Written answers

Thursday, 28 June 2018

Department of Jobs, Enterprise and Innovation

Startup Funding

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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173. To ask the Minister for Jobs, Enterprise and Innovation the correct procedure to be followed by a start-up business to apply for financial assistance; the number of schemes operating that are offering financial assistance in this regard; and if she will make a statement on the matter. [28407/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Local Enterprise Offices (LEOs) and Enterprise Ireland and are the agencies within the remit of my Department which support start-ups across the country.

The LEOs are the ‘first-stop-shop’ for advice and guidance, financial assistance and ‘soft’ supports for anyone wishing to start their own business. The LEOs may offer direct financial assistance to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sectors which, over time, have the potential to develop into strong export entities.

LEO grant support schemes for start-ups include Priming Grants (available to micro enterprises within the first 18 months of start-up and may be paid to buy new equipment and assist with direct business costs such as salary, rent, utilities, marketing and consultancy). The LEOs may also offer a Feasibility Study Grant, the aim of which is to assist start-ups with the cost of researching a new business idea to establish viability and sustainability.

The LEOs may also provide a Technical Assistance for Micro Enterprise Grant which can enable clients to explore and develop new market opportunities. It supports participation at trade fairs, the development of specific marketing materials and to investigate new internal or external processes to develop export business.

Anyone who wishes to apply for LEO financial assistance should contact their LEO who will assess the applicant’s eligibility in line with certain criteria including the potential for employment and sales growth. Once the application has been assessed, a meeting will be arranged with the LEO and the applicant to discuss the business proposal. The application will then be evaluated by the LEO Evaluation and Approvals Committee and the applicant will be informed of the decision in writing.

Anyone with a viable business proposal can make an application through their LEO to MicroFinance Ireland (MFI), which offers loans of up to €25,000 to start-ups with viable business propositions that do not meet the conventional risk criteria applied by the banks. Further information on any of the schemes can be found atwww.localenterprise.ie  

Enterprise Ireland (EI) supports companies in regional and rural areas to start, innovate and remain competitive in international markets, now and into the future. EI actively works with High Potential Start-Up (HPSU), companies with the potential to develop an innovative product or service for sale in international markets and the potential to create 10 jobs and €1m in sales within 3 to 4 years of starting up. In 2017 Enterprise Ireland supported 90 HPSUs with an equity investment.

EI’s HPSU Team works with start-up companies to ensure that they can avail of supports that reflect the stage of development of the business and the type of activity in which the business is engaged. Each year EI provides early stage advice and direction to over 950 entrepreneurs and provides some level of early stage funding to over 450 Start-Up businesses. The Start-Up Enquiries Team guides potential HPSUs towards supports most relevant to them and are the first port of call for a prospective HPSU. This Team will advise on what is required to develop and scale a business.

In addition to their head office in Dublin, Enterprise Ireland has a national network of nine regional offices throughout Ireland. These offices are located in Dundalk, Letterkenny, Sligo, Galway, Athlone, Shannon, Tralee, Cork & Waterford. Further information and detail on the schemes is available on EI’s website –www.enterprise-ireland.com

The supports EI makes available to HPSUs are presented in the Table below:  

Enterprise Ireland Start-Up Supports
SupportDescriptionMethod of Application
HPSU Feasibility Grant Used to support the development of an innovative/high potential start-up and the development of an Investor Ready Business Plan. Eligible costs include; Salaries and Overheads, Consultancy Fees, Foreign Travel and Subsistence, EI approved Business Accelerator Fees, Trade Fair costs and Prototype costs.Contact your Enterprise Ireland Adviser and apply via the Online Application Tool
New Frontiers Entrepreneur Development Programme New Frontiers is Ireland’s national entrepreneur development programme run in partnership with the Institutes of Technology.  The programme is designed to support entrepreneurs with innovative business ideas who are planning to establish and run their own company.Various call dates throughout the year. Two phases: Phase 1 is run over several evenings – no financial assistance given.

Competitive call for Phase 2: Stipend of €15k given to successful applicants. Applications managed through individual IOTs
Mentor GrantUsed to support the cost of a Mentor Assignment. Enterprise Ireland can match you with an experienced business mentor to assist you in your start-up phase or advise on specific areas of your plan.Contact your Enterprise Ireland Adviser and apply via the Online Application Tool
Innovation Voucher

Innovation Vouchers, worth €5,000, are available to assist early stage companies to work with a registered college or knowledge provider in Ireland and Northern Ireland to explore a business opportunity or solve a technical problem.Various call dates throughout the year and apply via the Online Application Tool.
Competitive Start Fund (CSF) A €50k equity investment designed to accelerate the development of high potential start-up companies by supporting them to achieve commercial and technical milestones such as evaluating international market opportunities or building a prototype. Various call dates throughout the year.
Innovative HPSU Fund (Equity)The Innovative HPSU Fund allows Enterprise Ireland to offer equity investment to HPSU clients, on a co-funded basis to support the implementation of a company’s business plans. First time and follow-on equity investments in HPSUs are supported under this offer.Contact your Enterprise Ireland Development Adviser
Regional AcceleratorEI has invested in 4 Accelerators on a pari passu basis with the private sector. The vision of the Accelerator Development Scheme (2015-2017) is to increase the number of Accelerators that are operating in the Irish market to support the commercial development of entrepreneurship, company creation and job creation in all sectors ICT, Medtech and, Aviation and Aerospace technologies.Various call dates will commence in Q3 2018 for the next cohort selection.
Seed & Venture Capital FundsEnterprise Ireland has also invested in a number of Seed & Venture Capital Funds in the General technology and Lifesciences sectors.  These funds invest equity in a range of high growth companies with global potentialThere are a number of currently supported list of Seed & Venture Capital Funds which is available from our Seed and Venture Capital 2017 Report.

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