David Weild IV is Founder, Chairman and CEO of IssuWorks. The studies that he and Ed Kim co-authored documented the long-term decline in equity capital formation in the United States and provided the core arguments that gave rise to the JOBS Act and many of the specific provisions contained in the JOBS Act. For these reasons, he has been called “The father of the JOBS Act.” David has also called for a “JOBS Act 2” or “JOBS Act Part 2” - language increasingly heard on Capitol Hill. Weild and Kim’s written work was cited by a broad range of legislators, regulators, academics, the IPO Task Force and the White House Jobs Council leading up to the JOBS Act. IssuWorks is the brainchild of noted Wall Street executives, including David Weild and Ed Kim, whose work is widely credited with having led to The JOBS Act. In this Wall Street View, our host spoke with David Weild, Chairman and CEO of IssuWorks at the 3rd Annual Marcum MicroCap Conference 2014 in New York City, NY.
Mr. Weild begins with an overview of IssuWorks by saying, "People call me the father of the JOBS Act, and one of the things that grew out of all of our research in Washington is that Wall Street just didn't have an economic model to cover the vast majority of institutional investors, so we have totally changed the economic model, and we are creating a capability that doesn't take commissions because that is where the conflicts occur, and works exclusively for issuers and investment banks when they are doing deals to really dramatically broaden institutional distribution to the right subset of those, we use big data - to identify the right subset of investors within that longtail of the distribution curve."
He goes on to describe how IssuWorks plans to monetize, "We make money through a combination of retainer fees - it's a novel model. So the issuers pay us retainer fees, but we get paid sort of the lowest average co-manager price on a follow-on equity offering and we allow a credit for the issuers on that retainer fee, so if they do a deal up to 12 months worth of retainer fees they get it back. So it becomes incredibly cost effective. They're already spending the money on equity offerings, so for people who want to engage us, it's kind of the solution because it provides you an answer to the riddle of who's providing the after market support, so we do it before, during, and after offereings - we're with people continuously."
For more information about IssuWorks and David Weild IV, check out their website: http://www.issuworks.com/.
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