Can Crypto Solve the $4 Trillion SME Financing Gap?
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:
- The problem — what it is, where it is, and why it exists
- The shortcomings of existing non-bank intermediaries (i.e., PE funds)
- Crypto’s potential solution
- 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].