Can Crypto Solve the $4 Trillion SME Financing Gap?

ByMike

I was recently invited to give a lightning talk on a topic that’s been capturing much of my mindspace of late.

The topic: whether crypto can be a better technology for capital formation than legacy options, such as banks, capital markets, and non-bank financial intermediaries. 

I’ve spent most of my adult life working on the problem of access to capital in the so-called ‘emerging’ and ‘developing’ economies.

So, I focused my presentation on the $4 trillion financing gap besetting small and medium-sized enterprises (or SMEs) in these markets.

That said, I think an open, permissionless protocol for capital formation would be a boon to innovation and entrepreneurship everywhere.

This episode re-records my presentation for an audio-first audience, and it hits four topics:
 

  1. The problem — what it is, where it is, and why it exists
  2. The shortcomings of existing non-bank intermediaries (i.e., PE funds)
  3. Crypto’s potential solution
  4. The challenges with implementing a crypto solution

You may watch the original presentation on YouTube and download a copy of the deck.

If you find this idea interesting / inspiring, please send me a note at [email protected].