VENTURE CAPITALISTS in Ireland with access to more than €275 million worth of funds have warned early start-up firms, North and South, to “use it or lose it”.

Michael Murphy, managing partner of Dublin-based NCB Ventures, which has €95 million under management, said there is no shortage of money available for the right idea but entrepreneurs who make big promises need to be prepared to deliver in order to secure finance.

Mr Murphy said firms should be both investor-ready and realistic before they go about trying to raise money in a climate of limited liquidity.

He said venture capitalist firms are mandated by their backers to invest in new opportunities but new ideas alone would not secure investment unless there is a strong management team and a credible business plan behind the financing bid.

Mr Murphy was one of 11 veteran venture capitalists actively seeking new opportunities at InterTradeIreland’s ninth annual Venture Capital Conference in Belfast, which attracted more than 300 people.

Daniel McCaughan from Kernel Capital, which together with its associate investment firm Seroba Kernel has €190 million under management, said entrepreneurs should be in no doubt that unless they can successfully sell their business idea to investors and back up their claims they will not get the cash they need.

“We invest on the strength of the management team so we want to see people with a track record who have had early validation from a customer and who are ahead of their game,” Mr McCaughan said.

But there was also strongly worded advice for entrepreneurs about the risks of getting into bed with the wrong venture capital partner from the co-founder of Dublin life science fund Fountain Healthcare Partners.

Dr Manus Rogan said the key to a successful partnership between entrepreneurs and venture capitalists came down to the individuals involved.

“It is like a courtship process and then a marriage phase. Companies need to pick their marriage partner for four to six years very carefully. It is your fault if you get married to the wrong venture capital fund,” he warned.

Despite the strong declaration by the participants that there is ample finance for the right business idea and team, InterTradeIreland believes there is a need for an increase in the supply of equity finance available for early stage companies in Ireland.