
“To be an entrepreneur you have to create something. Innovation does not have a clear path, uncertainty and risk are necessary for innovation.”
I shared this perspective in a recent conversation with Sunbeam Chats, but the hard truth is this: the Caribbean understands innovation in theory but refuses to fund it in practice.
The numbers don’t lie, and they paint a sobering picture of a region standing at the edge of a massive economic opportunity yet unable to take the leap.
The Brutal Reality of Caribbean Innovation Funding
In 2023, venture capital investment in Caribbean tech reached just $215 million (Source: Medium, “Scared Capital: The Silent Killer of Caribbean Innovation,” Oct 2024). To put that in perspective, that’s less than what a single mid-sized Silicon Valley startup might raise in a Series B round. The entire Caribbean region, with its 44 million people, attracted less venture capital than many individual companies.
But the problem runs deeper than the total amount. Only 15% of that capital came from Caribbean-based investors. Think about that for a moment. When Caribbean startups do manage to secure funding, 85% of it comes from outside the region. Our own investors, the people who understand our markets best, are sitting on the sidelines.
The average Series A round in the Caribbean? A mere $3.5 million, compared to $15 million in Latin America (Source: Medium, Oct 2024). This isn’t just a funding gap. It’s a confidence gap. It’s a vision gap. And it’s costing us dearly.
This Isn’t a Talent Problem
Before anyone suggests that the Caribbean lacks the human capital for innovation, let me stop you right there. We’ve seen a 30% increase in STEM graduates since 2020 (Source: Medium, Oct 2024). Our universities are producing engineers, computer scientists, and innovators at an accelerating rate.
The ideas are there. I’ve personally witnessed the explosion of innovative startups across the islands. From fintech solutions addressing financial inclusion to agritech innovations tackling food security, from climate tech addressing our existential vulnerability to creative tech leveraging our rich cultural heritage, the Caribbean innovation ecosystem is bubbling with potential.
The problem isn’t our people. The problem is what I call “scared capital”: a toxic combination of risk aversion, short-term thinking, and a cultural reluctance to bet big on our own potential.
The Staggering Cost of Inaction
While we dither, the global innovation economy accelerates, and the cost of our hesitation compounds daily.
The Inter-American Development Bank , in 2022 estimated that a fully realized Caribbean digital economy could increase the GDP by 6 to 12 percent. That’s not a projection for some distant future. That’s the opportunity cost we’re paying right now, every single year we fail to build the infrastructure for innovation.
Consider the global markets that are exploding right now:
•Climate tech is projected to be a $7.1 trillion market by 2030
•Edtech will hit $404 billion by 2025
•Creative tech represents a $2.25 trillion global opportunity
These aren’t abstract numbers. These are sectors where the Caribbean has natural advantages, existing expertise, and urgent local needs. Climate tech? We’re on the front lines of climate change. Edtech? We have a young, digitally native population hungry for skills. Creative tech? Our music, art, and culture already dominate global markets.
Yet according to UNCTAD’s Digital Economy Report (2019), the Caribbean’s share of the global $26.7 trillion e-commerce market remains negligible as Latin American and the Caribbean account for approximately 6% as per IDB (2021). We’re not even a rounding error in the global digital economy.
I’ve Seen What’s Possible When We Get This Right
This isn’t just theoretical for me. I’ve lived both sides of this equation.
As Programme Director and Lead of the Small Entrepreneur and Enterprise Development (SEED) Program in St. Kitts and Nevis, I helped architect a multi-million dollar government venture capital initiative sponsored by the Sugar Industry Diversification Foundation (SIDF). This wasn’t a pilot program or a token gesture. This was a serious, strategic investment in human capital and entrepreneurial potential.
The program provided $30,000 to $50,000 USD per participant at 0% interest with no collateral requirements. For a small island nation, this was transformational. We weren’t asking entrepreneurs to mortgage their homes or provide personal guarantees. We were saying: we believe in you, we believe in your idea, and we’re willing to take the risk alongside you.
Years ago, when launching that program, I said something that still guides my work today:
“The SEED program is significant in that it is providing resources and showing there is a focused effort behind building human capital in the nation. It is also important because hopefully it will shift perspective, especially of young persons, that entrepreneurship, innovation and creativity are the domain of the developed nations. We have entrepreneurship, innovation and creativity right here… It is also significant because it begins to put our citizens in the role of the producer and not only the consumer.”
That vision remains urgent today, not just for St. Kitts and Nevis, but for the entire Caribbean region.
The SEED program combined an accelerator and incubator model, offering not just capital but mentorship, business training, and institutional support. We didn’t just write checks and hope for the best. We built a comprehensive Caribbean innovation ecosystem around each entrepreneur.
The impact? Many of those businesses are thriving today (Source: St. Kitts Nevis Observer, Oct 2013). They’re employing people, generating tax revenue, and proving that when you combine patient capital with strategic support, Caribbean entrepreneurs can build sustainable, high-growth enterprises.
That’s what patient capital looks like. That’s what happens when a government, a foundation, and an ecosystem architect work together to invest in human potential, not just infrastructure.
What is Patient Capital, and Why Don’t We Have It?
Patient capital is investment that allows bold, untested ideas to develop and grow without the pressure of immediate returns. It’s capital that understands innovation requires time, iteration, and often, failure before success.
Silicon Valley didn’t become Silicon Valley overnight. It took decades of patient capital, government investment in research, university-industry partnerships, and a culture that celebrated risk-taking and learned from failure.
The Caribbean, by contrast, operates on what I call “scared capital.” Our investors want:
•Proven business models (which, by definition, aren’t innovative)
•Immediate returns (which stifles the experimentation innovation requires)
•Collateral and personal guarantees (which excludes most young innovators)
•Safe, traditional sectors (which misses the high-growth opportunities)
This isn’t just about individual investor psychology. It’s a systemic, cultural challenge rooted in our colonial economic history, our small market sizes, our geographic fragmentation, and our historical exclusion from global capital markets.
But here’s the thing: these are all solvable problems. They require intentional ecosystem architecture, strategic policy interventions, and a fundamental shift in how we think about risk and innovation.
Building Caribbean Innovation Ecosystems That Work
Innovation doesn’t happen in a vacuum. It requires a carefully architected entrepreneurship ecosystem with multiple interconnected components:
Financial Infrastructure: Patient capital in the form of government venture funds, angel investor networks, and regional venture capital firms willing to take calculated risks on early-stage ventures.
Institutional Support: Incubators and accelerators that provide not just space but strategic mentorship, business development support, and connections to markets and capital.
Human Capital Development: Universities and training programs that teach not just technical skills but entrepreneurial thinking, innovation methodologies, and the practical skills of building ventures.
Policy Environment: Governments that create enabling regulatory frameworks, provide tax incentives for innovation investment, and actively procure from local innovators.
Cultural Shift: A fundamental change in how we view entrepreneurship, risk, and failure. We need to celebrate the entrepreneur who tried and learned, not just the one who succeeded on the first attempt.
The Caribbean is at a Crossroads
We can continue down our current path: starving our innovators of capital, watching our brightest minds migrate to ecosystems that believe in them, and remaining perpetual consumers in the global digital economy.
Or we can make a different choice.
We can build the financial, cultural, and institutional infrastructure that transforms “scared capital” into strategic capital. We can create Caribbean innovation ecosystems where entrepreneurs have access to patient capital, strategic mentorship, and the support systems they need to build globally competitive ventures.
The talent is here. The ideas are here. The global demand exists. The opportunity is massive and growing.
All that’s missing is the courage to invest in our own future.
I’ve spent over two decades building entrepreneurship ecosystems across the Caribbean and beyond. I’ve worked with governments, universities, international development organizations, and hundreds of individual entrepreneurs. I know what works. I’ve seen it work.
The SEED program proved it’s possible. Now we need to scale that model across the region.
A Call to Action
If you are a government official, an economic development leader, a university administrator, or a corporate executive with the power to influence investment decisions, I’m calling on you to act.
The Caribbean doesn’t need more conferences about innovation. We don’t need more reports about the digital economy. We need action. We need patient capital. We need strategic ecosystem architecture.
And we need it now.
The next generation of Caribbean innovators is ready. The question is: are we ready to invest in them?
About the Author:
Dr. Tamu Petra Browne is an organizational transformation and ecosystem strategist who partners with governments, institutions, and corporations to architect thriving innovation ecosystems. As the former Programme Director of the SEED Program and creator of the High-Growth Entrepreneurship Roadmap©, she has designed national-level entrepreneurship programs and advised organizations including UNESCO, the World Bank, and the Caribbean Development Bank.
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