How To Democratize Global Access To Capital

Global Access to Capital

If you look at the universe of public companies, the vast majority come from 3 places — the US, Europe, and China. Why is that? The financial markets have a huge bias against the rest of the world, effectively cutting off access to capital, along with the ensuring growth and innovation from which many economies could benefit and thrive.

Let’s give the example of a well-known consumer brand in Indonesia that is profitable and growing. The company would like to access capital market to spread its brand throughout the rest of Southeast Asia. What are their options? Historically, the company could try to list locally, but in many cases, access to capital is limited, liquidity is poor, and multiples are low. The other option is to try to list on a major foreign exchange, such as NASDAQ. The problem is that the investors there are unfamiliar with the company, again leading to low multiples and limited liquidity. The investors that do know about the company typically have challenges in opening accounts in order to buy a NASDAQ listed stock. Again, there is a disconnect.

This is where the exchange can come in to bridge the gap with a liquid, global exchange that can efficiently match companies with the right investors.

We can of course use traditional methods, such roadshows, to match with investors. More efficiently, we can tap into our large and growing database to match the company with the right investors. By using virtual roadshows, and more of a “growth hacking” model, we can help the company cost effectively reach its goals.

We hope that one of the benefits of the platform is to be global in more than just name, but actually help capital to become accessible to the rest of the world. We hope that can ignite the process that spurs economic growth and innovation in areas that have traditionally been underserved by the financial markets.

This is true democratization of access to capital.