John McIntyre - Enterprise Ireland - Stanford - Jan 4 2010

Stanford Engineering's European

Entrepreneurship and Innovation

Irish Venture Funding

January 4 2010

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 History


Why Ireland?

Innovation 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

FUNDING

www.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 Mission

Asia

Beijing

Guangzhou

Hong Kong

Kuala Lumpur

New Delhi

Seoul

Shanghai

Singapore

Sydney

Tokyo

Germany, Central and

Eastern Europe, Russia

and CIS

Budapest

Dusseldorf

Moscow

Prague

Warsaw

Southern Europe,

Middle East

and Africa

Dubai

Madrid

Milan

Riyadh

Northern Europe

Amsterdam

Brussels

Glasgow

London

Paris

Stockholm

The Americas

Boston

Mexico

New York

Sao Paulo

Silicon Valley

Toronto

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 Potential

Start-Ups

Entrepreneurs

starting companies

with the ability to

compete in

world markets

Scaling

Ambitious companies

with the ability to

grow 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)

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 SeedBOI Seed

VC (Growth) Funds :

Atlantic Bridge Venture Fund 1

BOI Kernel Capital Fund 2Delta Fund IIIFountain Healthcare Fund 1Seroba/Kernel FundUlster 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 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 Network

www.hban.org


Summary

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)

Documents

John McIntyre - Enterprise Ireland - Stanford - Jan 4 2010