENT OF SOCIAL MARKETS:
UNDERWAY
MARCH / 2013 UPDATE

27. ESTABLISHED MEDIA PLATFORMS HAVE LAID IMPORTANT
GROUNDWORK IN THE COMBINATION OF MEDIA & FINANCE...
MEDIA
BLOOMBERG CNBC
PR NEWSWIRE CAPITAL IQ
DOW JONES ETRADE
FINANCE
27 MARCH / 2013 UPDATE

28. ... & THIS IS BEING BROADENED WITH INNOVATIVE
SOLUTIONS...
DATA
SECURITY RESEARCH
TRADING NETWORK P2P
IDEAS/ADVICE CORP FIN
PAYMENTS / DEPOSITS
28 MARCH / 2013 UPDATE

29. ... CATERING TO AN EXPANDING USER BASE INCREASINGLY
ACCUSTOMED TO NEW TECHNOLOGIES & STYLES...
INDIVIDUALS
INSTITUTIONS CORPORATIONS
IDEAS
INVESTORS TOOLS ANALYTICS ISSUERS
ACCESS
NEWS/PR INFLUENCERS
ADVISORS
29 MARCH / 2013 UPDATE

30. ... RANGING FROM THE PROVISION OF DATA & INFORMATION...
BANKRATE
OPERA SOLUTIONS
YAHOO FINANCE
CB INSIGHTS
CRUNCHBASE
30 MARCH / 2013 UPDATE

31. ... TO THE EXCHANGE OF IDEAS...
STOCKTWITS
SEEKING ALPHA
FUTUREADVISOR
ETORO
BENZINGA
COVESTOR
31 MARCH / 2013 UPDATE

32. ... TO PRIVATE CAPITAL SOURCING & CROWD-FUNDING...
SECONDMARKET
KICKSTARTER
AXIAL MARKET
FUNDERS CLUB
ANGELLIST
32 MARCH / 2013 UPDATE

33. ... TO PEER-TO-PEER (P2P) & OTHER LOAN PRODUCTS...
PROSPER
LENDING CLUB
FUNDING CIRCLE
POLLENWARE
33 MARCH / 2013 UPDATE

34. ... TO THE MECHANICS OF CLEARANCE & PAYMENTS...
SQUARE
AFFIRM GOOGLE
WALLET
DWOLLA
STRIPE
PAYPAL
34 MARCH / 2013 UPDATE

35. ... TO CONSUMER MARKET OFFERS & BIDS...
GROUPON
GILT
STUBHUB
EBAY
ETSY
FOURSQUARE
35 MARCH / 2013 UPDATE

36. ... TO THE EVOLUTION OF ALTERNATIVE CURRENCIES &
TRADABLE VALUE SYSTEMS, VIRTUAL & REAL...
FACEBOOK
CREDITS
BITCOIN
PEERINDEX
KLOUT
36 MARCH / 2013 UPDATE

37. ... SETTING THE STAGE FOR NEW CAPITAL FLOWS & NEW
MARKETS TO FORM & EVOLVE...
BANKS SQUARE
CREDIT CARD CO’S BANKRATE FB CREDITS
INSURANCE
HEDGE FUNDS
COMPANIES
STOCKTWITS SECONDMARKET
KICKSTARTER LENDING CLUB
ENDOWMENTS
PRIVATE
EQUITY
CORPORATE PROSPER FOURSQUARE
VENTURE CREDIT STRIPE
CAPITAL
MUTUAL FUNDS
ETORO PAYPAL
SOVEREIGNS EBAY
DWOLLA
CORPORATIONS
PENSIONS GROUPON ANGELLIST
FAMILY OFFICES
STUBHUB BITCOIN
COVESTOR
ESTABLISHED EVOLVING
MARKETS PLATFORMS
37 MARCH / 2013 UPDATE

38. ... ALL BASED ON EFFICIENT INFORMATION FLOW & A
SUPERIOR ECONOMIC MODEL
INFORMATION
INFORMATION INFORMATION
$ $
Principal Agent Principal
$ $
INFORMATION INFORMATION
INFORMATION
38 MARCH / 2013 UPDATE

39. NEXT PHASES:
INTEGRATION & EXPANSION
MARCH / 2013 UPDATE

40. MARKETS ARE COMPLEX MECHANISMS THAT REQUIRE
INTEGRATION (EVEN WHEN DISINTERMEDIATED)
INVESTORS ISSUERS
SUPPORT
CONSUMERS MERCHANTS
INTEREST
ANALYTICS
GROUPS
BUYSIDE MARKETS SELLSIDE
UNDERWRITING VENDING
ADVERTISERS RESEARCH TOOLS NEWSWIRE
PR INFLUENCERS
40 MARCH / 2013 UPDATE

41. DISPARATE PLATFORMS ARE A FIRST STEP TO A HOLISTIC
SYSTEM IN WHICH CAPITAL & INFORMATION ARE CO-JOINED
SQUARE
information
$
BANKRATE FB CREDITS $
$
information
STOCKTWITS SECONDMARKET information
$ $
KICKSTARTER LENDING CLUB $
$
information
PROSPER FOURSQUARE $ $
STRIPE information $
ETORO PAYPAL information
EBAY $ $ $
DWOLLA $
GROUPON ANGELLIST information $
information
STUBHUB BITCOIN $ $
$
COVESTOR information
FRAGMENTED EFFICIENT,
FUNCTIONAL,
DEMOCRATIZED
41 MARCH / 2013 UPDATE

42. THIS EVOLUTION WILL TAKE TIME, EXPERIMENTATION &
SUPPORT OF THE MARKETS’ CONSTITUENCIES
BUSINESS
CORPORATIONS VENTURES
CAPITAL SOURCES
CAPITAL USERS
PRIVATE
INVESTORS
INSTITUTIONS
/FUNDS SOVEREIGNS
BANKS
MUNICIPALITIES
CONSUMERS
42 MARCH / 2013 UPDATE

43. IN THE COURSE OF THIS EVOLUTION, THE CURRENT AGENCY
SYSTEM WILL INCREASINGLY ADAPT TO A MORE
DECENTRALIZED SOCIAL ENVIRONMENT...
Investors
Banks
Issuers Consumers
Analysts Credit
Money Card
Managers Co’s
Lenders Builders
Traders Advisors
Sellers Brokers Borrowers
Buyers
43 MARCH / 2013 UPDATE

44. ... IN WHICH THE NEW (DIS)INTERMEDIARY WILL LIKELY BE
THE NETWORK ITSELF
INFORMATION
INFORMATION INFORMATION
Investor $ PayPal Issuer
$
Square StockTwits
Lender Borrower
SecondMarket LendingClub
Principal Network Principal
FutureAdvisor Dwolla
Buyer Seller
AngelList CB Insights
Consumer $ $ Builder
Bankrate
INFORMATION INFORMATION
INFORMATION
44 MARCH / 2013 UPDATE

45. WHERE ARE YOU IN
THIS LANDSCAPE?
WHERE ARE YOU
HEADING?
MARCH / 2013 UPDATE

46. CONTACT INFORMATION
TO DISCUSS FURTHER:
CoRise Co., LLC
535 Fifth Avenue, 4th floor
New York, NY 10036
Telephone: (646) 532-6690
email: info@coriseco.com
www.coriseco.com
46 MARCH / 2013 UPDATE