Experienced investor James Hunt, president of The MITA Group, spoke at a Nassau seminar recently to advise Bahamian SMEs on how to attract investors and what to look for when investing themselves.

The businessman, who has founded and run four technology companies in the past two decades, said he looks at five criteria when determining whether something is a good investment: the product; the team; the market; whether it would be possible to get the product to market; and the valuation.

“The most important thing is to have a good team. If it is not coachable, I will not invest. I am not interested in an arrogant team,” he told attendees at the Global Trade and Financing Seminar, organized by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) and US Embassy.

Hunt also cautioned entrepreneurs that potential investors are looking for a straightforward valuation, saying: “Most entrepreneurs do not want to talk about that. They do not want to lose me and they want to maximize the valuation.”

He advised Bahamian businesses to look at what niches they could target to attract international investors.

“You want to look at things you think could get you into other markets,” Hunt said. “Is there intellectual capital here that could compete with other places? You need to arbitrage the talents of the island, of the economy and the people. There are certainly areas associated with financial services that you could possibly get a leg up on other markets.”

Hunt also warned companies not to search out investment unless it is necessary, saying: “If you can build your business organically, you do not want a guy like me. Our investors expect returns. If you are close to making it on your own, then it is not logical to take the deal we would put in front of you.”

cmorris@dupuch.com