Bahamas Venture Capital Fund May Be Operational By Year’s End

by Amanda Banks, Tax-News.com, London

09 August 2004

Bahamian Prime Minister Perry Christie has revealed that proposals for a new venture capital fund designed to support start-up businesses could reach fruition by the end of the year.

"We have to work out the modalities. Who would constitute an advisory board, who would be the administrative arm, we want to keep it very tight, very inexpensive and very efficient. We just want to get this one right," Christie told the Nassau Guardian last week.

Keen to encourage Bahamian entrepreneurs, the Prime Minister announced plans for a $1 million venture capital fund during his 2004/2005 budget speech, delivered in June.

Broadly, the fund would take up small equity positions in the new firms, which eventually could be repurchased by the entrepreneur or other interested parties. The sale proceeds may then be reinvested into the fund.

Mr Christie told the Guardian that he believed the fund could be operational sometime between September and December this year, although some issues, such as the ownership position the fund will take on companies, still need to be ironed out.

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