Do you think this is a good idea? What would you recommend me to do about this?

KeithPhantom

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Aug 1, 2020
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Hi, my name is Keith, and I would like to introduce myself and describe my business plan. Currently, I am a junior in university majoring in Finance with plans of getting a certificate in Fintech. I would like to be an entrepreneur and I have seen the pros and the cons of taking this path, and I am decisively ready to take on this path. Since I was 16 and emigrated to the United States, I've been always interested in business and finance, especially the area of private equity and venture capital. In high school, because of the transition between countries, I did not have the best grades (only a 3.67 GPA) but, I could get a full-ride scholarship. Right now, I am making it up by keeping a 3.90 GPA up to now in university.

Since young, I never saw an opportunity for a person such like me to thrive in IB or regular trading, since I do not like the type of pressure and stress you live by pretty much guessing what is the market going to do, and also, never found interest on it. I focused on the growth of private companies and startups, with a secondary interest in banking and fintech. In the search of a market, I could provide my skills to, I happened to stumble with different ideas, but each with their own shortcomings: digital banking, SME financing, regular PE and VC, etc. Then, I happened to have an idea that solved a huge issue within the finance community: how do companies research and choose companies to invest in.

In PE and VC, there is something called the 100/10/(3)/1 rule, in which a hundred companies are researches, ten are chosen to be further researched, (three are proposed an investment deal), and one accepts the offer and becomes part of the portfolio. This can take a few years (usually the first ones at the start of a portfolio). My solution is to solve, or at least reduce the need for this part of the process by implementing something like Facebook for businesses looking for funding. I would like to market this to both businesses and PE/VC companies, creating a double stream of income in which the growth of one reflects as growth in the other one. Businesses can register themselves and pay a fee, they would need to have audited financial statements to be able to register (I am thinking in a way I can ease this for SMEs), these statements will be linked with a profile which investors can see the performance, but all of this from a program, instead of going out company by company, saving time and money in the process. Investors will also need to pay a fee for registering and making deals in this piece of software. I plan to bake in financial analysis software and importation to Excel for further/personalized processing, but the included software could be used to do a valuation successfully. Another way to earn some revenue can be to take a fee (cheap enough to be the better opportunity cost than just traditionally making the deal) for every transaction between investors and companies, such as a buyout or a stock sale.

If I can market this to SMEs as a better way to get funds than just going to the bank and hope they consider your business idea worthy of the risk, I could get enough businesses in my portfolio to be able to offer them to investors looking for new investments, and these investors can have an extra 2 to 3 years (usually used to do research) of profiting. Companies would have better exposure to investors and higher possibilities to be funded than the current method of getting investors. I can even have banks to have access to this software, and they could check the financial of a company and decide if the risk is worth it.

I hope you find this idea interesting and leave your comments below,

Keith.
 

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