Dáil Éireann Debate, Tuesday - 17 October 2023
198. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if he believes the Pre-Seed Start Fund has been an adequate replacement for the Competitive Start Fund, and if there are any plans to bring back the Competitive Start Fund. [44776/23]
View answerThe Pre-Seed Start Fund (PSSF) has been designed to serve as a valuable and effective support mechanism for high-growth early-stage start-up firms and entrepreneurs operating in the manufacturing and internationally traded services sectors. It specifically aims to foster innovation and encourage the growth of innovative businesses. The PSSF offers investments in the range of €50,000 to €100,000 in the form of a convertible loan note.
Comparing the PSSF to the previous Competitive Start Fund, which provided €50,000 in exchange for 10% ordinary share capital, it's evident that the PSSF provides start-ups with greater flexibility in terms of financing, as it offers convertible loan notes rather than equity stakes. This flexibility can be advantageous to entrepreneurs who want to maintain greater ownership and control over their ventures in the early stages of development.
Furthermore, successful applicants of the Pre-Seed Start Fund not only receive financial support but also benefit from the guidance of an Enterprise Ireland Development Adviser. This adviser helps start-ups access a wide range of start-up support services, including mentoring and market research, which can be instrumental in their growth and development.
As of now, there are no plans to bring back the Competitive Start Fund. The Pre-Seed Start Fund, with its unique features, flexibility and support structure is an adequate replacement for the Competitive Start Fund in the context of supporting innovative entrepreneurs and fostering high-growth start-ups in Ireland.
