10th fund supported under Enterprise Ireland’s Seed and Venture Capital Programme 2007-2012
The Minister for Enterprise, Trade and Innovation, Batt O’Keeffe, TD, today launched a new Bank of Ireland start-up and emerging sectors equity fund. This €17m Fund will invest in start-up and early stage companies, with a focus on high potential start-up companies operating in the emerging sectors markets. It will be geared towards supporting visionary entrepreneurs with innovative ideas for the developments of products or services across the emerging sectors that have the potential to export. The Fund will be managed on behalf of Bank of Ireland and Enterprise Ireland by Delta Partners.
This new Fund is the second fund launched by Bank of Ireland and Enterprise Ireland focused on start-up and early stage growth companies and is the 10th new fund supported by Government through Enterprise Ireland’s Seed and Venture Capital Programme 2007-2012. It comprises an investment by Bank of Ireland of €15m and Enterprise Ireland of €2m.
The Fund will target investments in the range of €100,000 and €500,000 and the investment reinforces the Bank’s position as one of Ireland’s leading providers of venture capital finance.
Minister O’Keeffe said the new fund would support early-stage entrepreneurs in driving export-led growth in the domestic economy and creating new high-quality jobs.
“Our banks have a key role to play in our economic recovery and initiatives such as this one will allow innovative firms to leverage new capital in scaling their businesses and creating jobs at home. To create a thriving high-value indigenous enterprise sector, we must broaden the funding base to turn good ideas into sustainable jobs. The Government continues to support Enterprise Ireland in working with its investment partners to build a strong self-sustaining indigenous venture capital industry in Ireland,” said Minister O’Keeffe.
The move follows the Taoiseach’s announcement in July of Innovation Fund Ireland – a €500 million fund for enterprise development and job creation aimed at drawing top venture capitalists to Ireland.
“That fund enables entrepreneurs to co-invest with the Government in high-potential start-ups that can create high-quality jobs in key growth sectors of the economy,” said Minister O’Keeffe.
Mark Cunningham, Director, Bank of Ireland Business Banking said: “In the current economic climate, supporting high potential start-ups is critical to Ireland’s economic recovery and growth and the objective of this Fund is to help stimulate economic activity. Bank of Ireland continues its commitment to supporting the SME sector and to supporting those early stage companies with significant growth prospects. Since 2000 Bank of Ireland has committed over €100m in venture capital to developing Irish companies”.
Shay Garvey of Delta Partners said: “This investment and introduction of a new Fund by Bank of Ireland and Enterprise Ireland ensures an available source of equity for Irish companies that require additional capital to support their strategic growth and export potential. With over €230m under management and an experienced management team Delta is well positioned to manage this Fund and to generate activity for the start-up and early stage companies across key sectors”.
12 December 2010
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Note to Editors
Enterprise Ireland’s Seed and Venture Capital Programme 2007-2012
Venture capital is an essential element of the eco-system for Irish indigenous industry, providing risk capital for companies that would have difficulty raising capital through traditional sources of finance. Under the 2007-2012 Seed and Venture Capital Programme, the Government through Enterprise Ireland committed €154m to give a total amount available of €644m in start-up, early stage and development stage businesses. This scheme was announced in May 2006 and follows two previous similar programmes. Under the 2000-2006 programme Enterprise Ireland committed €98m, which resulted in a total €405m being made available for investment. Under the 1994-1999 Programme, Enterprise Ireland invested €68m, which resulted in a total €129m been invested.
About Enterprise Ireland
Enterprise Ireland is the government agency responsible for the development and promotion of the indigenous business sector. EI provides financial support to companies by way of direct investments in individual projects as well as indirect investments through participating in venture capital funds.
About Bank of Ireland
Bank of Ireland Group is the leading provider of financial services products in the Republic of Ireland, has a significant presence in the UK market and employs c. 14,500 staff in total. Bank of Ireland has a number of funds available to support SMEs:
€32m Seed and Early Stage Equity Fund 2009:
Bank of Ireland’s €32m Fund in partnership with Enterprise Ireland, The University of Limerick Foundation and Galway University Foundation is available to both to start-up and early stage companies that have the potential to export across the technology, technology services, multimedia, wireless, greentech/cleantech, financial services and food sectors.
€250m Business Support Fund:
Bank of Ireland’s Business Support Fund is available to established small businesses in a wide range of sectors. It offers loans from €20,000 and can be tailored to suit business requirements.
€100m Green Fund:
Bank of Ireland’s innovative Green Business loan is available to businesses looking for finance to fund green projects that will help the environment and improve a company’s bottom line. Green projects may include making environmental improvements to premises, such as installing a solar energy system, extending or launching a service / product range.
About Delta Partners
Delta Partners is a venture capital firm investing in Ireland and the United Kingdom. It was established in 1994 and has €230 million under management. The firm has a strong focus on investing in early stage technology companies, and the team has made over 50 investments in the IT, Communications and Healthcare sectors. Delta Partners is among the most active early stage investors in Europe. The partners’ backgrounds in operations, strategy and finance complement the drive and ambition of entrepreneurial management teams.