Trade Watch V9 No1 2015

access to finance

human resources and better facilities; have a diversity of industry knowledge, management skills and financial assumptions which makes it more efficient in the screening processes; share in the risk through shared investments and diversification of finances into investment portfolios and influence regulatory and policy issues with governments. An angel network is thus, an organization that helps investors find companies to invest in, focussing primarily on business support and acting as a liaison between the entrepreneur and the investors. Gray naturally supports the development of angel networks, encouraging cooperative investment by building portfolios of 10 or 15 companies, sharing the investments with other angels within the network. This is considered good practice as it not only shares the financial risk but also pools together the expertise explaining “I may have the expertise in setting up the business but another member may be more appropriate to mentor the company in manufacturing while another may have the experience in international sales. So we will pass the company around at varying stages of its development to share the skills within the network”. Caribbean Export is in the early phase of developing an angel network in collaboration with World Bank/InfoDev with the aim of bringing together Caribbean entrepreneurs and angel investors from the region. It is hoped that the development of a Regional Angel Investor Network will provide an alternative avenue for start-up firms to access finance from traditional banking or even grants. (TW)

Three Qualities for Attracting Angel Investors

•

Willingness to take a partner and to be engaged and coached by that partner

•

An ambition to grow a significant business not only locally but that can go Pan Caribbean and internationally;

•

The recognition that there has to be returns on investment for the investor.

them and they should not be taking my money”. He uses the analogy of an athlete, “at the end of the day we are going to improve their performance to an Olympic standard”. For Caribbean entrepreneurs that are interested in seeking a partnership with an angel investor, Gray advises “there are three qualities companies within the Caribbean must have to attract investors.” These are the willingness to take a partner and to be engaged and coached by that partner; an ambition to grow a significant business not only locally but that can go Pan Caribbean and internationally; and the recognition that there has to be returns on investment for the investor. All in all it is the willingness to work with others to build a business of substance that is required for any entrepreneur to attract an Angel Investor and grow a successful global business. Over time business angels have merged to form Angel Networks where individual investors form groups and pool their resources to: make larger investments; make better deals; secure talented

11 Tradewatch • The Official E-Newsletter of the Caribbean Export Development Agency • Vol.9 No. 1 January - March 2015