Web 2 Ireland

Web2.0 Funding – a possible scenario

6th of December 2006 by admin

On the heels of today’s budget and the extension of the BES Scheme

- €2million cap
- Indivdual investment limit of €150,000

Scenario
1.Entrepreneur has idea….
2.Goes on EI EDP programme – €35k+ for year1. Office space, etc
3.Starts company
4.Invests some of his/her own money – and claims back under SCS scheme – up to 100k per annum
5.Builds out product with an EI feasibility study grant
6.Launches product
7.Raises €2m angel monies under BES scheme
8.Builds a global business
9.Cashes out
10.Repeat

and then the bad news – where are the Angels with the 150k to invest – they are all too busy off in Poland/Bulgaria buying property. With this increase we will see even more “asset backed” BES schemes [anyone for hostels or nursing homes]

We do need a Ron Conway in Ireland

Sidenote: Ron Conway made his initial millions when he sold his company Personal Training Systems to CBT [Smartforce/Skillsoft] in November 1995.

This entry was posted on Wednesday, December 6th, 2006 at 12:22 pm and is filed under Irish Web2.0 News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

4 Responses to “Web2.0 Funding – a possible scenario”

Lal

December 16th, 2006 at 2:19 pm

as an Irishman in USA and contemplating to return someday, I see a “lack” of early stage funding available in IRL.
Now this is written mostly from afar (and hence looking at blogs, websites, VC sites, finance circles, google etc.) although I have a few ‘startup’ connections across the waters.
The UK has a similiar issues but not on such a grand scale.

I see EI/IDA doing some good and the ‘govn’ making the right noises just not seen any real concrete results (maybe 2 early 2 tell).

I presume as u indicate those (would b angels) with money in their pockets are getting higher (and potentially less risky) returns from their other investments (property). In that respect it will take quite a bit of correction (signs are there 4 quite some time but not really happened yet) b4 they “need” to go look elsewhere. Also expect they will need some education (and/or brokering) b4 they dabble in ‘risky’ technology startups.

Posted in my blog- http://lallylogic.blogspot.com/2006/12/startup-funding-in-ireland.html

Lal

December 18th, 2006 at 4:55 pm

in response to https://beta.blogger.com/comment.g?blogID=4962527815077513911&postID=90980319954580993&isPopup=true

Fergus, as one of the more “progressive” movers-n-shakers (Nooked) on the IRL Web 2.0 scene your comments are well respected.

I think “Smart” money is a key factor as like any industry there is a huge difference between someone that is in the 10/10 category and others in the 3 out of 10. This applies to VC/angels as well, at least from my experience.

Interesting that Vinod Khosla from Kleiner Perkins (one of the BIG men in the Valley) at the Web 2.0 summit (http://www.oreillynet.com/pub/a/network/2005/11/09/distributing-the-future.html) is talking about TOO much money these days (the new Web 2.0 arena).

Not that u have that problem in IRL; but thankfully (and kudos 2 the IT@Cork and all the others that are pushing IRL on the Web2.0 stage) some of that should change as IRL gets more exposure.