Thinking of applying for the Competitive Start Fund for Experienced Business Professionals? Tony McEnroe, CEO of SiriusXT and Enterprise Ireland’s HPSU Founder of the Year 2017, describes himself as an “accidental entrepreneur” – here’s his advice on taking the plunge and setting up your own business. Click here to read more.
CALL OPEN: Wednesday 11th October 2017
CALL CLOSE: Wednesday 25th October 2017
All applications to the fund must be made via the Enterprise Ireland Online Application System.
Completed application forms must be submitted through the Enterprise Ireland Online Application System by 3pm on 25th October 2017.
A Video Pitch must be submitted on the Sonru.com platform by 11:59pm on 25th October 2017 (when you commence the application form an email regarding the video pitch will be sent to you separately). A valid application must contain both a video pitch and complete application form.
Update: From 2017 onwards, registered companies applying for Competitive Start Fund must be less than 3 years old from date of registration.
Overview of the Competitive Start Fund
The purpose of the Competitive Start Fund is to accelerate the growth of start-up companies that have the capability to succeed in global markets. The fund is designed to enable those companies reach key commercial and technical milestones, for example:
- Evaluate overseas market opportunities and reach firm conclusions regarding the viability of the proposed business.
- Build a prototype.
- Secure a reference site.
- Develop a market entry plan for exploiting international opportunities.
- Secure partnership deal or strategic alliance.
- Identify suitable channels to international markets.
- Secure third party investment e.g. business angel, Venture Capital.
Am I eligible?
You are eligible to apply if you are an existing or potential client of Enterprise Ireland’s High Potential Start-Up Department.
The Competitive Start Fund is open to: Companies that are active in the relevant industrial sector(s) OR Individuals who, prior to Enterprise Ireland's investment, will have a headquarters registered and be based in Ireland. All intellectual property and assets must reside in the Irish entity.
In addition, applicants must fulfil all of the following criteria:
- One or more promoters must be able to provide evidence of twenty-five years or more of relevant business experience, of which typically at least ten years would be at a leadership or senior level.
- Must be a manufacturing or an eligible traded services business (the eligible services as listed in the Service Industries Order 2010);
- Must not have received equity funding of more than €100K prior to the competition closing date. Equity includes Ordinary shares, Convertible Preference Shares, Convertible Loan Notes and Directors Loans. Sweat equity does not apply;
- Must be pre-trading or recently commenced trading, i.e. does not have revenues in excess of €60k in the current financial year to date or in any previous financial year;
- If a company, it must be less than three years old [from date of registration];
- Must be capable of creating 10 jobs in Ireland and realising sales of €1m within 3 years. [If a company is required to have FDA or CE approval, these targets must be achievable within three years of approval to sell];
- Must not be engaged in gambling, "adult entertainment", tobacco or military sectors;
- Applicants must be eligible to live and work in Ireland. If their current visa status does not allow them to run a business in Ireland they must regularise their visa situation before receiving an investment. (Enterprise Ireland has a help-desk to advise non EU applicants on the relevant rules).
- Must meet SME definition as defined by EU legislation
- If an application is successful and is currently in receipt of an Enterprise Ireland Feasibility Grant, the full amount of the Feasibility grant must be drawn down before the Competitive Start Fund investment or, alternatively, the company/individual must forego the balance of the Feasibility Grant prior to starting the CSF.
- If the applicant is successful and currently in receipt of a New Frontiers scholarship, or a Priming Grant from the Local Enterprise Office, the application will not receive Competitive Start investment until they have completed drawdown of the New Frontiers scholarship/priming grant or declined further payments.
- Where an applicant is a subsidiary of a parent company, then the eligibility criteria will be applied to the parent company.
- If the applicant was a sole trader or a partnership prior to applying to CSF as an individual or a Limited company and the undertaking is exactly the same, then the eligibility criteria will be applied to the former entity.
- Note: Any intellectual property that is required to execute the business plan that is currently owned by the promoters must be assigned to the company prior to the CSF investment completing.
What is the maximum funding and on what terms?
- Applications are considered on a competitive basis.
- The maximum support available is €50,000 for a 10% ordinary equity stake in the start-up company.
- The investment shall be released in two equal tranches.
- The first tranche will be released to successful applicants only when it provides confirmation of additional new* cash investment for equity of €5,000. This new investment in equity of €5,000 by the successful applicant is to occur after the relevant call close date.
- The overall equity investment will be towards the costs associated with implementing the business plan and making progress on key technical and commercial milestones.
In addition to the investment of €50k, successful applicants must commit to participate in a business development programme designed specifically for early stage companies. The precise form and content of the program has yet to be finalised but will include networking, business coaching and blended learning and will be run over a 3 month period.
*Capitalisation of existing loans will not qualify – we require this to be new cash into the business.
Legal Basis: The legal basis is Section 31 of the Industrial Development Act 1986.
State Aid Basis: The State Aid basis is De Minimis Aid EC No 69/2001
The overall equity investment will be towards the costs associated with developing the business plan and making progress on key technical and commercial milestones. The following activities are expected to form the basis of expenditure;
- Consultancy Fees
- Other Expenditure
How do I apply?
If you are a first-time applicant you must register on the Enterprise Ireland Online Application System.
Applications must be made via the Enterprise Ireland Online Application System during the call open dates. We strongly recommend that you log in and commence your application well in advance of the call closing date. You can commence your application and save it to revisit at a later stage.
A sample application form from a previous call is available for download here. Please note, character counts on each field are not outlined in this sample and is subject to change.
To support your written online application, you will be offered the opportunity to pitch directly to the Assessment Part 1 Evaluation Panel using video interviewing technology. You will be asked to complete a 6-8 minute online video interview / pitch which will be viewed by the evaluation panel as part of the evaluation process. This video pitch is mandatory, 20% of the overall marks are allocated to this submission. For your application to be considered you must submit your written online application and video pitch. An email will be sent (to the email address used when registering for Enterprise Ireland online) inviting you to complete your online video interview after you commence your Competitive Start Fund online application. Read Video Pitch Briefing Document.
You will be asked to address the following questions:
- What are you going to sell? (1 minute maximum)
- Who are you going to sell it to? (1 minute maximum)
- Why are they going to buy it from you? (1 minute maximum)
- How are you going to sell it to them? (1 minute maximum)
- How are you going to make money? (1 minute maximum)
- You will also be given 2 minutes max to add any additional comments
Please note that an application for approval of an equity investment for companies selected under this scheme shall be subject to:
(a) Approval from Enterprise Ireland’s Investment Committee.
(b) The company agreeing to the Terms and Conditions set out in the Enterprise Ireland Term Sheet.
(c) The company agreeing to enter into a Share Subscription and Shareholders Agreement with Enterprise Ireland. For more information on this Equity Process, read our CSF Equity FAQs.
How is my application evaluated?
Assessment Part 1
An evaluation panel comprising external consultants and Enterprise Ireland will score applications under the following criteria:
Company and Promoter Profile
Product/Service & Market Opportunity
Business Proposition - delivered by Video Pitch
Ability to deliver key Commercial and Technical Milestones over the coming 12 months
Likelihood of developing into a HPSU (company with at least 10 employees and €1 million revenue within 3 to 4 years)
For information, download CSF Assessment 1 Scoring Guidelines.
All applicants will be notified by email of the result of this assessment on 15th November, 2017. If they are successful they will be invited to present a short investment pitch to the panel on 28th November, 2017 at Enterprise Ireland offices in Dublin. (Assessment Part 2).
Assessment Part 2
The top applications will be invited to present a short investment pitch to the evaluation panel comprising external industry experts and representatives of Enterprise Ireland at the offices of Enterprise Ireland, East Point Business Park, Dublin 3 on Tuesday 28th November 2017.
The evaluation panel will be asked to score the applicant's performance based on the following equally weighted criteria:
- What specific need does your product / service address? Why would someone be "compelled" to purchase your offering?
- What is it about you and/or your management team that makes you capable of executing on this business plan?
- What would be the impact of €50K on the execution of this business plan?
The evaluation panel will select the start-ups to go forward to Enterprise Ireland’s Investment Committee for approval.
Please note: Enterprise Ireland reserves the right to seek additional clarification from the applicant in regard to your application.
Closing Date for Applications
The closing date for all applications for those active in the Manufacturing & Internationally Traded Services sectors including Internet, Games, Apps, Mobile, SaaS, Cloud Computing, Enterprise Software, Lifesciences, Cleantech and Industrial Products is Wednesday 25th October 2017 at 3pm.
Key contact/more information
For more information, please contact:
+353 1 727 2202 (9am - 5pm)
If you are not a client of Enterprise Ireland and want to learn more about qualifying and applying for Enterprise Ireland’s High Potential Start-Up supports, go to our Start a Business Section.
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