STATE AGENCIES should fund 300 low-cost internet start-ups a year, with the expectation that 95 per cent would fail, according to serial technology entrepreneur Dylan Collins.

While acknowledging the work of Enterprise Ireland and IDA Ireland, Collins says a radical new approach is needed in Ireland if we are to build a truly smart economy.

“Enterprise Ireland has a mandate to support all sectors of the economy,” says Collins. “But a focus on internet start-ups would be very helpful.”

The cost of setting up an online business has fallen dramatically and Collins says that even the promoters of the unsuccessful businesses would learn a huge amount from the experience.

Late last year, Collins sold a majority stake in his latest venture, Jolt Online Gaming, to GameStop, the world’s largest computer game retailer which has 55 shops in Ireland.

Previously he sold Demonware, a maker of tools for games developers, to publisher Activision for about €10 million.

Collins will share his experiences at an upcoming UCD conference entitled Digital Landscapes: Transforming Business Online.

So what’s the key to building a successful international tech business from Ireland?

“Build something that people want – ask them, build it and sell it,” says Collins matter of factly.

“It sounds naive but it’s that simple.”

Jolt is in the midst of growing the business to match the global ambitions of its majority shareholder.

“It’s pretty clear GameStop want to have a presence in the online gaming space,” says Collins. “They are the biggest games retailer in the world and they need to build something that can match that.”

While Jolt was doing licensing deals with major publishers such as Fox Interactive Media and Playboy, Collins says GameStop, which deals with half a billion shoppers a year, makes it an even more attractive proposition.

“We can continue to do that but the fact we can reach half a billion customers a year makes us very attractive,” says Collins.

“We will remain very much an independent entity though.”

Following GameStop’s investment Collins said Jolt could add up to 50 staff in Ireland. He maintains Ireland remains a good place to do business and to base a technology business.

“There’s lots of skilled people here, but I think we need more,” he says.

Collins also believes Ireland is not doing enough to harness the existing games companies that are already in Ireland.

“Right now we have one of the biggest online gaming hubs in the world but we don’t shout enough about it,” says Collins, citing international players such as Activision/Blizzard, Gala and the many online poker operations based here.

“What we have here rivals Montreal, Vancouver and even the Bay area of San Francisco.”

Digital Landscapes: Transforming Business Online, takes place on Wednesday, March 3rd, at O’Reilly Hall in UCD.

For tickets visit

www.ucd.ie/growingireland.