Alternative Funding Options: E-platforms

Abstract

This chapter illustrates the organization of the E-platform as a tool of alternative funding for SMEs. The E-platform business model is based on (i) low costs, with barely an entry barrier to speak of; (ii) technology performance; (iii) leverage in the connecting power of the Internet to provide a highly effective alternative to traditional models in financial intermediation (a function historically performed by commercial and investment banks). E-platforms are part of the new industry known as FinTech. The chapter makes an in-depth examination of the interaction between alternative and traditional funding channels.