The venture capital market in Jamaica and the broader Caribbean has long been seen as an underutilised tool for economic transformation. While the concept of high-growth start-ups receiving funding in exchange for equity is well established in more developed markets, the region has struggled to build a similar ecosystem. This is not due to a lack of entrepreneurial talent—Jamaicans and Caribbean nationals have long demonstrated resilience and creativity—but rather due to structural barriers that make it difficult for venture capital to flourish.

One of the biggest challenges is the availability of institutional capital. Venture capital thrives on patient, risk-tolerant investors who understand the long-term nature of returns. However, in Jamaica and the Caribbean, most institutional investors—such as pension funds, insurance companies, and banks—lean toward fixed-income securities and real estate, where returns are more predictable. The traditional investor mindset is one of caution, and the idea of placing bets on early-stage companies with no immediate profitability remains a hard sell.

Government-backed initiatives and development banks have attempted to fill the gap, with the Development Bank of Jamaica (DBJ) playing a key role in fostering entrepreneurship through funding and support programmes. While these initiatives have been beneficial, they are not enough to build a truly robust venture capital ecosystem.

Private capital needs to enter the space in a meaningful way. The problem is that many local investors still struggle to see the upside, and without successful case studies of high-growth exits, the scepticism remains.

This funding gap has forced many Jamaican start-ups to look beyond local investors and seek capital from overseas venture funds. Organisations like Techstars and Morgan Stanley Inclusive Ventures Group
have stepped in to provide critical early-stage financing, validating the potential of Jamaican entrepreneurs. While international investment is a positive development, it also highlights the weaknesses of the local ecosystem. It raises the question: why aren’t more Caribbean investors backing their own start-ups? The presence of international funds should complement, not replace, a strong domestic venture capital market.

Beyond the capital shortage, another challenge is the small market size of individual Caribbean nations. Unlike start-ups in North America or Europe, which can scale rapidly within their large domestic markets, Caribbean start-ups must think internationally from day one. This increases the cost and complexity of scaling, making it even harder to

attract investment. Investors hesitate due to a perceived lack of scalability, while start-ups struggle to grow without the necessary funding, creating a frustrating cycle of stagnation.

Even when businesses do manage to scale, exiting the investment remains a challenge.

Venture capitalists rely on clear pathways to exit—IPOs, acquisitions, or secondary market sales—to generate returns. In Jamaica and the Caribbean, IPOs are infrequent, and acquisitions happen on a much smaller scale compared to developed markets. The Jamaica Stock Exchange (JSE) Junior Market has provided some opportunities for SMEs to go public, but the volume is still too low to sustain a vibrant VC ecosystem.

The absence of secondary markets for private equity further exacerbates the problem, making it harder for venture capitalists to liquidate their positions when needed.

Despite these challenges, there are clear opportunities for venture capital to take root in the region. The rise of the digital economy, particularly in fintech, e-commerce, and online services, has created new avenues for scalable businesses. Companies like HeadOffice Inc, visuEats, QuickCart (Techstars’24) and others have demonstrated that tech-enabled businesses can gain traction in the region, but they need capital to scale. The Caribbean diaspora, which holds significant wealth and interest in the region, presents another untapped source of investment capital. Structured diaspora-led venture funds could help bridge the funding gap while keeping capital flows within the region.

One of the areas that must be strengthened to support the growth of venture capital is the role of accelerators and incubators. The Caribbean’s start-up support ecosystem is still too fragmented and, in many cases, too short-term in its focus. Many of the existing programmes provide surface-level guidance but lack the depth required to create truly investible businesses. To truly cultivate a pipeline of high-quality start-ups, accelerators and incubators need to be more robust, structured, and long-term in their approach. Running 9-to-12-month programmes that provide intense mentorship, structured business development, and access to capital would ensure that entrepreneurs are given the proper runway to refine their business models, strengthen their teams, and position themselves as attractive investment opportunities.

This extended time frame would allow start-ups to work through the critical stages of product-market fit, customer acquisition, and operational scalability, rather than rushing to seek funding with half-baked business models. Programmes should not only provide training but also offer structured investment opportunities at different stages of growth—whether through angel investors, government-backed seed funding, or corporate venture capital initiatives.

In addition to accelerators and incubators, corporate venture capital presents another underutilised opportunity. Some firms, including First Angels Jamaica and certain investment firms, have started engaging with start-ups, but this needs to happen at a much greater scale. Established Caribbean companies should consider launching corporate venture arms to invest in or partner with promising start-ups that align with their strategic goals. This would provide start-ups with much-needed capital and mentorship while allowing large corporations to tap into new innovations that could strengthen their competitive advantage.

For venture capital to truly take root in Jamaica and the Caribbean, a broader cultural shift is required. Investors must recognise that while the region may not yet have a long history of venture-backed successes, this does not mean there is no potential—it simply means the ecosystem is still in its early stages. The first wave of successful exits will be the key to unlocking future investments, and the region must do everything possible to ensure that these early start-ups succeed.

The Caribbean is brimming with untapped talent and innovation, but without the right financial ecosystem, these ideas will never reach their full potential. Venture capital, if nurtured correctly, could be the missing catalyst for economic expansion, technological advancement, and sustainable job creation across the region. If we invest in the right structures—strong accelerators, long-term funding mechanisms, and proper exit pathways—Jamaica and the wider Caribbean could transform into a hub for innovation, rather than just a region that watches from the sidelines as global markets evolve.

Kevon McIntosh, CA, CPA, RPA, is an Assurance and Advisory Partner at Signature Creed & Associates. With over a decade of experience in audit, private equity, and financial advisory, Kevon has worked extensively in financial services, asset management, and corporate finance.