Dáil Éireann Debate, Tuesday - 6 October 2020
159. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will authorise Enterprise Ireland to release some funds granted under the disruptive technologies programme to companies such as a company (details supplied) without the venture private capital being in place first in view of the impact of Covid-19 on the venture capital markets; and if he will make a statement on the matter. [28572/20]
View answerThe Disruptive Technologies Innovation Fund (DTIF) is a €500 million fund, running from 2018 to 2027, established as part of the National Development Plan under Project Ireland 2040. It is administered by Enterprise Ireland on behalf of my Department.
The Fund is available for collaborative projects seeking investment in the development and deployment of disruptive innovative technologies and applications, on a commercial basis, targeted at tackling national and global challenges. SME participation is a requirement of all consortia.
One of the eligibility criteria for DTIF is the requirement for all enterprise partners to provide matching funding, equal to the amount they are seeking from the Fund. This is in keeping with the EU State Aid rules under which the Fund operates, and which are aimed at preventing the use of State resources to distort competition in the marketplace.
Enterprise Ireland is engaging with all the project partners as part of the DTIF portfolio management process and provides special attention to SME participants. A number of small companies, awarded funding in principle from DTIF (subject to meeting drawdown requirements), have received advice on private funding options available to help them meet the financial capacity requirements under the Fund and Enterprise Ireland will continue to engage with such companies in this regard. While providing as much flexibility as possible, there are key drawdown requirements that must be observed.
The Fund is an important mechanism for facilitating SMEs to grow, to scale-up and to attract investment. Indeed, there have already been several notable successes where SMEs involved in DTIF projects have attracted significant additional private investment even beyond what they have already invested themselves.
