Re: Chris Dixon's How To Disrupt Wall Street

I loved Chris Dixon‘s post about a few ways the internet can disrupt Wall Street the way it has disrupted the publishing and advertising businesses.

He cites several potential areas for the web to hit The Street where it’s making its money (trading, research, banking).  I’d like to expand on one of his ideas, specifically the raising of capital without going through an i-bank.

Think about this for a moment:  A company like Twitter decides to go public.

Unlike that absurd dutch-whatever Google attempted or even the Wit Capital example cited by Dixon, what if Twitter simply set up a site to take indications of interest along with your brokerage account information?  You could ask for an allocation based on the total being raised and then be in a cue for at least a proportional share amount based on your request.

There would need to be suitability waivers of course so that Twitter itself is not doing the soliciting, but with a bit of staffing and coordination with DTC, they could certainly handle the distribution of stock.

Rather than pay bankers 10% of what they will raise (billions most likely), they can simply bring the capital raise process in-house using the web and save a hundred million or so for shareholders rather than forking it over to the i-banking cartel.

Even if the process were messy, the money would still come pouring in and it would be the ultimate symbol of Web 2.0’s arrival: A socially-placed deal offered to investors who are also customers and users of the company’s technology.

It would start off primitively, but it’s definitely doable.  Once that cat is let out of the bag, forget about it.


How To Disrupt Wall Street (

Tags: , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Software testing solutions commented on Jan 15

    … [Trackback]

    […] Find More Info here to that Topic: […]