Problem: It’s hard to sell “shares” of assets (or liabilities) I have.
Solution: A platform that helps you Make Securities Out of Just about Anything. This would allow you, the issuer, to break up any asset that you own into pieces so that you can raise capital and/or liquidity. For those who are not in the finance world, here is one definition of securitization from Investopedia:
Securitization is the procedure where an issuer designs a marketable financial instrument by merging or pooling various financial assets into one group. The issuer then sells this group of repackaged assets to investors. Securitization offers opportunities for investors and frees up capital for originators, both of which promote liquidity in the marketplace.
At heart, this business would be a legal technology and financial technology startup with a few different potential use cases. For instance, recent-college graduates can securitize their mortgage on a house to get hundreds of “co-owners” while accruing equity in a property. Or, art collectors and fine wine collectors can securitize part of their private collections to raise capital in tough times (like now) or times of investment opportunity (like now). This business would open the door to use-cases of finance that we haven’t even considered and would be a financial innovation (much like those described by Yale finance professor Robert Schiller).
Monetization: Percentage of capital raised from the securitization process.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)