How Ireland stimulates venture capital investments

The Innovation Fund Ireland has been created to increase the availability of risk capital for earlystage and high-growth companies, and is central to the Irish Government's strategy for economic recovery. Innovation Fund Ireland has up to €250 million available to make commitments. This funding runs along two parallel tracks. The first one comprises a €125 million pool of funds provided by the Exchequer and managed by Enterprise Ireland. The second one is for a similar amount and designed to allow Ireland's National Pension Reserve Fund to make a similar level of commercial investments assuming its criteria are met. Successful applicants who receive an investment from Enterprise Ireland will have to commit to investing an equivalent amount in Irish companies or companies with significant Irish operations over the lifetime of their fund.

The Minister for Jobs, Enterprise and Innovation, Richard Bruton T.D. yesterday announced the first investment by Enterprise Ireland under the Innovation Fund Ireland programme in Sofinnova Ventures. Sofinnova Ventures is one of the premier US healthcare venture capital funds, recently raising their eighth fund, a $440M vehicle focused solely on life sciences, and the fund will be establishing a presence in the Irish Market. Enterprise Ireland has committed $25 million to the Fund, alongside a commitment of $12.5 million by the National Pensions Reserve Fund.

Making the announcement in Silicon Valley Minister Bruton said: “Healthcare and life sciences is a sector which the Government has identified as having potential for high levels of employment growth, and today's announcement will mean that more high-growth Irish companies can meet this leading life sciences fund. I look forward to welcoming the Sofinnova team to Ireland and connecting them with the best life sciences companies in Ireland.”