Enterprise Ireland- 3rdApril2013
- 1. Entrepreneurship How and when to approach Investors. George Kiely Enterprise Ireland UCD - Innovation Academy 3rd April 2013
- 2. Enterprise Ireland Enterprise Ireland is the Government agency in Ireland responsible for supporting Irish businesses in the manufacturing and internationally traded service sectors. Specifically, Enterprise Ireland helps businesses to start- up, innovate and ultimately, to achieve global success.
- 4. Introduction Working with entrepreneurs, EI and national programmes for entrepreneurship. View circa 1500 business propositions and business plans each year Meet with circa 500 entrepreneurs/ teams each year to evaluate, challenge and advise new start-up companies Design, deliver and manage Start-up programmes for High Potential Start-Ups Review wide range of business ideas of all shapes and sizes to make investor ready.
- 5. What I will cover … Enterprise Ireland and the types of Start-up businesses EI supports The importance of a Robust Investor Ready Business Plan Indicators for Success (what we are looking for) Common mistakes Raising Funding – Sources of Funding for Start-Ups
- 6. Projects EI invests in Eligibility Criteria Manufacturing or internationally traded services Likely to achieve significant growth within 3 years Sales of €1m per annum Employment of at least 10 people Export orientated Involving industry experienced team Irish owned or strategically controlled and located in Ireland High level of technical innovation
- 7. Projects EI cannot invest in NOT Eligible No export potential i.e. customers will be based in Ireland No growth potential The main promoters / strategic decision making is not based in Ireland IP is not registered with an Irish company Importing products to sell in Ireland Not innovative – many competitors
- 8. Graduated EI assistance 1) Starting a Business: Enterprise Start 1(ES1) 2) Validating the Business Idea: ES2 or EI one to one’s. 3) Incubation and Interim Funding IOT’s / New Frontiers Programme 4) Raising Substantial Investment : EI High Potential Start Up HPSU.
- 9. HPSU – High Performance Start - up High Performance Start Up (HPSU). Competitive. Three part finance. Promoter/VC/EI. 10 employees/1 million euros. Full assistance - Overseas Office - Industry Experts - Mentors - Personalised Expert Advice
- 10. New Frontiers Programme Entrepreneurship Development in Incubation Centres IOT’s Candidates and projects must have potential to grow in international scale. Three phases / competitive. Phase1 - 8 weeks. Phase 2 - 6 months Scholarship of 15K
- 11. Sources of Finance Entrepreneurs, Relatives Private Investors and Friends » Wealthy individuals – » Seed Capital Scheme/BES » Cashed out entrepreneurs » Business angels » BES Debt » Bank loans, overdrafts, invoice discounting Development Agencies » Feasibility Study grants » R&D grants Venture Capital » Employment grants » Preference shares
- 13. Innovation Voucher If you own or manage a small limited company with a company registration number and you have a business opportunity or problem that you want to explore - apply for an Innovation Voucher.
- 14. What is a Business Plan ? Detailed roadmap with company’s offer, plans and strategy/costs for implementation Necessary to raise funding from a 3rd party - bank, government agency, private investor, VC funds Clear, well researched document that answers all the common questions that you should know and that an investor will want to know It is not a creative writing exercise, a graphic design showcase or exhibition on excel sheet modelling
- 15. Who is the Business Plan For? You the entrepreneur – plan the work and work the plan For potential investors (Public and Private) For your bank manager For your staff – new members joining to company : Note All different Audiences – may need different versions, may need NDA.
- 16. Investor Ready Business Plan A Business Plan but not an Investor Ready Business Plan We encourage entrepreneurs to think more about getting Investor ready – i.e. “what information/evidence do I need to convince investors to part with their money If you can do this - finance will follow
- 17. Investor Ready Business Plan – Content? Plans should give information and detail about the entrepreneur and the business that de-risks the business in the view of potential investors or more simply put - adds credible evidence as to the likely success of the business
- 18. Common mistakes Value proposition is not clearly defined. Technically brilliant product but does it deliver VALUE to the customer? Inability to identify and qualify the customer. “Our product has no competitors” ! Unbelievable numbers (revenue projections and costs). Unrealistic expectations on raising cash (time needed and valuations). It will take 3-6 months. Plan conservatively. Verbiage / inelegance
- 19. Common mistakes Inability to identify clear – and achievable – milestones. ‘Unbalanced’ Management team – dominance commercially/technically? Inability to plan for contingencies (they will happen !!).
- 20. Important considerations 1. Competition. Where are you in relation to your competition? 2. What is different about your product or service? “Uniqueness?” 3. Elevator pitch. 10 seconds. Brutal assessment. 4. Brand. Competitive matrix. 5. Who is selling it? Emotional intelligence supported by research. 6. Technology is a given unless…….what is does for whom and better/ cheaper/ more effectively. 7. Innovation is not just technology but business model for example.
- 21. Commercial Environment - Interdisciplinary Best creative business people - classicists, natural scientists, philosophers. Most successful ICT entrepreneurs – non technical. Successful businesses projects have valuable combinations of skills. Interdependence - the project itself - the promoter.
- 22. Impact Advice more important than Funding
- 23. County Enterprise Boards Throughout REGIONS and DUBLIN Businesses employing less than ten Transition to EI HPSU Close collaboration with EI – incorporated within EI EI on boards ‘Organic’ rather than ‘scale’ growth
- 24. The Future Recessions Extraordinary talent. Non - economic factors Commercial significance of International Good Will.
- 25. Contact George Kiely george.kiely@enterprise-ireland.com 01 7272329
Editor's Notes
- #2: Types of Businesses EI supports What is not eligible Support available from EI