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

Today's start-ups, tomorrow's triumphs
“I’ve met some very creative and
interesting people. We have the seeds for
developing a really innovative business
sector. That’s our future, but it’s not an
easy road. We have to give the business
thinkers and innovators opportunity.”
Case study:
Jamaica Stock Exchange
The Jamaica Stock Exchange (JSE) is
celebrating its 50th anniversary in
2019 and has much to be proud of.
Selected milestones:
• Established 1969
• Launched Junior Market in 2009
Value of total assets: over TT$11
billion
• Main benefits: lower listing fees and
an attractive tax incentive for a 10-
year period
• Named “World’s Best Performing
Stock Market” by Bloomberg Businessweek
in 2018 via a 29% increase
in the JSE’s main index at year-end
• Capital raised in 2018 on main markets:
J$21 billion (34.6% increase)
• Total market capitalisation (main
and junior markets): J$1.52 trillion
(December 2018)
• JSE accounts for retail investors:
199,145 (53.3% increase over 2017)
• New securities listings in 2018: 18
- JSE Main Market:
36 listed companies
- Junior Market:
36 listed companies
• February 2019: launched Jamaica
Social Stock Exchange (JSSE)
• April 2019: signed a new sevenyear
agreement for Nasdaq to
deliver matching engine and market
surveillance technology (SMARTS) to
the Jamaica Stock Exchange.
Source: www.jamstockex.com
— Robert Tang Yuk, IP Angels
“I challenge the business sector to
find innovative ways to support
entrepreneurs at zero risk, using your
existing infrastructure and surplus or
idle capacity. This is a way to do CSR
(Corporate Social Responsibility) in a
more innovative way.”
– Robert Tang Yuk, IP Angels
How can entrepreneurs improve their pitch?
“They need to understand that getting angel capital is the beginning, not the
end; this is where the work begins,” Tang Yuk warned. “Angels are investors
with expectations. This is not grant funding.”
IP Angels is looking for innovation, export potential and entrepreneurs who
can go the distance. In particular, Tang Yuk urged: “Be unique! The most
common problem is that the idea does not have sufficient unique value. It’s
either a great idea with no clear plan to create value, or it’s a ‘me too’ idea.”
Avatar Capital wants products or ideas that will bring about meaningful
change, be disruptive or transformative. It prizes entrepreneurs who really
believe in their product, are putting their heart and soul into their business, are
having fun, and are looking for a partner, not just money.
George advises entrepreneurs to be ready to supply information about their
business and answer questions such as: Are there any competing products? Are
there any regulatory issues? What is the track record for similar products? Why
is your product better than its competitors?
“There are so many young people in this country with amazing
ideas, but they don’t have access to capital, the handholding, the
mentorship they need, and that’s the role we are playing.”
– Peter George, Avatar Capital
Want to become an angel investor?
George’s advice to potential angel investors is:
••
It cannot be profit first. It’s about incubating ideas and creating an
ecosystem where entrepreneurship can thrive.
••
You have to believe the business is sustainable
and scalable.
••
Don’t jump in too quickly.
••
Have a cadre of advisers to bounce off ideas;
get input.
••
Get some consensus re: the viability of a
project.
••
Do your own research. Don’t just accept
what the entrepreneur says.
T&T Stock Exchange (TTSE)
also helps entrepreneurs to grow
TTSE CEO Amoy Van Lowe
To support the development of small and medium-sized
enterprises (SMEs), the TTSE introduced the SME Market in 2012. It’s a junior
stock market attached to an existing exchange, developed to give access to
additional funding for thriving SMEs who need it to take their company to the
next level.
These companies must have a subscription capital of TT$5 million to TT$50
million after listing, compared with the First Tier Market range of TT$4 million
to over TT$50 million. A major benefit is a 10% corporate tax rate for up to
five years after listing.
TTSE CEO Amoy Van Lowe is looking to do more. “We have recognised
that a key success factor to drive the SME initiative is the development of
an active and passionately committed ecosystem.” This ecosystem includes
brokerage firms, accountants, compliance professionals, financiers, investors,
entrepreneurs and regulators. She believes that, working in partnership, this
group “will be the catalyst that has the potential to take the SME market to
another level.”
courtesy the T&T Stock Exchange
16 SEPT 2019 chamber.org.tt