Too Much Money Chasing Too Few Investments?

I just came across this article on Nextbillion.net by Nitin Rao. Short and brief it summarises what I’ve been thinking of for a while, what I like most is how the article ends

There could not be a better time for DOers to take the plunge, launching profitable vehicles to use this capital to create services for those who need it the most.

The micro finance sector is my favourite for two reasons, it empowers and has empowered me as well. many studies on small business financing have been inspired by the continuous flood of dollars into this sector. It become harder by the the day to find virgin territory with the right dna for consist, well structured and preferably rapid growth.

Going forward I think it’s natural that micro-finance will loose it’s glitter and many of these micro-finance funds will either fold up or diversify in SME/SMB funds which is where the opportunity really is as far as I’m concerned. Its great that micro-finance opened the gates of capital because it opens up the gates for those enterprising or financing their the living at the micro level (the debate rages on) but its tie to unlock the volume, SMEs/SMBs.

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