VENTURE CAPITAL NONSENSE FROM JOSEPH M. MATALON & THE DBJ

Over the past few days one may hear on the radio read in the press the utter garbage (with exception of legal framework for tax breaks for investors) for the so called venture capital program or worst venture capital industry for Jamaica. Venture Capital is not an Industry like Call Centres.

Truth be told the sector existed for decades ion Jamaica and technically can operate under existing FSC laws or with introduction and amendments of existing laws.

2000

TDB eyes IT venture fund
Source: http://jamaica-gleaner.com/gleaner/20000616/Business/Business1.html

2005

Start-up companies get equity
Source: http://jamaica-gleaner.com/gleaner/20050925/business/business4.html

Aubyn Hill’s new venture – Venture capital firm starts up next January
Source: http://jamaica-gleaner.com/gleaner/20051109/business/business1.html

2009

ICWI winds up Carib equity fund – Falls short of 10-year target
Source: http://jamaica-gleaner.com/gleaner/20090128/business/business5.html

“Michael Lee Chin’s Caribbean venture capital outfit is close to wrapping up a new deal to invest up to US$40-50 million in the region, and plans to announce the acquisition as early as next week.”

Source: New asset purchase – But no sale yet for Columbus – Third Caribbean investment fund under negotiation
By http://jamaica-gleaner.com/gleaner/20091007/business/business1.html

2013


Sagicor Structures Venture Capital Financing For New Medical Company

Source: http://jamaica-gleaner.com/gleaner/20130911/business/business3.html

ANGEL LIST JAMAICA (AngelistJa)

There is even talk of the registration of Anglelistja. But the fact of the matter is such a list exist already with investors who follow Jamaica. Such as the chick from Yahoo Marissa Mayer formerly of Google at the top of that list.

You may see the list here https://angel.co/jamaica/investor

In fact Jamaica Angel Investors who follow Jamaica shows a total of 2,523 investors https://angel.co/jamaica/investors. So I have no idea why these clowns at the DBJ would want to set up a rival network, when all they have to do is expand on one of the largest existing network that raises between US$10 million to US$12 million per month investments for start ups or JM$1.12 billion to $1.34 billion per month.

There are currently 27 – 29 start ups listed on angelist network from Jamaica. https://angel.co/jamaica?order_by=popular_week

The jokers even speak of establishing fund mangers who meet their criteria to manage VC funds that will be geared towards local companies.

I have never heard or seen such rubbish in my life, as all they are doing is creating barriers to entry, selecting which set will eat at the trough first.

SO SHE WANTS PROOF – CAN YOU DIGG IT?

For starters women play an insignificant role in Venture Capital globally period. So how is it that they are playing a major role in Jamaica? In fact some are Danger Elements.

Frankly I do not believe they have the capacity to see past the cracks hiding behind their make up each day. As such cannot see innovation and real talent and trail blazers when they confront them, as they confuse what is important from what is not. Continue reading

IPO2.0 HAS APPROACHED THE FSC SINCE 2011

While reading the following article, The following jumped out at me;


“A depository receipt is a transferable security, usually in the form of equity that is issued by a foreign publicly listed company and traded on a local stock exchange.

But these aren’t available locally as yet.

Source: FSC to develop crowdfunding rules
http://www.jamaicaobserver.com/business/FSC-to-develop-crowdfunding-rules_16152463

Why did the FSC mention this line? Is there going to be a forced link with the Jamaica Stock Exchange (JSE)?

What if equity stake provides a Virtual Share, Virtual Stock, or Virtual Bond or Virtual Hyrbid of all three? Meaning it is not a depository receipt, much like Bitcion is not real money.

Also the said statement would imply that the FSC will seek to force crowdfunding sites to list with the JSE. That would be nonsense, as new models will seek to compete with legacy players and less paper work and less gate keepers.

Listing does not prevent fraud. Just asked all those investors who invested in start ups or companies and still cannot see ROI on their investments for years.

How will the FSC handle listings on the JSE when some of these trades is alleged to have made 2 to 3 change of hands prior to listing thus already making those who were in on it first more money that the last set of buyers?

After all this is not the norm in the USA.

Innovation does not join forces with legacy players. Innovators, true innovation make new rules and new industries and do not seek to be chained to any system that only seeks to protect the status quo under the false pretense of protecting the rights of investors. In another post I will elaborate on this further.

I will be following these developments keenly.

The FSC in the article said it could not disclose the firms or individuals that have approached them. Well I can.

From late 2011 I have approached them with the concept and in 2012 revealed to them the model and that it is known as IPO2.0 While providing numerous data to educate them on the industry.

I am however very concerned on their approach towards the International Organisation of Securities Commissions (IOSCO). As in my view they may seek to protect legacy players in pretense of protecting the investor.

Where were they when Wall Street and global traders in exotic securities caused billions of dollars to vanish in thin air, while not creating any new jobs or technology in the process?

Now have read this particular post, there is much room for concern for the crowdfunding and crowdfinance sector against the legacy players using valid reasons from past actions from failed investment schemes hurting innovation and job creation at the highest order.

The article “FSC Gets Wider Policing Powers
By http://jamaica-gleaner.com/gleaner/20140228/business/business1.html

“Anyone who fails to comply with a summons, or commits an offence, will be liable to criminal sanctions,” the attorney said.”

This I certainly hope does not affect the threat crowdfunding poses against the legacy Money Changers industry in Jamaica.

Nothing would be more disgusting than to see these Money Changers creep into the crowdfunding sector under the disguise as good fellas.