A £1 million fund has been set up to encourage US-based Irish technology specialists to establish new businesses in Ireland. The fund, which will be jointly operated by Forbairt and Enterprise Ireland, aims to assist 10 new ventures over the next 12 to 18 months, providing up to £100,000 to each as seed capital in return for an equity stake.

Details of the fund were released by the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, yesterday, at a meeting in San Jose, California, attended by Irish expatriate specialists working in Silicon Valley.

The Tanaiste has been leading a trade mission to the US, which includes 21 senior executives from Irish-owned technology companies seeking to form strategic alliances with US corporations. The fund, which will be called the Millennium Entrepreneur, will help to highlight the opportunities for Irish nationals abroad who are interested in making Ireland their development and operations base for international markets, the Tanaiste said.

The fund is jointly sponsored by LM Ericsson, Bank of Ireland, Fyffes chairman, Mr Neil McCann and Forbairt and Enterprise Ireland. It will also qualify for EU support.

As part of its operation, start-up businesses will be supported by the appointment of a company "mentor" and a patron company to offer advice.

The mentor will typically be an experienced business strategist with expertise in developing high potential start-up companies, while the patron will be a successful Irish company, where senior managers will be designated to offer practical advice and guidance.

To qualify, an applicant should be resident overseas at the time of seeking funding and have lived and worked overseas for at least three out of the five years prior to application.

But, at the board's discretion, some applications from those who have returned to Ireland up to six months before applying will be considered.