Press release
Minister Burke publishes paper on using finance as a catalyst to develop a scaling ecosystem
From Department of Enterprise, Trade and Employment
Published on
Last updated on
From Department of Enterprise, Trade and Employment
Published on
Last updated on
Today, Minister Burke publishes a report authored by the cross departmental Finance for Scale Ups Working Group, chaired by his department, on the use of finance as a catalyst to develop a scaling ecosystem in Ireland.
The Group’s aim, in line with the White Paper on Enterprise, was to develop actionable recommendations to support high potential firms to access scaling finance, which would in turn allow them to internationalise and increase exports.
Following a domestic consultation of the Irish scaling ecosystem and a review of peer countries, the Working Group provided three policy recommendations to help foster and develop the Irish scaling ecosystem:
The report of the Finance for Scale-ups Working Group also calls for the establishment of an implementation committee to develop practical actions. That work will begin immediately, under the remit the Department of Enterprise, Trade and Employment.
Commenting on the report, Minister Burke said:
"I very much welcome the findings and recommendations of the report by the Finance for Scale Ups Working Group published today. Innovative businesses require risk capital to help fund their growth, and this report provides important information to us on the key role that the State has in helping our high potential and innovative firms reach their maximum potential.
“Finance is an important catalyst for further development of the Irish scaling ecosystem. With more scale-up capital and the expertise from scale-up investors, high potential firms could continue to grow significantly and deliver considerable benefit to the Irish economy.
“The successful implementation of the recommendations in this report, will increase scale up activity in the Irish funding ecosystem by improving access to appropriate finance."
In early 2022, officials from the Department of Enterprise, Trade, and Employment established a Finance for Scale Ups working group.
The group consisted of representatives from within our own department, alongside:
The group’s aim was to develop actionable recommendations to support high potential firms to access scaling finance, which would in turn allow them to internationalise and increase exports.
In addressing this objective, the group sought to answer three questions:
1. Is there a scale up financing gap in Ireland?
2. If so, what characterises that gap?
3. What can the government and its agencies do to bridge the gap?
Based on the information available, the group defined a scale up as an organisation that is well advanced in the validation of the necessary elements of a repeatable business model.
The output of the group is presented in the report published today: The use of finance as a catalyst to develop a scaling ecosystem.
The report includes input from stakeholders who provided valuable expertise of the scaling, venture capital and private equity markets.
The report reflects Ireland’s strengths as a location for start-ups. However, for innovative firms seeking financing to scale, Ireland, and the EU as a whole lag behind other locations such as the US. The successful implementation of the recommendations in the report, is expected to increase scale up activity in the Irish funding ecosystem by improving access to appropriate finance.
Implementation will be managed through a Scale-up steering committee comprising officials from the Department of Enterprise, Trade, and Employment, Enterprise Ireland, Strategic Banking Corporation Ireland, Ireland Strategic Investment Fund/National Treasury Management Agency. The steering committee will be responsible for developing and refining strategies to implement the recommendations contained within this report.