The diaspora expressed a strong desire for having an impact on job creation and economic development through their investing. In terms of impact for investors, these factors ranked second and third after generation of financial returns, highlighting that the diaspora do have a social metric for success in addition to a financial one. However, the need for financial return, or at least the prevention of financial loss, is important as it highlights the need for capacity building to raise the quality of start-ups and the need to package deals as an investment opportunity, rather than a charitable one.
Investment Terms Historically, 11 percent of accredited investors compared to 6 percent of all respondents have funded new business ventures with capital injections of $100,000 or more. The average size of an investment in start-ups for accredited investors was between $50,000 and $100,000 compared to between $10,000 and $50,000 for all respondents.
The regional outlook among diaspora investors has substantial positive implications for ventures seeking investments.
Looking to the future, 40 percent of accredited investors compared to 14 percent of all diaspora respondents expressed willingness to invest at least $100,000 each year for a five year period in HGEs in the Caribbean, further demonstrating the desirability of available opportunities (Figure 17). This is particularly telling as it indicates a significant pool of capital available from accredited investors for ventures in the next five years. Accredited investors are also willing to dedicate more time to angel investing, with 35 percent expressing an interest in spending more than 10
Figure 17: Accredited investors are willing to invest more capital 63% of AI1 historically invested greater than $10,000 in a start-up What is the average size of your investment in the start-ups?2
40% of AI1 willing to invest greater than $100,000 per year How much money am I willing to invest (lose) per year during the next 5 years?3
120
120 20% 3% 3%
100
28%
7%
20% 20% 5% 5%
16%
80
100
28% 28%
7%
19%
7% 80
12%
29%
19%
60
37%
40
60
72% 25%
40
37%
20
All (n=157)
13%
58%
59%
0
80% 16%
Accredited Investors (n=19)
20
0
25%
All (n=73)
Accredited Investors (n=18)
More than $250,000
More than $250,000
$100,000-250,000
$100,000-250,000
$50,000-100,000
$50,000-100,000
$10,000-50,000
$10,000-50,000
Less than $10,000
Less than $10,000
Notes: 1. Accredited investors. 2. Caribbean Diaspora Survey Data only, question was asked of all those who indicated "Yes" to having invested in a start-up before, regardless of where it was based. 3. Focus Group Survey data only.
Source: infoDev Caribbean Diaspora Survey, April-May 2013.
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