Seán Fleming (Laois-Offaly, Fianna Fail)
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12. To ask the Minister for Jobs, Enterprise and Innovation the number of jobs supported to date by the venture capital fund; his plans to review the operation of the fund; and if he will make a statement on the matter. [29943/14]

Richard Bruton (Dublin North Central, Fine Gael)
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Under the Seed and Venture Capital Scheme 2007-2012 a total of 14 funds were established which secured a total of €525m in external funding in addition to the commitment made by the State of approximately €175m. As of December 2013, there were 177 companies in receipt of investment under this scheme. They employed 2,244 and generated €250m in sales. Compared to the situation at the end of 2012, the fund supported 41 extra companies, 660 extra jobs and extra sales of €127m. This compares to a situation at the end of 2012 where 136 companies were in receipt of venture capital investment under the Seed and Venture Capital Scheme 2007-2012, had 1,584 people employed with total sales of €123,591,000, of which €83,236,000 were exports. This data excluded those investments made in companies where the VC latterly exited the investment.

The full economic potential of these investments is as yet unrealised and these seed investments have created a platform for future job creation. Furthermore, many of these companies where the VC has exited its investment will go on to grow organically or gain investment through other sources of finance continuing to generate economic activity and sustaining and creating jobs.

Under APJ 2012, a working group was established to ascertain the need for the State to continue its support, on the same terms as the private sector, for the development of the domestic VC Sector. This working group consisting of DJEI/EI and NPRF concluded there was a need for continued support and this led to the development of the 2013-18 SVC scheme. The continuation of the scheme was clearly justified by the strong performance of the existing fund in terms of companies and jobs but also its success in leveraging private capital to match the State’s investment. At its October meeting, the Board of Enterprise Ireland committed €99.5m of 2013-2018 funding to a number of Venture Capital Funds following the conclusion of an extensive and in-depth evaluation and due diligence process. No companies have yet received investment under the Seed and Venture Capital Scheme 2013-2018 as the Funds that received commitments under this Scheme are in the process of completing the fundraising. Once completed the Funds will close and commence investing in companies.

The balance of the capital available under the Scheme will be committed to Venture Capital Funds to meet the overall objectives of the Scheme following further analysis and consultation on the needs of business. To this end, Enterprise Ireland issued a consultation exercise inviting interested parties to submit written views, observations, or suggestions to help inform it in identifying the sectors and company stages of development that should be targeted under future competitive calls for expressions of interest under the Seed and Venture Capital Scheme 2013-2018. This consultation period closed on 30 May 2014 and the submissions and other inputs are currently being considered in advance of formulating the criteria for the expressions of interest to be issued in the short to medium term.