KoreTalkX #19 with Dr. Kiran Garimella
Marketing and Communications
Marketing and Communications
Dr. Kiran Garimella
Chief Scientist & CTO
Dr. Kiran Garimella
Chief Scientist & CTO
Kiran Garimella, Ph.D., is the chief scientist and chief technology officer at KoreConX, leading the strategy and development of blockchain and machine learning solutions. A sought after speaker and author, Kiran has more than 25 years experience in information technology, consulting and financial services. Previously, Kiran held roles such as global CIO and chief architect at a General Electric company and vice president and chief evangelist for BPM at Software AG. He is also an advisor to the Alliance of Merger & Acquisition Advisors and the MidMarket Alliance, principal founder of iKnowCentral and co-founder of CognitiveWorld.com.
Hello, everybody. My name is Rafael Gonçalves. I’m the Communications Coordinator for KoreConX. And this is the 19th edition of our show KoreTalkX. We bring novelties, innovations, and new information on the private capital markets, technology, our partners, and everything in it. You know, to invest safely and compliantly. Today, I’m very happy to share with you that this week, we had a big launch of the KoreID mobile app. Which will bring a totally different experience for users, issuers, and investors. And that’s why I have my good friend and colleague, Dr. Kiran Garimella here with me. Dr. Garimella. The stage is yours, welcome.
Dr. Kiran Garimella 01:25
Thank you, Rafael. I’m like everyone, Dr. Kiran Garimella. And I’m the CTO and the Chief Scientist for KoreConX, and just glad to be here and share the good news.
Rafael Gonçalves 01:37
That’s wonderful. That’s wonderful. So to begin, of course, we have to talk about how we see the KoreID mobile app. We at KoreConX, we constantly say that 2023 is the year of trust, and compliance and KoreID mobile apps really is our passport for online investing. So, Dr. Garimella, what novelties does it bring to market?
Dr. Kiran Garimella 02:05
Oh, wow, we’re gonna begin and where can I start? Right? It’s amazing, you know, the types of capabilities and functionalities that it can bring to the table. But to truly understand the value that it provides. I want to share an analogy with you. Many, many years ago, to those of us who travel a lot internationally, myself included. If you ever went to Europe, you had to get a visa for every different country. And you had to buy purchase tickets for you know, air and rail and bus and all separately, right? But since around 85, many of the European countries and kind of got together and said, this is crazy. You know, we need to be much more united. And they came up with what’s called the Schengen passport. And like the Europass, right? And that has made a sea change. I’ve traveled so much in Europe, it’s been awesome. All the signatories to the Schengen passport, you know, have to follow certain norms and predictions for the safety of passengers and some infrastructure. They have to provide all of that, right? And it’s, it’s been an amazing experience. That’s what this KoreID mobile app would do. It is like your passport and Europe has rolled into one for the global private markets. So you know, that’s an analogy that is closest to my heart when I explain the value of this.
Rafael Gonçalves 03:32
It fits in your pockets. Right? Exactly. And it can take you everywhere. I believe that’s a great analogy. So and as it just, just please.
Dr. Kiran Garimella 03:44
I was going to say, I mean, your point about it getting everywhere nowadays who even goes to the bathroom without their mobile? Smartphone? Right? You know, I was talking I was at a social event and somebody was just kind of joking and said, you know, to travel all we really need is your your smartphone. It’s okay. Right. So it’s become, you know, that useful. But I think, you know, you’re asking about, you know, how does all of this promote the trust and convenience? For people? Right?
Rafael Gonçalves 04:17
Yeah, we talked about compliance. So of course, the mobile app, the KoreID mobile app, helps ensure this safe transaction, right? So I believe you could, you could explain about that.
Dr. Kiran Garimella 04:31
Oh, absolutely. So the private capital markets, anybody who invests in the private markets, they come to the markets with a view of the public markets I’ve been in the public market space for many many years. I am an investor I used to trade currencies and stocks and options quite a lot. On markets and so on. And the if you had a smartphone and if you had the mobile app for your broker-dealer and your account on that one, it was very easy to go on there and make a buy in the public stock markets, shares, and have a five-second confirmation and done. Everything you could look it up there, right? That same could not be said in the private markets. Until now, where KoreConX has been building this infrastructure, to glue a lot of these participants together because that doesn’t exist in the private markets. But the real game changer here has been how do you bring that experience to people to their favorite and trusted device. And that is your smartphone. And if you have a mobile app, the KoreID on that one, you can use that in many, many different ways. This is the first mobile app on the planet in this space, to combine multiple things. Let me give you an analogy. When you’re a traveler, it’s not enough just to start at one airport and end up at another airport. You have to find a hotel, you have to know the attractions there, you need to meet some people, there’s a whole world of experience that you have to do, right? Most people mistake investing in a private market as if it’s like, oh, an app you invest into done? No, you’re not done. There are a lot of things you have to do. Right? You have to follow the investment and what’s been happening on that front? What’s been happening with the KYC, ID, and AML situations? Did your payment go through or not? What happened after the offering closed? With all your holdings? Where are your shares? What if I’m expecting dividends? What if I have to transfer my shares to somebody else? So there’s a whole life cycle of investing? That is possible, you know, so this this this mobile app, the KoreID is the first of its kind to take all of those things, that entire lifecycle journey, and make it available in a very, very convenient and trusted format. That’s the difference.
Rafael Gonçalves 07:00
Yes, that’s, that’s nice. You mentioned KYC and AML. Know your customer anti-money laundering, right? help assure, they both help assure that the investments are being made. And for us and compliance they’re in the process, right?
Dr. Kiran Garimella 07:20
Absolutely. I mean, you know, people will put up all kinds of apps out there, I know that right? But you have to always ask the question and say, Who are the people behind it? What are they doing to ensure that bad actors are kept out? What are they doing to ensure that my information, my data, you know, is not randomly put into some cookie somewhere exposed for everybody? But what is it doing? To secure all this? Is it compliant is every action that is done by the participants on the other side, the broker-dealers, the transfer agents, the issuers, the payment processors, and the custodians. The escrow banks, are all of them doing things in a very compliant way, right? And it’s very important to assure everyone that that’s the type of infrastructure that we build. And that’s what the KoreID mobile app kind of opens the windows and the doors to experience all of that.
Rafael Gonçalves 08:18
That’s nice. That’s, that’s great. It’s fantastic, actually, and of course, surfing the web with these rights. Right. As you see the KoreID, you know, you can invest. There’s also a very important feature, the reinvest button, right? Oh, yeah, I would like you, I’d like you, Dr. Garimella, to, to please explain a little bit more about this really fast button. And what does it do? And how does it help them faster?
Dr. Kiran Garimella 08:45
Absolutely. I mean, so imagine that you have the mobile app, the KoreID mobile app, right? And the only the people who are trusted and verified, you know, so if you’re a participant in this space, you know, you’re an investor, you know, KYC, ID will be performed on you. And of course, the app itself is very trustworthy. But once you’re there, and you’ve made an investment, and you say to yourself, Wait a minute, I want to invest more, I want to invest in other offerings, right? So, now it’s important to remember that you know, KoreConX is not itself a funding portal. So we don’t advertise that’s not what we do. We provide the infrastructure for other funding platforms and funding portals and broker-dealers and companies who offer who have their offerings in various types of regulations in with Reg CF for Reg A plus and Reg D on various forms, etc, etc. Right. And so you can you have to go there and but our KoreID and KoreID verified symbols that are on those sites have the following assurance number one. That the mobile app is there, it’s not some fake website out there. The KoreID verification is something that we do To ensure that everything that that site does, and the offering is very compliant, right, they have to be totally compliant. And only then do they get the seal of approval, think of it as a seal of approval trust that is placed on that KoreID verified. So once you’re there, you’re the investor now and you say, that’s great, I’m going to download that, or you may already have the app. And all you do is use that to log in. And you will go ahead and make your investment. Now, what if you want it to reinvest in that same offering, or maybe invest somewhere else? The nice thing about this app is what it does because you’re already identified, and once you go through authentication, you know, any new investment reinvestment, you can reinvest, you don’t have to type all of your information again, right? So this whole investor fatigue, with having to, you know, make multiple investments, now I’ve done it, and I know how painful it can be if you have to take all of your information, you know, all of the login, your name, your address, your phone number, this and that your driver’s license and all these things, again, and again and again, in multiple places. And that’s what this avoids, once you’re authenticated, all that information is there. It’s pre-populated, and it’s filled in, except for a few very sensitive items that you have to ensure because we need to be very careful with things like that, right? So that’s how that’s why we’re so compliant with this. So once you’re there, you make your payment is done. The whole experience takes sometimes, you know, 30 seconds, 45 seconds, less than a minute sometimes. Right? And that’s the power. That’s where the power of this technology is.
Rafael Gonçalves 11:38
Okay, that’s, that’s amazing. You mentioned two ideas here, that I would like you to bring them back, you talked about the KoreID verified, which is a seal to assure that the offerings like the company is real, the company exists, and it’s fully compliant. Right. And as we have the KoreID, we have the KoreID mobile app, and the KoreID verified together, when they’re combined, they create a whole infrastructure of trust, right?
Dr. Kiran Garimella 12:08
Absolutely, absolutely. Think about the number of precautions we take, both as a company and our ecosystem to make sure things are very compliant and safe, secure, and trustworthy. On the one hand, you have the KoreID, which is the mobile app itself, right? And because everybody who uses that will finally get KYC verified, you’re already verified. Fantastic. You’re already verified. So that’s your prediction for you. The company itself is offering in an SEC-qualified offering, is a company properly Incorporated, right? I mean, is it registered properly or not? Is there a proper board of directors and CEOs on that one? Is the company, you know, Kyp performed on the company? Is it safe? Do we know who these people are? Right? And so these are independent services that you know, we type and we bring to the table that will perform all of that the offering itself? Is it SEC qualified? That’s very, very important. Second, is a FINRA-registered broker-dealer handling all this? Is there a securities attorney, or legal help behind all this that oversees some of this, right? So there’s a FINRA, registered broker-dealer, right? All of these things are something that we investigate, and kind of make sure that it’s all very safe and very compliant, only then that brought on board and the seal of approval is given to them. And that is a KoreID verified. So every time you see the KoreID verified, you know, it is like digital verified, or, you know, one of these seals of approval, that’s industry standard, right? And you look at that, and much more assured, in fact, you can go there, and you know, you can, you know, check it out, and you can see all of the things that go to makeup, why it’s verified on the checklist of things that happen.
Rafael Gonçalves 14:01
Yeah, that’s, that’s nice. And I believe we could put it like that, and then exactly look, as an analogy with the KoreID, the core, the mobile app, and the KoreID verified. We are raising interest to all the participants, right, who you are, who the company is, and the in-between, right, and the communication between them.
Dr. Kiran Garimella 14:23
No, absolutely. Absolutely. And if you think about it, you know, that is the start of the journey for an investor the first time coming to private markets. And, you know, it’s the first of its kind because we’ve never seen this before. And we pay a lot of attention to how to make this experience for everybody in the private market space much more seamless and safe. Right. The other part, of course, is that the journey of the investor doesn’t actually stop there. We know that. So once I’ve made the investment, that’s just an investment application. That’s when the broker-dealer, the FINRA registered broker-dealer takes over and performs compliance-related activities, such as the KYC, ID verification, anti-money laundering verifications built to perform suitability to make sure that, you know, based on the regulation, if private investors are not overstretching themselves, right, so we have to go through all of that, and only when that is done is the actual payment collected. So, no payment is actually collected until all of these verifications are already done, right, this is for the protection of both investors, and also the issuers, the people that companies doing the capital raise, right?
But along the process, sometimes, you know, the broker-dealer requires additional information, right? They’ll say, hey, we just need to make sure we know who you are, and many things have passed. But we also need to make sure that, you know, your SSN was wrong, you didn’t fat finger that, etc, etc. The date of birth is a very important thing that they will check. Why? Because we, you know, minors are not allowed to, you know, participate in offerings like this. So that check is very important. So, if there’s any question or doubt, or if they require more information, you know, the mobile app experiences that they would actually get notified. And they go back in and provide any additional information. The same thing happens in case there’s an error in a payment processing insufficient funds, or, you know, the card number was fat-fingered, some error happened. Well, how do you recall from that one, all of this is a very seamless experience for the investor. And it’s a good communication mechanism between the broker-dealers, and the investors, right? So once they’re all done with this, the investment is deemed to be completely made, and it’s closed, and then the investor becomes an official shareholder. Right. But once they become a shareholder, now, you think the journey has stopped right there, isn’t it? No, it goes further, right now. So all of this excitement was maybe 5% of the lifetime of security, the rest, the 95% is really where the shares or debt or and we can do all of this, and we can do debt, we can do loans and debentures and bonds and promissory notes. All of these options, warrants, all these things are part and parcel of these investment instruments. And when the investor makes these instrument investments, they expect to reap some benefits as time goes forward. Right? So as time goes forward, they become a former shareholder of the company. They get news releases, reports, and meetings scheduled by the CEO’s annual general meetings, they get messages from the CEO, and why does this happen? Why not just do two emails, right? There’s a good reason for this referral. All of the investor communications, and the shareholder communications between the CEO and the shareholder, they need to be a client. And many people don’t realize this, but there are a lot of lawsuits going around about, you know, hey, only those shareholders got notified by an email or a text message from their CEO, but we didn’t get it. So to prevent these, what we have done is we provide that whole infrastructure for shareholder communications with the CEO can meet. You know, the platform makes sure that all the shareholders get the right message, that the messages are tracked to make sure that people open them up, etc, etc, right. But think about all this experience, the reports, the news releases, the movement, all of the messages that happen, and oh, by the way, the CEO will call an annual general meeting where they can be voting. And guess what? The provision for electronic voting e-voting already exists. You just go in there and tap and say, yep, I voted. This is fantastic. Even though I mean, all of this is collected in real-time, by the way, and you know, it’s amazing. I mean, we have shareholders in the 10s of 1000s. That sign-on, and, you know, they perform the voting. I mean, it’s amazing how seamlessly all of this works. And the annual general meeting itself is a big event. That’s a scrutineer, who has to oversee all the proceedings. You know, the minimum quorum for any particular resolution to pass must be met. All of this is, you know, you can see it, you can visualize it, and it’s all there. It’s all very electronic. And, you know, the mobile app makes a mixed load, extremely convenient to participate in all of these things.
Rafael Gonçalves 19:43
That’s That’s fantastic. Really, that’s it’s funny to listen to talk to you talk about it, because you really bring life to this to everything. I mean, I want to start buying shares and voting. I just want to use the KoreID, I just want to be there. It’s amazing to watch.
Dr. Kiran Garimella 20:01
Just so you know, we actually consume our own technology. So we have to be random and this, I tell you what I’m gonna refer this, this whole thing is so fascinating and fantastic. In fact, here’s the interesting part and people don’t realize it, even though the public markets I mean, you know, the the large brokerage houses, you know, the Charles Schwab, TD Ameritrade, JP Morgan. See, the interactive, all of these people have fantastic technology, no doubt. You know, I’ve been on their customer for a very, very long time. But even they don’t bring all of this into play. Right? So if you get to see all the communications, you don’t get it on the app necessarily like that. But you may get it through a different mechanism, right? How many times do you know, if you invested in IBM, Microsoft, or some of Amazon, the big companies? How many times have you actually seen in a personal communication on the shareholder from the CEO, to you, right here in the private markets, there is a much more warmer relationship between the company and the shareholders? And this mechanism is very critical, right? And E-voting, think about it right? How many people actually do e-voting in the public markets? But here, it’s there, the technology is there, and we participate in it. And we look at it. It’s fantastic.
Rafael Gonçalves 21:15
That’s great. Yeah, that truly is fantastic. And yeah, that there’s a huge difference when you especially when we put in perspective, comparing with a private with the public market, right? Apparently, the companies just mentioned Microsoft, Amazon, and Apple, and it really is a very different flow and a very different experience. Right?
Dr. Kiran Garimella 21:36
Exactly. Exactly. And here’s, here’s the of the final leg of it, that makes it you know, if even possible, even more exciting, and that is the secondary trading, right? The secondary trading, and think about it, right? And this is where, you know, you have your mobile app. And now you’re in a position when the shares are free and clear to trade, you’re in a position now to actually train directly, right, you cannot wait. And this happens through the KoreConX infrastructure as well. We connect with, you know, the secondary trading systems and trading operators, the called so-called ATS operators, or alternative trading systems, right? So these partners, right, we integrate with them. We have blockchain technology that does all of this stuff. But all of that is the technology behind the scenes. As far as the investor, the shareholder is concerned. Its simplicity, you go in there, you hit the button, you look at your holdings, and you say, Aha, here’s a message from the CEO. Oh, there’s a news release, you know, tap on that. Take a look at that one. reply back. Okay. You put in a transfer request, you know, there are many, many things in it even more that we’ll put on capabilities as we go forward with continually adding even more, more and more things, right? But there you are, I mean, you’re ready to trade, and you say, hey, this is fantastic. I’m gonna trade. And there you are, you just hit the button. And it’s all seamlessly integrated with the secondary trading marketplace. Again, it’s all licensed. And FINRA broker-dealer-approved SEC-qualified things. There’s nothing shady going on, it’s the highest standard of compliance that we maintain.
Rafael Gonçalves 23:22
Almost all the steps required in the passports, right,
Dr. Kiran Garimella 23:25
No compromise, no, comprimises to security and safety and compliance and trust, we have no compromise. No compromise.
Rafael Gonçalves 23:34
That’s the best part, of course. So we are talking a lot about this communication between shareholders and the company, which is really the next level of relationship between the parties, right? So a lecturer looks to that you share it or if you share your experience as a trader as well. But what does it mean, to have this kind of relationship between the parties?
Dr. Kiran Garimella 24:02
You know, this is one of those things that you know, many, many players, so they don’t talk about, but it’s about engagement, right? It’s engagement. See, we make a big deal about I’ll tell you why. I’ve been in the public markets, I’ve been a trader, I used to read a lot of AI models, and, you know, do a lot of our own algorithmic trading myself, I build my own models, right? Most of the time, in many cases, I really didn’t know what the company did. I really didn’t care so much. I know it sounds very callous to say it like that. But for me, it was like, you know, hey, can I follow the trend? Can I buy low, sell high or, you know, sell high and buy low? Right? Can I do all of these things? And I’ve owned stock in so many public companies. You know, companies out there, never once has any of the CEOs reached out. I have no personal connection with any of the CEOs. You know, sometimes you know, some companies Yeah, you understand that mission and you say, Yep, I buy into that one, right? But that’s been far and few between the loyalty between the shares older and the company or the company to the shareholder has sort of been very minimal. They see what isn’t who you are, right? And here’s the irony profile. Here’s the irony of the public markets, you call them the public markets as if everything is transparent. Yet the CEO doesn’t know who you are. Now go the complete other way. Look at a company like a Brewdog, right, UK-based company, brewery, and microbrewery? It’s, it has a fantastic culture, and it builds fantastic strong relationships with the shoulders in 86 different countries, right? And, you know, they’re almost like on first-name bases, right? They all have almost like a punk culture, it’s very exciting. And, you know, very invigorating when you think about it, right? They know each other, and they go to their events. And, you know, the CEO knows many of them personally, reach out, they have a very unique culture, so to speak. And that’s the difference. A lot of the offerings and issuers, you know, that comes here and we engage with, we are seeing that passion, they don’t want just somebody to give them a whole boatload of money, and then never show up again. For them. Investors are not people who just give them money, investors are people who are going to be there in their journey with them, not just shareholders, but as company advocates. As ambassadors of the company, many of these companies, we know. And we’ve helped them in multiple ways. They raise money multiple times, not just one time, right, the capital raising activity is a frequent activity, right? There are many classes of shares and many rounds of investment that they go through. They are building these relationships and what they really want, right, is to have the initial shareholders become the brand ambassadors for the company, to buy their products to tout and to, you know, talk up the vision of this company to their friends and families and other people. Right? How does all this happen? I mean, it’s because of this personal connection. And that’s why this communication is so important. And we don’t want any roadblocks the in this communication. Right?
Rafael Gonçalves 27:07
Yeah. In the in the example, you gave the reason it’s easy here, right? Yeah.
Dr. Kiran Garimella 27:14
Exactly. I mean, many of these companies that just we’ve all of them, in fact, that we know often that we engage with them, very solid companies, entrepreneurs who have been there done that very successful people. Not somebody who’s just getting the market or if somebody offered obviously not. And so these people have a passion, they want to bring medical technologies, right? They want to bring, you know, something of a really cool idea. They want to make a difference in the lives of people. I mean, many of these people, they’re not in there just to make the money. But they’re to offer back to the community and to do all of this stuff, right? Technology should also enable them to do that. And what can be more personal and more intimate than a device that you can take everywhere in your bedroom and your bathroom? And that’s your mobile app.
Rafael Gonçalves 28:04
Yeah, yeah, mobile, mobile, mobile apps can really be everywhere, right? At the beginning of the show, when you mentioned, that people can’t forget their phones, but they can forget their clothes, clothes. You need your mobile phone to buy clothes, right? In order to have them shipped to our hotel. That that’s basically it. Right?
Dr. Kiran Garimella 28:33
Yeah, that’s it. There’s one thing also wanted to mention, you know, so you’re talking about you, you asked me about the KoreID, and the KoreID verified right? I’ll give you a simple analogy. I think this will help everyone understand you know why that’s so important. So when you’re a child, and I’ve been to more than 20 countries and on speaking engagements all over the place, right? And I still remember once I went with my family to Thailand, let’s say right? And you go there, you don’t know the cuisine. You don’t know what to trust. But if suddenly you see a symbol you say, I know that symbol and I trust it. Okay, it may not be the greatest, but I trust it. And that’s your M The Golden M the McDonald’s. Right? You go. And it’s what you expect. There are some slight additions and innovations based on local cuisine, but that’s it, right? It’s very dependable.
Rafael Gonçalves 29:26
It’s a customer that is a Big Mac.
Dr. Kiran Garimella 29:27
Big mac hello, right? A Coke is a coke. So you see the trust and brand and you feel much more comfortable? Yes, in the world of investing the last thing you would want is to have an adventure in the wrong sense of the word right eat the wrong food in a row get you to know the the tourist problem as they call it. Which I won’t talk any more about all that right, the tourist stuff. So you don’t want all that that bad types of adventures. What you want is a good and happy adventure. You want a good and happy ex-median sale. So you want to trust its face, you’ll say, aha, that’s the symbol I trust. So here you are an investor, you’re going to all these different offerings by different, you know, funding portals and platforms, and issuers and companies and you know, you’re subject to, you know, the Facebook advertising or you know, whatever else, right? So you kind of go there, and you’re browsing through, and there is the symbol KoreID verified when you go to invest. And what does it tell you? It says, aha, I’ve been there. Yes, you got your Big Mac, I got my big mac rush. That’s it. I got my cola and my big Big Mac. And that’s it, right? That’s why this thing is so important. And we never want to compromise on the quality of the KoreID verification, right? And it’s very, very important for us to do that. And this precisely for this reason,
Rafael Gonçalves 30:51
Justice this fantastic year, especially the world we’re living in right now, we have had issues with crypto we have big tax problems in the revenue. I believe everyone who is investing privately or in public, we’re talking about the need to reduce risk to reduce unnecessary risk. Of course, every time we invest, there’s a risk. But obviously, the unnecessary risk, which is under trust and compliance, we really have to remove it. Like, as we say, we remove the friction. Right. And I believe that’s the most important not only about the mobile app, the current mobile app, but the whole KoreID ecosystem with the seal, the quarterly verified sealed KoreID, which you use in the website. I mean, it’s a whole ecosystem to make you feel safe, and to add to help you have your Big Mac, at the end of the day.
Dr. Kiran Garimella 31:53
No, no, absolutely. And you know, that part of the trust is also transparency to know what’s going on. Right? And with the mobile app, the Kore ID mobile app, you go in there, and you see your pending investment, what’s been happening to it? Where are we in the process? Right? When is this often good? Because what’s happening? It’s just that the transparency and the visibility of all the things that are going on? I mean, that’s pretty, that’s very crucial. Right? So that’s, that’s part of the great experience there.
Rafael Gonçalves 32:25
Yes, that’s truly amazing. And we strongly believe right, at Griffin AX I live, I believe everyone believes that we are really helping reshape the market are reshaping the future of private capital market? And who knows? Who knows? Where markets gonna go from now on?
Dr. Kiran Garimella 32:45
Right, it’s going to go places, it’s going to go places and all of that, that I have no doubt, absolutely. No doubt. You look at the capital markets in general, there’s this there’s steady and strong trend of companies moving away from the public markets and becoming more private, for a very, very good reason. Right. And they want to have this tighter connection with their communities with, you know, the investors, less of the Wall Street shenanigans sometimes that you hear all these stories, right? It’s important, and Rafael, you mentioned risk for different investments, no investment is risk-free. We know this right now, we know, we don’t control the investment. It’s nothing to do with us. We are the technology provider, we’re the experienced provider in this space, right? And we want to ensure trust and compliance and safety and security for everybody, that’s for sure. But all investments have risk, they’re subject to economic risk, they’re subject to, you know, competitive risk, and so on and so on. But the one risk that we can do without is having bad players of noncompliant offerings being shut down and action letters by the SEC, so to speak. You know, we don’t want that and want to prevent that. And we don’t want the risk of not knowing what’s going on. So the things that we can control, we want to do the best job we can and provide the best experience we can to all of this.
Rafael Gonçalves 34:12
Yeah, I was looking for some data here. We found research from a London-based firm. The private capital market is expected to reach $18.3 trillion by the end of 2027. And we’re talking about 9.3 trillion currently. So this was just published last October. So we’re really expecting to double the size of the market by 2027. And that’s huge.
Dr. Kiran Garimella 34:45
So that is huge. 2020 was the first time I believe, when there was more money raised through private capital markets, up to the tune of about 2.9 trillion compared to 1.2 trillion in the public markets. First time. They crossed over, and that that trend is going to continue on. Right? If anything, all of the debacle and scams that have happened in that with, for example, they have taxes collapse is a good example. Right? And you know, this is maybe my opinion, I think it’s a very positive development in the sense that it brought a lot of attention to how important it is to be complex. Right? It brought attention, and it made people wake up and said, Wait a minute, who are these people making offerings? Right? What’s going on with this? What do we need to watch out for it brought attention and education to people and alertness to the real investors, right? And so I think we’re going to see a shakeout of the bad players. I think this is a maturation cycle, in the private capital markets. And, you know, I tell you, we are so excited to be the first on the planet to bring this consolidated end-to-end lifecycle experience, you know, through the most favorite device that mankind can ever have, and that’s your mobile apps. Right? So, so while I’m and I’m, I’m like terribly excited, you know, we ain’t seen raising, we ain’t seen nothing yet. It’s going to be a sea change as we go forward.
Rafael Gonçalves 36:20
That’s fantastic. Well, Doctor, I believe we, our time is almost up. If you want to leave a final message to the public, to the audience, please feel free.
Dr. Kiran Garimella 36:31
Absolutely. You know, we are all about education. KoreConX is all about education. Right? We want to educate everyone, we have the largest library of private capital, markets, and educational material, and how to invest. What does it actually mean? What are the different players around it? What are the regulations around it? Right? What are the pluses and minuses of this? What does compliance mean? All of this costs, not exactly the cost, the awareness, building the risks, then you know, all of this stuff, right? And this, this window that we have right now to the mobile app, is the window to engage with education, it’s a window to engage in this new phenomenon that’s going to come and it’s going to trounce the public markets, I couldn’t believe it, right. So, you know, engage, get the app, become part of this, you know, revolution, and be open-minded and look at a lot of the offerings, you know, we don’t advertise offerings. We don’t, we’re not a portal. But as you see the core right, you learn to recognize that and look at the offerings and, you know, learn to support the private capital markets, right? I mean, it’s fantastic, right?
Rafael Gonçalves 37:40
Yes. Yes, that’s it. So I’m wrapping up. It was a pleasure having you over Dr. Garimella. It was great talking to you. As usual, as usual. We all got fired up in the middle of the discussion. That’s fantastic. So basically, this is it, guys. Thank you all for the audience for your patience with us. And please follow us on YouTube on LinkedIn. We have weekly, a newsletter on LinkedIn called inside the Kore, where you can learn a lot about regulations and how to invest and costs and broker-dealers, and whatever all the parts involved. We are always there all about education, as Dr. Kiran said, and I hope to see you soon for another episode we are very easy to be reached. Right? You can find us on the page. You can leave comments, you can send us messages on social media. You can find us there. Alright. Thank you guys. Have a great weekend. Dr. Kiran and goodbye. See you next time.