A fintech startup in Ann Arbor, Michigan is laser-focused on accomplishing a gargantuan task that may unlock economic growth opportunities globally: Mapping non-financial risk profiles of global SMEs to inform precision economic development and to uncover public/private investment targets.The KeyStone Compact Group Ltd - founded in 2014 - has developed algorithmic models to garner nascent insights in non-financial risks associated with thematic stocks and flows of local and regional economies.A Complex Undertaking Nearly 100 million small and medium enterprises (SMEs) are active in the US, EU and APEC regions, representing 70-90+ % of companies globally. The economic growth opportunities are equally massive in scale: SMEs contribute from 20 - 70% to GDP and employment. Big data analytics can uncover and leverage connectivity, value capture and investment grade assessments in developed and emerging economies seeking to scale and attract investment.The figure below (left) illustrates the complexity of financial interactions (denoted by lines) between industry segments and companies active in the smart grid ecosystem - based on Bloomberg value chain data. The abstraction on the right reflects the sectors involved in making the smart grid happen. What is striking is that the sectors extend well beyond energy companies. Red circles denote anchor segments; blue circles represent catalyst industry segmentsBeyond Economic Accounting and Visioning Economic developers tend to take an 'accounting view' of the economy to inform their vision for future growth. How many companies do we have in each sector, and what are the financials and strengths of companies in our regions and countries? Investors then leverage this information for loans and equity investment opportunities, based on financial information and expert knowledge.On the other hand, the 'macro-trend view' of future economic...Read More
