Enterprise Ireland Seed & Venture Capital report for 2009 was today launched by Feargal Ó Móráin, Director of Corporate and Investment Services at Enterprise Ireland.

EI said despite the difficult climate for business, Irish venture capital firms supported by Enterprise made 87 investments with a value of €52m in 2009, marking a 53% increase on the value of investments in 2008. The number of new companies invested in during the year, at 25, also represented a significant increase of 47% on the previous year.

Another highlight of the year was the significant increase in seed funding made available to meet the urgent need for capital for entrepreneurs and early stage start ups. As part of the Government’s bank recapitalisation initiative, AIB expanded its seed and early stage fund while a new fund was launched by Bank of Ireland. This focus on increasing the availability of seed capital has continued in 2010 with the Government recently announcing the provision of a further €40m in seed capital funding from AIB and BOI in the continuing context of bank recapitalisation.

Launching the 2009 report, Feargal Ó Móráin said: "A robust and thriving indigenous venture capital industry is critical to encouraging entrepreneurs and companies to set up and grow their businesses. Enterprise Ireland is committed to working with the Government and our investment partners in ensuring that the critical need for start up and growth capital is met.

‘There were a number of very welcome developments in 2009. During the year, there was an increase of €49m in seed capital funding available to Irish companies, with the launch of the new €26m Bank of Ireland Seed & Early Stage Equity Fund and the €23m expansion to the AIB Seed & Early Stage Equity Fund. Another new fund launched in 2009 was the €75m Seroba Kernel Life Sciences Fund II Limited Partnership Fund, one of the largest dedicated life science venture capital firms in Ireland and the UK.

‘Over the past 16 years the Government, through Enterprise Ireland, has committed approximately €320m, as a limited partner, in the majority of seed and venture capital funds that have emerged in Ireland. This includes investing in eight new VC funds under the current 2007 -2012 Seed & Venture Capital Programme.

“The total amount of investment available to companies under the current Programme reached €525m in 2009. And following the recent €40m increase in seed capital funding from the banks, the total amount of available seed capital for early stage Irish companies will be now €119m – this represents an unprecedented level of funding for the key start-up / early stage segment of Irish business.

‘The investment pipeline for these funds remains strong, a very encouraging feature given the current difficult economic environment, and a further positive feature of the year was the continuing strong level of deal syndication between Irish and overseas VC funds," he said.

Highlights of the 2009 Report include:

• In 2009, a total of 87 investments with a value of €52m were made by partnership funds supported under the Enterprise Ireland Seed and Venture Capital Programmes 2007-2012 and 2000-2006. This represents a 53% increase on the value of funds invested in 2008, which was €34m.

• This brings to €512m the total invested, to end 2009, by Enterprise Ireland partnership funds in all three programmes (2007-2012, 2000-2006 and 1994-1999).

• In 2009 the total number of new companies invested in was up 47% on the year 2008 (25 as against 17 in 2008).

• Two new funds successfully set-up in 2009 – the Seroba Kernel Life Sciences Fund and the Bank of Ireland Seed & Early Stage Fund. One existing fund substantially increased in size – the AIB Seed Fund from €30m to €53m.

• The total amount of formal seed capital funding increased to €79m in 2009 up from €30m in 2008.

• The total amount of investment available to companies under Enterprise Ireland’s 2007 -2012 Seed & Venture Capital Programme reached €525m in 2009.

Download the Seed & Venture Capital Report 2009 here | PDF format