Mr Barry Maloney, who last week resigned as chief executive of Esat Digifone, will join an early stage venture capital firm, Benchmark Capital.

He will join as the third general partner of Benchmark Capital's European operation which manages a $750 million (€844 million) investment fund targeted at technology start-ups.

Mr Maloney, who will continue his involvement with the Irish mobile phone operator through the post of non-executive chairman, will join Benchmark when his successor is appointed.

His responsibilities in the firm's London office will include targeting technology start-ups for investment and building management experience.

Benchmark Capital, which manages more than $2.3 billion in venture capital projects worldwide, has invested just $20 million in European technology firms since introducing its fund last June.

Mr Maloney, who made almost €50 million by selling his 2 per cent stake in Esat Digifone to British Telecom, is understood to be an investor in several Irish technology start-ups.

Speaking to The Irish Times yesterday Mr Maloney said he would help Benchmark find European entrepreneurs and enable these businesses to grow and enter the lucrative US marketplace.

"I'd be very keen that we had a good representation of Irish investments and I hope companies choose to come to Benchmark first," he added.

Over the past five years Mr Maloney has established Esat Digifone as a number two player in the mobile market, with 40 per cent market share and £400 million in revenues.

Mr Maloney's career in management was established during his time with the European operations of the firm Digital Equipment.