Written answers

Tuesday, 27 June 2006

Department of Enterprise, Trade and Employment

Capital Funding

11:00 pm

Jerry Cowley (Mayo, Independent)
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Question 323: To ask the Minister for Enterprise, Trade and Employment if seed capital promised of several hundred million euro will be made available to help the lack of regional development by being made available to western based companies; if so, the amount that will be made available; and if he will make a statement on the matter. [24736/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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In respect of seed and venture capital programmes participated in by Enterprise Ireland, the industrial development agency that falls under my remit, and on 22nd May 2006 I announced a major injection of liquidity into the venture capital market by Enterprise Ireland. Enterprise Ireland will be investing €175 million, which will leverage an estimated €1 billion for investment into seed, start-up and development stage businesses.

The objectives of the scheme are to continue to support the venture capital industry, to leverage private sector funding and to encourage investment in those sectors that have difficulty in sourcing funding. Enterprise Ireland has advertised in the national press seeking proposals from venture capitalists and promoters who can demonstrate the experience and capability to operate proposed funds on a commercial basis.

Preference for investment will be given to funds that demonstrate the ability to meet the following criteria:

∙The extent to which the funds will focus in Ireland on small and medium enterprises (SMEs) with international trading potential;

∙The extent to which the funds will invest in:

∙seed

∙start-up and

∙development stage investments.

Proposals for all stages will be considered. However, a primary objective is to support and develop companies in the seed and start-up stages of growth:

—The likely impact of venture capital investment on SMEs gaining access to other forms of national and international funding; and

—The extent to which the funds will invest in regions outside of Dublin.

Prioritisation for investment and the level of investment for the successful applicants will depend on how the funds' investment strategy aligns with the objectives of the scheme and with the overall strategic objectives of Enterprise Ireland. Regional development is a core strategic objective of Enterprise Ireland. The successful venture capitalists and promoters will be looking for commercial opportunities for investment throughout the State, including companies based in the western counties.

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