CEO of data intelligence company, Bluedot Insights, Larren Peart, is urging local investors to offer more support to technology-based companies. 

 “Jamaican investors, financial institutions, private investors, they need to take a shot. They need to support the young entrepreneurs in the tech space,” said Peart, who was speaking on Taking Stock with Kalilah Reynolds. 

The Bluedot boss said he believes Jamaica has a big opportunity to be a tech hub for the Caribbean.  However, he said it is very challenging for tech companies here to receive a fair valuation. 

“Primarily, a lot of these financiers don’t know how to value tech companies….  We don’t have those tangible assets like machinery or even real estate,” he explained.

He added that some investors do not place value on Intellectual Property or projected revenues. 

Using his own company as an example, Peart noted that every public/private entity needs data to grow, yet he doesn’t believe Bluedot has gotten the valuation that it deserves.

The Jamaica Gleaner recently valued Bluedot at about US$330,000 (JM$51 million), based on the sale price of SSL VC’s 30% shareholding back to Peart for a reported US$99,000 last year.  However, Peart pointed out to KRM that he repurchased those shares at a discount.

According to Peart, there has been no official valuation in recent times.  He puts the last estimation at US$2.5 million (JM$389 million).

The founder and CEO said that similar companies in North America and the rest of world receive much higher valuations based on the nature of their work. 

What is Bluedot?

Bluedot is a research, data analysis and insights company.

“We do a lot of market research…we test products, product launches, new packaging, taste, everything for our clients. On the data side, we do data analysis and projection models,” he explained.

The company has also gained attention for its political polls, which have been establishing a track record in accurately predicting election results.

Despite these successes, Peart described the process of getting a fair valuation as “horrible”, but noted that he is hopeful the culture is changing. 

“There’s a lot of cash out there, but I just think investors right now still believe in real estate and hard tangible assets… even though the largest companies in the world right now are tech companies,” he said.

Weighing his options

Meanwhile, Peart, who now owns 100 percent of Bluedot, said he is weighing two fundraising options for his company.

“I have a very, very good offer for equity from a large investment company that will eventually take us to IPO (Initial Public Offer) in about two or three years. But counter to that, I do have offers from brokerages who have said ‘you can list now, if you want to list now’,” the CEO explained.

Peart said despite Bluedot’s less than favourable experience with equity investors, he is still leaning towards taking another equity investment and waiting it out to eventually list at a higher valuation. 

Peart only recently bought back 30 percent of Bluedot’s shares from the troubled SSL Venture Capital Limited. SSLVC had bought 50 percent of Bluedot’s shares then sold 20 percent  to start-up company Yes Iyah, in October 2021. 

SSLVC has since gone bankrupt, having racked up millions of dollars worth of losses.

“I bought 20 percent from Yes Iyah… Zachary Harding also had 10 percent, [I] bought his shares and then Kimala Bennett, her and I started Bluedot in 2014, she allowed me to purchase her shares as well,” he explained.

Despite the tumultuous experience, Peart said that the company has many long and short term plans that will need funding.

Peart said the company has already begun expansion in the Caribbean, having recently opened an office in Trinidad and Tobago.

“We now have staff in Trinidad. I’m really just waiting for our bank accounts to be formed properly before we actually start there, so that will take some funding,” he said.

“We do need staff and the staff that we require at Bluedot are pretty expensive; they are statisticians, actuarial scientists, data scientists, very expensive people,” he added.

Peart said he is optimistic about where the company is going and is looking forward to expansion. 

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