Dáil Éireann debate -
Tuesday, 2 Mar 1999

Vol. 501 No. 3

Written Answers. - Millennium Entrepreneur Fund.

Paul McGrath

Question:

107 Mr. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will give details of the Millennium Entrepreneur Fund; when it was established; the total funding provided; the reason for the establishment of this fund; the criteria to qualify for grant aid from this fund; the number who benefited to date; the average payout per recipient; and if she will make a statement on the matter. [5755/99]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms. Harney)

I launched The Millennium Entrepreneur Fund, on Friday, 26 June 1998. The fund is a £1 million Enterprise Ireland-led initiative to encourage overseas based Irish technologists to establish new enterprises back in Ireland. The new fund is jointly sponsored by LM Ericsson; Bank of Ireland; industrialist Neil McCann and Enterprise Ireland, with 50 per cent finance being provided by the EU through Enterprise Ireland under the Seed and Venture Capital Measure of the Operational Programme 1994-99.

The primary purpose of the fund is to provide early stage risk seed capital funding to highly skilled individuals or teams with strong international experience; an identified technology based high growth potential business focused primarily on export markets; entrepreneurial drive and amibtion who are willing to set up a business either in a manufacturing sector or in an internationally traded service sector; and at least one team member currently resident overseas, but willing to return to Ireland to set up in either a manufacturing sector or an internationally traded service sector.

It should be noted that this fund does not provide grant aid. The fund provides early stage equity finance up to a maximum of IR£100,000. Applicatons are invited from individuals or teams, up to a maximum of three individuals, with third level degree qualifications or equivalent training/experience involving a key Irish national who is relocating to Ireland with strong achievement in careers to date in an international business environment and with industrial experience in the specific industry/service sector.

The business must be technologically based with high growth potential. The enterprise has to be set up and based in Ireland.

No approvals have been made to date. While the fund has been promoted internationally since the announcement, the legal structures setting up the fund were only finalised in January 1999. It is planned that these investments will be made within a three year period. One hundred inquiries have been received to date and a number of formal applications are currently being considered and evaluated for presentation to the board of the millennium fund.

The goal of the fund, which is managed by Enterprise Ireland, is to assist ten new high potential start-ups.

In addition to seed funding, the Millennium Entrepreneur Fund will assign a company mentor and a patron company to offer advice and support to the new start up businesses. The mentor will typically be an experienced business strategist with expertise in developing high potential start-up companies. The patron company will be a successful Irish company, some of whose senior managers will be designated to offer practical advice and guidance to the start up.

The full range of Enterprise Ireland services and programmes are available to the entrepreneur.