Seventy per cent of entrepreneurs and investors polled at a venture capital conference today in Croke Park say access to finance has improved in the last five years, although investor readiness remains a significant challenge.

The InterTradeIreland Venture Capital conference, with an attendance of c.400 people, was supported by Crescent Capital, BDO and Eugene F Collins.

When asked about the main barriers to raising investment support as a start-up, half the attendees said investor readiness was a key challenge, while four out of ten cited a lack of access to suitable investors or funds as a hurdle.

Looking at the key attributes of raising finance or investing in a startup, investors said an understanding of the process (26%) and confidence (25%) were most important. Over a fifth also pointed to technical capacity as a significant quality when considering backing a venture.

Margaret Hearty, Director of Programmes & Business Services at InterTradeIreland said: “The number of options for funding is expanding year-on-year, so it’s vital that companies have the right information to help them access these funds and are investor ready.

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“There is significant venture capital and early stage funding available for those with the right project and the drive and determination to succeed. The landscape continues to evolve since InterTradeIreland was set up 20 years ago.  Angel investing continues to grow and the recent launch of the all-island Halo Business Angel Network is only going to expand this further,”  Hearty added.

Deirdre Terrins of Crescent Capital highlighted cyber security, digital creatives and big data as emerging venture capital areas. “As cyber threats continue to grow, there is a need for big data and data privacy to be intrinsically linked to a company’s security policy. This is a growing area of expertise in Ireland and we see it representing a huge opportunity for budding entrepreneurs, with interest from investors,” she stated.

Steve Collins, a partner at Frontline Ventures, outlined the practicalities of what investors look for, from pre-seed to IPO stage. Emphasising the importance of building contacts, he advised that networking recommendations is the best way to secure funding as there is established trust and expectation.

“In my experience, only 1% of deals secure funding out of an average of 1,000 pitches, and none of these come from a cold pitch. “Establishing and growing a trusted network is vital,” said Collins.

Dr Vincent Power of A&L Goodbody urged the venture capitalist community to invest in their negotiation skills. “Use lessons from Brexit to influence your own strategy – don’t assume the outcome, remain consistent and remember, all your actions are being watched,” he advised.

Photo: Margaret Hearty (left), Steve Collins and Deirdre Terrins.