CONTACT Magazine (Vol.19 No. 3 — September 2019)

Financing entrepreneurship:
angels, stock markets and start-ups
Where can an entrepreneur with a brilliant idea or a
rapidly expanding business go for low-cost capital?
In T&T, angel investment capital is a great option for
start-ups, while the T&T Stock Exchange, particularly
its SME market, may be the right fit for established
businesses that need equity capital to grow
Today's start-ups, tomorrow's triumphs
Equity investment: Credit Unions
Credit Unions are a great source of lowinterest
capital for entrepreneurs. Here are
some facts about the sector:
No. of active credit unions in T&T: 295
Number of members: over 564,000
Value of total assets: over TT$11 billion
Retrorocket/ Shutterstock.com
by Kay Baldeosingh-Arjune
Freelance writer
Two angel investor groups in
Trinidad and Tobago are Avatar
Capital, led by restaurant executive
Peter George, and IP Angels, led by
manufacturing industry executive
Robert Tang Yuk. They are both
passionate about the need for a
supportive ecosystem to nurture new
entrepreneurs, and about the role of
angel investors in providing support
and guidance which is often more
critical to the success of a start-up
than actual financial capital.
IP Angels is about three years old,
and wants to fuel diversification
through the development of entrepreneurship.
They do not require entrepreneurs
to have a full-fledged
business plan when making their
pitch. “Let’s just understand your
idea and your target market. We will
develop the numbers together. The
pitch is really the beginning. From
that we decide if we will invest our
time further,” Tang Yuk explained.
Avatar Capital was formed in 2013.
According to Peter George, “We get
more involved in the building out
of ideas, putting in the corporate
structure, legal and otherwise, cleaning
up the capital structure, taking
ideas and getting the business to a
point where it can go out for Series
A financing.” This is seven-figure
funding for start-ups that have developed
their business model and now
have some performance indicators.
What entrepreneurs need to know
Don’t come if you only want capital.
Understand that angel investors are
themselves entrepreneurs at heart.
They are not interested in just giving
you money. The fun part for them
is to help build something from the
ground up. Take advantage of what
they are offering. Even if your pitch
fails, you will leave better off. Even
Many credit unions offer business loans
and even have specialised business
windows, but you must be a member to
access a loan. The advantages of credit
union loans include: fixed interest rates,
interest calculated on the reducing
balance, low processing fees, no-penalty
lump sum payments.
Documents/information that may be
requested include:
• Projected cash flow for 12 months
• Six months’ bank statements
• Certificate of registration
• Recent financial statements
• Supporting documents for the purpose
of the loan, such as pro-forma invoices
for stock or equipment
• Business plan
• Collateral in the form of cash, near cash
securities, equipment or property may
be required
• References
• Contracts (where applicable)
Source: Ministry of Labour and Small Enterprise
Development website, various credit union websites.
one conversation with an angel investor
can put you one step closer to
success.
Angel investors have a close relationship
with their entrepreneurs. “Our
expectation is that we should be involved
with the strategic direction.
While we are not there to operate or
run the business, we can add tremendous
value if the entrepreneur is open
and coachable. If the entrepreneur requires
just a source of finance, then
they should be looking elsewhere,”
Tang Yuk said.
chamber.org.tt
SEPT 2019 15