Start up businesses were given a major boost today at the launch of a new €1 million seed fund, set up for industries across the mid-west.
The Enterprise Ladder Fund (ELF), funded by JP McManus and other private investors, has been set up through Limerick Institute of Technology.
The fund, which was announced by the Minister for Finance Michael Noonan, will allow qualifying companies to receive funding of between €10,000 and €25,000.
Investors hope to make a big return on their investment while benefitting from tax incentives.
"I want to congratulate LIT on developing this fund...Start-up companies are key to our ongoing economic recovery and the ELF will provide critical support for qualifying companies at LIT and wider region as they seek to get their businesses up and running," Mr Noonan said.
The ELF will provide early stage financial equity for start-up companies already based at LIT's Enterprise Acceleration Centre, and to start-up firms in the greater Limerick region.
The fund was instigated by LIT's Thought Leadership & Advisory Group earlier this year as part of its ongoing endeavours to stimulate job creation.
The college has already secured €350,000 of the targeted €1 million through philanthropic contributions from donors around the region.
It's hoped the remaining two-thirds of the fund will be secured by the end of the year through similar, tax-incentivised means.
"Accessing early stage funding is a significant challenge for start-up companies and the ELF will bridge that gap for many start-ups at our centres in this region," added Dr Maria Hinfelaar, LIT president.
Donors who have already contributed to the ELF are the JP McManus Foundation; Analog Devices; Grant Thornton; Holmes O'Malley Sexton; BDO; Limerick Chamber of Commerce; and Ryan Group Holdings.
Meanwhile, Irish Technology Capital (ITC) – a silicon valley based venture capital fund created by Irish Diaspora technology leaders and investors – confirmed it is to locate its European headquarters in Limerick City.
ITC was established by technology entrepreneurs John Hartnett and John Ryan.
The company will aim to provide a major stimulus and opportunity for emerging technology companies.
ITC's EU base will be based out of LIT's Enterprise Centre and will bring a range of services and supports for high-potential companies, including access to a multi-million euro fund and to a wider network of US based Angel Funds and later stage investment.
