Pre-Seed Start Fund offers €100k convertible loan notes

Enterprise Ireland has introduced a new Convertible Loan Note investment product that offers start-ups up to €100,000 in funding. The first call closed on October 20 2022 and further calls will be made in 2023.

The agency says the purpose of the Pre-Seed Start Fund is to accelerate the growth of early-stage start-up companies that have the capacity and ambition to succeed in global markets. The fund is designed to enable companies cover operational costs to undertake tasks including the development of a market-ready product/solution, product testing in the marketplace, and building critical skillsets within the start-up team. Criteria for funding include: Minimal Viable Product or live in Beta, and that the product or service has demonstrable customer validation.

■ A fully articulated proposition addressing a clear opportunity, with market research conducted with customers and potential customers. ■ A clear execution plan with milestones to be achieved, such as identifying suitable channels to international markets or technical product development roadmap.

■ Evidence of innovation, international market opportunity, and knowledge of the international competitive landscape.

■ A team with experience, domain

knowledge and balance of skills. Applicants who can demonstrate progress towards generating early and sustainable revenues will be favoured for funding. In addition to the investment, successful applicants will be supported by an Enterprise Ireland development advisor and can avail of 10 mentoring sessions.

The funding scheme is open to early stage companies in the manufacturing and internationally traded services sectors. Applicant companies must be under four years old and have the potential and ambition to create 10 jobs in Ireland and achieve turnover of €1m within the years of the funding.

The first €50,000 loan note tranche will be released to successful applicants subject to the company raising equity co-investment of at least €5,000. To draw down the second €50k, companies will have to satisfy the agency that milestones are being achieved, and raise an additional minimum investment of €5,000.