WTR Small-Cap Spotlight
WTR Small-Cap Spotlight is your weekly guide to uncovering hidden value in the world of small-cap stocks. Each episode features insightful interviews with C-level executives, industry thought leaders, and Water Tower’s expert analysts. Tune in for actionable investment ideas and in-depth discussions on under-the-radar opportunities that can make a big impact on your portfolio
WTR Small-Cap Spotlight
The "Cost of Equity" Pivot - Why Structure Now Matters More than Rates
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Our guest for this Flashcast edition is Shawn Severson, CEO and Co-Founder of Water Tower Research, and Head of Market Commentary and Thematic Research. Shawn breaks down his latest research, “The Cost of Equity Pivot: Why Structure Now Matters More Than Rates,” which challenges the traditional small-cap playbook heading into 2026.
While falling interest rates have helped fuel a recent rebound in small caps, Shawn explains why the true driver of the innovation economy in 2026 is the cost of equity, not the cost of debt. He outlines the market’s structural shift from “survival financing” to “growth financing,” why markets are now rewarding solvency over dilution, and how investors should position around clean cap tables, funded innovators, and a barbell strategy as the small-cap equity window reopens.