How TeQatlas builds a better financing future for MSMEs
How TeQatlas builds a better financing future for MSMEs
Imagine if anyone who wanted to create a business could have access to the capital from the beginning. Imagine if anyone with an Internet had access to the network and expertise the community enjoys in Silicon Valley. Imagine if raising capital was as seamless, efficient and straightforward as using your smartphone.
Imagine if anyone who wanted to create a business could have access to the capital from the beginning. Imagine if anyone with an Internet had access to the network and expertise the community enjoys in Silicon Valley. Imagine if raising capital was as seamless, efficient and straightforward as using your smartphone.
Sounds good? This would be an ideal world we would live in and the infrastructure we aspire to create for one of the driving powers of the economy - micro, small and medium-sized enterprises (MSMEs).
Sounds good? This would be an ideal world we would live in and the infrastructure we aspire to create for one of the driving powers of the economy - micro, small and medium-sized enterprises (MSMEs).
Why this is important for the global economy
Why this is important for the global economy
Micro, small and medium-sized enterprises (MSMEs) are the backbone of the world economy, and funding of MSMEs reaffirms commitment to the world's economic engine. Identifying and nurturing start-ups is essential for continued innovation on a global scale, as well as laying the groundwork for a better tomorrow.
Micro, small and medium-sized enterprises (MSMEs) are the backbone of the world economy, and funding of MSMEs reaffirms commitment to the world's economic engine. Identifying and nurturing start-ups is essential for continued innovation on a global scale, as well as laying the groundwork for a better tomorrow.
According to the World Bank Group, 600 million jobs will be needed by 2030 to absorb the growing global workforce, making MSMEs development a high priority for all governments and policymakers around the world.
According to the World Bank Group, 600 million jobs will be needed by 2030 to absorb the growing global workforce, making MSMEs development a high priority for all governments and policymakers around the world.
However, at present, investors and entrepreneurs in the private equity market find each other through a series of costly, bilateral search and diligence processes. Our team has accumulated expertise from both sides of the capital raising market. There were found a total of around 180 market inefficiencies that MSMEs (micro-, small and medium-sized enterprises) face when looking for capital which can be classified into three main pain points:
However, at present, investors and entrepreneurs in the private equity market find each other through a series of costly, bilateral search and diligence processes. Our team has accumulated expertise from both sides of the capital raising market. There were found a total of around 180 market inefficiencies that MSMEs (micro-, small and medium-sized enterprises) face when looking for capital which can be classified into three main pain points:
- High market entry barriers
- Large deal acquisition costs
- Distraction from doing business
- High market entry barriers
- Large deal acquisition costs
- Distraction from doing business
Let's take a closer look at each of them.
Let's take a closer look at each of them.
1. High market entry barriers
1. High market entry barriers
Access to finance is frequently identified as a critical barrier to growth for micro-, small and medium-sized enterprises (MSMEs). At TeQatlas, we are aiming to facilitate this process both for investees and investors by developing a profound infrastructure that fuels the effective flow of data and capital to unite value-driven people on a global scale. We believe that the equality of investment opportunities, which include networks, expertise and capital, will boost human progress globally.
Access to finance is frequently identified as a critical barrier to growth for micro-, small and medium-sized enterprises (MSMEs). At TeQatlas, we are aiming to facilitate this process both for investees and investors by developing a profound infrastructure that fuels the effective flow of data and capital to unite value-driven people on a global scale. We believe that the equality of investment opportunities, which include networks, expertise and capital, will boost human progress globally.
As reported by CBInsights, the inability to secure financing is the top reason startups cited for their failure.
As reported by CBInsights, the inability to secure financing is the top reason startups cited for their failure.
Young entrepreneurs, however, face even greater challenges, and countries burgeoning with youth unemployment need entrepreneurship to stimulate job creation. MSMEs are less likely to obtain bank loans than large firms. Despite intervention by several governments, bank lending remains difficult to obtain, particularly in the EARLY STAGES OF GROWTH. For more than 10 years, the SME funding problem was known, and although measures have been taken, the problem STILL persists.
Young entrepreneurs, however, face even greater challenges, and countries burgeoning with youth unemployment need entrepreneurship to stimulate job creation. MSMEs are less likely to obtain bank loans than large firms. Despite intervention by several governments, bank lending remains difficult to obtain, particularly in the EARLY STAGES OF GROWTH. For more than 10 years, the SME funding problem was known, and although measures have been taken, the problem STILL persists.
Risk aversion among institutional and other investors has also made it more difficult to obtain equity finance. Aside from the extremely well-known venture capital funds, countless investment firms all over the world are willing to invest in various niches and geographics. Often, the pain of seeking out these firms is what prevents MSMEs from raising money as expeditiously as possible.
Risk aversion among institutional and other investors has also made it more difficult to obtain equity finance. Aside from the extremely well-known venture capital funds, countless investment firms all over the world are willing to invest in various niches and geographics. Often, the pain of seeking out these firms is what prevents MSMEs from raising money as expeditiously as possible.
Instead, they rely on internal funds, or cash from friends and family, to launch and initially run their enterprises. Larger-scale angel funding should help improve the liquidity but will take time to develop and MAY FAIL if the correct approach and tools are not used. In this case, the universal solution that will eliminate this and the further problem is needed. Here we go to the next pain point.
Instead, they rely on internal funds, or cash from friends and family, to launch and initially run their enterprises. Larger-scale angel funding should help improve the liquidity but will take time to develop and MAY FAIL if the correct approach and tools are not used. In this case, the universal solution that will eliminate this and the further problem is needed. Here we go to the next pain point.
2. Large deal acquisition costs
2. Large deal acquisition costs
Fundraising can be frustratingly slow and expensive.
MSMEs complain that it is difficult to discover the set of investors relevant to their investment round. Investors, especially at the seed stage, have many conditions imposed on the capital they distribute, including restrictions on location, industry, target market size, business model, amount of capital being raised, valuation of the startup, and terms of the deal. They are rarely published anywhere in a structured way, which leaves founders resorting to overwhelmingly large databases of investors or curated lists that might miss less well-known options for capital.
MSMEs complain that it is difficult to discover the set of investors relevant to their investment round. Investors, especially at the seed stage, have many conditions imposed on the capital they distribute, including restrictions on location, industry, target market size, business model, amount of capital being raised, valuation of the startup, and terms of the deal. They are rarely published anywhere in a structured way, which leaves founders resorting to overwhelmingly large databases of investors or curated lists that might miss less well-known options for capital.
Fundraising can be frustratingly slow and expensive.
MSMEs complain that it is difficult to discover the set of investors relevant to their investment round. Investors, especially at the seed stage, have many conditions imposed on the capital they distribute, including restrictions on location, industry, target market size, business model, amount of capital being raised, valuation of the startup, and terms of the deal. They are rarely published anywhere in a structured way, which leaves founders resorting to overwhelmingly large databases of investors or curated lists that might miss less well-known options for capital.
MSMEs complain that it is difficult to discover the set of investors relevant to their investment round. Investors, especially at the seed stage, have many conditions imposed on the capital they distribute, including restrictions on location, industry, target market size, business model, amount of capital being raised, valuation of the startup, and terms of the deal. They are rarely published anywhere in a structured way, which leaves founders resorting to overwhelmingly large databases of investors or curated lists that might miss less well-known options for capital.
TeQatlas empowers both investees and investors by the use of augmented investment intelligence (AII) in their workflows. Our system design enhances investment processes with a fully automated and personalized digital experience. Investees can focus on real business instead of bureaucratic work and continuous fundraising, while investors can diversify their investment strategies on a global scale.
TeQatlas empowers both investees and investors by the use of augmented investment intelligence (AII) in their workflows. Our system design enhances investment processes with a fully automated and personalized digital experience. Investees can focus on real business instead of bureaucratic work and continuous fundraising, while investors can diversify their investment strategies on a global scale.
A chaotic system where entrepreneurs and investors find each other through a series of costly, bilateral search and diligence processes leads to blind spots to create massive inefficiencies further and inhibit the flow of capital to where it is needed the most, at true scale. In that turbulent environment, MSMEs start encountering one more problem - they are getting distracted from doing business.
A chaotic system where entrepreneurs and investors find each other through a series of costly, bilateral search and diligence processes leads to blind spots to create massive inefficiencies further and inhibit the flow of capital to where it is needed the most, at true scale. In that turbulent environment, MSMEs start encountering one more problem - they are getting distracted from doing business.
3. Distraction from doing business
3. Distraction from doing business
The COVID-19 pandemic had a pronounced impact on SME cashflow management, with longer-term implications causing slower performance. Its impact will undoubtedly leave its mark on SME financing for the foreseeable future (Financing SMEs and entrepreneurs, 2020, OECD). There is significant evidence that it is this “extra-financial” value of investors that dictates their helpfulness, given equivalent capital contributions. However, determining the nature of this value for a given capital provider is often difficult.
The COVID-19 pandemic had a pronounced impact on SME cashflow management, with longer-term implications causing slower performance. Its impact will undoubtedly leave its mark on SME financing for the foreseeable future (Financing SMEs and entrepreneurs, 2020, OECD). There is significant evidence that it is this “extra-financial” value of investors that dictates their helpfulness, given equivalent capital contributions. However, determining the nature of this value for a given capital provider is often difficult.
The major burden for business owners who have identified and researched their ideal investors is finding a way to connect to each one. It’s commonly accepted that a “warm introduction” is the best way to start a conversation with an investor. The further removed a business owner is in the global social graph from an investor, the lower the chance they will get a direct introduction, and the lower the probability of investment.
The major burden for business owners who have identified and researched their ideal investors is finding a way to connect to each one. It’s commonly accepted that a “warm introduction” is the best way to start a conversation with an investor. The further removed a business owner is in the global social graph from an investor, the lower the chance they will get a direct introduction, and the lower the probability of investment.
For many first-time entrepreneurs, it is simply impossible to get a direct introduction at all. MSMEs tend not to have the same networking, professional expertise, and tribal knowledge as larger companies. And building a reputation to increase the chances of finding relevant capital can take years. Due to these market inefficiencies, many good ideas never happen (or don’t spread around the world as quickly).
For many first-time entrepreneurs, it is simply impossible to get a direct introduction at all. MSMEs tend not to have the same networking, professional expertise, and tribal knowledge as larger companies. And building a reputation to increase the chances of finding relevant capital can take years. Due to these market inefficiencies, many good ideas never happen (or don’t spread around the world as quickly).
MSMEs are one of the strongest economic development, innovation, and employment drivers. Creating opportunities for MSMEs is a key way to advance economic development and reduce poverty, which is confirmed by the following statistics.
MSMEs are one of the strongest economic development, innovation, and employment drivers. Creating opportunities for MSMEs is a key way to advance economic development and reduce poverty, which is confirmed by the following statistics.
IFC estimates that 65 million firms, or 40% of MSMEs, have an unmet financing need of $5.2 trillion every year (MSME FINANCE GAP, World Bank Group, 2017). An additional financing demand of $2.9 trillion is projected due to the COVID-19 crisis (World Bank Group, WP 9414, 2020).
IFC estimates that 65 million firms, or 40% of MSMEs, have an unmet financing need of $5.2 trillion every year (MSME FINANCE GAP, World Bank Group, 2017). An additional financing demand of $2.9 trillion is projected due to the COVID-19 crisis (World Bank Group, WP 9414, 2020).
TeQatlas contributes toward the digitalization and internationalization of the process, which can have a future impact on MSMEs' survival, investors' profitability, and governments' decision-making process. We support the development and deployment of global market-creating innovations by facilitating capital raising and investment management, contributing to technological sovereignty through digitalization. This is our complex approach, and we believe that the opportunity we offer to the market will facilitate the effective flow of data and capital on a global scale.
TeQatlas contributes toward the digitalization and internationalization of the process, which can have a future impact on MSMEs' survival, investors' profitability, and governments' decision-making process. We support the development and deployment of global market-creating innovations by facilitating capital raising and investment management, contributing to technological sovereignty through digitalization. This is our complex approach, and we believe that the opportunity we offer to the market will facilitate the effective flow of data and capital on a global scale.
The future is Augmented Investment Intelligence
The future is Augmented Investment Intelligence
Augmented Investment Intelligence will make the capital raising market truly diversified and accessible, disrupting an industry that hasn't been changed for decades. Data can provide valuable information, and our solution's breakthrough potential is to uncover the insights hidden in massive amounts of unstructured data to facilitate real deals.
Augmented Investment Intelligence will make the capital raising market truly diversified and accessible, disrupting an industry that hasn't been changed for decades. Data can provide valuable information, and our solution's breakthrough potential is to uncover the insights hidden in massive amounts of unstructured data to facilitate real deals.
Converting this knowledge for the benefit of society is an unimaginable asset, with the potential to disrupt an entire market. Investors alone are unable to extract these insights, and there are few, if any, incentives for maintaining consistency across disparate databases. Founders, at the same time, cannot access the trusted resources offering relevant solutions. TeQatlas is definitely the right place for them to find each other.
Converting this knowledge for the benefit of society is an unimaginable asset, with the potential to disrupt an entire market. Investors alone are unable to extract these insights, and there are few, if any, incentives for maintaining consistency across disparate databases. Founders, at the same time, cannot access the trusted resources offering relevant solutions. TeQatlas is definitely the right place for them to find each other.
Welcome to the new era of Augmented Investment Intelligence. We are happy to have you on board!
Welcome to the new era of Augmented Investment Intelligence. We are happy to have you on board!
Join us to raise and invest capital in a transparent and innovative environment!