Start-up businesses were given a major boost yesterday at the launch of a new €1 million seed fund, set up for industries across the midwest.
The Enterprise Ladder Fund, provided by JP McManus and other private investors, has been set up through Limerick Institute of Technology.
The fund, announced by 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 benefiting from tax incentives.
“I want to congratulate LIT on developing this fund,” Mr Noonan said. “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.”
The fund will provide much-needed early-stage financial equity for start-up companies already based at the institute’s Enterprise Acceleration Centre, and to start-up firms in the greater Limerick region.
The college has already secured €350,000 of the targeted €1 million through philanthropic contributions from donors around the region. It is hoped that 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,” LIT president Dr Maria Hinfelaar said.