The Tánaiste has announced a €15 million (£11.8 million) fund to aid new biotechnology companies and announced a biotechnology support strategy for Enterprise Ireland. The two aim to boost biotech company start-ups and employment in the sector.

The fund is a public-private partnership involving Enterprise Ireland and a new venture capital fund, Seroba BioVentures. The dedicated biotech fund has a target size of €25 million and expects to support between seven and 10 companies, according to Seroba.

Ms Harney made the announcements yesterday in Dublin. "As I see it, biotechnology will be one of the most important technologies in the 21st century," she said. "It is important that we develop the indigenous capacity in this sector."

The new fund was a key part of the new strategy for growth in the biotech industry here, she said. The goal was to increase the number of companies from 21 to 60 and the number of people employed in the sector from 400 to 1,800 within five years, she added.

Enterprise Ireland will now put fresh emphasis on the development of new and existing biotech companies here. It will also assist early-stage biotech firms which can benefit from the support fund.

Seroba was co-founded by Mr Peter Sandys, former managing director of ABN Amro Corporate Finance (Ireland), and Mr Seamus O'Hara, a biotechnology graduate and former business development manager at the State-backed biotech support body, BioResearch Ireland.

The €15 million first round of the fund includes €7.5 million from Enterprise Ireland's seed and venture capital initiative and €7.5 million raised by Seroba from institutions and private individuals. A second round is expected by the second half of the year bringing the fund to €25 million, Mr Sandys said yesterday.

The money was now in place, he said with a target of two or three companies to receive backing by the end of the year. He expected a portfolio of seven to 10 projects during the life of the fund.