AIB Seed Capital Fund Reports €4.5 million of investments in 2008

In its end of year review for 2008, the AIB Seed Capital Fund has reported investments of €4.5 million in a total of 14 companies, and a continuing high level of enquiries from SME’S and potential entrepreneurs seeking seed capital funding for early stage businesses. The fund’s investments were split approximately 50% by value between Dublin city and county and the rest of Ireland.

The fund was established in 2007 under the Seed and Venture Capital Programme 2007 – 2012 as a joint venture between Enterprise Ireland and AIB bank, in response to funding needs that had been identified in a number of government and independent reports. Both parties committed €15m, creating a total fund size of €30m. The fund’s investments are managed by Enterprise Equity and Dublin Business Innovation Centre.

The fund received 230 specific enquiries in 2008, reflecting the entrepreneurial and commercial intent of many people in Ireland, despite the harsh economic climate. Enquiries in 2008 came predominately from entrepreneurs in the internet, software and services sectors, but the fund has also received enquiries from the marine, media, healthcare and food sectors and from all geographical areas in Ireland.

The investment by the AIB Seed Capital Fund of €4.5 million leveraged a further €10 million of investments by Enterprise Ireland and outside investors, and helped to create and support 120 jobs. In return for its investments the fund has acquired an equity stake in each of the investee companies.

Looking ahead to 2009 the fund’s chairman, Denis Marnane, said that the commercial intent of the fund was twofold. “Firstly, in the context of an extremely challenging environment, our fund managers will continue to work closely with the existing investee businesses. Secondly they will continue to search for inventive and creative entrepreneurs who have the management capacity to create sustainable business models and contribute to the Irish economy by creating new jobs and facilitating exports. The fund remains open for business and expects to make between 8 and 10 further investments in 2009 which are aligned to the overarching objective of providing risk capital and supporting enterpreneurship in Ireland.”

Details of the fund and the application process can be found on: www.aibseedcapitalfund.ie and on the websites of the investment managers; www.enterpriseequity.ie and www.dbic.ie.