Irish-based life sciences companies are poised for a multi-million euro boost, after a leading US healthcare venture capital fund said it would establish a presence in Ireland.

As part of the Innovation Ireland Fund, Enterprise Ireland and the National Pensions Reserve Fund are investing $37.5 million to Sofinnova Ventures' latest fund, worth $440 million and focused on life sciences.

Enterprise Ireland has committed $25 million and $12.5 million has come from the NPRF. EI has certain conditions for investment, however, one of which is that the VC funds must match its investment to support Irish companies or firms with significant Irish operations.

"Enterprise Ireland regards the Innovation Fund programme as very important as it attracts international venture capital funds to establish a presence in Ireland and complement the VC sector for the benefit of Irish SMEs and the innovation ecosystem," said Garrett Murray, senior investment advisor with Eneterprise Ireland

Sofinnova Ventures, which has more than 40 years of experience of working with start-ups and corporate spin-outs, will also open an office here, which could create further opportunities for growing Irish firms.

Minister for Jobs, Enterprise and Innovation Richard Bruton made the funding announcement in Silicon Valley.

"Developing a dynamic venture capital industry in Ireland is a key part of this Government's growth strategy. Venture capital funds provide crucial funding, as well as mentoring and advice, to early-stage high-potential companies in key high-growth sectors," Mr Bruton said.

"Healthcare and life sciences is a sector which the Government has identified as having potential for high levels of employment growth, and today's announcement will mean that more high-growth Irish companies can meet this leading life sciences fund."