High Potential Start-Up (HPSU) Division€¦ · Enterprise Ireland works with promoters and 3rd...
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High Potential Start-Up (HPSU) Division • What we do • What they are Kevin Donnelly 02/04/19
Transcript of High Potential Start-Up (HPSU) Division€¦ · Enterprise Ireland works with promoters and 3rd...
High Potential Start-Up (HPSU) Division
• What we do• What they are
Kevin Donnelly 02/04/19
What is Enterprise Ireland?…
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• Help Irish businesses to start, innovate and scale internationally
• Work with 5,000 Irish owned businesses across all sectors with export potential and regions
• Mandate to drive collaboration and commercialisation of state-funded research
• 32 international offices
• Key focus is the development and growth of Irish companies in global markets
What is a HPSU?
HPSUs or High Potential Start-Ups are:
SMEs, with the potential to develop an innovative product or service for sale on international markets
and
The potential to create 10 jobs & achieve €1 million in sales within 3 to 4 years of incorporation.
and
< 5 years old
• The Irish Start-up Ecosystem
R&I
X-tech
VCs Banks
BICs
Accelerators
Co Working Spaces
Incubators
New Frontiers
Business Angels/ HBAN/Private
Investors
Intermediary Advisors/ Mentors
3rd Level Institutions
MNCs/ Industry
Non LEO Agencies
Food
FinTech
Entrepreneurship Programmes
HPSU
Team
Client
Non Financal Ecosystem
Financial Ecosystem
• Enterprise Ireland start-up supports
Milestone Setting
Meeting
Progress Update
Overseas Support
Sprint
0-18 Months
HPSU Start
HPSU Accelerate
Business Plan Update
Meetings
Master Class Series
Founders Forum
Forum Groups
Overseas Support
Engage HPSU Accelerate DA & IC
24 Months
Fast Track
Fast Track
EnterExit
HPSU
The HPSU Division: A Two Phase Approach
To source and develop ideas To scale HPSUs more quickly
Seed
Round
When does a start-up come into EI?
Prospecting & Stakeholder engagement
What’s it all about?
Enterprise Ireland works with promoters and 3rd parties to jointly fund a
start up business plan against agreed milestones.
Early Stage Enquiry: New Frontiers Stipend or Feasibility Study
Market Validation/ Competitive Start Fund
Prototype: €50k for 10% Equity
Seed Round €100k - €250k Equity,
Investor Ready:
How We Finance Start Ups
What €50k in equity support & €5k matching funds from promoters.
Each successful company appointed a mentor work for up to 10 days.
To achieve agreed milestones such as prototype, first reference site customers, first commercial sales
Who
Internet, Games, Telecoms, SaaS, Cloud Computing and Enterprise Software Lifesciences, Cleantech and Industrial Products
How • Advertised Competitive Calls • Assessment & Scoring process resulting in highest ranking applicants selected to pitch.• Funding provided to successful companies at pitch event.
Competitive Start Fund – Pre Seed
HPSU Equity Funding – Seed
What
€100-250k Convertible Cumulative Redeemable Preference Share (think Convertible Loan Note)
Objective
To achieve agreed milestones such as first reference site customers, first commercial sales.
Innovative HPSU Funding
– E.I. will invest based on identified cash need per the Business Plan.
– E.I. will always look for co-investors (VC Seed Funds, Angels, Corporate Investor).
– EI Funding will not be greater than combined promoters or 3rd party investment.
– EI ordinary shareholding will not exceed 10% of the total company ordinary shares
The HPSU Founders Forum helps clients grow their business rapidly
through:
- Understanding sweet spot customers and how to differentiate from competition.
- Gaining an appreciation of how to grow international sales.
- Learn how to generate and manage cash to position the company for growth.
- Creating a strong team capable of accelerating the company’s growth
- Building a strong network of other founders with the same goals.
Entrepreneur management training
Overseas Entrepreneurs
You are here
Overseas Entrepreneurs
Visas
• For entrepreneurs and founding teams
• Needed to travel, issued by• (single entry) Local Embassy
• (multi-entry) Department of Justice www.inis.gov.ie
• Start-up Entrepreneurship Programme (STEP) visa
Work Permits (Critical Skills)
• Needed to work here
• For employees with particular (rare) skills• Issued by Dept of Business, Enterprise & Innovation www.dbei.gov.ie
Overseas Entrepreneurs
and finally…
Random words of (other people’s)
wisdom
What Investors look for
Validated market(Size, growth, customers, competition, route to market, value proposition);
Validated technew or substantially improved compared with the industry in the EUstage of development, IP, sustainable advantage
Management team(experience, expertise, balance, commitment, experience, experience);
Business Model(Revenue model, path to profitability, financial forecasts, funding requirement);
Employment & Export Potential(EI only)
AKA Safety and confidence
Focus, Focus, Focus, Focus
Alarm bells a ringin’
• Lack of validation
• No/unbalanced team and non-commercial board/advisors.
• Value proposition is not clearly defined.
• Insufficient focus on selling and lack of sales process
• Our product has no competitors
• Unrealistic financial projections (revenue projections and costs).
• High cash burn rate, spending too much on outsourcing without having expertise in house
Remember
Selling the product≠
Selling the project
Summary
• High potential start up – is that you?• Linking in to the Ecosystem is critical• Funding is necessary but not sufficient• We are here to help not to direct• Our supports are open to all
• Is this for you?
