Martin announces Enterprise Ireland to inject €175m into Venture Capital Market

Investment will leverage an estimated €1 billion for Start-up and Early Stage Industry

Minister for Enterprise, Trade and Employment, Micheál Martin T.D., today (Monday 22nd May 2006) announced a major injection of liquidity into the venture capital market by Enterprise Ireland. Enterprise Ireland is investing €175m in a new round of Venture Capital funding, which will leverage an estimated €1billion for investment in start-up, early stage and development stage businesses.

Making the announcement Minister Martin said: “Lack of early stage finance consistently emerges as a key gap in the market for innovative start-up firms. The investment of €175m announced today will be a vital contributor to the development of a more robust, commercially viable and sustainable Seed and Venture Capital industry in Ireland. The new Seed and Venture Capital funds will commit the largest investment by the State to Venture Capital, which will in turn leverage the largest matching investment from the private sector. This will greatly improve access to finance for SMEs. It will encourage and leverage private sector investment in sectors that are difficult to finance, and will leverage private sector and institutional investment into VC investment in Ireland.

“The existence of a vibrant and sustainable Venture Capital Industry in Ireland is vital for the commercialisation of research. The level of High Potential Start-up companies securing VC investment is an important indicator of future growth and success of early stage companies supported by Enterprise Ireland. A vibrant venture capital market is therefore an essential component in strengthening the indigenous enterprise base”.

According to Frank Ryan, Chief Executive Officer of Enterprise Ireland: “Increasing the number of new high growth export focused businesses is a key objective for Enterprise Ireland, and is a key element of Enterprise Ireland’s Strategy - Transforming Irish Industry. Our objective is to continue to develop the seed and early stage venture capital industry by creating liquidity and competition in the marketplace. The new funds managed by our private sector partners will be rolled out quickly, with advertisements appearing in the national newspapers within weeks”.

ENDS

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