In February 2009, the Milken Institute held a Financial Innovations Lab in New York City to explore ways to increase the availability of risk capital to small- and medium-sized enterprises (SMEs) in developing countries. Risk capital—that is, patient, non-asset-based capital that facilitates the growth of new and expanding companies—is scarce for SMEs in the developing world. This lack of flexible capital is due in large part to the illiquidity of these markets. With few apparent exit opportunities, investors are reluctant to risk investing their money in emerging-market SMEs. Capital access is particularly difficult for smaller companies requiring investment in the range of $100,000 to $1.5 million. Because SMEs are critical engines of job creation and economic growth, it is important to increase the availability of risk capital to these firms.