Enterprise Ireland launches internet and games competitive start fund

Enterprise Ireland has launched an initiative called the Internet and Games Competitive Start Fund to help internet and games start ups get off the ground and launch new products and services in the international marketplace. This competitive fund is focused on providing start ups with critical early stage funding to explore and determine the market fit of their business and progress to product launch.

The new fund is being introduced on a pilot basis for 10 start ups in the Internet and Games sector, who can demonstrate an ability to grow their business internationally. The initial fund for Internet and Games start ups will be €500,000 but it is envisaged that this will be expanded to include further sectors in early 2011.

This competitive fund marks a speedy implementation of one of the key recommendations in the Report of the Innovation Task Force which highlighted the need for greater support for very early stage start ups.

Under the terms of the new fund, start ups will receive an equity investment of €50,000 for a 10% ordinary equity stake. In addition to funding, each start up will be provided with an experienced business mentor to support them. The application process has been designed to be fast and efficient to allow the new start ups to concentrate on validating their business concept and getting to market entry stage as quickly as possible.

The Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD, described the new fund as a 'strategic investment in the future of Ireland's internet and games industry'.

'Games are the one of fastest growing markets in the world with an estimated value of more than €30 billion. In Ireland and the United Kingdom, the market for online games is valued at about €2 billion. Clearly, there is an enormous business opportunity there for Irish firms and the Government, through Enterprise Ireland, is focused on helping internet and games entrepreneurs to capitalise on this rapidly growing market opportunity.

Commenting on the launch Frank Ryan, Chief Executive Officer of Enterprise Ireland said:

'Enterprise Ireland is introducing this new Competitive Start Fund in direct response to our client needs. Very early stage companies can face difficulties in raising external financing at this vital stage in the start up and market launch process; this new Enterprise Ireland competitive start fund is aimed at helping them bridge this gap and quickly validate their market.

'A key focus of our Software Strategy is to further stimulate the emergence of internet based companies in Ireland and to broaden their international base and scale. This new fund will help a new cohort of internet and games entrepreneurs to set up and grow successful international businesses.'

An external panel including some of Ireland's best known internet and games entrepreneurs has been assembled to evaluate the applications. The closing date for applications is December 16th, 2010 and the 10 selected companies will be agreed by the end of January 2011. Application forms and detailed information are available at: www.enterprise-ireland.com/igcsf