Jerry Cowley (Mayo, Independent)
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Question 236: To ask the Minister for Enterprise, Trade and Employment if seed capital promised of several hundred million euro is to be made available to help the lack of regional development by being made available to western based companies and by being made available to the Western Development Commission and to Údaras na Gaeltachta; if so, the amount that will be made available; and if he will make a statement on the matter. [30306/06]

Micheál Martin (Cork South Central, Fianna Fail)
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On 22nd May 2006, I announced a major injection of liquidity into the venture capital market through a scheme to be administered 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. This money is being made available via Enterprise Ireland to venture capital funds that will be able to invest throughout Ireland. 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.

An advertisement was placed in the national press in June 2006 inviting expressions of interest from promoters and venture capital funds. Following a thorough and comprehensive evaluation of the applications, Enterprise Ireland are in the process of engaging with successful applicants who will receive a commitment of funding. Initial offers of funding have now been issued to successful Funds.

The Board of Enterprise Ireland is making these commitments based on the relative level of alignment of the Funds' investment strategies with the objectives of the Scheme and the overall strategic objectives of Enterprise Ireland. Preference was given to Funds that demonstrated the ability to meet the following criteria:

1. The extent to which the Funds will focus in Ireland on small and medium enterprises (SMEs) with international trading potential.

2. The extent to which the funds will invest in seed, start-up and development stage investments.

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

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

Regional development is a core strategic objective of Enterprise Ireland. Venture capitalists will be looking for commercial opportunities for investment throughout the State, including companies based in the western counties such as client companies of Údarás na Gaeltachta and the Western Development Commission.