Bank seeks to accelerate development of start-ups

Bank of Ireland has selected Cork as the test bed for its first ever accelerator programme which will be home to 10 innovative start-ups from September.

In a slick office kitted-out with start-up prerequisites of a pool and football table in Penrose Wharf, the pillar bank has launched a dedicated space for entrepreneurs.

Unlike other start-up spaces and accelerators, Bank of Ireland is taking a co-op approach which will see founders contributing a 3% stake of their company to a fund in exchange for shares in the fund.

The shares will only be redeemed if the company goes on to successfully trade and employ others. If the start-up fails they will forfeit their shares in the central fund. However, if one of the companies has a successful exit, all the founders share in the benefits.

The head of SOS Venture Seán O’Sullivan, who will provide input and coaching to the companies taking part, described it as an almost socialist structure.

“Despite sounding socialist, I think that this model is in keeping with the spirit of the start-up community.”

The accelerator is being run by a non-profit basis by Startplanet Ltd.

Startplanet director and entrepreneur, Bill Liao said the unique model means they will be able to attract some of the best start-ups in the world.

Mr Liao and Mr O’Sullivan have an impressive track record in delivering accelerator programmes with their China-based hardware accelerator haxlr8r achieving an 80% success rate.

“We are unique in our approach in that we intend to adopt a ‘Founders’ Co-op’ model, which again reinforces the total commitment and focus on the participants and support of the start-up ecosystem.”

Bank of Ireland head of enterprise development, Gerry Prizeman, said the accelerator was part of the bank’s efforts to become the enterprise bank of choice.

The successful candidates will receive €10,000 in seed funding from Bank of Ireland as well as office space and mentoring from Bill Liao, Seán O’Sullivan, and Dragon Gavin Duffy.