As the government organisation responsible for developing and growing Irish enterprises in world markets, Enterprise Ireland offers a range of funding options to support startups and high-potential businesses. In this guide, we’ll look into two key Enterprise Ireland supports Pre-Seed Start funding and High Potential Start-Up (HPSU) funding. Whether you’re just starting out or you’re ready to scale up, understanding these funding opportunities could be the game-changer your business needs.
Understanding Enterprise Ireland And Its Role
Who is Enterprise Ireland and why are they so important for Irish businesses? They are a government organisation responsible for the development and growth of Irish enterprises in world markets. Their mission is to accelerate the development of world-class Irish companies to achieve strong positions in global markets, resulting in increased national and regional prosperity. They provide a range of supports, including:
- Funding
- Export assistance
- Supports to start, innovate and scale
- Connections to overseas buyers
Their focus isn’t just on helping businesses get off the ground, but on nurturing companies with the potential to compete on a global scale.
Funding Your Business Growth With Enterprise Ireland
Enterprise Ireland offers a series of funding programmes designed to support businesses at different stages of their growth journey. Let’s look at these options:
Innovation Programme: New Frontiers
This is the initial stage where early-stage startups can apply for funding to develop their ideas and validate their market potential. The New Frontiers programme offers two phases of funding:
- Phase 1: €15,000 to support market research, customer validation, and product development.
- Phase 2: €5,000 to further refine the business plan and prepare for investment.
Pre-Seed Start Fund
The Pre-Seed Start Fund offers convertible loan notes (CLNs) to eligible startups. These CLNs act like loans that can be converted into ownership (equity) at a later date, usually when the company raises further investment. This option allows entrepreneurs to retain ownership while accessing the capital needed to get their business off the ground.
Successful startups from the Innovation Programme can apply for the Pre-Seed Start-Up funding, which provides €100,000 in two tranches. This funding is used to further develop the product, build the team, and secure initial traction in the market.
Eligibility Criteria
- Incorporated in the Republic of Ireland
- Demonstrates high growth potential and a scalable business model
- Strong management team with relevant experience
- Ability to match the funding provided by Enterprise Ireland with private investment
It’s important to note that while location is not a strict requirement, being based in Galway can be advantageous due to the city’s thriving entrepreneurial ecosystem.
Funding Amount And Structure
- Maximum investment: €100,000
- Funding can be used for:
- Product development and testing
- Market research and customer acquisition
- Operational costs
- Recruitment of key personnel
Application Process
- Initial Expression of Interest: Submit a brief overview of your business and funding requirements.
- Full Business Plan: If your initial application is successful, you will be invited to submit a detailed business plan.
- Due Diligence: Enterprise Ireland will conduct a thorough evaluation of your business and management team.
- Investment Committee Approval: The final decision to invest rests with Enterprise Ireland’s Investment Committee.
It’s important to prepare a compelling business plan that clearly outlines your value proposition, target market, financial projections, and growth strategy.
Benefits Of The Pre-Seed Start Fund
Securing funding from the Pre-Seed Start Fund can provide numerous benefits for your startup, including:
- Access to capital: Fuel your business growth with essential funds.
- Validation: Receiving investment from Enterprise Ireland can improve your credibility and attract additional investors.
- Mentorship and support: Benefit from the expertise and guidance of Enterprise Ireland’s experienced team.
- Networking opportunities: Connect with other entrepreneurs and industry leaders through Enterprise Ireland’s network.
High Potential Start-Up (HPSU) Funding
While Pre-Seed Start funding is for very early-stage companies, High Potential Start-Up (HPSU) funding is designed for businesses that are a bit further along in their journey.
HPSU funding usually means a round 1 investment with Enterprise Ireland as an equity partner for a maximum of 10% shareholding.Â
The most significant stage of support comes through the HPSU programme, where Enterprise Ireland partners with private investors to provide a substantial round of funding to high-potential startups. This funding is typically used for scaling the business, expanding into new markets, and making key hires. In addition to the funding, HPSUs also receive access to a range of specialised support from Enterprise Ireland, including mentoring, networking, and market development assistance. For more detailed information about this fund, you can visit the Enterprise Ireland Innovative HPSU Fund page.
Eligibility Criteria
To be considered for HPSU funding, your business should:
- Be based in Ireland and have the potential to create 10 jobs and €1 million in export sales within 3 to 4 years of starting up
- Be led by an experienced management team
- Be developing innovative technologies, products, or services for sale on international markets
- Be less than five years old from the date of registration
Enterprise Ireland is particularly interested in businesses in sectors such as ICT, industrial and life sciences products, and high-tech services.
Application And Approval Process For HPSU Funding
The process for applying for HPSU funding is a bit more involved than for Pre-Seed Start funding:
- Initial engagement: Contact Enterprise Ireland to discuss your business.
- Evaluation: If your business shows potential, you’ll be assigned a Development Advisor.
- Business plan development: Work with your advisor to develop a comprehensive business plan.
- Application submission: Submit your business plan and application.
- Due diligence: Enterprise Ireland will conduct a thorough assessment of your business.
- Investment Committee: Present your business case to the investment committee.
- Approval and offer: If successful, you’ll receive an offer letter detailing the terms of the investment.
The entire process can take several months, so it’s important to plan ahead and make sure that you have adequate resources to sustain your business during this period.
Benefits Of The HPSU Feasibility Study Grant
Securing the HPSU Feasibility Study Grant can provide several advantages for your startup, including:
- Financial support: Fund essential research and development activities.
- Business plan development: Create a professional and investor-ready business plan.
- Market validation: Gain valuable insights into your target market and customer needs.
- Increased investment readiness: Increase your ability to attract investors and secure future funding.
Summary of Pre-Seed Start And HPSU Funding
Let’s highlight some key aspects to help you understand these Enterprise Ireland financial supports.
How To Prepare A Strong Application For Enterprise Ireland Funding
To increase your chances of securing funding from Enterprise Ireland, consider the following tips:
 1. Develop a Strong Business Plan
Your business plan is your opportunity to showcase your vision, strategy, and potential. It should include:
- Executive summary
- Product or service description
- Market analysis
- Marketing and sales strategy
- Operations plan
- Management team
- Financial projections
2. Financial Projections and Forecasts
Financial projections are a critical part of your application. They demonstrate your understanding of your business model and market potential. Key elements include:
- Sales forecasts
- Cash flow projections
- Profit and loss forecasts
- Balance sheet projections
Be realistic in your projections. While ambition is good, overly optimistic forecasts can damage your credibility. It’s often helpful to provide both conservative and optimistic scenarios.
3. Market Research and Analysis
Thorough market research demonstrates that you understand your target market and have identified a real opportunity. This should include:
- Market size and growth potential
- Customer segments and needs
- Competitive landscape
- Unique selling proposition
4. Building a Strong Team
Enterprise Ireland places a lot of emphasis on the team behind the business. Highlight the skills, experience, and track record of your key team members. If you have gaps in your team, acknowledge them and explain how you plan to fill them.
It’s important to note that the specific terms and conditions of each funding programme may vary, and startups should carefully review the eligibility criteria and application process before applying. For more information, you can visit the Enterprise Ireland website or contact their team directly.
Overall, the process for becoming an HPSU in Ireland involves a series of funding and support stages, with the ultimate goal of helping promising startups achieve rapid growth and international success.
How Around Finance Can Help
Around Finance is committed to supporting Irish businesses at every stage of their growth journey. We offer a range of accounting and financial services tailored to the needs of small to medium-sized enterprises.
Our team of experienced professionals can help you with:
- Financial planning and budgeting
- Tax compliance and optimization
- Payroll and HR administration
- Business advisory services
- Funding applications and support
If you’re considering applying for Enterprise Ireland grants, we can provide expert guidance and support throughout the process. Contact us today for a free consultation to discuss your business goals and funding options.
FAQ
Successful applicants will receive €50,000 or €100,000 in convertible loan note investments, with an Enterprise Ireland Development Adviser providing support, mentoring, and market research services.
The Pre-Seed Start Fund in Ireland supports early-stage start-ups in Ireland, covering operational costs, developing market-ready products, conducting product testing, and building critical skills, aiming to attract Seed Funding within 6-18 months.
The Pre-Seed Start Fund offers a maximum investment of €100,000. Companies can apply for €50,000 or €100,000 investments through a Convertible Loan Note instrument. The first tranche requires a minimum €5,000 co-investment, while the second tranche requires additional requirements and milestone progress.
The Pre-Seed Start Fund offers equity investment for business plan development, and technical, commercial, and fundraising milestones, including salaries, travel, consultancy fees, and other related expenses.
Applicants who meet the eligibility criteria will be assessed on their submitted business proposal. Eligibility Criteria are outlined on the web page Pre-Seed Start Fund | Business Support | Enterprise Ireland (enterprise-ireland.com). Enterprise Ireland may require applicants to provide additional information or contacts, such as customers or investors, as part of the due diligence process.
- To ensure application validity, respond to confirmation email within 48 hours and attach a 4-minute (maximum size is 20MB) PowerPoint Record video pitch.
Help with PowerPoint recording is available through Microsoft support. They do not accept links to file storage services.
The Pre-Seed Start Fund (PSSF) payments are expected to be completed within 8 weeks, with subsequent tranches released based on agreed milestones and company progress.
There is no deadline or closing date.
PSSF requires a company to invest €5,000 new money against €50,000 Pre-Seed Start Fund investment, even if the company has previously received CSF funding. More details can be found in their PSSF Equity FAQs
Individuals establishing a company in Ireland can apply for the Pre-Seed Start Fund, but sole traders cannot be approved for this funding.
Enterprise Ireland’s HPSU Unit clients can apply for the Pre-Seed Start Fund but should consult with their Development Adviser before submission.
Applications must be submitted through the Enterprise Ireland Online Application System Enterprise Ireland Online – Login (enterprise-ireland.com/en/). Applicants must register on Enterprise Ireland’s Online Application System and complete all required details. Before sending in an application, client companies should talk about it with their Development Adviser. Clients of the local Enterprise Office and people in the New Frontiers Program should also let their advisors know.
Companies that have received Enterprise Ireland’s Competitive Start Fund (CSF) or Pre-Seed Start Fund (PSSF) support of €50k or €100k, or both, are ineligible for new PSSF support and must apply for a maximum of €50k.
PSSF is open to all applicants, not requiring an Enterprise Ireland Development Adviser, and aims to accelerate the growth of early-stage start-up companies in Ireland with global market potential, based on eligibility criteria and business proposals.
Enterprise Ireland will inform applicants if their application doesn’t meet eligibility criteria and offer additional company development support in writing.
Please read their FAQs on their website PSSF Equity FAQs
The business must be based in Ireland and be handled and controlled there.
The company can engage overseas contractors in its development process, as long as core operations and management remain within Ireland.
A company’s previous Competitive Start Fund funding does not affect the Pre-Seed Start Fund’s Convertible Loan Notes offer, with a maximum application limit of €50,000. More details can be found in their PSSF Equity FAQs
Enterprise Ireland and four Irish Business Innovation Centres are collaborating to provide workshops and training for the Pre-Seed Start Fund, with upcoming webinars available on their website. You can also contact them at pssf@enterprise-ireland.com.
Apply for a business loan with a strong proposal, reapply if unsuccessful, and limit 3 applications per company per 12-month period.
Still got questions? Let us know what you’re looking for.
