State agency Enterprise Ireland is committing €20m from its Seed & Venture Capital Scheme to a new EIIS fund managed by private family office Elkstone.
Elkstone plans to leverage the taxpayer funding to source private capital to invest in Irish SMEs.
The law was changed recently so that individuals can invest in an EIIS fund rather than in individual companies to avail of income tax breaks.
Elkstone says its fund will primarily focus on early-stage EIIS qualifying start-ups (Seed & pre-Series A), and that typical investment sizes will be in the €1m to €2m range.
Elkstone styles itself as a generalist investor engaged with a broad spectrum of industries from digital health to artificial intelligence.
In Association with
Enterprise minister Leo Varadkar commented: “This new fund is a real boost to the Irish start-up community. Backing our early stage entrepreneurs is a crucial part of our plan to grow employment and I’m really happy to see the creation of this fund, which will give those brave enough to start their own business, a chance to take it to the next level.”
Enterprise Ireland CEO Leo Clancy added: “Enterprise Ireland is committed to leading the expansion of venture funding in the areas of the Irish market that are most challenging for growing firms.
“This fund is the first to launch following the amendment to EIIS legislation and we look forward to seeing the difference that this private and public capital will make to the next generation of Irish entrepreneurs.”
Elkstone founder Alan Merriman stated: “It has been a long road to ensure the right win-win framework is in place, but the support we got from Enterprise Ireland and government departments was pivotal. We look forward to working with more and more Irish-based founders who will now have the opportunity to accelerate their journey, grow and go global."
Merriman added that Elkstone has closed the first round of its EIIS venture fund and is now targeting €100m by final close.
Elkstone’s existing venture portfolio includes LetsGetChecked, Manna, Soapbox Labs, Flipdish, HealthBeacon and Altada.
