Richard Bruton (Dublin North Central, Fine Gael)
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Innovation Fund Ireland is part of a suite of policy initiatives to position Ireland as a Global Innovation Hub. The overall objective of the Innovation Fund is not just to increase the availability and diversity of smart capital for start-up and scaling firms, but also to transform the market by attracting top tier fund managers to Ireland and support the further development of the venture capital sector. The objectives of Innovation Fund Ireland are consistent with the commitments laid out in the Programme for Government for the development of a more dynamic venture capital industry in Ireland by seeking to attract top tier venture financing and investment companies to Ireland.

The €250 million available under the Fund will run along two parallel tracks. The first comprises a €125 million pool of funds provided by the Exchequer and managed by Enterprise Ireland. Successful applicants who receive an investment from Enterprise Ireland will have to commit to investing an equivalent amount in Irish companies or companies with substantial Irish operations over the lifetime of their fund. The second is for a similar amount, and is designed to allow Ireland's National Pension Reserve Fund (NPRF) to make a similar level of commercial investments assuming its criteria are met.

The first call for expressions of interest in Innovation Fund Ireland closed on the 26th November 2010. At present, Enterprise Ireland and officials from the National Pension Reserve Fund (NPRF) are in the process of concluding the evaluation of the 32 expressions of interest received, with a view to making a number of commitments to Venture Capital fund managers in the near term.

The funds will invest in Europe with a focus on Ireland. Over the lifetime of the funds, it is envisaged that the State will make a return on its investment. In terms of economic growth, where the Funds invest in Irish start-ups, scaling companies or companies with operations in Ireland, the State can expect to see an increase in employment; an increase in the number of high potential start-ups; the attraction of high potential start up and scaling European technology and life science companies requiring growth capital investment to Ireland and increased commercialisation of the ideas and R&D coming out of the Universities and Institutes of Technology. All of this will position Ireland as a centre for technology, life sciences and venture capital investment within Europe through multiple fund iterations.