Venture Capital boost for Ireland's West and Border Counties

A new €9 million Venture Capital (VC) fund to support existing companies and early stage start-ups with high export growth potential has been announced for the West and Border Counties of Ireland.

Enterprise Ireland (EI) and fund manager Enterprise Equity Venture Capital Group, will each invest €4.5 million in the Venture Capital Fund.

Announcing the VC fund, Tánaiste Mary Harney said: "This new fund is part of the roll-out of a major injection of liquidity into the venture capital market by Enterprise Ireland which I announced in January. EI is investing €95m in twelve new VC funds which will leverage an estimated €400m in private sector funding for start-up and early stage businesses."

The first private VC company to set up an office in the West of Ireland, the move is viewed as a considerable boost to the Irish Government's policy of regional economic development, as well as being a major part of Enterprise Ireland's strategy to create a vibrant VC market in the regions outside the East Coast.

Chairman of the Enterprise Equity Venture Capital Group and of the International Fund for Ireland (IFI), Mr William T McCarter said the joint venture between Enterprise Ireland and the IFI's venture capital arm would open up the market for venture capital in the West and the Border counties.

Mr Conor O'Connor, Chief Executive of Enterprise Equity said: "Investments will be made by way of equity investment in companies and normal commercial criteria will apply. We plan to invest average sums of between €250,000 and €1.35million in individual projects. Larger investments can be facilitated through syndication".

According to Enterprise Ireland's Executive Director, Pat Maher, the initiative formed an important part of EI's strategy to help create new firms and support the expansion of existing firms within their own region.

The new fund will be a generalist fund seeking to invest in companies in the manufacturing and information, communications and technology sectors that have the capacity to grow significantly in the future.

(SP)