KINGSTON, Jamaica, CMC – The Development Bank of Jamaica (DBJ) says it will invest in the country’s first Venture Capital (VC) Fund in over 30 years.
The Fund, which will commence operations this month, will be managed by Mscale LLC (Mscale), the Delaware-based management company focused on venture and permanent capital advisory services.
The investment follows a rigorous ‘Call for Proposal’ issued by the DBJ in 2023.
“The investment in a VC Fund at this time is suitable but a welcomed addition to Jamaica’s financial offerings to early-stage companies. The provision of alternative sources of financing for businesses outside of debt is part of the DBJ’s focus on ensuring economic growth and development for all Jamaicans,” said DBJ’s acting managing director, David Wan.
“This VC fund is trailblazing for DBJ because it fills a gap in our portfolio for equity investment into early-stage companies. Previous funding activities include innovation grants, supply chain grants, loans, and private equity for SMEs. This new Fund will expand the DBJ’s suite of products to underscore our mission to be a ‘Business Builder’ within our country,” he added.
The VC Fund’s strategy and thesis will revolve around tech and tech-enabled firms focusing on four key pillars: financial services, entertainment, agribusiness, and health.
The Fund will employ technical assistance where necessary to enhance selected deals.
The team comprises diverse professionals with solid track records in Caribbean, African, and North American transactions. Equity and quasi-equity investments will be made in firms.
“The Fund has achieved its first close at US$15 million with seed funding of US$4.9 million from the DBJ. The total capital is projected to grow to US$50 million, targeting investments in top early-stage firms across Jamaica and the Caribbean. These firms will offer high-demand products or services that can be easily accessed worldwide,” said Christopher Brown, the program manager at Boosting Innovation Growth and Entrepreneurship Ecosystem (BIGEE), under whose portfolio the VC Fund is being established.
Mscale’s chief executive officer, Ugo Ikemba, said the company is both humbled and honored to have achieved its initial close with seed funding from the DBJ.
“We are focused and committed to intelligent investing through leveraging the team’s deep local insight and global VC expertise. He added that the positive macroeconomic conditions of Jamaica and other Caribbean countries and the VC financing gap present an unprecedented opportunity to help the top-tier early-stage firms scale into global champions” he added.
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