The current securitization market is complex and expensive, making it largely inaccessible to small businesses, project developers, and individuals with valuable assets or cash flows. These potential issuers often lack the resources to navigate the legal, financial, and regulatory hurdles required to package their assets into tradeable securities. As a result, many viable projects go unfunded simply because they cannot tap into capital markets directly.

Simplifying Securitization for Smaller Players

One way to address this gap could be a platform that guides users through the process of creating and issuing customized securities. The platform might offer:

• Step-by-step workflows to define assets and structure securities
• Pre-approved templates for common cases to reduce complexity
• Automated compliance checks and document generation
• Connections to investors and service providers

This could benefit small businesses, real estate developers, content creators, and investors seeking alternative assets. The platform might generate revenue through transaction fees, ongoing service charges, and premium features for complex structures.

Execution and Challenges

A potential approach could start with a minimal viable product focusing on simple revenue-sharing notes in one favorable jurisdiction, with manual oversight. As the platform matures, it could expand to more structures, jurisdictions, and automation while maintaining regulatory compliance.

Key challenges would include building investor trust and managing fraud risks. Early verification processes might involve third-party audits and escrow mechanisms, starting with professional investors to establish credibility before broadening access.

Comparison with Existing Solutions

Unlike traditional investment banks that serve large clients at high costs, this approach could make securitization accessible to smaller players. While crowdfunding platforms offer simplicity, they lack proper financial structuring. Online lending platforms are limited to basic debt instruments, whereas this idea could enable more sophisticated, asset-backed securities.

By lowering barriers to securitization, such a platform could unlock new funding opportunities while giving investors access to previously unavailable asset classes.