€175m fund for high-growth firms

The Government has launched a €175m seed and venture capital scheme that can be drawn down over the next five years and is aimed at high-growth innovative companies.

The initiative was launched by Jobs, Enterprise and Innovation Minister Richard Bruton, who wants a further €525m to come from the private sector in order to create a combined €700m fund.

“While the multinational sector is and will remain crucial to our industrial strategy, I am determined to ensure that we also support the creation of a powerful engine of Irish enterprise that can sustain and create the levels of employment we need,” said Mr Bruton.

“A key part of the Government’s plans to support Irish businesses is to provide access to credit for a range of different types of businesses, from micro-enterprises employing fewer than 10 people up to mid-sized and large engineering companies in need of development capital.”

The Government plans to advertise the fund from this weekend onwards across the national press. It is expected that the average initial investment made from the fund will be roughly €2m.

It is primarily aimed at the informational and communication technology (ICT) sector, life sciences, high- tech manufacturing and the green economy.

The scheme’s first phase will see €100m made available to venture capital firms specialising in the ICT and life science sectors.

The initiative is an attempt by Government to get credit flowing in the economy. Since the financial sector collapsed in 2008, Irish corporates have been starved of credit and proper working capital facilities.

The Department of Finance is using Ireland’s EU presidency to promote non-bank funding across the eurozone. This announcement follows €850m targeted at SMEs through three funds and part-financed by the National Pension Reserve Fund. There is also a €450m credit guarantee scheme backed by Government and a €225m development capital scheme.

“I am convinced that with the right supports we can ensure that high-growth Irish companies can make a major contribution to sustaining the progress we have seen with the Action Plan for Jobs over the past two years and creating the jobs we need,” said Mr Bruton.