john mcintyre - enterprise ireland - stanford - jan 4 2010
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Stanford Engineering's European Entrepreneurship and InnovationIrish Venture FundingJanuary 4 2010John McIntyre, SVP Enterprise Ireland Silicon Valley [email protected] Tel : +1-650-329-0404John McIntyre History 13 Years Intel, Flash Memory to Intel Capital CBT Systems/SmartForce First Irish Tech company on NASDAQ Co-Founded InnerWorkings 2003 Enterprise Ireland 2008www.enterprise-ireland.comWhy Ireland?Innovation Comes Naturally PRO-BUSINESS ENVIRONMTRANSCRIPT
Stanford Engineering's European
Entrepreneurship and Innovation
Irish Venture Funding
January 4 2010
John McIntyre, SVP Enterprise Ireland Silicon Valley
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
www.enterprise-ireland.com
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!
www.enterprise-ireland.com
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
www.enterprise-ireland.com
Funding Start-Ups
Seed & Venture
Capital Programme
Other (Cash)
Measures
The Climate has been better !
E.I. Response
www.enterprise-ireland.com
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
www.enterprise-ireland.com
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)
www.enterprise-ireland.com
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)
www.enterprise-ireland.com
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!
www.enterprise-ireland.com
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
www.enterprise-ireland.com
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
www.enterprise-ireland.com
Other Measures
(Funds Managed & Administered by EI)
Enterprise Stabilisation Fund
2009 €50M
2010 €50M
Employment Subsidy Scheme
2009 €70M
2010 €65M
www.enterprise-ireland.com
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
www.enterprise-ireland.com
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
www.enterprise-ireland.com
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
www.enterprise-ireland.com
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
www.enterprise-ireland.com
Backup
www.enterprise-ireland.com
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)