Thread by @marcgayle

This budget presentation by @DrNigelClarkeJa is one of the best presentations by a Minister of Finance and @AudleyShaw set a high bar.

Also, anyone interested in reading the Citizen’s Guide to the Budget check it out here: mof.gov.jm/documents/docu…

MoF announces launch of SIDECAR fund that will provide $200M in equity financing for seed stage startups, that will match angel financing through approved angel networks (ie @FirstAngelsJA & Alpha Angels and others).

This $200M is small enough for it not to matter to GOJ if it all goes to $0. But it is material enough to encourage more angel investing and reducing risk on the side of angel investors.

Depending on how it is structured it could provide leverage for the angels.

The real impact of that is increased liquidity and investable funds for startups.

It could potentially double or triple the number of startups that get funded.

Yes, most will fail, but that’s the nature of angel/VC investing. It is a hits based business.

The startup that is a hit though, will pay for all the accumulated losses.

So this single act of just risking $200M (ie approximately 0.02% of this year’s budget) could fundamentally change the entrepreneurial landscape in Jamaica.

All we need is 1 very large exit or “HIT” that will create a positive cycle. Those founders will then become limited partners in VC funds. Early employees will then become angel investors themselves, investing both cash and sweat equity and creating a positive cycle.

This potentially very small budgetary line item that cost GOJ 0.02% of the budget has the upside potential of fundamentally reshaping the economy.

It is a wonder that this wasn’t done before, but it makes sense that the timing is now because the angel networks have had time to develop deal flow and competency to both evaluate & execute deals. So the timing is perfect.

The beauty about this budget is that there are many small, thoughtful, high leverage items like this sprinkled throughout that could have a drastic positive impact on the economy.

Throwing money at problems isn’t always the solution.

Sometimes, all it takes is creativity, boldness, thoughtfulness and the courage to take risk.

Thank you @DrNigelClarkeJa.

This entire thread is based on this small section of the speech given by the Minister of Finance.

That further highlights the impact and power of this presentation and the plans for this year.