Thursday, July 3, 2008

Is this innovation or just old ideas wrapped in a new packaging?

Another Online Finance PUREPLAY!!!

The company and service is called myc4 and its like Kiva+Grameen+Prosper focused exclusively on providing access to capital to African small businesses. I really like the way the service is constructed. Although you do lend directly to the small businesses, you do it through "lenders" which are local companies that set up operation on the platform. The lender takes a cut of the loan but deals with the hassles of diligencing the loan, servicing it and collecting it. I think this will bring the default rates, which are high in services like Prosper, down significantly. If you feel like loaning some money to a small business in Africa, go do it through myc4 and let me know what you think.

Industry shift is getting stronger and businesses will partner to reduce the default rate, barriers for capital flow will be absolutely ERADICATED. No more Foriegn exchange boards, money will be finally free.

Any thoughts?

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