O’Keeffe launches €85m fund for new high-tech firms

The Minister for Enterprise Batt O'Keeffe has launched a new €85m venture capital fund which will help high-tech firms in Ireland to get off the ground.

Venture capitalists provide risk capital for firms that would otherwise find it hard to raise collateral through traditional sources of finance.

The Atlantic Bridge II Fund, which is being supported under Enterprise Ireland’s Seed and Venture Capital Programme 2007-2012, will focus on high-tech firms across Ireland and Europe with strong international growth prospects.

It is expected that the fund will complete a second closing in the coming months, bringing the total fund to €130m.

The fund will be managed by Atlantic Bridge Partners which has €250m under investment.

The team is expected to invest between €5m and €20m in each firm with a typical investment cycle of five to eight years.

The fund’s backers are particularly interested in communications technology, semiconductor and software - sectors in which Atlantic Bridge already has a strong investment track record.

The fund is supported by leading institutional investors including Enterprise Ireland, European Investment Fund, Irish National Pensions Reserve Fund and a number of private investors.