VC money and accelerator are not magical bullets for the success of the Caribbean Startup -Silicon Carib

This is my response Kevon Macintosh article “My thoughts on the venture capital market in the Jamaica and the Caribbean Sea.”

I read his article twice and read a comment in the two Whatsapp groups I participated. So I’m here because I decided to write a better response.

I asked “Why do Caribbean people think that VC money and accelerator is the answer to more successful startups, though not in other areas of the world?”

The belief that VC Money and Accelerators are magic bullets of the success of startups are not only the Caribbean but also permanent myths. But in this area, some factors believe that these are the answers.

1. Lack of alternative funds -In unlike the United States and Europe, which have various funding options (angel investors, crowdfunding, revenue -based funding, powerful local bank support, etc.), the Caribbean has less options. As a result, VC and accelerator look like the only structured route.
2. Influence of Silicon Valley -The story is that “VC + ACCELERATOR = SUCCESS” is caused by seeing Silicon Valley models. Many Caribbean entrepreneurs consume a startup media that praise the funds as success, rather than building sustainable businesses.
3. Governments and development agencies that promote it -Not many local initiatives for startups model foreign ecosystems. The government, development banks, and institutions are promoting accelerators because they are considered a structured funding program, even if they are not always compatible with the reality of the Caribbean company.
4. Lack of patience in a slow growth business -The fact that many Caribbean founders are building organic growth, partnerships, or a business that can prosper on boot straps. However, companies supported VCs are encouraged to find external investments, not focusing on customer profits and profitability to get more hype.
5. Misunderstanding that VC really wants -None startups are venture scalable. The caribbean founder is not aware that VCS needs a company that can do 10 to 100 times high -speed scaling.
6. There are few local success stories from other models -If more a more caribbean company builds a successful business without VC or accelerator, and share their stories, blind faith in these models will be reduced. At present, these stories are not widely known. Some are there, but they don’t talk publicly.

Real answer

In my opinion, the success of the Caribbean startup is determined.

• more Customer fund Startup
• more Alternative funding Like angel investors, profit -based funding, cooperative funding
• more Founder education Even if you are looking for the growth of the world market, even for what is useful for the Caribbean business
• more Local collaboration Instead of chasing Silicon Valley’s dream

In addition, this is one of the rarely asked questions … does VC really and effectively strengthen power?

Venture Capital (VC) is actually a Small fraction Despite the attention of the global startup eco system, it is attracting the attention of it. This is a de facto breakdown:

1. Less than 1 % of the startups are raising VC funds

• According to the data from Kaufman Foundation and CB insight,, Only about 0.5 % to 1 % of all startups Please raise the venture capital.
• That means 99 % or more of startups Built through boot straps, bank loans, subsidies, angel investments, or profits.

2. Most companies do not require VC

• VC is designed High growth, high risk Business that can be expanded rapidly 10x-100X return Within 5 to 10 years.
• but Most startups are not growing high -tech companies– that’s right SMEs, service -based business, and niche ventures It does not fit the VC model. And in fact, 90 % of global businesses and employment are these types of businesses.

3. Most startups do not raise VCs in technology

• In the United States 5.4 million new business started every yearLess 10,000 will receive a venture capital Every year.
• Most companies, even Silicon Valley Please do not procure VCs, but grow through customers, partnerships, or alternative funds。

4. VC controls the media, not reality

• The companies that are backed by VC are often The most shout (because they are funded to grow fast) And because it is frequently covered in high -tech media, all successful startups are the illusion of raising venture capital.
• But behind the scenes, Most of the $ 1 billion companies did not start with VC Money (Example, MailChimp, SPANX, BASECAMP, GoPro).

5. VC’s success rate is terrible

• 75 % of the startup supported by VC fails Do not return the capital of the investor.
• Only about 4 % will be unicorn ($ 1 billion+evaluation).
• Most VCs make money Only 1-2 investment for each fund-That’s, they bet on dozens of companies and expect most companies to fail. You and your startups are just mathematics for them.

So what are the startups?

• Boot straps (profit, savings, or reinvestment procurement)
• Angel investors and alternative funds (crowdfunding, subsidies, bank loans, profit -based loans)
• Strategic partnership and joint venture
• Slowly sustainable growth instead of over growth

Final reality check:

Venture capital It’s not a global entrepreneur spirit engine-That’s the biggest part. Real economy will be executed Self -funded, profit -led business It grows with time to sustain.

Don’t get involved in another cycle (I have experienced two) in the Caribbean Sea of ​​this kind of story. The ambition of the local, the region, and the world.

What I saw. What I believe.

I say all of this. Because I had a privilege for a while to do some things and work with incredible people and partners.

It’s been 18 years since I went on a trip this month Kingston betaCaribbean’s longest and long -lasting technical event series and community. For many years, it has evolved to A Digital rock star community-Ancentric, creative, and experts who use technology, bold thinking, and resilience to solve problems and build business that focuses on digital and digital.

Just a year, we connected six community members to US accelerators and investors. 1 million dollars funds。 Yes, I believe in venture capital and accelerator can It plays a role, but not role.

Is across More than 300 events Hosted in Jamaica, Caribbean, the United States and Dia Spora, but the message remains the same.

We are in the digital age. There is an opportunity. Here are the people who take risks, break the industry norms, and build something new.

Some failed. Some are pivoted. Some have found a sweet and useful place. Others are scaling for high growth. All of them are important-Their job is to strengthen our caribbean economy in a way that goes beyond headlines.

The truth is Startups and digital businesses in the Caribbean Sea with a higher profitability than most people notice。 They don’t always pay attention, but that’s right prosperity。 And I believe in the power of storytelling to advance and promote the development of the ecosystem, but I also know this:

I have a single “Caribbean Google” Except for a temporary hype, it will hardly help for us.

I know that some people discuss this with me. But when our goal is to prove that entrepreneurship, innovation, and outstanding exist. Beyond the beachThen we you can’t Stand on the investor to build a Caribbean unicorn.

we you can’t Define success on the external benchmark while creating your own benchmark.

Instead, you need to focus on understanding Hyper local and local issues Very good because we spawn Hundreds, thousands Create a highly profitable digital business $ 100,000 to 10 million a year。

why? because They It promotes the real impact of creating work, building wealth, and changing the industry in a way that can never have one or two global victory.

Occasionally, we are the challenge of challenging the dominant story, and I think we are afraid that we don’t seem to be ambitious. But let’s make it clear-It is a small, medium -sized profitable business that runs the global economy. That is always the case. That will always be so.

And at the center of all, the entrepreneurs know the truth:

There is no silver bullet -it is only a lead bullet. Success comes from relentless execution, continuous learning, and adaptation to unexpected things.

Real entrepreneurs build their own path with sustainability, grit, and unwavering vision.