About 60 entrepreneurs, business owners, and other interested parties got tips on how to access alternative sources of financing for their businesses at a Bermuda Economic Development Corporation seminar.

The event was held at the Bermuda Underwater Exploration Institute’s Tradewinds Auditorium.

Panellists were asked questions that ranged from how to find an angel investor to how to prepare themselves and their investment proposals for success.

Speakers included Neville Grant, head of corporate banking with HSBC. The panel was moderated by Lori Rockhead, senior manager at KPMG Advisory Limited.

The presentations were opened by Alexander Werther who 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.

Mr Werther 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 iPhotonix and is an angel investor and board director with REBBL, followed with a compelling presentation on the angel investor perspective. She advised attendees that the critical thing when seeking an investor was to build relationships early and often before you need the dollars. “Don’t be afraid to network outside of your traditional circles,” she said.

Cheryl Hayward-Chew, president of Meyer Group of Companies shared the local perspective. She spoke about Meyer’s background and philosophy and what types of investment partnerships align with their company culture and interests. Ms Hayward-Chew also shared her experiences with some observed pitfalls in entrepreneurs asking for investment and how they could have been overcome.

Philipp Schmidt, owner of Burgwalden Ltd, broke down the markets and industries, how funding works, and how to establish a term sheet and negotiate a win-win.

Mr Schmidt 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 a person’s inner circle, such as a loyal client or someone in a complementary industry. He recommended that those seeking investment start within their circle.

Erica Smith, BEDC executive director, said: “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 learnt invaluable information and made important contacts.”

If any investor is interested in supporting local entrepreneurs or in being part of a Bermuda Angel Network, they should contact BEDC at info@bedc.bm