the evolution of social finance
DESCRIPTION
This presentation looks at the evolution of the social finance space, the different incentive structures, identity structures, structured vs. unstructured data, and closed vs. open systems utilized on different platforms. As we continue to develop the Estimize platform, we've gain a great understanding for some of the important questions around these structures and how to best leverage them in providing valuable data to the market as well as value to our contributors. The companies discussed in this presentation are not necessarily an exhaustive list of social finance platforms, they are meant to denote certain evolutions or important steps along the development process of the ecosystem as well as for the purpose of being juxtapose to display different structures. This slide deck was used as part of a presentation on March 14th, 2013.TRANSCRIPT
The Evolution of Social FinanceIncentives, identity, open vs. closed systems, structured and unstructured data
In the old days, information would flow through the pitIn the old days information would flow through the pit
Then everyone went upstairs....Then everyone went upstairs....
....to sit behind their computers...to sit behind their computers
TheStreet.comBloomberg
TheStreet.comTheStreet.com
Yahoo Finance Message Boards
BlogsBlogs
Motley Fool CapsMotley Fool Caps
Seeking AlphaSeekingAlpha
SumZeroSumZero
TwitterTwitter
StockTwitsStockTwits
EstimizeEstimize
2,400+ buy side and independent analysts2,400 buy side and independent analysts
Estimize data used for algorithmic trading and front end analyticsBlack box trading and front end analytics
Marbles in a jar and needles in the haystackMarbles in a jar / Needles in the haystack
Agnostic towards identitiesAgnostic towards identities
Slicing and dicing based on corpusSlicing and dicing based on corpus
Layers of dataLayers of data
Sort and FilterSort and filter
Save filters, get alertedSave filters, get alerted
Select Consensus (weighted average)Select consensus (weighted average)
Q1 2013 stats
IncentivesWhy do we share and what are the incentive structures that drive social finance?
Ego
Feedback
The system
Build reputation and career
Measure up
Talk your book
Gain access
IdentityFrom complete anonymity to full transparency, how and when does identity matter?
Fully Transparent
Completely Anonymous
Real name, structured bio
Username, structured bio
Username, structured bio
Real name
Real name
Username
Username
Username
Username
Open vs. closed systemsStructuring access to read and publish, curation, and exclusivity.
Closed
Open
Give to get, buy side only to contribute and read
Reliability algo, manual curation
Algo and manual filtering
Invite only to contribute
Invite only to contribute, anyone comments, little curation
Costs $2,200/month
Free-for-all
Free-for-all
Free-for-all
Structured and unstructured dataInputs, outputs, and uses of content and data.
Unstructured
Structured
140 characters, tickers, bullish/bearish, chart, video
Text
Text, price target, expected return, writeup quality, tickers
Outperform/underperform, time frame, ticker, limits, text
EPS estimate, revenue estimate, quarter, ticker, text
140 characters
Text, post tagged with tickers
Text, post tagged with tickers
Text, posted on ticker board
The social finance gravity well
Leigh DrogenFounder and CEO
(914) - 582 - 1295
WeWork Labs, 175 Varick Street 4th FloorNew York, NY 10014