Enterprise Ireland Launches New VC Scheme

28 Feb 2019 | 01.21 pm

Enterprise Ireland Launches New VC Scheme

Taxpayers chipping in €100m

28 Feb 2019 | 01.21 pm

Enterprise Ireland has announced the first call for expressions of interest from seed and venture fund managers under its new Seed & Venture Capital Scheme (2019-24).

The scheme is aimed at providing substantial additional funding for high-growth Irish companies with the potential to start and scale their businesses from Ireland and thereby drive a significant increase in export sales and jobs.

Under the Call, Enterprise Ireland proposes to allocate up to €100m to funds focused in three specific areas.

Up to €50m will be available to funds focused on Pre-Seed and Seed investments, supporting Enterprise Ireland’s High Potential Start-Up strategy, and a further €30m to funds making investments at Series A and beyond in companies seeking to scale.

In a new initiative, up to €20m will also be made available to funds focused on the Food and Foodtech sectors.

Enterprise Ireland is seeking proposals from domestic and international fund managers.

For funds focused on the Pre-Seed and Seed Stages of development, under this new scheme Enterprise Ireland can invest an increased maximum of up to 70% of these funds.

The preceding 2013-19 VC scheme provided €175m capital for the Irish early stage ecosystem.

Business minister Heather Humphreys commented: “The benefits to businesses of the scheme are twofold. It will provide them with much needed finance during the stages in their business cycle when finance can be extremely difficult to come by.

“Crucially, it will also introduce young businesses to networks and connections that will provide an invaluable source of mentoring and guidance.”

EI’s Kevin Sherry added: “It is now 25 years since the first Seed & Venture Capital Scheme was launched, and in that time we have seen how the successive Schemes have transformed and strengthened the funding ecosystem in Ireland.

“The new scheme is focused on increasing the availability of that essential early stage and growth capital and addresses equity funding availability within the food sector.”

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