PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

Limited (formal) opportunities for networking between entrepreneurs and
investors;
A legislative and regulatory environment that is unclear, with underutilized
tax incentives;
Lack of trained advisors for the VC market, including attorneys, accountants
and business advisors.
However, on the positive side, there are several environmental factors which augur
well for long term private capital formation, and which suggest that the current
economic context provides a good opportunity for the development of venture capital
financing. These include:
The Jamaica Stock Exchange Junior Market, which can facilitate capital
market exit by venture fund investors.
Positive changes in the macroeconomic environment, including the lowering
of interest rates, lower Government debt levels and a generally improved
level of macroeconomic stability.
A more credible yield curve and more rational risk-reward relationships.
Pension-fund reform providing a deeper pool of funds for investment in risk
capital.
4.0 Operational Goals of the JVCP
The venture capital industry is expected to have developed a sustainable capacity over an
initial three (3) year implementation period, with the engagement of private sector
stakeholders and the mobilization of capital to provide the necessary future financing.
The following outcomes are expected to be achieved from the implementation of the
JVCP:
• VC and private equity industry with appropriate taxation, regulatory and
legislative underpinnings, transparent corporate governance policies;
• A sustainable deal-flow of viable, ‘investment-ready’ enterprises
characterized by:
o Knowledgeable entrepreneurs with an understanding of venture capital
financing and the requirements for accessing this method of financing;
o Improved governance, operational and financial management skills;
o On-going training, development and capacity building through
business incubators and other supporting institutions;
• Knowledgeable fund managers and other professionals, with the requisite
skills and expertise to conduct due diligences, structure and manage venture
capital funds and to provide timely and expert advice to entrepreneurs and
investors;
• Knowledgeable investors, particularly institutional investors, with a clear
understanding of the asset class and the ability to evaluate fund managers,
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