ABOUT CAPITAL MOBILIZER
Capital Mobilizer has the power to be the CapIQ or PitchBook for impact investing in the developing world.
Is a fintech that has created an innovative software platform that facilitates blended finance transactions, with a focus on underserved small- and medium-sized enterprises (SMEs) in the developing world. The platform connects capital providers with capital seekers in a virtual environment using universally accepted income statements and balance sheets.
Capital Mobilizer was founded with a single mission: create a technology solution that mitigates the growing access to finance gap in the developing world. Our technology was designed to analyze company information quickly and efficiently, thereby lowering the transaction costs in mobilizing capital to “Missing Middle” SMEs.
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THE POWER OF CAPITAL MOBILIZER
SMEs account for over 60% of GDP and 70% of total employment in low-income countries. In middle-income countries, SMEs produce 70% of GDP, and 95% of employment.
Obtaining capital is the foremost challenge to SME growth and investment in emerging markets. SME access to capital is restricted in the following ways: (1) SMEs lack know-how to provide accurate, transparent, and understandable financial information to potential capital sources; (2) creditors and investors are conservative and risk averse in their lending practices and typically demand excessive amounts of collateral for SME loans; and (3) most lenders and investors lack the ability and techniques to assess and manage repayment risk in order to lend profitably to SMEs.
International donors development finance institutions (DFIs) have attempted to alleviate the constraints on SME financing by providing incentives and de-risking instruments. However, these initiatives rarely sustain private sector capital mobilization to SMEs. Lenders and investors often lack the know-how and appropriate tools to prospect for clients, efficiently analyze company credit-worthiness, or manage risk alongside donors and DFIs. As a result, cash flow lending never occurs, the banking and investment cultures never change, and collateral demands recur when the incentives end. Moreover, this approach does not develop the financial skills base of SME owners and managers.
The result: SME owners complain that lenders and investors are not open to them without excessive collateral or unreasonable terms, and lenders and investors respond that they can not judge credit- or investment-worthiness without adequate financial information from the SME.
Capital Mobilizer has developed an innovative user-friendly software program that works “both sides of the street.” For SMEs, the platform enters company financial data to produce an internationally accepted income statement and balance sheet, and a set of financial ratios. For lenders and investors, the platform presents relevant financial information, evaluates and scores credit risk, analyzes the SME business qualitatively and quantitatively, and generates covenants for loans and investment.