Enterprise 2000 Fund Invests IR£2 Million in Young Innovative Companies

Mary Harney, Tánaiste and Minister for Enterprise, Trade and Employment, today (Monday, 14 June 1999) outlined details of the first investments completed by the Enterprise 2000 Fund - a joint initiative by Bank of Ireland Business Banking and Enterprise Ireland. Launched in June 1998, to date the Enterprise 2000 Fund has committed IR£2million to twenty companies through a mix of equity and loan financing.

The Enterprise 2000 Fund is making a IR£10 million seed capital fund available to young companies with development potential and it is expected that the full fund will be invested by 2002.

10 investments totalling IR£1million have been completed. Five of these companies specialise in software and IT applications, with the remainder specialising in food, biotechnology and manufacturing. Four of the companies are Dublin based with the remainder located in Limerick, Wicklow, Waterford and Kildare. In total, the ten companies will create 74 additional jobs over the next three years bringing total numbers employed in the companies to 120.

Investments have also been approved for a further ten companies which are set to receive IR£1 million in total.

Announcing details of the investments made by the fund to date the Tánaiste said, "I welcome today's one year review of the Enterprise 2000 Fund. This innovative fund provides equity and loan finance to promising young companies whose financing needs are not being met by existing venture capital finance or normal banking finance. Companies benefiting from the funds are drawn from a wide variety of sectors and locations and will provide quality employment for a number of skilled people throughout the regions".

She continued "The Enterprise 2000 Fund is managed by a team, led by Ms Clare Shine who has overall responsibility for the day to day operation of the fund together with representatives from Enterprise Ireland and the Bank of Ireland. The fund is evidence of the commitment by the public and private sectors to operate in partnership to bridge the equity gap and support small business in Ireland."

Commenting on the completion of the first investments, Ms Clare Shine, Fund Manager, Enterprise 2000 Fund said: "The response we have had to the fund has been extremely positive. There is a wealth of emerging and talented small companies throughout Ireland, which traditionally had experienced difficulties accessing equity and loan finance. After just one year since its launch, twenty companies are now set to benefit from the Enterprise 2000 Fund. This is just the beginning for the fund. We look forward to receiving more applications from early-stage companies".

Amounts available per project/company range from £25,000-£100,000 in return for a minority shareholding in the business. Additional funding up to a maximum limit of £200k may be available, once initial agreed business objectives are achieved.

Loans are provided on a long term basis (5-10 years) and do not require personal guarantees from directors. Interest rates are DIBOR plus 2%, a rate normally only available to established companies. Eligible companies will be provided with a mixture of equity and loan finance.

An approvals committee comprising two representatives from Enterprise Ireland and Bank of Ireland as well as two independent business people, sanctions investments submitted by the Fund Manager.

To qualify for funding, applicants need to be limited companies, which can demonstrate a clear potential for competitive advantage and viability. The Enterprise 2000 Fund is aimed at most industry sectors, such as manufacturing, services, technology, software, food and agri-business. Property development, financial services and some retailing projects are excluded.

Standard application forms are available through Bank of Ireland branches/Business Centres, Enterprise Ireland, SFADCO and County Enterprise Board offices or directly from the Fund's offices at 43 Pearse Street, Dublin 2. Tel: (01) 677 5570 Fax: (01) 677 5588 Email: capital@enterprise2000fund.ie

For further information:

Clare Shine, Enterprise 2000 Fund

Brian Harmon, FCCTel: (01) 667 5570 Tel: (01) 676 0168 or 086 2643100