TECHNOLOGY start-ups are being encouraged to focus on raising capital from international investors instead of relying solely on local sources.

This advice came from experienced investors aiming to bridge the gap between entrepreneurs and global venture capital firms during the 40th staging of Jamaica Technology & Digital Alliance’s (JTDA) BizTech Conference.

“Entrepreneurs are at the forefront of these technologies but investors won’t be able to find you where you are,” said Lise Birikundavyi, managing partner at BKR Capital, an internationally backed venture capital fund. “You really have to make sure that you’re travelling to the US or Canada, attending events, and creating that trust and network to secure funding.”

During a panel discussion on strategies for funding tech start-ups in the session, speakers emphasised the importance of engaging with international venture capitalists and attending global events to establish critical relationships. Birikundavyi further noted that with markets becoming more conservative, investors are gravitating towards regions they are familiar with, such as the US and Canada. Start-ups, she said, must proactively position themselves to gain visibility and credibility with potential asset allocators. David Mullings, CEO of Blue Mahoe Capital and an experienced investor, echoed the sentiments on seeking external funding. Reflecting on his own journey, he revealed that his first tech start-up raised little capital in the Caribbean, with Jamaica contributing the least.

“We raised almost no money in the Caribbean. My most recent venture, an investment firm, raised more money in Barbados in one week than I raised in Jamaica in three years,” shared Mullings. “I was taught that you go and fish where the fish are.”

Mullings, in encouraging start-ups to choose their fund-raising destinations strategically, noted that ecosystems in regions like Mexico and Latin America are more conducive to funding start-ups. He also highlighted that Jamaica’s financial ecosystem lacks the necessary infrastructure to support start-ups, as most local investors tend to favour private equity over early stage investments.

“I think it’s actually a waste of time to raise money for start-ups in Jamaica. We don’t actually have angel investors; we have a lot of private equity investors,” Mullings added.

Before seeking funding, investment experts underscored the importance of groundwork for start-ups. Danielle Graham, co-founder of The Firehood —an angel-stage fund and network supporting women in technology — stressed that start-ups should first assess their funding needs to avoid over-raising, which can lead to unnecessary dilution of equity. While The Firehood is backed by angel investors, she cautioned start-ups against blindly pursuing funding without fully understanding their needs or the mandates of potential investors.

“There’s no point in going to private equity firms when you’re an early stage company; you can build towards that,” said Graham. “Do research, and don’t just be looking for money. You’re looking for strategic money because those are the investors that will be on that journey with you.”

She further advised against using cold outreach on social media platforms, recommending instead that start-ups seek warm introductions to improve their chances of getting a positive response, particularly on LinkedIn.

Locally, some venture capital firms and funding options include First Angels, Development Bank of Jamaica’s (DBJ) Angel Fund, Barita, VM Innovations, and the Amber Group.

“Go through accelerators; go through early stage programmes where it’s a soft landing. You can prepare and get free mentorship,” advised Graham.

She explained that using these programmes provides start-ups with opportunities to build skills, expand networks, and receive free mentorship.