University of Limerick Foundation Invests in Venture Fund to Support University Spin-out Companies

published on Nov 09th, 2009

University of Limerick Foundation invests in new Venture Fund to support University spin-out companies. €26m in funding available to stimulate high potential start-up companies including research-based spin offs.

The University of Limerick Foundation has forged a strategic partnership with one of Ireland’s largest venture capital funds, Kernel Capital, along with Bank of Ireland and Enterprise Ireland to create a new venture fund that will help Irish universities leverage commercial success from their transformational research ideas and intellectual property.

The €26m Bank of Ireland Seed and Early Stage Equity Fund supported by Enterprise Ireland and the University of Limerick Foundation will invest in start-up and early stage companies, with a focus on high potential university spin-offs and export-orientated start-up companies that operate in the technology (including green technology), food and financial services sectors.

Commenting on the launch of the new venture fund, President of the University of Limerick Professor Don Barry said “Investment in university-based research is even more critical in today’s uncertain economic climate as spin-out campus companies have the proven potential to make a significant contribution to the economy - providing new jobs, attracting foreign investment and providing new revenue bases to stimulate growth in the Irish economy.”

David Cronin, CEO of the University of Limerick Foundation added, "a key challenge is translating research concepts into successful new products and services that will spark new growth and job-creation opportunities and the Bank of Ireland Seed and Early Stage Equity Fund  will greatly facilitate this. We are proud to partner with our industry partners - Enterprise Ireland, Bank of Ireland and Kernel Capital - on this initiative which underscores the University of Limerick's commitment to ensure that Ireland maintains its reputation as a world-class hub for transformational technology and scientific excellence."

Commenting at the launch, Niall Olden of Kernel Capital, managers of the fund said, "to succeed in the current climate, Ireland Plc needs to compete through its universities and colleges as well as through traditional businesses. The IP held in universities across Ireland is a viable asset that must be realised if we're to retain our competitive edge as a nation and fuel new economic growth. The significance of this fund is that it addresses a gap in the market for €500,000 and below, providing enough capital and creative management expertise to incentivise universities to increase the economic impact of their research base."

Richie Boucher, Group Chief Executive of the Bank of Ireland said, "university research commercialisation is a hugely promising area that has the potential to spur Ireland's economic recovery and growth. This Fund demonstrates our commitment and support to early stage companies and campus spin offs with significant growth prospects."

Those who wish to apply for funding from the Bank of Ireland Seed and Early Stage Equity Fund should download submission proposals from www.kernelcapital.ie.