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Venture Capital in the Caribbean Current Status, Future Prospects: 

Venture Capital in the Caribbean Current Status, Future Prospects Jelle Sjoerdsma 27 April 2004 University of the West Indies International Conference on Business, Banking and Finance

Agenda: 

Agenda Venture Capital in the Caribbean Current Status Global Perspective historical growth trends VC industry sizes Future Prospects Caribbean economies VC potential

Caribbean VC Status: 

Caribbean VC Status 1492: Columbus “discovered” the West Indies after receiving VC early 1990’s: several local initiatives in some countries mixed results: failures, mergers, survivors Puerto Rico is in class by itself

Puerto Rico Investment (M$): 

Puerto Rico Investment (M$) source: Puerto Rico Venture Forum 1,000

VC in the Caribbean: 

VC in the Caribbean

Status is Mostly Immature: 

Status is Mostly Immature Puerto Rico is a maturing market, with strong influence from USA Rest of Caribbean is led and managed locally only a few active firms per country small in scale making slow progress

Global Perspective: 

Global Perspective VC trends in other countries historical growth economic contributions to GDP

UK Investment: 

UK Investment source: British Venture Capital Association

UK Investment / GDP: 

UK Investment / GDP

USA Investment: 

USA Investment source: National Venture Capital Association 106,000

USA Investment / GDP: 

USA Investment / GDP 1.06 %

2002 VC Investment / GDP (%): 

2002 VC Investment / GDP (%) source: 3i, EVCA, PricewaterhouseCoopers

Caribbean Prospects: 

Caribbean Prospects Top-down review of economies VC Potential countries investment sizes Conclusions

Caribbean 2002 Economies: 

Caribbean 2002 Economies

Population (million): 

Caymans 0.0 Population (million) Cuba 11.3 Jamaica 2.6 Dom Rep 8.6 Haiti 8.3 Puerto Rico 3.9 Barbados 0.3 Trinidad 1.3 Bahamas 0.3 Guadeloupe 0.4

GDP (US$ billion): 

GDP (US$ billion) Trinidad 9.4 Barbados 2.6 Puerto Rico 67.9 Cuba 13.2 Bahamas 5.1 Jamaica 8.4 Caymans 1.8 Dom Rep 21.3 Guadeloupe 4.5

GDP per capita (US$ 000): 

GDP per capita (US$ 000) Caymans 43.3 Jamaica 3.2 Cuba 1.2 Bahamas 16.2 Turks 10.3 Dom Rep 2.5 Puerto Rico 17.6 Trinidad 7.3 Barbados 9.6 Guadeloupe 10.3 Antigua 9.4

VC Potential: 

VC Potential country GDP pop /cap Trinidad 9.4 1.3 7.3 Puerto Rico 67.9 3.9 17.6 Barbados 2.6 0.3 9.6 Bahamas 5.1 0.3 16.2 Jamaica 8.4 2.6 3.2 Martinique Guadeloupe 4.6 0.4 10.3 cutoff limits > 1.0 1.0 5.0 > 1.0 0.2 5.0 > 1.0 0.2 3.0

Annual Investment Potential: 

Annual Investment Potential Assume annual investment at 0.1 % of GDP

Conclusions: 

Conclusions Only a few Caribbean countries can sustain a local VC industry VC activities, outside Puerto Rico, are small Scope for new initiatives is limited Experiences from other countries indicate that modest growth and long-term sustainability is achievable

Q & A: 

Q & A www.dynamic-equity.com