Damien English (Meath West, Fine Gael)
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Question 166: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to promote venture capitalism in the market here; and if she will make a statement on the matter. [5353/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am fully aware that a dynamic and healthy venture capital market is a prerequisite for the growth and development of high potential start-up companies in Ireland. Enterprise Ireland provides financial support to high potential Irish companies. This financial support, based on an approved business plan, includes the areas of business feasibility study, product development and new company launch and development. Over the last 16 years Enterprise Ireland has focused on stimulating venture capital funds in order to promote the availability of this important source of funding for companies that would have difficulty raising capital through traditional sources of finance. It has undertaken initiatives that have led to the creation and development of a vibrant Irish-based VC industry.

To date, Enterprise Ireland has been involved in three Seed and Venture Capital Programmes as follows:

· Seed and Venture Capital Programme 2007 – 2012.

· Seed and Venture Capital Programme 2000 – 2006, under the

National Development Plan.

· The EU Seed and Venture Capital Measure 1994 – 1999, under the

Operational Programme.

Enterprise Ireland support for venture capital funds has been undertaken through investment as a limited partner with other private investors on a pari passu basis. The management of these funds is in the hands of private sector VCs who take investment decisions on a fully commercial basis.

Under the EU Seed and Venture Capital Measure 1994 – 1999, 15 separate venture capital initiatives were established with €43.9m committed under this Programme. The first of these initiatives was launched in May 1996.

Under the 2000 – 2006 Programme, Enterprise Ireland committed €98m to continue development of the venture capital market for small and medium sized enterprises (SMEs) in Ireland. This Programme committed capital to 15 funds.

The 2007 – 2012 Seed and Venture Capital Scheme was launched to promote the availability of funding for companies at both early and growth stages of development and to further develop the Seed and Venture Capital Industry in Ireland. Enterprise Ireland has committed to investing €175m under this programme. Out of the overall allocation of €175 million, Enterprise Ireland has to date committed investment to 10 funds. Of these, 8 funds, with a total size of €525 million, have commenced operations. Two further funds with a total size of €150 million remain under negotiation.

I understand from data published by the Irish Venture Capital Association in its publication 'Venture Pulse 2009' that, in the first three quarters of 2009, approximately €220m was invested by syndicates of investors (including Enterprise Ireland) in Irish SMEs. Of the 61 investments made during that period, 57 were of a value of less than €10m representing a total of €120m of the overall funds invested. 23 of the 57 investments were in the range of €1.5m to €10m, totalling €94.7m.