With €100,000 to be won, start-up and emerging companies can't miss the Seedcorncompetition
TIME IS running out for companies to enter InterTradeIreland's annual Seedcorn Competition. The competition not only offers start-up and emerging companies the opportunity to win valuable cash prizes of up to €100,000, it also assists them in raising equity finance from other sources. Indeed, since its establishment six years ago, finalists in the competition have raised more than €65 million in equity finance between them.
Open to companies from both sides of the Border, Seedcorn is Ireland's biggest business competition for early-stage companies. This year, the competition has a record prize fund of €280,000 with €100,000 going to the overall winner in the emerging international company category.
The competition is aimed at new, independent ventures established on the island in the start up or early stages of their development. For this year's competition, the business must not have been in existence for more than three years - for emerging company category - or five years - for emerging international category - at the closing date for entries at 1.00pm on September 26th. Businesses entering the competition need to write a business plan, which must be submitted to InterTradeIreland by September 26th.
The companies presenting the top plans in each region - Dublin, Belfast, Cork, Northern Ireland excluding Belfast, Leinster excluding Dublin, Munster excluding Cork, Connacht and counties Cavan, Monaghan and Donegal - are then invited to make a short presentation to a panel of judges and the winner from each region goes forward to the all-island final in Belfast in December.
Entrants are divided in two categories - Emerging business and Emerging International business. Regional winners in each category get a cash prize of €20,000 while the eventual overall Emerging business winner gets a prize of €50,000 with €100,000 going to the Emerging International business winner. A special award of €10,000 is also given to ventures stemming from university spin out companies or companies stemming from Enterprise platform programmes.
The origins of the competition go back to research carried out some years ago according to Seedcorn Programme manager Grainne Lennon.
"We found that not only was there a lack of capital out there for early stage companies there was also a lack of investor ready companies", she explains. "The aim of the competition is not only to give companies a helping hand through winning one of the prizes but to help them improve their investor readiness. Being a finalist or a winner in the competition is a very good calling card for companies when they are looking to attract equity finance."
The competition is a bit like TV's Dragon's Den show but "without the drama" says Lennon. "Each entrant must submit quite a detailed business plan and these are shortlisted with a final three in each category going forward to the regional finals. Each finalist gets about 15 minutes to make their investment pitch to the panel of judges. The judges are usually successful entrepreneurs or venture capitalists and after the companies make their pitch they then go through the business with the finalists in a question and answer session which lasts around 25 minutes."
This session often proves highly beneficial to the entrants as they get insights from the judges into the strengths and weaknesses of their business plan and where they might be going wrong.
The regional winners get an opportunity to further refine and revise their investment pitch at a master class in advance of the overall final in Belfast on November 27th.
Of course, not every entrepreneur is adept at writing a business plan. InterTradeIreland (ITI) recognises this and offers a specially designed methodology known as the Business Cube to help them put together an attractive plan for potential investors. The Business Cube is a simple and intuitive tool to aid in business planning. It outlines the key information components investors look for when evaluating investment opportunities.
"As a general rule, the business plan should be structured in four parts - executive summary, main text, schedules containing financial information and detailed appendices to support the main text," says Lennon.
"You need to think holistically about your business, even at the concept stage. Your plan should allow for refinement; updating and changing as you move to the next stage of your business idea."
"Investors want to see that you can make sensible changes to your plan to achieve business results, and the Business Cube focuses on the elements of particular interest to investors."
Indeed, the business planning process is central to the whole Seedcorn programme.
"The question and answer sessions with the judging panels can be quite robust," says Lennon. "This helps the entrants sharpen up their business plans and thus make their businesses more investor-ready. We also offer a masterclass to all of the overall finalists to help them tighten up their plans further. In addition, we give detailed feedback to any entrants who request it."
She points out that it is not too late for companies to enter the competition.
"There is still some time left before September 26th. You can download the Business Cube tool from seedcorncompetitiion.com and this will help develop the business plan. The competition is well worth entering and not just for the prize money."
"Just going through the entry process helps companies to raise capital later on and we have even had situations where judges have invested in entrant companies."
To enter the Seedcorn Competition, register online at www.seedcorncompetition.com or tel: 048-30834151
