Keys To Access Alternative Sources Of Financing
Nearly 60 entrepreneurs, business owners, and other interested parties got exclusive tips on how to access alternative sources of financing for their businesses at the seminar held on Tuesday morning, April 19th, 2016 by the Bermuda Economic Development Corporation [BEDC].
The Bermuda Underwater Exploration Institute’s Tradewinds Auditorium was full of buzz as attendees engaged with panellists asking questions that ranged from how to find an angel investor to how to prepare themselves and their investment proposals for ultimate success.
[L-R] Lori Rockhead, Alexander Werther, Erica Smith, Cheryl Hayward-Chew, Kim Perdikou, Philipp Schmidt.
Neville Grant, Head of Corporate Banking with HSBC and Director with BEDC gave the opening welcome to attendees and found humour in the irony of a banker opening a session on alternative financing.
He expressed though, his passion and commitment to entrepreneurship, and recognised that in any entrepreneurial eco-system, business owners need to have access to a variety of options to finance their business endeavours – from traditional bank financing through to alternative financing.
Lori Rockhead, Senior Manager, KPMG Advisory Limited, moderated the panel discussion and set the tone for the highly interactive seminar. She shared a little background on the work KPMG does in connecting entrepreneurs with financing, including investors.
Alexander Werther, CFA, FRM opened the presentations and gave an in-depth comparison between Traditional and Alternative Financing options. He explained that many consider debt financing, like a bank loan, as traditional; however, he listed a micro-loan product, which BEDC offers, as an alternative source of financing.
He made this assertion based on the unique terms that usually accompany micro-loans. He also highlighted crowdfunding as a new way to raise capital and encouraged attendees to check out backit.bm a local crowdfunding source. Beendowed.bm is also another local crowdfunding platform.
Kim Perdikou, who sits on the Board of Directors of iPhotonix and is an Angel Investor & Board Director with REBBL, followed with a compelling presentation on The Angel Investor perspective.
She advised attendees that the most critical thing you could do when seeking an investor is to build relationships early and often before you need the dollars and said,“Don’t be afraid to network outside of your traditional circles.”
After a brief networking break, Cheryl Hayward-Chew, President & CEO of Meyer Group of Companies and Chairman of Polaris Holding Company Ltd. shared The Local Perspective as a local investor.
She spoke about Meyer’s background and philosophy and what types of investment partnerships align with their company culture and interests. She also shared her experiences with some observed pitfalls in entrepreneurs asking for investment and how they could’ve been overcome.
Philipp Schmidt, owner of Burgwalden Ltd. and Partner with IBIS Capital Limited closed with The Venture Capitalist Perspective. He broke down the markets and industries, how funding works, and how to establish a term sheet and negotiate a win-win.
He also shared that many of the clients that he works with have invested in local businesses. He suggested that sometimes the best investors could be those within your inner circle, like a loyal client or someone in a complementary industry and recommended that those seeking investment start within their circle.
BEDC Executive Director, Erica Smith stated “The seminar was a success and accomplished what we wanted which was to share knowledge about accessing these alternative funds, exactly what that means, what options are available, and how to do it.
“There is an opportunity gap in Bermuda with regard to alternative sources of financing and the BEDC is committed to building a framework to fill this gap. A couple of months ago BEDC released an RFP for establishing an Alternative Financing Framework in Bermuda and this seminar puts us one step closer to achieving our commitment. All the attendees learned invaluable information and made important contacts.”
If any investor is interested in supporting local entrepreneurs or in being part of a Bermuda Angel Network, please contact BEDC at info@bedc.bm.
