Venture Capital is capital provided by full-time, professional firms (venture capitalists) or private persons who invest with management in ambitious, fast-growing companies with the potential to develop into significant businesses.
In addition to injecting cash into the company, the venture capitalist is likely to add considerably to the credibility of the company and to supply management expertise, support and access to their contacts. As part of their mentoring and monitoring of their investment, they are likely to seek board membership.
In contrast to bank finance, venture capitalists are not looking for scheduled repayment, but for a minority of the share capital of your company in return for cash. The venture capitalists will typically look to realise their investment in five years, either through floatation on a public market, a trade sale or for their stake to be bought out by the company.
Is Venture Capital an option for you?
- Are you prepared to sell equity in your company?
- Does your company have high growth prospects with an ambitious team that can grow your company rapidly?
- Are you looking for more than €100,000?
- Is your market large and expanding?
- Does your product have a competitive advantage that can be protected by intellectual property rights?
- Can your team demonstrate relevant experience?
- Do you have a clearly defined exit mechanism?
Which Venture Capitalists should you talk to?
When considering venture capital, it is important to ensure you are talking to the right people. This is dependent on the venture capitalists.
- Area of expertise
- Area of interest
- Current availability of capital
- Risk exposure in the same sector
How can we help you?
Enterprise Ireland can assist companies who wish to raise venture capital funding to grow their businesses in two ways:-
Enterprise Ireland does not act as a broker, but can assist companies with contact details and specific areas of interest for the major Irish venture capital companies. In addition Enterprise Ireland can assist you with introductions to these specific venture capital funds.
Enterprise Ireland partners with Venture Capital funds to provide finance. Under the National Development Plan 2001-2006, the Government has committed €95 million through Enterprise Ireland to partner with the private sector to continue the development of the venture capital market for small and medium enterprises in Ireland. EI has committed to 15 funds some of which are specifically targeted towards:
- Small and medium enterprises at early stages of development
- Smaller investment amounts (less than €500K first round)
- A greater regional perspective
- Sectors that are traditionally difficult to finance, e.g. biotechnology
Where can I get more information?
Click on the links below for other sources of Venture Capital information:
If you would like to view previous Seed & Venture Capital reports, please view them on our A-Z Publications page .
Alternatively, click on the email icon below to request a copy:
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Denis Shevlin, Seed & Venture Capital Department, Tel. +353-1-808 2639 |
To contact the Seed and Venture Capital Department please click on the following links:
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Willie O'Brien |
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Denis Shevlin |
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Garrett Murray |