The new Alliance Investment Capital venture fund has attracted great interest and its promoters are assessing eight potential investments. About half of these are in the high-tech sector and the average investment is likely to be £750,000.

The Alliance fund was introduced recently, funded by Royal Bank Development Capital - venture capital arm of the Royal Bank of Scotland - and Enterprise Ireland. It is advised by Corporate Finance Ireland, the leading independent corporate finance firm.

The fund has attracted many inquiries since its arrival, according to Mr Frank Traynor of CFI, and is likely to invest in established firms for its initial investments, as opposed to start-ups.

Projects under consideration include four information technology firms, he said, with the remaining companies involved in general commerce and other technology areas. Some projects may attract the maximum investment of £1 million for the fund.

While the fund totals £7.5 million - with the Enterprise Ireland element supported by EU funding - the Royal Bank of Scotland has said it may put in further funding on its own behalf to some projects. This means the total investment could exceed the £1 million maximum, with capital from the Scottish bank co-funding larger amounts alongside money from the fund.

This is the bank's first entrance into the Irish venture capital market and it looks set to become a significant player here, alongside the Irish venture capital companies and British concerns such as Mercury Asset Management, which are also active in the Republic.

The fund will seek its return through capital appreciation, rather than dividend yield, and has said that a member of either CFI or Royal Bank Development Capital will join the board of any company in which it invests. CFI is identifying the investments.