May 15, 2020 02:30 UTC
May 15, 2020 at 02:30 UTC
Qadre Believes Blockchain Can Unlock Billions in Lost Equity For SMEs
In an elite interview, the CEO of UK based fintech firm Qadre, Nick Williamson, contended that blockchain technology can open access to capital for small and medium sized enterprises, or SMEs.
He stated –
“With interest rates near zero for the better part of a decade and no end in sight, capital has been desperately searching for returns, but has always overlooked one of the largest sectors of the economy, small and medium sized enterprises.”
Williamson added –
“One reason for this is that it’s really difficult to invest $10 billion in a diverse portfolio of corner bakeries! It’s currently much easier for a large investor to rely on reporting and governance standards to which large, public companies are held.”
Small & Medium Sized Enterprises as New Frontier For Idle Capital
Williamson contended that blockchain can be helpful in offering Small and Medium sized Enterprises the access to the equivalent tools that are only available to enormous firms.
He asserted –
“Step one on this journey is to deliver certainty to cap tables and corporate actions, aligning investor interest with the interest of the small business owner.”
“While SMEs have historically been the largest driving force in GDP growth and job creation, there has been a long term shift to larger companies over the past decades, partially due to the ability for large companies to access capital markets efficiently.”
Williamson added –
“The other half of the equation is bringing certainty to investors, allowing them access to a sector of the economy they have previously been shut out of and realigning broader market incentives to support all of the economy, not just the part that is currently driving returns.”
Blockchain & Equity Management
A recently published report by Qadre contended that blockchain technology can likewise be sent to offer $3.17 billion in value management efficiency investment among UK fintech firms every year.
The reported overviewed the founders of 59 fintech firms in the United Kingdom, finding that 33% have passed up financing because of wasteful equity management.