Talk the talk

FERGAL MCCANN of InterTrade Ireland’s Equity Network, a support programme for businesses looking for private equity funding, talks to David Clerkin.

Tell me about your Seedcorn competition.

We’re trying to find early-stage businesses from all over the island of Ireland that are trying to find private equity - someone else’s money - to help them grow and deliver a return for investors. The competition gives them the opportunity to win money for their business and, more importantly, learn from the experience of trying to prepare a business plan to attract investment. The reality for high-growth businesses is that they find it hard to get bank debt. Private equity is a more suitable form of financing.

Businesses who enter the competition - what’s in it for them?

There’s a total prize fund of €230,000. The overall winner gets a cash award of €100,000 to inject into their business. We’ve deliberately broken the country down into seven regions - which will really help businesses based outside Dublin or Belfast. Whether you’re from Cork, the West, Northern Ireland or Leinster you’ll have much the same chance of making it to the final. The vast majority of venture capital funding goes to businesses in Dublin and Belfast - this is an effort to bring investment to the regions too.

How do businesses get involved in this year's competition?

Last year we received 200 business plans. Registrations are still very strong this year, but Cork as a region is lagging behind the others, so we’d encourage businesses there in particular to get involved. A lot of people don’t enter these competitions because they think they’re not going to win. But every business that enters will gain experience in the process of making potential investors more comfortable. The competition replicates the real world of selling your company to investors.

Businesses can register online at www.intertradeireland.com. They'll receive guidelines on what their full business plan should look like. We should receive business plans by September 30. The best plans will get to the regional finals, with the all-island final being held in Newry on December 8. We’ll provide each entrant with individual feedback on how to improve their business plan.

And last year’s overall winner was from Cork?

Yes - Luxcel, a bioscience company that grew out of UCC. It’s collaborating with Pfizer on a simple drug delivery system that adds value to Pfizer’s systems. Luxcel’s high-level science makes Pfizer more efficient in drug discovery - it saves them money and accelerates their products to market.

What are the key questions to answer in a business plan aimed at investors?

Show the investor what you can do for them with their money. Say how much you need, what you’ll do and how long it’ll take you. Describe too how you’ll give the investor their money back, along with the interest and return to compensate them for taking a risk on you.