In collaboration with academia, Bank of Ireland focuses its third-level funding on export-oriented, high-potential startups
BANK OF Ireland has a strong record of investing in innovative Irish companies and since 2000 has committed over €101 million in venture capital to developing Irish companies. Since 2002 it has established a number of separate seed and venture capital funds in association with Kernel Capital in recent years. Kernel is one of Ireland’s largest and most active venture capital funds. The firm has a portfolio of investee companies across technology, life science and general industry.
The first fund, the €27 million Bank of Ireland Kernel Capital Equity Fund, Kernel Capital’s first fund, was established in 2002. This Fund has made multiple investments in a portfolio of nine companies since then. The second Bank of Ireland Kernel Capital Equity Fund makes investments in the range of €2 million to €5 million and larger investments can be made via syndication with others. This Fund has made three significant investments since last October and is still seeking suitable investments.
The Bank of Ireland Seed and Early Stage Equity Fund was launched in late 2009. This €26 million fund, also managed by Kernel Capital, is supported by Enterprise Ireland and the University of Limerick Foundation and invests in start-up and early stage companies with investments in the range of €100,000 to €500,000.
The fund’s focus is on export-oriented high potential start-ups that operate in the technology, green tech, food and financial services sectors, in addition to supporting research-based projects in Irish universities.
Speaking at the launch of the fund Professor Don Barry, president of the 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 fourth-level research to contribute to the future growth of Ireland’s smart economy.”
Niall Olden, managing partner of Kernel Capital added: “This fund addresses a gap in the market for investments of €500,000 and below. It will operate synergistically with our existing Bank of Ireland venture capital funds which currently target investments in the €500,000 to €5 million range.”
“In the current economic climate, supporting high potential start-ups, university spinouts and more developed companies is central to Ireland’s economic recovery and growth,” says Donal Duffy, head of Enterprise Ireland relations with Bank of Ireland. “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.”
As at November 2010 a significant number of enquiries have been received regarding the Seed and Early Stage Equity Fund. Enquiries are being received from start-ups across the country. Some 62 per cent of the applications are from Enterprise Ireland high potential start-up (HPSU) companies and a further 19 per cent are described by Enterprise Ireland as pre-HPSUs.
