Enterprise Ireland reports Venture Funds Invested over £28 Million (€35.5 M) in 2000

Mary Harney, Tánaiste and Minister for Enterprise Trade and Employment today (Monday 27th August 2001) welcomed confirmation that the venture capital market continued to show strong growth in 2000, ensuring critical support for the development and expansion of Irish business. She confirmed that investment has risen to IR£28.8M (€36.6M) in 2000 compared to IR£20.6M (€26.2M) in 1999.

The Tánaiste was commenting on the publication of the Enterprise Ireland 2000 Annual Report of their Seed and Venture Capital Programme. The EU Seed and Venture Capital Measure, under the Operational Programme for Industrial Development 1994-1999, was set up with the objective of establishing Venture Capital Funds to provide early stage, small and medium-sized growth oriented enterprise in Ireland with equity capital.

Commenting on the report, the Tánaiste noted that "investments made in 2000 by the Enterprise Ireland partnership funds with the private sector were £28.8M (€36.6M). This represents a 40% growth rate over 1999, with a significant change that IR£13.7M (€17.4M) (47%) of the total was in follow-on investments, compared to IR£5.1M (€6.5M) (24%) in 1999. This is a measure of the continuing need of companies to have access to venture capital at various stages of their growth cycle".

"The support of a positive venture capital market is vital to the development of business. It is equally important that the private sector should become the lead players in providing such important funding at those critical points in the development of success driven businesses. I am pleased the latest figures underline the considerable progress made in the past 12 months in this regard. All the money provided under the Seed and Venture Capital Measure was committed to investment at the end of 2000. It is significant that to date the Funds have returned £24.5M (€31.1M) and that Enterprise Ireland has redistributed its portion for further investment in venture capital", said the Tánaiste.

Highlights to the end of 2000 were as follows:

• 12 funds fully operational.
• Investment of IR£28.8m (€36.6m) in 2000 compared to IR£20.6m (€26.2m) in 1999.
• Investment in 67 companies in 2000 compared to 51 in 1999.
• Investment of IR£15.1m (€19.2) in 29 new companies and IR£13.7m (€17.4m) in 38 follow-on investments in 2000, compared to IR£15.5m (€19.7m) in 32 new companies and IR£5.1m (€6.5m) in 19 follow-on investments in 1999.
• Areas of investment included Sotfware, Communications, Multimedia, Manufacturing, Lifesciences and Services.
• 87.1% of the investments in 2000 was in Start-up and Early-stage companies.
• 71.54% of invested funds in 2000 was in software related projects.
• Investment in regionally located projects outside Dublin in 2000 was IR£8.4m (€10.67m). Total invested to December 2000 in the regions was IR£17.7m (€22.5m), representing 26.6% of invested funds.
• Employment levels in companies at the time of the initial investment was 1,260; at December 31st, 2000, this number had increased to 3,505.