Less than 0.001% of global business technology financing went to African startups in 2016. is not a secret that entrepreneurs in emerging markets finance capital than their counterparts in developed markets. Among the many reasons are the inefficient capital market systems that create barriers for emerging market entrepreneurs, who face barriers for cautious investors.

The "Leapfrog" Phenomenon

Coin Supply Strategies (CIOs) Can Redefine Capital Markets and How Start-Up Companies Issue Securities and Create Stocks corporate structures in emerging markets. Entrepreneurs and governments can bypass the inflexible financial market systems created by developed market economies and create entirely new, flexible and accessible capital markets.

Emerging market entrepreneurs hardly benefit from a flexible financial market system from a new generation of democratized and symbolized investments in private companies, and this could be rendered possible by implementing the strategies of the ICO.

Capital markets in emerging markets can accelerate the leap-frog effect. entrepreneurs and their businesses at the center of their country's growth. He notes that, despite the potential, IFAs still have their training wheels and must find a bridge between existing conventional debt systems and innovative tokenized systems.

There are two main ways that IFAs can transform capital markets and unprecedented economic growth in emerging markets.

Digital Incorporations

Blockchain-based digital capital markets will bring a wave of needed innovation around the constitution and management of private companies. It is expensive, slow and inefficient to incorporate and manage a business structure in most emerging markets. In Nigeria, it takes $ 19,400 and two months to form a private company. While in Canada, it costs $ 200 CAN and takes 24 hours. After incorporation, the company's management, fees and reporting requirements are all paper-based and can inflate administrative costs, time and filing requirements. can create, manage, and securely track a startup activity. Digital business structures are a natural forerunner of digitized token titles and could significantly reduce the barrier to entry for entrepreneurs in emerging markets. This could save resources and safely store intellectual property in business structures. Digital embedding could transform the ease of doing business in emerging markets. As a concrete example, the Republic of Georgia recently ranked among the top ten companies in the ranking Ease of doing business through its recent innovations, including a more efficient land title system

system, where businesses could be integrated in minutes, at the click of a button and for a minimal cost? It's leapfrog effect: a sudden opportunity to lower the barriers to entry into the economic system.

Tokenized Securities

According to Savills Global Research Report "Global Real Estate Market Trends in 2016" the total market capitalization of the world's real estate is about $ 217 tln. This represents roughly 2.7 times the world's GDP, 36 times the world's mining (six tln) and accounts for 60% of the world's leading assets, making real estate the first choice of the world's mining. savings and investment for countries, companies and individuals.

Smart contract and distributed accounting technology enable the connection of assets and financial institutions effectively. This technology allows a system where large assets can be divided and distributed to multiple financial institutions through the smart contract, allowing users, through these financial institutions, to invest in smaller fractions of the same. 39; real estate. This technology ensures the non-alteration of the processes once they are initiated.

A More Versatile System

Traditional transactions are a series of corporate steps, well-written contract templates and tons of paper. As such, they are rigid and create illiquid capital structures for investors and entrepreneurs. The symbolized titles represent an evolution towards a flexible system of titles, where the emissions of actions can be done at the simple click of a button

Blockchain and Token do not know borders and the Securities could form the backbone of a decentralized global stock market. This is a particularly important advantage for emerging market entrepreneurs, where local angel and venture capital groups are more scarce. Tokens allow entrepreneurs to have access to donors around the world, democratizing access to finance for their products.

Real Financial Inclusion

Financial inclusion is not limited to bank accounts and value stores. Financial markets and the ability to easily integrate and manage a business can facilitate entrepreneurs' access and facilitate the development of their business. Blockchain technology and tools such as smart contracts, decentralized oracles and tokens create the opportunity to create a new type of capital markets system in emerging countries.