Financing the Venture Capital Ecosystem—Day #1 in Lima, Peru
Entrepreneurs and investors speak about the need and urgency to increase investment and Scale Up start-up communities in their countries. Yet when it's time to invest capital, the culture of risk impedes the flow of money from the wallets of local investors into the pockets of entrepreneurs.
What are the fears which domestic capital has for technology up-starts and emerging growth companies-& what solutions exist to reverse such behaviors? It was these subjects which I spoke about at the global conference on Start-Ups, organized by APEC (Asia Pacific Economic Cooperation) for its member countries and hosted by the Ministry of Production, the Government of Peru. Specifically I spoke on three topics:
1) How and why the culture of risk impact the investment decisions of local capital in the developing world-money from wealthy families and domestic corporations.
2) The 'shaping' of venture capital initiatives to the behavior of investors to risk-& get them to open their wallets to finance more innovation and entrepreneurship, linked to national priorities in food, water & energy as examples.
3) Financing initiatives Governments must execute to make technology more commercial-so innovative SMEs can positively demonstrate they are ready for customers (and investors' capital if needed).
Experts from start-up ecosystems in Malaysia to Mexico, Peru to the Philippines and from Korea to Thailand presented solutions implemented in their countries which accelerated technology creation, entrepreneurship and investment into innovation.
As always, be well & be lucky.