Technology start-ups stifled by lack of funding

TECHNOLOGY start-ups are being starved of vital funding and government action is required to counter the deficit warned the Irish Software Association last night.

In a pre-budget submission, ISA said the next wave of Irish companies is being stifled by a lack of proper funding and has called for urgent action. To deal with the problem, the ISA has called on the Government to raise the ceiling on amounts which are available to companies under the Business Expansion Scheme and Seed Capital Scheme to 2 million. ISA chairman Paul O’Dea said “the present limits have become unrealistically low and out of touch with the capital requirements of today’s start-

up companies.” Because of the high risk nature of start-ups in the current business climate, “venture capital funding is proving almost impossible to secure for early start-ups in the sector.” Even in the changed circumstances and a much tighter fiscal climate, Mr O’Dea said that supporting the sector still made sound economic sense. Ultimately it would result in net gains to the Exchequer through the creation of high added value and additional revenues in the years ahead.