Irish Venture Funding - Ireland's Innovation and Technology Economy - John McIntyre - Enterprise Ireland - Stanford - Jan0410

Stanford Engineering's European Entrepreneurship and Innovation

Irish Venture Funding

John McIntyre, SVP Enterprise Ireland Silicon Valley

[email protected]

Tel : +1-650-329-0404

www.enterprise-ireland.com

13 Years Intel, Flash Memory to Intel Capital

CBT Systems/SmartForce First Irish Tech company on NASDAQ

Co-Founded InnerWorkings 2003

Enterprise Ireland 2008

John McIntyre HistoryJohn McIntyre History


Why Ireland? Why Ireland?

Innovation Comes NaturallyInnovation Comes Naturally

PRO-BUSINESS ENVIRONMENT

Ireland placed 11th globally

Ease of doing business: Corp tax, company registration, employment law, small legislated reoccurring cost.

YOUNG, TALENTED WORKFORCE

MANAGEMENT TALENT

Excellence in education

MNC operations and experience

PUBLIC/PRIVATE SECTOR TEAM WORK

FUNDINGwww.ida.ie If you want to start-up in Ireland talk to me!

http://www.ida.ie/


We here to help shorten the runway to your success with funding, global reach, business development, sales and marketing programs.

Enterprise Ireland MissionEnterprise Ireland Mission

Asia

BeijingGuangzhouHong KongKuala LumpurNew DelhiSeoulShanghaiSingaporeSydneyTokyo

Germany, Central andEastern Europe, Russia and CIS

BudapestDusseldorfMoscowPragueWarsaw

Southern Europe, Middle Eastand Africa

DubaiMadridMilan Riyadh

Northern Europe

AmsterdamBrusselsGlasgowLondonParisStockholm

The Americas

BostonMexicoNew YorkSao PauloSilicon ValleyToronto

Enterprise Ireland – Global Network

Over 30 offices and 150 people to assist globally


Funding Start-Ups

Seed & Venture Capital Programme

Other (Cash) Measures

The Climate has been better !

E.I. Response


High PotentialStart-Ups

Entrepreneursstarting companieswith the ability to

compete in world markets

Scaling

Ambitious companieswith the ability togrow to scale and

achieve significant global success

Manufacturing and international-traded services companies

employing ten or more

Established SMEs

E.I. Client Base

• Total client base

~ 3,500 companies

• 145,758 employees

• Total Exports in

2008 €14.3BN


What is a “HPSU” ?

The company must be :

1. Recently established (0-4 years from date of first employee)

2. Innovative (operating in a growth sector)

3. Capable of generating at least Annual revenues of €1.25M - by end of year 3

4. Export focused

~ 1,200 start-up enquiries received p.a.

Of those ~ 400 can be classified as eligible as E.I. clients

E.I. approves first round funding packages for ~70 HPSU’s p.a. (Average €250K)


HPSU review 1989 - 2006:

0

50

100

150

200

250

300

350

400

450

500

1989-2006

Started Still Trading Closed Taken over

Status of EI client companies

69%(440)

20%(127) 11%

(70)

100%(637)


1999 – 2007

Sourcing people with new ideas

0%

5%

10%

15%

20%

25%

30%

35%

Indigenous - 148

MNC - 126

3rd Level - 38

Serial Ent - 64

Other - 21

Looking for more U.S. Entrepreneurs!


1. Funding the Concept (Category One)

Mentor, Bus. Accelerator

Strategic Consultancy

Feasibility/CORD

Recruiting Key Person

Max E.I. Funding is

€60K (over 2 years)

Based on 50% grant

Innovation Vouchers (max. €5,000)

Overall Objective : Move the project toward a full Business Plan


Seed & Venture Capital Programme(2007-2012)

EI have committed €175M (as Limited Partner).

Total active Seed & VC Funds - €525.1M

Seed Funds :AIB Seed BOI Seed

VC (Growth) Funds :Atlantic Bridge Venture Fund 1BOI Kernel Capital Fund 2 Delta Fund III Fountain Healthcare Fund 1 Seroba/Kernel Fund Ulster Bank Diageo Fund

Further €150M (2 Funds) awaiting final sign off.

€79M

€446.1M


Other Measures(Funds Managed & Administered by EI)

Enterprise Stabilisation Fund

2009 €50M

2010 €50M

Employment Subsidy Scheme

2009 €70M

2010 €65M


Irish Universities and Institutes of Technology (Recent Spin Outs)

Trinity College Dublin (5) University College Dublin (2) University College Cork (1) University of Galway (1) University of Limerick (1) Dublin City University (1) Royal College of Surgeons National University of Ireland

Maynooth (1)

Dublin Institute of Technology (1) Galway and Mayo Institute of

Technology Waterford Institute of Technology

(1) Cork Institute of Technology Sligo Institute of Technology


EI will often follow it's money into a full VC round

VC 2009 Results through Q3:

€220m Invested over 60 deals or €3.6m average

All Technology Sectors:

Health SW, Telecom SW, Electronic Components, Pharma/Bio, Financial Services, Bus/Consumer SW, Engineering, Environmental Technology, Consumer Products

Over 35 International VC’s invest in EI clients (1/3 US)

Irish Venture Capital AssociationIrish Venture Capital Association

www.ivca.ie


Halo Business Angel Network (HBAN) is an all-island umbrella group for business Angel networks HBAN is focusing on investments of €50,000 to €250,000. HBAN is a joint initiative of InterTradeIreland and Enterprise Ireland.

Halo Business Angel NetworkHalo Business Angel Network

www.hban.org


SummarySummary

Ireland is a great place to start-up

On the edge between Europe, US, with reach into Asia

Great pubs and Rugby Teams

Funding Available


Backup


2. Funding the Business Plan – Innovative Funding

Evaluation of the Business Plan (which includes Cash Flows).

E.I. will invest by way of Equity (usually Cumulative Convertible Redeemable Pref. Shares).

E.I. will invest based on identified cash need per the Business Plan.

Typical first investment is ~ €300,000 with additional sums based on achieving agreed milestones.

E.I. will always look for co-investors (BES, VC’s, Promoters)

Economy & Finance

Irish Venture Funding - Ireland's Innovation and Technology Economy - John McIntyre - Enterprise Ireland - Stanford - Jan0410