ENTERPRISE IRELAND'S Seed and Venture Capital programme has raised €500 million for investment in early stage companies rather than the €1 billion targeted when it was launched.
The Government earmarked €175 million for the 2007-2012 fund which it launched two years ago. The programme, which is administered by Enterprise Ireland, makes investments in local venture capital funds, provided they raise an agreed amount of private sector funding.
In May 2006 the Government announced its biggest ever commitment to venture capital and said its €175 million could make €1.5 billion available if international VC funds participated.
To date, €148.75 million has been committed to eight private funds which have just over €500 million available for investment, including the Government contribution. All of the investment firms are based in Ireland.
Delta Partners, AIB Seed Capital Fund, Atlantic Bridge Ventures, Kernel Capital Partners and Fountain Healthcare Partners have completed a first closing of their funds. Enterprise Ireland says it has committed backing to another three unnamed funds.
Enterprise Ireland is still confident that over €800 million will be available to Irish firms through the programme according to Neil O'Donnellan, head of investment services with the State agency.
"We are still targeting €1 billion but that is challenging in the current environment," he said.
He added the first closings by the five funds was "a milestone rather than an end", and typically the firms would expect to raise at least an additional 20 per cent at their second closing. Yesterday, Enterprise Ireland confirmed that €30 million was still available for co-investment. Investment funds that can independently raise €30 million of their own money are eligible to seek investment under the programme.
