Early Stage Franchise Investment Exchange 

Small & Medium Enterprises (SMEs) is a new classification for the world’s largest business group. They account for two-third 70% percent of all new jobs created. Small & Medium Enterprise Investment Exchanges are being attached to largest public stock exchanges, in London England, Tokyo, Japan, Mumbai, India, Johannesburg, South Africa, Shanghai, China and many other cities. In some countries, SME Investment Exchanges are attached to public stock exchanges as sub-exchanges.

The Early Stage Franchise Investment Exchange was established to services the investment needs of owners with business formation and franchise models that are seeking either equity and/or venture capital. The Early Stage Franchise Investment Exchange is capable of funding a venture from the embryonic stage of a new business idea with Business Formation Grants. These SMEs Investment Exchanges will begin in 15 major U.S. Cities. This private sector investment access system will be accessible from the Internet in more than 194 countries.

 

Alternative Investment Market

The European Union (EU) is now considered the home of the Alternative Investment Market (AIM) for Small & Medium Enterprise Investment Exchanges. In London and Johannesburg South Africa, the exchanges are being attached to existing Public Stock Exchanges as an Alternative Investment Exchange. AIM was first established in London is 2005, thereby making it one of the largest in the world. Currently, there are more than 3,000 companies enrolled in AIM, compared to China, where they are simply known as over the counter stock. In China, at the time they only had 200 companies in their SME Investment Exchanges. However, in 2013 the Chinese changed the laws in order to expand access to small business owners and small investors. In India, they are known as Small and Medium size Enterprise Exchanges and are currently established in cities of Mumbai and Bombay. Since, SME Investment Exchanges are being established in countries where 2/3 of the world's population reside, they will someday be larger than all the existing public stock exchanges in London, Tokyo, New York and other cities combined.

Private Sector Business Infrastructure

The United States is finally allowing non-accredited investors to invest in early stage business ventures, for the first time, since the 1930s. Thanks, to Title III of the Jobs Act that was signed into law by President Obama, on April 5, 2012. Traditionally, you had to be an accredited investor with a net worth of $1 million dollars or more to participate in private equity investing. The new law establishes the conditions for a Private Equity Market, for early stage start-ups. Before the new law passed, there were no private equity investment exchanges for early stage start-ups in the United States, were the general public could invest in the early stage growth of private ventures.

The first step in the process is to build a private sector business infrastructure to fund early stage business ventures. The SME Investment Exchange was established to accommodate the large number of non-accredited investors that will enter the private equity market. Industry researchers and the World Bank estimated that crowd funding generated $5.1 billion in funding transactions in 2013 and will surpass $300 billion by 2025.  There will be more than 5 billion people living in cities by 2030.