Monday, January 31, 2011

MicroCap Stocks Blog; MicroBits: Unleash Small Business, PIPE
Performance, Seed-Stage Investing…

Functional Inspiration Blog at MicroCap Investor
By Josh Levine
www.levinesmicrocapinvestor.com

MicroBits: Unleash Small Business, PIPE Performance, Seed-
Stage Investing…

New York, NY, -

January 28, 2011
By Josh Levine

Want more jobs? Unleash small businesses, venture capital and technology
[LINK -- http://blogs.forbes.com/markpmills/2011/01/28/want-more-jobs-unleash-
small-businesses-venture-capital-and-technology/]
In his Energy Intelligence blog, Mark P. Mills says success stories from Microsoft to
Apple to Google make certain things about job creation apparent: 1) The government
didn’t create those companies — or any others; 2) Wealth creation is anchored
in technology progress, and 3) Our salvation will come from small businesses. An
estimated 75%-plus of all national net job growth comes from small businesses.
He concludes that if you want to find a million new jobs, 100 big corporations are
quite unlikely to each add 10,000 to their payrolls — but 10,000 new businesses will
almost certainly each employ 100 people. If we want more jobs we need to create an
environment that unshackles daring souls who build new companies.

2010 PIPE Peformance Tables From PlacementTracker [LINK -- http://
www.sagientresearch.com/]
Placement Tracker reported a significant decrease in the aggregate dollar amount of
sub-$50 million market cap companies completing deals. In 2009 there were 583 deals
for $6.5 billion, dropping off to 509 deals for only $3.1 billion this year. While the overall
market dollar amount of the PIPE market remained at the $39 billion level in 2009 and
2010, the decrease in the nanocap space was negated by the large uptick in the $100
million to $300 million market cap issuers.

Outlook For Seed-Stage Investing [LINK -- http://blogs.wsj.com/venturecapital/2011/01/
04/whats-the-2011-outlook-for-seed-stage-investing/]
There’s a growing interest by institutional LPs in the micro-cap VC space (defined as
under $100 million in size) with a focus on being in the first-round seed investment
of a start-up, according to Michael Kim, managing director of Cendana Capital. In this
interview, he describes an emerging ecosystem in which micro-cap VCs lead with initial
financing to provide a 12-18 month runway before traditional Series A investors arrive
on the scene.

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MicroCap Investor delves deep into the world of small stocks to identify big winners. Levine
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that disrupt entrenched markets to create tremendous value.

About Josh Levine and Levine's MicroCap Investor www.levinesmicrocapinvestor.com

Josh Levine has 25 years of senior-level experience in analyzing technology trends and investing
in top-performing micro- and small-cap stocks. He excels at assessing management teams and
evaluating new innovations and their impact on corporate valuations.

In 2002 he joined independent investment-research boutique ChangeWave Research, where he
was editor of ChangeWave MicroCap Investor since 2004, becoming Levine's MicroCap Investor
in 2010. He has been editor of the flagship ChangeWave Investing since 2007.

Levine is also senior analyst for ChangeWave Research. Through its survey network comprised
of 25,000 members, ChangeWave tracks the rate of change in corporate and consumer demand
trends and provides the results through an institutional research subscription service. Its
macroeconomic research is among the best on Wall Street.
More on Levine’s bio: http://www.levinesmicrocapinvestor.com/aboutus/

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