Enterprise Ireland (EI) said today it will take a more risk-sharing role with client companies and put more emphasis on R&D in its new approach to funding.
Announcing the revised funding approach, the State-sponsored development agency's chief executive, Mr Dan Flinter, said EI is prepared to take equity stakes in start-ups and the taxpayer would get a return on revenue committed.
The maximum R&D grant has also been increased to €650,000 and will be the only non-repayable funding available to established businesses from now on. A new €10 million fund for small companies with overseas ambitions has also been created.
Mr Flinter said the new approach responds to the National Development Plan objective of more balanced regional development by allocating more favourable support to companies in the so-called BMW (Border, Midlands and Western) region and simplifies the funding application process.
Mr Flinter said equity funding will mean the State shares the risk and the reward of a new venture with entrepreneurs, and the taxpayer gets a return on revenue committed.
An important departure is the introduction of a single-preference share agreement when funding existing businesses to provide funding upfront to clients to implement project plans.