Capital is seen as problem
THIS Monday brought a double boost for Limerick in terms of investment and potential for job creation with the announcement of a seed fund for start-up businesses and a venture capital fund for those already established. Minister Michael Noonan was on-hand at Limerick Institute of Technology to launch the Enterprise Ladder Fund (ELF), the first seed fund specifically for start-up companies at such a college.
The fund was established by the LIT Thought Leadership and Advisory Group as part of endeavours to support entrepreneurship and stimulate job creation.
A target of €1 million has been set for the fund, with €350,000 secured to date through philanthropic contributions.
“We’re confident we’ll reach the €1 million before the year is out”, LIT president Maria Hinfelaar told the media.
“It will provide huge potential for companies who struggle to build critical mass.
“There is a formal application process and a comprehensive review based on very sound proposals before decisions on funding are made”.
Qualifying companies can expect to receive funding of between €10,000 and €25,000 through the ELF.
Minister Michael Noonan said the ELF was a great initiative as the future of the country is in small and medium enterprises and in creating jobs.
“One of the biggest problems for start-ups is the provision of capital.
“We have the ideas and are second only to Finland in levels of entrepreneurship in Europe, with a lot of well educated young people here who want to turn ideas into products but money is always an issue; this is a solution”.
LIT is also involved in a second venture which, it is hoped, will create hundreds of jobs in the region.
Irish Technology Capital (ITC), established by Limerick born entrepreneur John Hartnett and John Ryan of Macrovision, and based in Silicon Valley, is to establish its headquarters in the city, in conjunction with LIT.
ITC will become the Limerick’s first ever venture capital company, providing a major stimulus and opportunity for emerging companies in the sector here.
The company 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.
Making the announcement, Mr. Hartnett said: “As a Limerick man, I am delighted to be able to make Limerick the European headquarters for our emerging fund.
“One of the deciding factors in choosing Limerick for our European headquarters was the availability of high-growth potential companies at early stage and we are fully satisfied, based on our research here, that the wider Limerick region satisfies this requirement”.
Ms Hinfelaar said that the call is now open to all businesses to put in their application for venture capital from the fund.
“We have no doubt that the funds expansion will be very much evidenced in investments in exciting companies based in this region.
“The Irish Technology Capital Fund will also act as a gateway to Silicon Valley in supporting these companies”.
Michael Noonan T.D. Minister for Finance (right) with John Clifford, Chairman Governing Body LIT and Dr Maria Hinfelaar, President, Limerick Institute of Technology launching the €1 million ‘Enterprise Ladder’ seed fund at LIT this week.
Photo: Kieran Clancy
