2. Mission
Increase availability of equity & debt
financing options available to Entrepreneurs
(of all stages and sectors) in Barbados in
order to be the #1 Entrepreneurial Hub in the
World by 2020
3. Measures of Success 2011
ď§ Finance Web portal launched online by 1 April 2011
ď§ 4 Business Finance workshops offered covering capital
structure and financing alternatives in 2011 (consider
Kauffman Fasttrac program)
ď§ One or more Angel Investor Groups activated:
ď§ Invests in 10 Ventures in 2011
ď§ Professional and other groups help companies
prepare to pitch and refer entrepreneurs to angels
ď§ Possible tax incentives to Angels
4. What does World Class look like?
ď§ World class investors to world class
entrepreneurs
ď§ Understand your business idea âdomain
knowledge
ď§ Willing to share risk & rewards
ď§ Trust
ď§ Responsive
ď§ No âpie in the skyâ valuations
5. What does World Class look like?
Product/Situation Barbados Today World Class Requirement
Micro-enterprise Loans â â
Active Angel Investors â
Active Venture Capital â
Venture Debt â
âGrowth Capital/PEâ â
Mezzanine Financing â
Senior Bank Debt â â
âFrictionlessâ Foreign
Investment â Central Bank
â
Advisor Ecosystem â
6. Benchmark / Indicators World Class Barbados
There is no âone size fits allâ for financing entrepreneurial
ventures at different stages (eg start-up) and sectors (eg
services) â equity is critical to ensure B/S strength
Full range of
Financing vehicles
exist
Limited â micro
and bank loans â
little to no equity
Culture must accept role of outside equity investment in
high-growth entrepreneurial companies â âsmaller piece of
bigger pieâ
Understood as a
premise for high
growth â more than
just $
Chicken vs. egg?
Is it culture or lack
of availability â
younger group -
latter
Private sector âEcosystemâ that supports company
formation and financing â attorneys, banks, lawyers etc.
âdiscountâ fees in early years and have programs to support
new business development
Long-term view â
grow your future
market leader
pipeline
âOne fee fits allâ?
No commitment to
ecosystem
Stable government policy â frictionless opportunity for
foreign investment and repatriation (subject to tax rules etc.)
Tax regimes can be
complex but no
FX/CB restrictions
CBOB âsand in the
gearsâ
Where is Barbados on the Benchmark
Indicators?
7. Situation: Barbados characteristics
Individual traits
ď§ Lack of information available on how to access
funds
ď§ Risk averse â investments are typically long
term & fully guaranteed with limited âskin in the
gameâ
ď§ Reluctance to give up control for equity financing
ď§ Businesses are built not sold â âexit strategy is
counter culturalâ
8. Situation: Barbados characteristics
System traits
ď§ Banking system is not set up to encourage
entrepreneurs
ď§ Not yet a truly competitive market
ď§ Regulatory environment hinders equity driven
investment
ď§ Protectionist â constraints in free trade
ď§ Investments are typically small scale & ROI
expectations are low
9. Narrowing the gap
1. Educate Barbadians on Financial âlanguageâ
and types of investment available to raise
capital
2. Lack of government support & policies directed
at promoting the availability of finance
3. Lobby Government for regulatory reform
4. Work with Government & Central Bank to
develop incentives and breaks for
entrepreneurs
5. Relax FOREX controls & implementation of
credit bureau solutions
10. Key Themes
ď§ Fear of Failure â less acceptable than in
other cultures
ď§ Role of angel investment in developing
markets
ď§ Reform to Pension fund regulation
ď§ Foreign Direct Investment - raise profile of
Barbados brand to international
entrepreneurs
11. What Why When Who Status Remarks /Actions
Measures
Create a web portal ⢠Source for
Information &
Education on finance
⢠Promote key events
April
2011
Establish an Angel
investor network in
Barbados
⢠Act as a source of
capital for start ups
Jan
2011
Explore establishing a
dedicated Venture
Capital enterprise
growth fund
⢠Raise new sources of
capital
Nov
2011
2011 Action Plan â Top 3 priorities
12. Reconfirm Mission
Increase availability of equity & debt financing
options available to Entrepreneurs (of all
stages and sectors) in Barbados in order to
be the #1 Entrepreneurial Hub in the World
by 2020