Sourcing finance is not an easy task, navigating the space can be even more complex at times. At WestBIC, we are here to break it down and to support budding entrepreneurs in the West & Northwest of Ireland to source the most appropriate source of finance for their unique business needs.
Ireland offers an extensive and competitive range of blended supports to assist companies at varying stages of their start-up journey. Enterprise Ireland (EI) is the government organisation responsible for the development and growth of Irish enterprises in world markets, and while EI is only one of the supports for startups in Ireland, it is an incredible resource for early stage startups. EI offers supports including the New Frontiers Programme, Competitive Feasibility Grants, Pre-seed start funds and Innovation Vouchers. Whatsmore, it isn’t necessary to be an Enterprise Ireland ‘client’ to be eligible for such assistance.
For startups that have developed past early-stage and become Enterprise Ireland client companies, specialist HPSU supports are available. Generally speaking, HPSUs are viewed as being at feasibility stage, investor-ready stage or growth stage. Enterprise Ireland defines an HPSU as a startup venture that is:
· Introducing a new or innovative product or service to international markets.
· Involved in manufacturing or internationally traded services
· Capable of creating 10 jobs in Ireland and realising €1 million in sales within 3 years of starting up
· Led by an experienced management team
· Headquartered and controlled in Ireland
· Less than five years old from the date registration
Developing your business into a High Potential Start-Up
At this stage, you may have a concept or an early-stage business that you believe has the potential to become an Enterprise Ireland HPSU. There are a number of state-funded supports that you can avail of at this stage without being an Enterprise Ireland client.
· Local Enterprise Office Start Your Own Business Programme (LEO)
· New Frontiers Programme — The first phase will help you to validate the market potential of your business idea. These workshops will provide information and general start-up training, allowing you to tease out your idea’s feasibility and to see whether a viable proposition exists.
· Local Enterprise Offices and supports
· SME Online Tool — other state supports for start-ups
Becoming A High Potential Start Up
If you have explored the above and believe that your business qualifies as a HPSU, you should contact us in WestBIC, if you are based in the West/Northwest of Ireland to discuss further supports.
There are also dedicated teams facilitating enquiries at your local Enterprise Ireland office in specific areas such as startups led by women, food startups and overseas entrepreneurs.
HPSU Funding
The Innovative HPSU Fund is open to existing Enterprise Ireland clients who qualify as a small enterprise and have been in existence for less than five years and satisfy one or more of the following criteria:
· For companies with no trading record at the time of application, at least 15% of the total operating costs must relate to R&D expenses in the current fiscal year, and/or
· For companies with a trading record, at the time of application, at least 15% of the total operating costs must relate to R&D expenses, in at least one of the three years preceding the application, and/or
· Have an innovative business plan for the development of products, services or processes which are technologically new or substantially improved compared to the state-of-the-art in its industry in the European Community, and which will carry a risk of technological or industrial failure. This will be laid out in a business plan.
What level of funding is available?
The investment decision and level of investment by Enterprise Ireland will be determined following an assessment of the business plan and supporting evidence, and based on the company’s:
· Viability
· Growth potential
· Potential value to the Irish economy in terms of number and quality of jobs created and exports generated.
· Level of risk
· Quality and innovative aspects of the business plan.
· Achievement of previous milestones or Enterprise Ireland investment targets (for subsequent rounds of funding).
Enterprise Ireland invests in partnership with other investors in an investment round. The promoters will be expected to participate financially in the investment round. The maximum Enterprise Ireland can commit to an investment round is 50% of the investment required.
When HPSU Is Not An Option
If your business is not eligible for Enterprise Ireland HPSU support, you may qualify for funding and supports from your LEO (Local Enterprise Office). With 31 dedicated teams across the Local Authority network in Ireland, Local Enterprise Offices are the first port of call for entrepreneurs and small businesses with fewer than 10 employees. LEOs provide advice, mentoring and funding to eligible startups.
The Supporting SMEs Online Tool is a cross-governmental guide to help small businesses to identify which government supports might fit their business.
Next Steps
If you are based in the West, Border or Mindlands area and you’d like to explore the possibility of becoming a High Potential Start Up Company, get in touch today.
