Where can I get additional information on Jamaica Venture Capital Programme?

Presently the Development Bank of Jamaica has been mandated to develop Jamaica’s Venture Capital Programme.  Additional Information can be obtained by calling the DBJ’s telephone switchboard at 929-4000 or sending your queries to arichards@dbankjm.com

What is a Venture Capital Fund?

An investment fund that manages money from investors seeking private equity stakes in startup and small- and medium-size enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities.

What is the role of mentors in the JVCP?

Mentors will play a critical role in JVCP.  Mentors by nature are able to solve venture problems, and take action consistent with mentorship agreement requirements. They are inspirational to others around, empathetic, and good listeners. Mentors are very well organized, stick to plans, and meet deadlines. They have no problem taking the initiative and making important business decisions. They are comfortable with working independently, but also like to take on the mentoring role.

How do venture capitalists realize a return on their investment?

The companies that venture capitalists invest in are private enterprises. Typically, the venture capitalist realizes a return on their investment when the company goes public (IPO) or is merged or purchased by another company (M&A), or the share re-purchased by the original entrepreneur.

What sort of information do I have to provide when I go looking for venture capital?

You will need to put together a business plan, and you must take advice on doing it. At the very least you will have to provide:

How are venture capitalists different from other investors?

Venture capitalists are long-term investors, who take a very active role in their portfolio companies, but are also open to short term opportunities for realizing returns on their investments. When a venture capitalist makes an investment he/she may expect to realize returns on the portfolio investments over a period of 7-10 years, on average. The initial investment may just be the beginning of a long relationship between the venture capitalist and entrepreneur. Venture capitalists provide great value by providing capital and management expertise.

Where do venture capitalists get their money?

Most venture capital firms raise their "funds' from institutional investors, such as pension funds, insurance companies, endowments, foundations, family offices, and high net worth individuals. The investors who invest in venture capital funds are referred to as "limited partners." Venture capitalists, who manage the fund, are referred to as "general partners." The general partners have a fiduciary responsibility to their limited partners.

What kind of investors are venture capitalists?

Venture capitalists are professional investors who specialize in funding and building young, innovative enterprises. Venture capitalists are long-term investors who take a hands-on approach with all of their investments and actively work with entrepreneurial management teams in order to build great companies.

How does angel investing differ from venture capital?

Venture capital firms are professional investors who dedicate 100% of their time to investing and building innovative companies on behalf of third party investors or their limited partners. The ‘angel’ investment community is a more informal network of investors who invest in companies for their own interests.