Enterprise Ireland has launched a new investment offer to meet the needs of early-stage start-ups.
The State agency’s new Pre-Seed Start Fund offers start-ups support of €50,000 or €100,000, in the form of a convertible loan note. The funding is intended to convert into equity on a future priced round with a 20pc discount.
Enterprise Ireland said the new funding is designed for high-growth, early-stage start-ups, particularly those in the manufacturing and internationally traded services sectors.
The new fund is part of the agency’s strategic ambition to increase the number of high-growth start-ups in Ireland.
Enterprise Ireland CEO Leo Clancy said the new fund is “an important and timely strategic intervention. This builds on the extensive range of supports available to assist entrepreneurs and start-up teams to take those critical first steps in establishing and developing innovative new high-growth businesses with international potential.”
Successful applicants will be supported by a development adviser in their sector. Other start-up supports include market insights, mentoring, and access to a wider business network and to the Enterprise Ireland Market Research Centre.
The new fund follows on from consultation with entrepreneurs and stakeholders in the start-up ecosystem. Clancy said that hearing about the needs of new businesses has resulted in an “enhanced offer for early-stage entrepreneurs. The new Pre-Seed Start Fund, in conjunction with the Enterprise Ireland broader range of services for start-ups, responds to current market needs and provides entrepreneurs with an attractive financial offering to help accelerate their start-up business plans.”
Applications for the fund will be assessed by considering the objective of the offer, the required criteria, the start-up’s development stage and its business potential.
A number of application support workshops for the Pre-Seed Start Fund will be held online over the coming weeks.
In 2021, investment platform PitchBook named Enterprise Ireland the world’s most active venture capital investor by deal count, after making more than 350 investments in 2020.
Last month, the State agency also hit the top spot in a PitchBook ranking of European domestic VCs – with 42pc more deals than the second-placed investor.
Source: Silicon Republic