VC Money and Accelerators are NOT the magic bullet for Caribbean Startup Success

This is my response to Kevon McIntosh Article “My Thoughts on the Venture Capital Market in Jamaica and the Caribbean.”

I read his article twice and read the comments about it in two WhatsApp groups I am part of. So I decided to write a more fulsome response so here it is.

I had asked “Why do Caribbean people think that VC money and an accelerator are the answers to more successful startups when this has not been the case in other parts of the world?”

The idea that VC money and accelerators are the magic bullet for startup success is a myth that’s been perpetuated globally—not just in the Caribbean. But in the region, a few factors make people believe these are the answers:

1. Lack of Alternative Funding – Unlike in the U.S. or Europe, where you have a variety of funding options (angel investors, crowdfunding, revenue-based financing, strong local banking support, etc.), the Caribbean has fewer options. That makes VC and accelerators seem like the only structured pathways.
2. Silicon Valley Influence – The narrative that “VC + Accelerator = Success” comes from watching Silicon Valley’s model. Many Caribbean entrepreneurs consume startup media that glorifies raising money as success rather than building sustainable businesses.
3. Government & Development Agencies Pushing It – Many regional initiatives for startups are modeled after foreign ecosystems. Governments, development banks, and agencies push accelerators because they’re seen as structured, fundable programs—even if they don’t always fit the realities of Caribbean businesses.
4. Lack of Patience for Slow-Growth Businesses – Many Caribbean founders build businesses that could thrive with organic growth, partnerships, or bootstrapping. But because VC-backed companies get more hype, they’re encouraged to seek outside investment instead of focusing on customer revenue and profitability.
5. Misunderstanding of What VC Really Wants – Not all startups are venture-scalable. Caribbean founders often don’t realize that VCs need companies that can scale 10X-100X fast, which doesn’t align with most regional market sizes or business models.
6. Few Local Success Stories from Other Models – If more Caribbean startups built successful businesses without VC or accelerators and shared their stories, there would be less blind faith in these models. Right now, those narratives aren’t widely known. Some are there but they don’t talk publicly.

The Real Answers

In my opinion, Caribbean Startups success will be determined by

• More customer-funded startups
• More alternative financing like angel investors, revenue-based financing, and cooperative funding
• More founder education on what works for Caribbean businesses even the ones seeking global market growth
• More regional collaboration instead of chasing Silicon Valley dreams

Additionally, one of the questions I seldom see asked is this…How much of the startup world does VC really and factually power?

Venture capital (VC) actually powers a tiny fraction of the global startup ecosystem, despite the outsized attention it gets. Here’s a factual breakdown:

1. Less than 1% of startups get VC funding

• According to data from the Kauffman Foundation and CB Insights, only about 0.5% to 1% of all startups ever raise venture capital.
• That means 99%+ of startups are built through bootstrapping, bank loans, grants, angel investments, or revenue.

2. Most businesses don’t need VC

• VC is designed for high-growth, high-risk businesses that can scale rapidly to 10X-100X returns within 5-10 years.
• But most startups are NOT high-growth tech companies—they’re small businesses, service-based businesses, and niche ventures that don’t fit the VC model. And actually that’s ok because it’s these kinds of businesses that power 90% of global businesses and employment.

3. Even in tech, most startups don’t raise VC

• In the U.S., out of 5.4 million new businesses started annually, fewer than 10,000 receive venture capital each year.
• Even in Silicon Valley, most companies never raise VC but grow through customers, partnerships, or alternative funding.

4. VC dominates media, not reality

• Since VC-backed companies are often the loudest (because they’re funded to grow fast) and frequently covered in tech media, it creates an illusion that all successful startups raise venture capital.
• But behind the scenes, most billion-dollar companies did NOT start with VC money (e.g., Mailchimp, Spanx, Basecamp, GoPro).

5. The VC success rate is terrible

• 75% of VC-backed startups fail and don’t return investor capital.
• Only about 4% become unicorns ($1B+ valuation).
• Most VCs make money from just 1-2 investments per fund—meaning they bet on dozens of companies, expecting most to fail. You and your startup are just math for them.

So, What Powers Most Startups?

• Bootstrapping (self-funding through revenue, savings, or reinvestment)
• Angel investors & alternative funding (crowdfunding, grants, bank loans, revenue-based financing)
• Strategic partnerships and joint ventures
• Slow, sustainable growth instead of hypergrowth

Final Reality Check:

Venture capital is not the engine of global entrepreneurship—it’s just the loudest part. The real economy runs on self-funded, revenue-driven businesses that grow sustainably over time.

Let’s not get caught up in another cycle ( I’ve been through two of them ) here in the Caribbean of this kinda talk, when honestly we are smart enough, are enough to create and connect to the people and solutions that fit our culture and local, regional and Global ambitions.

What I’ve Seen. What I Believe.

I say all of this because I’ve been around for a while, done a few things, and had the privilege of working alongside some incredible people and partners.

This month marks 18 years since I embarked on a journey with Kingston BETA, the Caribbean’s first and longest-running tech event series and community. Over the years, it has evolved into a community of digital rockstars—entrepreneurs, creatives, and professionals leveraging technology, bold thinking, and resilience to solve problems and build digital and digitally-infused businesses.

Just this past year, we connected six of our community members to U.S. accelerators and investors, securing over $1 million in funding. So yes, I believe venture capital and accelerators can play a role—but they are not the role.

Across the 300+ events we’ve hosted in Jamaica, the Caribbean, and the U.S. & UK Diaspora, the message has remained the same:

We are in the Digital Age. There are opportunities. Here are the people taking risks, breaking industry norms, and building something new.

Some have failed. Some have pivoted. Some have found the sweet, profitable spot. Others are scaling for high growth. All of them matter—because their work strengthens our Caribbean economies in ways that go beyond headlines.

The truth is, there are more profitable Caribbean startups and digital businesses than most people realize. They may not always get attention, but they are thriving. And while I believe in the power of storytelling to inspire and push ecosystem development forward, I also know this:

Having a single “Caribbean Google” will do little for us beyond creating temporary hype.

I know some will argue with me on this. But if our goal is to prove that entrepreneurship, innovation, and excellence exist beyond the beach, then we can’t be fixated on chasing investors to build a Caribbean unicorn.

We can’t define success by external benchmarks while failing to create our own.

Instead, we should focus on understanding hyper-local and regional problems so well that we spawn hundreds, even thousands of profitable digital businesses making $100,000 to $10 million per year.

Why? Because they will drive real impact—creating jobs, building wealth, and transforming industries in ways that one or two global wins never could.

I think, at times, we hesitate to challenge the dominant narrative, fearing it makes us seem less ambitious. But let’s be clear—it is small and medium-sized profitable businesses that run the global economy. It always has been. It always will be.

And at the heart of it all, entrepreneurs know the truth:

There are no silver bullets—only lead bullets. Success comes from relentless execution, continuous learning, and adapting to the unexpected.

Real entrepreneurs forge their own path—with persistence, grit, and an unshakable vision.