Prospective venture capitalists should bear in mind a variety of factors to safeguard their portfolio, experts said during the Global Financial Summit held in Nassau.

The three-day event heard from technology entrepreneur Jared Fuller (left), chief executive of JobHive Inc, who warned investors to thoroughly examine the management structure of a start-up company before buying in.

“What you look for in a good investment is that core team. You really have to be cognizant of that team—do they have the passion and drive and energy to see that product through? I scrutinize the people much more than the product,” he said.

Fellow panelist, and founder of investment group Liquid, Anthony Archer agreed, saying: “Get to know who you are dealing with. Then educate yourself on the market. In a good market even the bad products can make money; in a bad market even the best product can lose.”

Although all the panelists acknowledged that investing in start-ups can be high risk, Fuller recommended the technology industry as one to watch saying: “there are a bunch of opportunities in the technology sector.”

Former president of JML Swiss Investment Counsellors USA Inc, Ron Holland advised a cautious approach. “Invest slowly and add more as time goes on,” he said.

The annual Global Financial Summit took place February 7-10 at Atlantis Paradise Island.

cmorris@dupuch.com