Written answers

Thursday, 9 June 2016

Department of Jobs, Enterprise and Innovation

Seed Capital Scheme

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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238. To ask the Minister for Jobs, Enterprise and Innovation the level of take up of seed and venture capital scheme in each year since its establishment; the number of jobs supported; and if she will make a statement on the matter. [15288/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Successive Governments have invested in the domestic venture capital sector over the last twenty years. This investment has sought to increase the availability of risk capital for SMEs to support economic growth through the continued development of the Seed and Venture Capital industry in Ireland, thereby achieving a more robust, commercially viable and sustainable sector.

As part of Budget 2013 the Government committed €175 million to the Seed and Venture Capital Scheme 2013-2018, with a target to leverage a further €525 million from the private sector making €700 million in additional capital available to high growth SMEs. Following the conclusion of an extensive and in-depth evaluation, the first call for expressions of interest under this scheme has concluded and commitments of €109.5m were made to a number of funds in the technology and life science sectors. This includes an investment of €10m towards the Business Angels co-investment between Enterprise Ireland and the European Investment Fund announced today. The successful funds have closed, completed fundraising and commenced investing in companies. All investment activity for 2015 will be reported in the Enterprise Ireland Annual Seed and Venture Capital Report 2015.

In June 2015, a second call was announced for expressions of interest focused on early stage with a strategy of investing in Irish start-ups. The specific objective is to ensure there is sufficient seed capital in the Irish market to meet demand and to support company creation and commercialisation of research. The deadline for expressions of interest for this process is 31 July 2015. Enterprise Ireland evaluated the expressions of interest received against the published criteria and has made total commitments of €65m to 7 fund managers with a number of funds expected to launch in the near-term.

In addition, funds in receipt of investment under the Seed and Venture Capital Scheme 2007-2012 are still actively investing. A third call for expressions of interest under the Seed and Venture Capital Scheme 2007-2012 was issued in July 2012. As a result of this call the €50 million Frontline Ventures Fund I, €20m SOSventures Fund and the €6m Hoxton Ventures Fund were established and each of these funds are active in the market and actively investing.

Under these Schemes a minimum of double Enterprise Ireland’s commitment must be invested in Irish companies over the lifetime of each fund.

Since inception, the funds supported under this Scheme have drawn down the following amounts from Enterprise Ireland;

2006200720082009201020112012201320142015
€3.3m€6.3m€7.5m€12.5m€13.4m€18.5m€24.9m€21.0m€16.3m€16.1m

The following table outlines the economic profile of the companies in receipt of investment as of the year end 2015.

TypeDirect IRL Employment (FTE)TurnoverExports
Main VC Funds1,163€150.9m€142.9m
Seed VC Funds1,167€239.7m€110.4m
Grand Total2,330€390.6m€253.3m

The annual Enterprise Ireland Seed & Venture Capital Report will be launched on 14thJune 2016. The report highlights that under the 2007–2012 Programme, Enterprise Ireland committed €175 million to continue to develop the seed and venture capital market in Ireland. Up to December 2015, fourteen new funds were launched with an Enterprise Ireland commitment of €174 million. It further noted that in 2015, venture capital funds in receipt of commitments under the Enterprise Ireland Seed and Venture Capital Schemes made 144 investments in Irish based companies, with a total investment value of €54 million.

The report will be available on the Enterprise Ireland Website on publication.

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