Embed Size (px)
DESCRIPTION
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.
Citation preview
Much has been said about disintermediation in markets, made possible by new technologies & more e!cient 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.
CONVERGENCE OF FINANCE & MEDIA:TRANSFORMATION OF COMPLEX MARKETS
MARCH / 2013 UPDATE
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
CAPITAL SOURCESCAPITAL USERS
CORPORATIONS
PRIVATE INVESTORS
BUSINESS VENTURES
CONSUMERS
SOVEREIGNS
BANKSMUNICIPALITIES
INSTITUTIONS/FUNDS
MARCH / 2013 UPDATE
5
INTERMEDIARIES SERVE A CHANNELING FUNCTION, ENABLING THE FLOW OF CAPITAL IN ITS MOST OPTIMAL DIRECTION
Banks
Brokers
Analysts
Money Managers
Traders
Issuers
Builders
Sellers
Borrowers
Investors
Buyers
Lenders
Advisors
Credit Card Cos
Consumers
Merchants
PRINCIPAL PRINCIPALAGENT
MARCH / 2013 UPDATE
6
Investors
Buyers
Lenders
Issuers
Builders
Sellers
Borrowers
Consumers
THE INTERMEDIATION FUNCTION IS DRIVEN BY SCALE ECONOMIES & INFORMATION EFFICIENCY BASED ON VOLUME & SPECIALIZATION
Banks
Brokers
Analysts
Money Managers
Traders
Advisors
Credit Card Cos
Merchants
MARCH / 2013 UPDATE
7
IN INSTITUTIONAL MARKETS, THESE AGENCY EFFICIENCIES HAVE LED TO NEW INTERMEDIATION VEHICLES IN THE FORM OF SPECIALIZED FUNDS
Private Equity
Corporate Credit
Venture Capital
Hedge Funds
Mutual Funds
PRIVATE PUBLIC
REITs & Other Vehicles
MARCH / 2013 UPDATE
8
IN CONSUMER MARKETS THE SAME HAS LED TO EXPANSION OF INTERMEDIATED PRODUCTS & THE INTRODUCTION OF NEW INTERMEDIATED INSTRUMENTS
Credit cards
Student loans
MortgagesSecuritization
SPV
PRODUCTS INSTRUMENTS
CDSCar loans
Annuities & policies
Pools
Debit cards
MARCH / 2013 UPDATE
9
THIS CORE GROUP OF INTERMEDIATION ENTITIES ARE LARGELY FUNDED FROM WITHIN A UNIVERSE OF OTHER INSTITUTIONAL SOURCES...
PENSIONS
INSURANCE COMPANIES
FAMILY OFFICES
BANKS
ENDOWMENTS
SOVEREIGNS
CORPORATIONS
Private Equity
Finance Co’s
Venture Capital
Hedge Funds
Mutual Funds
REITsSPVs
MARCH / 2013 UPDATE
10
... WHICH ARE OFTEN THEMSELVES PROFESSIONALLY MANAGED INTERMEDIARIES & OTHER AGENTS
Pensions
Insurance Companies
Family O!ces
Banks
Endowments
ASSOCIATIONS
BANKSCORPORATIONS
SOVEREIGNS
Private Equity
Corporate Credit
Venture Capital
Hedge Funds
Mutual Funds
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)...
Principal Agent Principal
$
$- compensation
MARCH / 2013 UPDATE
12
... THERE IS INCENTIVE TO DISINTERMEDIATE CAPITAL FLOWS & SIMPLIFY COMPLEX MARKETS
CAPITAL SOURCESCAPITAL USERS
CORPORATIONS
PRIVATE INVESTORS
BUSINESS VENTURES
CONSUMERS
SOVEREIGNS
BANKSMUNICIPALITIES
INSTITUTIONS/FUNDS
MARCH / 2013 UPDATE
13
PENSIONS
INSURANCE COMPANIES
FAMILY OFFICES
BANKS
ENDOWMENTS
CORPORATIONS
SOVEREIGNS
PRIVATE EQUITY
CORPORATE CREDITVENTURE
CAPITAL
HEDGE FUNDS
MUTUAL FUNDS
BUT INFORMATION EFFICIENCY WILL ALWAYS BE CENTRAL TO A PROPERLY FUNCTIONING CAPITAL ENVIRONMENT
$
$$$
CREDIT CARD CO’S
$
$
$
$
$
$
$$
$
$ $
$$
$
$
$
$
information
information
information
informationinformation
information
information
information
$$
TRANSFORMATION
MARCH / 2013 UPDATE
THE FUTURE BANK WILL BE A MEDIA CONGLOMERATE:INGREDIENTS CURRENTLY IN PLACE
MARCH / 2013 UPDATE
15
Principal Agent Principal
information
VARIATIONS OF MEDIA (SYNONYMOUS WITH INFORMATION FLOW) ARE AT THE CORE OF EFFECTIVE INTERMEDIATION
informationinformation
information
MARCH / 2013 UPDATE
WHEREAS BANKS HAVE TRADITIONALLY BEEN BUILT ON THE FOUNDATION OF CAPITAL, THEIR VALUE IS BASED ON ACCESS, ANALYSIS & PACKAGING OF INFORMATION
DISTRIBUTIONCONTENT
Data
Ideas
Analysis
Advice
Networks[BANK]
information
informationinformation
information
[MEDIA CO.]
16 MARCH / 2013 UPDATE
17
THE OPEN WEB HAS ENHANCED & BROADENED THE FLOW OF INFORMATION & ITS ACCESS
GoogleFacebook
Amazon Apple
MARCH / 2013 UPDATE
18
THE PERVASIVENESS OF SOCIAL MEDIA HAS EXPANDED THE REACH & SCOPE OF INFORMATION
Facebook Google
Amazon Apple
MARCH / 2013 UPDATE
19
MOBILITY & APPS HAVE FACILITATED THE IMMEDIACY OF INFORMATION DELIVERY
Facebook Google
Amazon Apple
MARCH / 2013 UPDATE
20
TRANSACTIONAL PLATFORMS ARE BEING PERFECTED & CONSUMERS HAVE BECOME ACCUSTOMED TO ELECTRONIC COMMERCE
Facebook Google
AppleAmazon
MARCH / 2013 UPDATE
21
AS TECHNICAL CAPABILITIES & CONSUMER PREFERENCES COMBINE FOR A DEMOCRATIZED & FRAGMENTED MARKET TO THRIVE...
Gilt
Wikipedia
Yahoo!
GoogleFacebook
AppleAmazon
S O C I A LI N F O R M
AT I ON
TR
AN
SA C T I O N A L E N T E R T A I N
ME
NT
MARCH / 2013 UPDATE
22
... KEY FUNCTIONAL ELEMENTS ARE ALSO EVOLVING...
ANALYTICSSECURITY
VISUALIZATION
DATA
EDUCATION
MARCH / 2013 UPDATE
23
FINRA Opens Door for Social Media with New Rules
Socialware, January 9, 2012http://blog.socialware.com/2012/01/09/finra-opens-door-for-social-
media-with-new-rules/
... & REGULATORY ACTIVITY APPEARS TO BE IN TUNE WITH THE SOCIAL ENVIRONMENT
JOBS Act would make crowd funding of small businesses legal for people
who aren’t accredited investors
PandoDaily, March 17, 2012http://pandodaily.com/2012/03/17/after-some-initial-doubts-im-sold-
on-the-jobs-act/
MARCH / 2013 UPDATE
24
INGREDIENTS ARE THUS FALLING INTO PLACE FOR ENHANCED & COST-EFFECTIVE INFORMATION FLOW & CAPITAL ACCESS...
Gilt
Wikipedia
Yahoo!
DATA
S O C I A LI N F O R M
AT I ON
I N F O R MAT I O
N
TR
AN
S A C T I O N A L E N T E R T A I NM
EN
T
REGULATION
ANALYTICSSECURITY
VISUALIZATIONEDUCATION
REFORM RELAXATION
MARCH / 2013 UPDATE
25
... FACILITATING DISINTERMEDIATION AT A QUICKENING PACE & THE DIRECT INTEGRATION OF FINANCE & MEDIA
Gilt
Wikipedia
Yahoo!
FINANCE
S O C I A LI N F O R M
AT I ON
I N F O R MAT I O
N
TR
AN
S A C T I O N A L E N T E R T A I NM
EN
T
MARCH / 2013 UPDATE
DEVELOPMENT OF SOCIAL MARKETS:UNDERWAY
MARCH / 2013 UPDATE
27
ESTABLISHED MEDIA PLATFORMS HAVE LAID IMPORTANT GROUNDWORK IN THE COMBINATION OF MEDIA & FINANCE...
MEDIA
FINANCE
BLOOMBERG
DOW JONES
PR NEWSWIRE
CNBC
CAPITAL IQ
ETRADE
MARCH / 2013 UPDATE
... & THIS IS BEING BROADENED WITH INNOVATIVE SOLUTIONS...
DATA
SECURITY
P2P
RESEARCH
NETWORK
IDEAS/ADVICE CORP FIN
PAYMENTS / DEPOSITS
TRADING
28 MARCH / 2013 UPDATE
... CATERING TO AN EXPANDING USER BASE INCREASINGLY ACCUSTOMED TO NEW TECHNOLOGIES & STYLES...
IDEAS
ANALYTICSTOOLS
INSTITUTIONS CORPORATIONS
INVESTORS
NEWS/PR INFLUENCERS
ISSUERS
ACCESS
INDIVIDUALS
ADVISORS
29 MARCH / 2013 UPDATE
30
... RANGING FROM THE PROVISION OF DATA & INFORMATION...
BANKRATE
CRUNCHBASE
YAHOO FINANCE
OPERA SOLUTIONS
CB INSIGHTS
MARCH / 2013 UPDATE
31
... TO THE EXCHANGE OF IDEAS...
STOCKTWITS
ETORO
COVESTOR
SEEKING ALPHA
BENZINGA
FUTUREADVISOR
MARCH / 2013 UPDATE
32
... TO PRIVATE CAPITAL SOURCING & CROWD-FUNDING...
SECONDMARKET
ANGELLIST
KICKSTARTER
FUNDERS CLUB
AXIAL MARKET
MARCH / 2013 UPDATE
33
... TO PEER-TO-PEER (P2P) & OTHER LOAN PRODUCTS...
PROSPER
POLLENWARE
LENDING CLUB
FUNDING CIRCLE
MARCH / 2013 UPDATE
34
SQUARE
PAYPAL
DWOLLASTRIPE
... TO THE MECHANICS OF CLEARANCE & PAYMENTS...
GOOGLE WALLET
AFFIRM
MARCH / 2013 UPDATE
35
GROUPON
FOURSQUARE
EBAY
GILT
... TO CONSUMER MARKET OFFERS & BIDS...
ETSY
STUBHUB
MARCH / 2013 UPDATE
36
FACEBOOK CREDITS
BITCOIN
... TO THE EVOLUTION OF ALTERNATIVE CURRENCIES & TRADABLE VALUE SYSTEMS, VIRTUAL & REAL...
KLOUT
PEERINDEX
MARCH / 2013 UPDATE
37
PENSIONS
INSURANCE COMPANIES
FAMILY OFFICES
BANKS
ENDOWMENTS
CORPORATIONS
SOVEREIGNS
PRIVATE EQUITY
CORPORATE CREDITVENTURE
CAPITAL
HEDGE FUNDS
MUTUAL FUNDS
... SETTING THE STAGE FOR NEW CAPITAL FLOWS & NEW MARKETS TO FORM & EVOLVE...
ESTABLISHED MARKETS
EVOLVING PLATFORMS
CREDIT CARD CO’S BANKRATE
STUBHUB
LENDING CLUBFOURSQUARE
STOCKTWITS
ETORO
COVESTOR
SECONDMARKET
ANGELLIST
KICKSTARTER
EBAY
SQUARE
PAYPALDWOLLA
STRIPE
FB CREDITS
BITCOINGROUPON
PROSPER
MARCH / 2013 UPDATE
38
Principal Agent Principal
... ALL BASED ON EFFICIENT INFORMATION FLOW & A SUPERIOR ECONOMIC MODEL
INFORMATIONINFORMATION
$ $
$$
INFORMATIONINFORMATION
INFORMATION
INFORMATION
MARCH / 2013 UPDATE
NEXT PHASES:INTEGRATION & EXPANSION
MARCH / 2013 UPDATE
40
MARKETS ARE COMPLEX MECHANISMS THAT REQUIRE INTEGRATION (EVEN WHEN DISINTERMEDIATED)
SUPPORT
MARKETS
INTEREST GROUPS
ANALYTICS
RESEARCH
UNDERWRITING VENDING
TOOLS
BUYSIDE SELLSIDE
PR
NEWSWIRE
INFLUENCERS
ISSUERS
CONSUMERS MERCHANTS
INVESTORS
ADVERTISERS
MARCH / 2013 UPDATE
41
DISPARATE PLATFORMS ARE A FIRST STEP TO A HOLISTIC SYSTEM IN WHICH CAPITAL & INFORMATION ARE CO-JOINED
FRAGMENTED EFFICIENT, FUNCTIONAL,
DEMOCRATIZED
$
$
$
$
$
$
$$
$
$ $
$$
$
$
$
$
information
information
information
informationinformation
information
information
information
BANKRATE
STUBHUB
LENDING CLUBFOURSQUARE
STOCKTWITS
ETORO
COVESTOR
SECONDMARKET
ANGELLIST
KICKSTARTER
EBAY
SQUARE
PAYPALDWOLLA
STRIPE
FB CREDITS
BITCOINGROUPON
$
informationPROSPER
MARCH / 2013 UPDATE
42
THIS EVOLUTION WILL TAKE TIME, EXPERIMENTATION & SUPPORT OF THE MARKETS’ CONSTITUENCIES
CAPITAL SOURCESCAPITAL USERS
CORPORATIONS
PRIVATE INVESTORS
BUSINESS VENTURES
CONSUMERS
SOVEREIGNS
BANKSMUNICIPALITIES
INSTITUTIONS/FUNDS
MARCH / 2013 UPDATE
43
Investors
Buyers
Lenders
Banks
Brokers
AnalystsMoney
Managers
Traders Advisors
Credit Card Co’s
Issuers
Builders
Sellers Borrowers
Consumers
IN THE COURSE OF THIS EVOLUTION, THE CURRENT AGENCY SYSTEM WILL INCREASINGLY ADAPT TO A MORE DECENTRALIZED SOCIAL ENVIRONMENT...
MARCH / 2013 UPDATE
44
... IN WHICH THE NEW (DIS)INTERMEDIARY WILL LIKELY BE THE NETWORK ITSELF
Principal Network Principal
PayPalStockTwits
LendingClub
AngelList
SecondMarket
Square
Dwolla
Bankrate
FutureAdvisor
Issuer
Builder
Seller
Borrower
Investor
Buyer
Lender
Consumer
INFORMATION
INFORMATION
INFORMATIONINFORMATION
$ $
$$
INFORMATIONINFORMATION
CB Insights
MARCH / 2013 UPDATE
WHERE ARE YOU IN THIS LANDSCAPE?WHERE ARE YOU HEADING?
MARCH / 2013 UPDATE
46www.coriseco.com
CoRise Co., LLC535 Fifth Avenue, 4th floorNew York, NY 10036Telephone: (646) 532-6690email: [email protected]
TO DISCUSS FURTHER:
CONTACT INFORMATION
MARCH / 2013 UPDATE
