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Friday, February 02, 2007
A stock exchange for entrepreneurs
Rajesh Jain writes in Mint:
Also see: Rajesh Jain's weblog.
One of the ideas that I have been mulling over to resolve the impasse between the early-stage capital needs for a business and the difficulty that there is in raising that capital is to create some sort of stock exchange where entrepreneurs can list their companies right at the start.This is an exceptional idea. This would give small investors a means to invest in exciting new companies and technologies. It would also give entrepreneurs a far wider access to capital than they could manage through the standard time-consuming and productivity-reducing trips to VCs and the like. I have no idea of the kind of formalities it takes in India to start a stock exchange, but any venture that enables such connections will certainly fill a huge need.
They can publish an outline of their business plan and provide details of their capital needs. Then, individuals seeking to invest can make their own decision.
[...]
Market caps of the companies listed here will be in tens of lakhs to a few crore rupees. What is needed is the equivalent of a market maker who can match buyers and sellers. BSE and NSE listings will always be limited to large companies with profits.
Also see: Rajesh Jain's weblog.
