Financial SupportBusiness Start Ups and Growth Companies

September 2011

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Our Role

Financial Support

Other Support

Access Support

Agenda

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Irish owned enterprise Policy analysisand advice

Inward Investment

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Enterprise Ireland Mission

Enterprise Ireland partners with

entrepreneurs, Irish businesses, and

the research and investment

communities to develop Ireland’s

international trade, innovation,

leadership and competitiveness

The ultimate objective is increased

exports, employment and prosperity

in Ireland.

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Who we work with…

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Entrepreneurs starting

companies with an ability to compete in

world markets

Ambitious co’s with the ability

to scale & achieve

significant success

High PotentialStart-up’s

Scaling

Established SME’s

Multinationals

Irish-basedfood and natural

resource companiesthat are overseas

owned orcontrolled

Manufacturing & Internationally Traded services

companiesemploying

ten or more

Enterprise Ireland Global Team

Human Resource

Development Advisor

Investment Advisor

(IA)

TechnologyDevelopment

Advisor(TDA)

Overseas Market Advisor(MA)

Development Advisor(DA)

Technology TransferCLIENT

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Clients Contribution to the economy

Enterprise Ireland Companies

No of companies = 3,500Employment = 133,523Spend in economy = €19.6bn

IDA Companies

No of companies = 1,000Employment = 138,530Spend in economy = €18.3bn

 

IrishMaterials€8.9bn

Payroll €6bn

Irish Services €4.7bn

Irish Materials

€2bn

Irish Services €8.9bn

Payroll€7.4bn

Source: Total Spend in the economy – 2009 ABSEI, Employment – 2009 Forfás Employment Survey7

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Development areas with EI clients

6 Development Areas with EI Clients

Managem

ent

Team

s

Finance

Growth

R&D

Int’l

Markets

Productivity

Growth

Strategies

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Supporting EI Clients

Company EI ResponseGOALS

Have you a strategic Plan?

CAPABILITYAre you capable of executing this plan?

OPPORTUNITY

RESOURCES

Have you the required product ideas or/ and market contacts?

Have you the cash required?

EI OVERSEAS and RESEARCH NETWORKS

EI FINANCIAL OFFERBANKS and VENTURE FUNDS

EI MANAGEMENT DEVELOPMENT PROGRAMMES

EI STRATEGY SUPPORT eg CHALLENGING, MENTORS etc

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Substantial Financial Support to Clients

Total new approvals in 2010 = €110m+

National Budget has provided similar level of support in 2011

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Legislation – Two Separate Legal Bases

Irish Law – The Industrial Development Acts

EU – State Aid Law(The regional Aid Map 2007-2013 governs the areas & rates in which regional aid may be granted)

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Support Rates

Offer Small Medium Large

Capital Assets or Job CreationDependent on location

20%-35% 10%-25% 0-15%

R&D Fund 45% 35% 25%

Key Manager 50% 50% 50%

New Market Research 50%-70% 50%-70% 50%-70%

Feasibility Trade Fairs Consultancy Business Accelerator

50% 50% NA Exception Business

Accelerator

eBusinessManagement Development

70% 70% 50%

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Key Considerations

Enterprise Ireland Financial Service Support

Company Projects:New Product, New markets, Productivity

Improvement

Company Strategy

Return to Taxpayer, Economic Impact:Value for Money

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Key Questions

DOES THE BUSINESS PLAN/ PROJECT WORK?

• Is the business plan commercially viable

• How does the project drive the business

WHAT IS THE RETURN TO THE ECONOMY?

• Can we support the project? Legislation

• What are the extra jobs, turnover, exports

• What is the value for money from EI investment(cost/job and cost/benefit to the economy)

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Completing an application for Support

• Submit a completed Business Plan ApplicationCompany ProfileBusiness StrategyProposed Development ProjectFinanceBenefit & Need for Enterprise Ireland support

• Where applicable • Complete the Financial Data Sheet

(Summary P&L, Balance Sheet & Funds Flow)

• Project Expenditure Details and Cost Work Book

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Support Process

Investment CommitteeGo/

No Go

Go/No Go

Business Plan Application

DevelopmentAdvisor

Commercial Assessment

TechnicalAssessment

Overseas Office

Assessment

InvestmentAdvisor

InvestmentProposal

Finance

Legal/Equity

InvestmentCommittee

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Financial Products

Start‐Ups

Innovation

Productivity

Expansion

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Summary Funding Offer 2011

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START-UP PRODUCTIVITY EXPANSION

STOMISED INVESTMENT PACKAGES

ADVERTISED CALL for INVESTMENT PROPOSALS

EXPLORING OPPORUNITIES

* Not available to co’s in receipt of Innovative Aid** Not available to food companies – supported by Bord Bia *** Not available to Large Companies

Feasibility StudyStrategic Consult*BAPTrade FairMentor

INNOVATION

HPSUPackage

Competitive Start Fund

Feasibility StudyStrategic Consult*BAPTrade FairMentor

R&D ProjectsInnovation Partnership

R&D FundFP7

Feasibility Study

Innovation Voucher

Lean TransformProgramme

Lean Start

Lean Plus

Expansion PackageNew Market Research Programme **

Job ExpansionGoing GlobalGraduates 4 Int’l G

Feasibility StudyStrategic Consult***BAPTrade Fair**/***Mentor***Key MgreBusiness***

Start‐Up’s

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Enterprise Ireland works with promoters and 3rd parties to jointly fund a start up business plan against agreed milestones.

Early Stage Enquiry: €15k Feasibility Grant

Market Validation/ €50k Starter Equity , with €5k matching fund Prototype Development: Competitive Start Fund

First Round/ €100k - €350k (average €250k) Equity, Investor Ready: CCRPs, for HPSU generally fully matched

• EI Funding will not be greater than combined promoters or 3rd party investment.• EI ordinary shareholding will not exceed 10% of the total company ordinary shares

Start‐Up’s

Competitive Start Fund

Who3 pilots to-date

• Internet & Games CSF - 10 companies approved

• Internet, Games, Telecoms, SaaS, Cloud Computing and Enterprise Software CSF

-15 companies approved • Lifesciences, Cleantech and Industrial Products CSF

- 15 companies to be approved in this fund in July 2011

What • €50k in equity support & €5k

matching funds from promoters.

• Each successful company appointed a mentor work with co. for up to 10 days.

How Funding provided to companies who rank highest in the scoring process. An external panel of industry experts & EI representatives participate in assessment process.

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Innovation

R&D FUNDTo develop products,

processes and services.

• Increasing R&D activity in companies undertaking projects leading to new or improved products, process or services

• Increasing the number of companies doing R&D for the first time.

• Increasing the number and quality of collaborativeresearch programmes

• Support may be made available as a grant of up to €650,000 at 25% to 45% grant rate.

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Innovation

Innovation Partnership Programme

Irish based companies to work with Irish colleges to access their expertise.

Grants of up to 80% towards eligible costs of the research project.

Principal Investigator in a college submits an Outline Proposal Document of a proposed IPP to EI.

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Innovation

Seventh Framework Programme (FP7)

WhoOpportunity for research-performing SMEs, research-acquiring SMEs (who need to outsource their research) and multinational corporations to work in trans-national collaborations with multiple partners.

HowApplicants should contact the FP7 National Contact Point for assistance with their proposal.

See: www.fp7ireland.com for details

WhatGrants of 50-75% towards eligible costs of the research project.

Management costs at 100%.

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Productivity

Lean Business Offer

Lean Start – Focus on Value

Lean Plus – Performance Improvement

Lean Transform – Business Transformation

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Productivity

LeanStartCompanies will be eligible to receive support for a maximum ofSeven consultancy days. Maximum funding is €5,000 at 80% grant rate.

LeanPlusAssignments typically to be completed within six months. Maximumfunding is €35,000 at 50% grant rate.

LeanTransformCompanies with significant operations that can demonstrate thatthey have existing capability and resources to implement a leanprogramme of scale. Assignments will typically run for at least one yearand is preceded by a scoping exercise.

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Expansion

Customised Expansion Packages

Aimed at assisting existing clients to implement significant expansion plans including management development and job creation or capital investment

Support can be provided against specific expenditure or against a business plan.

Investment can be by equity or grant or a mix of both. Capital equipment support is by preferences shares.

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Expansion

Job Expansion FundThe aim of the fund is to assist companies achieve

growth through increased employment

Who:• SME• Manufacturing and/or a high growth potential traded services company • Have 10 or more full time employees at the time of application• Has been generating reasonable revenues for at least 2 years

What:• The fund provides grant

support up to a maximum of €150,000 towards the recruitment of a minimum of 3 new employees.

• Support rate will vary up to a maximum of €15,000 per job.

• There must be a minimum increase of €350,000 in turnover over the next two years.

• The new jobs must not result in the displacement of existing jobs.

How:•There is a monthly call for project submission

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New Market Research Programme

Grant funding for established companies planning a market research programme to see if they should establish an overseas

presence.

Expansion

Grant Rates UK Pilot

EU/EEA

North America / Canada

Asia / Middle East / North & South Africa

High Growth Market / BRIC + Japan / Gulf States

Funding 50% 70% 70% 70% 70%

Maximum Grant

€80k 80k 80k 100k 100k

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Expansion

Going GlobalExamining the potential to deliver products and services to

international markets.

Who:• Companies with less than €50k support in the last 5 years

• Have 10 employees and have been generating reasonable revenues for at least the last two years

How:• Publicly advertised call for applications

What:• Maximum grant support rate 50% up to a maximum of €25,000 against eligible expenditure.

• Categories for support include: salaries, consultancy, travel and subsistence.

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Competitive Call: Graduate 4 International GrowthSupport for 120 graduates

What•Graduates work for 18 months, initial 6 months in Ireland, and another 12 months in an overseas market

•Graduates will also participate on a structured programme and attend 18 days organised training.

Who• Companies can apply

for a number of graduates but there are limits on the level of company support.

• Support will be provided against eligible expenditure

Full Funding SME’S 2 graduates, Large Companies1 graduate,Partial Funding: No limit

How:• Publicly advertised

call for applications

Expansion

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Bank Engagement

WHEN DOES ENTERPRISE IRELAND ENGAGE WITH BANKS?

• Assist on individual client cases in establishing solutions with the Client and the Bank – Tripartite approach

• Seek formal written consent from company prior to EI engagement with Bank

KEY MESSAGES FOR CLIENTS …• Adopt a professional ‘partnership’ approach

to Bank relationship• Be proactive and open with Bank regarding

company plans• Plan ahead for future funding needs

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How can EI help

Access to Venture CapitalistAccess to Venture Capitalist

Information and Introductions Partnering with VC funds

www.ivca.ie

Other InvestorsOther InvestorsBusiness Angels

www.businessangels.ie

Business Expansion SchemeSeed Capital Scheme

www.revenue.ie

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Other Supports

ManagementDevelopment

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Management Development

Management programme for experienced CEOs.

Delivered by Stanford Graduate School of Business, Duke Corporate Education, MD Switzerland & IMI.

• CFO need to become a leading strategic force within their organisation, influencing key stakeholders and executing on the company strategy

• The programme is delivered by Stanford Graduate School of Business and the London Business School.

StrategicLeadership4 CFOsDriving International Growth

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Management Development

Designed to equip Irish companies

with the necessary tools to reach their export sales potential in global markets.

A series of monthly workshops, primarily for exporting SMEs, which seeks to address the key issuesfacing the finance function

The objective is to demonstrate how financial information could be used to assist in strategic decisions that will help grow the business and practical ways to implement.

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Management Development

Accelerated Growth Programme

Aimed at CEOs of High Growth Irish Companies with International aspirations and growth. To build an ongoing strategy to generate sales – that are profitable. Delivered by IMI & Cambridge University, Participation limited to 27 CEOs.

An intensive management development programmeaimed exclusively at high potential Internet/Games companies. Over six months, it equips participants with the practical toolsneeded to formulate aggressive international growth plans and scale their businesses.

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Internationalisation

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EI Global Offices

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International Sales & Partnering

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Market Research Intelligence

Buyer Introduction/ Evaluation

Bringing key buyers to Ireland

Introductions Third Party Services

PR and Sales leads

Networking Opportunities

Business Accelerators

Messaging and Positioning

Trade Fairs/Trade Missions

Incubator Offices Business Support

Centre

Inward Technology Transfer

Building Reference

Sites

Incubation Centres

COMMERCIALISATION

• Objective to support 3rd level spin-outs

• 21 facilities in 3rd Level

• 275 companies based in these facilitates employing 1160

• Investment to date = €50m

• Facilities owned by 3rd Level

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3rd Level Industry Research Funding

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• Technology Centres(~€1 million per annum over 7 years)10 centres

• Industry Led Research projects(~€1-2 million over 2-3 years)5 projects

• Innovation Partnerships(~€6m pa – 50 companies supported in 2010)

• Innovation Vouchers(Once off payment of €5K)

Follow Up

Next Steps

Review our Corporate Website

Meet with your Dev Advisor

Call our Help Desk

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