More than money for Seedcorn firms

An investment programme offers cash prizes and much more to developing companies, writes Trish Dromey.

As September rolls around again, students are packing their schoolbags while seedcorn hopefuls are working on their business plans.

At stake in the InterTradeIreland Investor Readiness competition is a €280,000 prize fund — which offers €100,000 to the overall winner, €50,000 to the category winner, six prizes of €20,000 for regional winners and one prize of €10,000 awarded for best spinout or support programme.

Operating in Munster; Dublin (city and county); Connacht/Leinster; and Northern Ireland, the new start category is open to companies under five years old seeking equity of under €300,000, while the early stage category can be entered by companies, also less than five years old, seeking amounts over €300,000.

Tempting as the cash on offer may be, it is, according to Seedcorn programme manager Connor Sweeney, at the bottom of the list of benefits.

“The competition is unique in focusing on making the competitors investment-ready. The key benefits are the independent qualified feedback on business plans at all stages, engagement with the investment community, North and South, and the help provided in structuring business plans” he says.

At present, 170 companies in the four regions are working on business plans which are due for submission next month. These were selected from the 286 which entered the competition in March and Mr Sweeney is expecting a high percentage of these to submit plans by the deadline on September 4.

All 170 were invited to attend a full-day business planning workshop to help prepare. Following submission all will receive the benefit of feedback from a panel composed of investors and entrepreneurs. Mr Sweeney says the benefits are even greater for the 24 companies which make the shortlist to take part in the four regional finals.

“Each of the shortlisted companies is given the opportunity to attend a masterclass to assist them in the preparation of their pitch. The masterclass is a key element of the competition. The participants get no-holds barred, honest feedback from a panel of experts and the chance to polish their pitching skills,” he says.

At the regional finals in November, the shortlisted companies will get to make their newly improved pitch and present their honed business plans to a panel of judges which includes representatives from the investment community and successful entrepreneurs.

Mr Sweeney says that the Seedcorn competition mirrors the investment process.

“Those who get to the finals are seen by seven investors. No one else gets the opportunity for that level of engagement with investors.”

He says that other benefits for all the shortlisted companies include comprehensive publicity, networking opportunities, improved pitching skills, feedback on their business plans and investor engagement.

Two finalists from each of the regions, one early-stage and one new-start go through to the final. Attended by a high number of investors, the final offers good networking opportunities and publicity for all finalists; as well as cash prizes for the winners. Last year the €100,000 prize in the early-stage category was collected by Cork company Aventamed while Dublin medical device company TruePivot took the €50,000 prize.

“Since the inaugural competition in 2004, 2,373 companies have submitted an application and availed of the expert advice on offer,’’ says Mr Sweeney.

He says that over the last 11 years, the Seedcorn regional finalists have collectively raised over €194m.

For this year’s hopefuls who are now putting the final touches to their business plans he has some words of advice.

“Keep the plan brief, avoid industry jargon, include market research, provide all the necessary financials — including turnover projection — and clearly indicate exactly how much money is needed and what it is needed for,” he says.

He says the pitfalls are producing business plans that are too technical, using acronyms, including too many appendices and by being vague and elusive with figures.

intertradeireland.com/seedcorn