€34 million Invested by Enterprise Ireland Partnership Funds in 2008

Enterprise Ireland Launches Seed & Venture Capital Report for 2008

Today (Friday 24th July 2009) Feargal Ó Móráin, Director of Corporate and Investment Services at Enterprise Ireland, launched the Enterprise Ireland Seed and Venture Capital report for 2008. In 2008, Enterprise Ireland partnership funds made 104 investments worth €34 million. These investments are spread across all sectors, with a particularly strong focus on communications, life sciences and software. Investments were made in both innovative start up and expanding companies spread throughout the regions. This brings total investment made under all three Enterprise Ireland supported seed and venture capital programmes to €459 million at end 2008.

Launching the 2008 report, Feargal Ó Móráin said:

“Enterprise Ireland is committed to working with our investment partners in building a strong self-sustaining indigenous venture capital industry in Ireland. This sector is critical to securing finance and encouraging companies to set up, grow and develop. Over the past 15 years the Government, through Enterprise Ireland, has committed over €300 million, as a limited partner, in the majority of seed and venture capital funds that have emerged in Ireland. The current Seed & Venture Capital Programme 2007-2012 involves State commitment of €175 million in a range of funds. Today, these funds have a combined capital available for investment of almost €500 million and are anticipated to have considerably more available upon the completion of ongoing negotiations. The investment pipeline for these funds remains strong, a very encouraging feature given the current difficult economic environment.”

Mr Ó Móráin also welcomed the provision of an additional €48 million for seed investment as part of the Government’s bank recapitalisation initiative. “New agreements between AIB and Enterprise Ireland and Bank of Ireland and Enterprise Ireland respectively will see the AIB Seed Fund increase to €53 million from €30 million and the creation of a new €25 million Bank of Ireland Seed & Early Stage Equity Fund, marking a significant increase in the funding available for Irish companies. Enterprise Ireland continues to work closely with the venture capital sector, the banks and the European Investment Bank to secure finance for Irish enterprises”, he said.

Welcoming the report the Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan said:

“Irish venture capital firms provide vital investment funding to Ireland’s early stage and developing companies, and are an essential element of the eco system for Irish businesses. They provide that critical risk capital that could otherwise be difficult to raise. I am also particularly pleased to welcome the establishment of the new and expanded seed funds in implementation of the Government’s decision, as part of the bank recapitalisation initiative, to increase the supply of seed capital to new Irish businesses.”