Enterprise Ireland has sent initial letters of acceptance to at least 11 venture capital firms who applied for €75 million (£59 million) public funding under a plan to develop high-tech start-ups in the regions.

The venture companies will match State funding with an equal amount of private investment, making €150 million available to regional firms.

The identities of successful applicants for the funding have not been released but it is believed to include many of the top-tier venture capital firms in the State.

Delta Partners, Trinity Venture Capital and Act Venture Capital are all thought to have received initial acceptance letters. Final negotiations on the precise details of the funding contracts may take between four and six weeks to conclude.

If any of the successful applicants pull out of the plan, other applications will be considered by Enterprise Ireland.

More than 30 firms and investment bodies applied for the funding, which will be supplied by the Exchequer under the National Development Plan.

"There was a very strong interest in the funding, much more than for previous schemes," said Mr Gerry Maloney, a senior executive with Enterprise Ireland.

"We have given a strong preference (to applicants) which focus on regional funds and different investment sectors such as biotechnology."

The level of support that each venture fund will receive from the public purse will depend on which industry sector and geographical area it is targeted at.

When the investments are realised by each successful fund, Enterprise Ireland will receive a cheque for the value of its own investment under the plan.

Under a previous scheme co- funded by the European Union, Enterprise Ireland allocated almost £30 million to venture capital firms, which put up the same amount of their own money.

This funding was committed by the end of 2000, and by August 2001 these funds had returned £24.5 million. Enterprise Ireland's portion of this return is being redistributed.

Figures published today in The Irish Times show there is no shortage of venture capital in the Republic, but Enterprise Ireland believes it has been disproportionately targeted at Dublin.

The €75 million venture fund will form part of Enterprise Ireland's three-year strategy for regional development announced earlier this year.

The State body has has set a number of specific targets over the next three years, including the establishment of 50 new start-up companies in the regions.

In addition, it is seeking 30 expansions of Dublin-based companies into the regions and to assist 150 companies from outside Dublin to become exporters for the first time.

Over the next three years, in excess of 30 per cent of Enterprise Ireland's financial supports to companies will be committed to projects in the Border, Midland and Western region.

This region currently accounts for 20 per cent of the total output by Enterprise Ireland client companies. The body will also make 360 major investment commitments outside the Dublin area.