€250m has been allocated to a new round of the Government’s Seed and Venture Capital Scheme.
The fund will run for four years from 2025 and will be administered by Enterprise Ireland.
Its aim is to provide funding to early-stage Irish companies.
“Access to finance through the Enterprise Ireland administered Seed and Venture Capital Scheme has played an important role in developing the talented pipeline of innovative, high-growth Irish-owned companies that we have seen in recent years,” said Leo McAdams, Divisional Manager, Investment Services, Enterprise Ireland.
“Over €1.4bn has been invested in over 600 Irish owned companies by funds supported by Enterprise Ireland since the Seed and Venture Capital programme first commenced 30 years ago.”
“The Seed and Venture Capital Scheme continues to strengthen the funding ecosystem for high growth start-up companies in Ireland, helping to foster an environment where companies can start, grow, innovate and scale internationally by providing vital equity capacity.”
A recent review of the scheme over the period from 2013 to 2022 found it has increased the availability of risk capital and has brought in significant private investment.
So far Enterprise Ireland has invested over €700m in it, leveraging funds totalling €3.3 billion.
It also found the scheme had a significant impact on investee firms in terms of employment, R&D expenditure, company valuations and likelihood of securing follow-on funding.
It is estimated that that the realised and expected economic benefits flowing from the SVC-backed Irish firms over the period are worth €2.05bn in Gross Value Added.
Around 4,300 additional jobs have also been created, equivalent to 28 jobs per firm on average.
Minister for Enterprise, Trade and Employment Peter Burke said the focus of the Seed and Venture Capital scheme is the growth of the economy through new start-ups and the creation of new jobs.
Speaking to RTÉ’s Morning Ireland, Minister Burke said the fund is targetted at indigenous startup companies who “have a good idea where there’s a significant amount of risk” but also a “huge amount of reward” for the Irish economy.
“Those who have that idea, they’ve started their trading, but they’re looking to scale, they’re looking export and grow their business,” he added.
“This is really targetted at that sector and that can have huge rewards to the Irish economy – not only in jobs but creating companies who can amass sales and worth of over a billion euro in time.”
When asked about a report in the Irish Independent that the Low Pay Commission has recommended the minimum wage be increased to €13.70, Minister Burke said that information is not correct.
“I’m not going to go into the amount but the information isn’t correct on that, I want to be very clear to businesses that are listening in up and down the country,” he said.
“I’m not going to conduct negotiations on the Budget over the airwaves… I cannot go into negotiations and say before my Cabinet colleagues are aware of what the recommendation is.”
Article Source – €250m allocated to new round of Seed and Venture Capital Scheme – RTE
