Yesterday the Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, T.D. launched the Bank of Ireland Seed and Early Stage Equity Fund. This €26m Fund will invest in start-up and early stage companies, with a focus on export orientated high potential start-up companies that operate in the technology (including green technology), food and financial services sectors, in addition to supporting patent and patent pending projects within Irish universities. It will be managed on behalf of Bank of Ireland and the other partners by Kernel Capital.
This new fund is the eighth new fund supported by Government through Enterprise Ireland’s Seed and Venture Capital Programme 2007-2012. It comprises an investment by Bank of Ireland of €17m, €8m from Enterprise Ireland, and €1m by University of Limerick Foundation (ULF). Today’s announcement will increase the funds under management by Kernel Capital and its Life Science associate firm Seroba Kernel to €190m.
Making the announcement the Tánaiste said: “I am delighted to announce the launch of this new fund by Bank of Ireland as part of the Government’s bank recapitalisation initiative, marking a significant increase in the supply of seed capital available for new Irish businesses and campus spin-out companies. A healthy seed and venture capital environment is absolutely essential for stimulating the growth of new and innovative businesses that have real potential to grow and expand into export markets. This fund underpins Enterprise Ireland’s strategy to stimulate entrepreneurship and increase the flow of new high potential start-ups which are the life blood of a thriving indigenous business sector. Funding is critical, and Enterprise Ireland is working closely with the banks, the venture capital sector and the European Investment Bank to secure finance for Irish businesses.”
Welcoming the Tánaiste’s announcement, Richie Boucher, Group Chief Executive, Bank of Ireland said: “In the current economic climate, supporting new high potential start-ups, university spin outs and more developed companies is central to Ireland’s economic recovery and growth. This Fund demonstrates our commitment and support to early stage companies with significant growth prospects.
“Equity finance is a key source of funding for companies at early and growth stages. This new fund will further strengthen our commitment to supporting indigenous Irish companies and adds to our extensive support of SMEs. The Fund will target investments in the range of €100,000 and €500,000. This investment reinforces the Bank’s position as one of Ireland’s leading providers of venture capital finance. Since 2000 Bank of Ireland has committed over €101m in venture capital to developing Irish companies.”
Niall Olden, Managing Partner Kernel Capital said: “This investment reinforces Bank of Ireland’s position as the largest investor in Enterprise Ireland’s Seed and Venture Capital Programme. The significance of this Fund is that it addresses a gap in the market for investments of €500,000 and below. The Fund will operate synergistically with our existing Bank of Ireland venture capital funds that currently target investments in the €500,000 to €5m range.”
Professor Don Barry, President, University of Limerick said: "Bank of Ireland’s collaboration with the University further enhances our strong links with industry and provides a catalyst for third and/or fourth level research to contribute to the future growth of Ireland’s smart economy."
