James Bannon (Longford-Westmeath, Fine Gael)
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305. To ask the Minister for Jobs, Enterprise and Innovation the number of jobs supported in Counties Longford-Westmeath by the competitive start up fund operated by Enterprise Ireland; and if he will make a statement on the matter. [32100/14]

Richard Bruton (Dublin North Central, Fine Gael)
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Enterprise Ireland offers a range of financial and non-financial supports to assist companies through all stages of the business development cycle. Enterprise Ireland’s Competitive Start fund is aimed at accelerating the development of High Potential Start-Up companies (HPSUs) and creating a strong pipeline of HPSUs. Enterprise Ireland piloted the Competitive Start Fund in 2011 which aims to provide early stage companies with critical funds to test the market for their products and services and progress their business plans for the global marketplace.

Under the terms of the Competitive Start Fund, start-ups receive an equity investment of €50,000 for a 10% ordinary equity stake by Enterprise Ireland matched by €5,000 of promoter’s equity. In addition to funding, each start-up is provided with an experienced business mentor to provide support. The application process has been designed and improved to be fast and efficient to allow the new start-ups to concentrate on validating their business concept and getting to market entry stage as quickly as possible.

The Competitive Start Fund is an early stage proof of concept fund and is designed to help companies reach key commercial and technical milestones, for example, it allows companies to:

- Build prototypes and develop market entry plans or identify suitable channels to international markets.

- Evaluate overseas market opportunities and reach firm conclusions regarding the viability of the proposed business.

- Secure partnership deals or strategic alliances.

- Get to “product-market-fit” stage by validating the sustainability of the business proposition.

- Get to “investor ready”, stage where the company is in a position to secure third party investment through, for example, Seed Fund, Venture Capital and business angels.

Of the 237 projects supported through the Competitive Start Fund to date, five are from County Westmeath but there has not been a successful project from County Longford as yet. Because projects supported under this fund are at a very early stage and, in many cases, still have to prove that there is a scalable business opportunity Enterprise Ireland does not track the number of jobs supported. When projects reach the next stage of development and are designated as “High Potential Start-ups” Enterprise Ireland then collects data on the number of jobs supported.