Sowing the seeds of success: How founders should approach early-stage funding

Although there are more players than ever in the seed capital market, global uncertainty is making investors nervous. Frank Dillon reports

Those seeking seed funding should understand that not all money is good money and that company founders should do due diligence on investors just as investors do on them.

Founders with high-potential ventures often struggle to find the first stage of funding to get their businesses off the ground. That burden has become somewhat easier in the Republic in recent years, however, due mainly to a range of Government supports, along with additional involvement from the private venture capital sector.

Foremost among the State supports is the Seed and Venture Capital Scheme, administered by Enterprise Ireland. Over the past 30 years, this scheme has resulted in Enterprise Ireland becoming the largest venture capital investor in Europe, with analysis showing this has had a significant impact on investee firms in terms of employment, R&D expenditure, company valuations and the likelihood of securing follow-on funding. Its latest allocation for the period 2025-2029 is for a record €250 million.