Key Takeaways
- • Dr Judith Mark argues in a Trinidad Guardian opinion piece that announced venture capital funds and financing commitments do not by themselves prove a functioning VC market in Trinidad and Tobago; access to capital, expertise and networks is the real test.
- • The piece traces prior T&T efforts, including the Venture Capital Incentive Programme under the Venture Capital Act of 1994, the Tobago House of Assembly's Venture Capital Equity Fund (about $25 million, 2012), and the TTSE SME Market (2012), arguing these show the financing gap has long been recognised.
- • Recent non-traditional financing includes the Shaping the Future of Innovation Programme (2021, roughly US$10 million in fund, over US$7.5 million disbursed to SMEs) and a March 2026 Caribbean Development Bank US$10 million credit line to Development Finance Limited.
- • The author calls for greater local private-sector participation, investment readiness, and fund management that provides mentorship and market access, noting T&T's small market and limited exit options.
- • The article frames success by the scale of investments, business impact, investment returns and economic and social outcomes, not by capital pledged.
Summary
Writing in the Trinidad Guardian, Dr Judith Mark questions whether a renewed emphasis on venture capital will close the financing gap facing entrepreneurs in Trinidad and Tobago. She argues that establishing funds and announcing financing commitments are not necessarily evidence of a well-functioning venture capital market, and that the decisive factor is whether suitable businesses can access the capital, expertise and networks needed to grow and scale.
The article reviews earlier attempts. The Venture Capital Incentive Programme (VCIP), introduced under the Venture Capital Act of 1994, used tax credits to mobilise private capital for qualifying businesses. In 2012 the Tobago House of Assembly's Venture Capital Equity Fund began operations with $25 million available as equity financing for eligible Tobago businesses, and the Trinidad and Tobago Stock Exchange's SME Market was established the same year to let more established SMEs raise equity publicly. More recently, the Shaping the Future of Innovation Programme, launched in 2021 with the Government, European Union, IDB Lab and Cariri, provided blended financing. With approximately US$10 million in programme funding, it has reportedly channelled more than US$7.5 million to SMEs in ICT, manufacturing, agro-processing, renewable energy and health.
Dr Mark also cites recent developments: IDB Lab's CARIBEquity Ignite the World project, approved in November 2025, comprises a US$600,300 technical cooperation initiative and US$300,000 in IDB Lab financing, with mentorship and skills components. The Term Finance SME TT programme pairs US$2 million from IDB Lab with US$1 million in counterpart funding. In March 2026 the Caribbean Development Bank approved a US$10 million credit line for Development Finance Limited and a US$126,000 grant for institutional capacity-building. The author stresses that SME lending, grants and technical assistance complement but do not replace venture capital for high-growth firms. An IDB 2026 call for proposals seeks investment in VC funds targeting early-stage companies in climatetech, health, edtech and agtech.
On what must change, the article calls for greater local private-sector participation, arguing that VC funds should not be a checklist item for international agencies backed by government. It also stresses investment readiness, noting that venture capital suits only businesses offering above-average returns for their risk, and that good governance, strong management and scalable models are required. Fund structure and management should provide mentorship, strategic support, and access to networks and markets. Because T&T has a small market, limited high-growth opportunities and limited exit potential, investors weigh these constraints against the wider global opportunity set. The author concludes that success should be measured by investments made, businesses transformed, and economic and social value generated rather than by capital promised or mobilised.
The article reviews earlier attempts. The Venture Capital Incentive Programme (VCIP), introduced under the Venture Capital Act of 1994, used tax credits to mobilise private capital for qualifying businesses. In 2012 the Tobago House of Assembly's Venture Capital Equity Fund began operations with $25 million available as equity financing for eligible Tobago businesses, and the Trinidad and Tobago Stock Exchange's SME Market was established the same year to let more established SMEs raise equity publicly. More recently, the Shaping the Future of Innovation Programme, launched in 2021 with the Government, European Union, IDB Lab and Cariri, provided blended financing. With approximately US$10 million in programme funding, it has reportedly channelled more than US$7.5 million to SMEs in ICT, manufacturing, agro-processing, renewable energy and health.
Dr Mark also cites recent developments: IDB Lab's CARIBEquity Ignite the World project, approved in November 2025, comprises a US$600,300 technical cooperation initiative and US$300,000 in IDB Lab financing, with mentorship and skills components. The Term Finance SME TT programme pairs US$2 million from IDB Lab with US$1 million in counterpart funding. In March 2026 the Caribbean Development Bank approved a US$10 million credit line for Development Finance Limited and a US$126,000 grant for institutional capacity-building. The author stresses that SME lending, grants and technical assistance complement but do not replace venture capital for high-growth firms. An IDB 2026 call for proposals seeks investment in VC funds targeting early-stage companies in climatetech, health, edtech and agtech.
On what must change, the article calls for greater local private-sector participation, arguing that VC funds should not be a checklist item for international agencies backed by government. It also stresses investment readiness, noting that venture capital suits only businesses offering above-average returns for their risk, and that good governance, strong management and scalable models are required. Fund structure and management should provide mentorship, strategic support, and access to networks and markets. Because T&T has a small market, limited high-growth opportunities and limited exit potential, investors weigh these constraints against the wider global opportunity set. The author concludes that success should be measured by investments made, businesses transformed, and economic and social value generated rather than by capital promised or mobilised.
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