Venture capital fund targets college research

DOLMEN Securities and Enterprise Ireland have set up a venture capital fund to back companies spun from university research projects.

The 4th Level Ventures fund has raised €20 million to invest in Irish companies and commercial research project development at third level institutions.

Enterprise Ireland are providing €8.6 million of the finance for the venture with the remaining money coming from clients of Dolmen Securities.

There are two parts to the fund: one for investing in more mature companies with proven products and revenue and a second seed fund for start-up companies which have been developed out of Irish colleges and universities.

The funds will target companies in the communications, technologies and life sciences sector.

The venture was launched yesterday by Tánaiste Mary Harney, who said investing in early-stage companies and developing intellectual property in Ireland was necessary if the economy was move to the next level.

“In order to strengthen this position, the Government has substantially increased investment in research and development activities in the third level sector under the National Development Plan.

The commercialisation of technology from this research base is vital. Successful commercialisation will result in the emergence of the next wave of internationally competing Irish companies in cutting edge sectors,” Ms Harney said.

She added: “Intellectual Property is the key asset in this knowledge economy. The exclusive focus of this fund on investing in companies whose Intellectual Property arises from third level education institutional research addresses the barrier of availability of finance to knowledge-based, research-driven companies.”