Enterprise Ireland Launches Seed and Venture Capital Report 2006

According to the new report, venture capital investment in Ireland continued to increase in 2006.

Funds supported by Enterprise Ireland investing €67m in the year, an increase of €17m on 2005. €32m was invested in initial "first time" investments, with €35m invested in follow-on investment in companies that had already received funding.

This brings total investment by Funds supported by Enterprise Ireland for the Seed and Venture Capital Programme 2001-2006 to €250m. Over 37 per cent of the total investment was made in companies outside of Dublin.

Welcoming the report the Minister for Enterprise, Trade and Employment, Micheál Martin, TD, said, "The Venture Capital Sector has made a significant contribution to the success of many SMEs and the continuing increase in venture capital activity in Ireland is to be welcomed.

"The sector provides a vital source of funding for early stage and growing Irish companies.

"Over the coming months we can look forward to the establishment of several new Funds under Enterprise Ireland's €175m Seed and Venture Capital Programme 2007-2012."

Launching the report Enterprise Ireland's Executive Director Feargal Ó Móráin noted that, "2006 represented a strong year for the Venture Capital sector in Ireland.

"A dynamic and healthy venture capital market is a prerequisite for the growth and development of high potential start-up companies in Ireland.

"Enterprise Ireland will continue to support SMEs through investment in seed and venture capital funds and also through Enterprise Ireland's broad range of business development and financial supports."

The 2006 Report highlights several important trends and factors, including:

• The total sum invested by Enterprise Ireland funds supported by Enterprise Ireland in 2006 was €67m.
• The total invested by funds supported by Enterprise Ireland under the 2001-2006 Seed and Venture Capital Programme is over €250m.
• The sectoral breakdown for the 2001-2006 Venture Capital Programme shows that cumulative investment by value to year-end December 2006 decreased in the Software (-55%), Life Sciences (-16%), Communications (-24%), and Food and Manufacturing (-5%) sectors.
• 2006 saw continued increases in the amount of follow-on investments being made by venture capitalists.

Enterprise Ireland has been involved in three Seed and Venture Capital Programmes to date, beginning with the 1994-1999 Programme, a Programme from 2000-2006, and the current 2007-2012 Programme.

Under the 2007-2012 Seed and Venture Capital Programme, Enterprise Ireland is investing €175m in a new round of Venture Capital funding,

This new funding will leverage an estimated €1bn for investment in start-up, early stage and development stage businesses.

The €30m AIB Seed Capital Fund announced on July 2nd 2007, is the first new fund to be established under the 2007-2012 Programme. AIB and Enterprise Ireland are equal partners in the fund, each investing €15m.

A number of further announcements establishing new Funds will be made over the coming months.