Irish Venture Capital plays a pivitol role in fostering entrepreneurship, innovation and job creation.    At Kernel Capital and Seroba Kernel we have in the past 18 months, made 47 investments, in start up and developing companies, each ranging from €250,000 to €2,300,000. This has an important multiplier effect within the Irish economy; helping to create and sustain over 800 high calibre jobs and our portfolio is forecast to grow to employ over 1,000 in the coming 12 months, almost all at graduate and post graduate level. While on the exit side our  Fund I trade sales, such as Stokes Bio, Straatum Processware, Farran technology and Chip Sensors have resulted in the acquiring NASDAQ and LSE quoted companies establishing their first base in Ireland, investing substantially and increasing local employment, again at graduate and post graduate level.

A typical firm is Cork-based WaveBreak Media, which last year received a €250,000 investment from our Bank of Ireland Seed Fund. This investment enabled the stock media company to increase production, recruit more staff and broaden its global distribution network. The company  has a catalogue of over 20,000 HD stock/animation videos and 40,000 photographs which are sold through a distribution network including Getty Images and Corbis Motion. Clients include FoxSports, Channel 4, MTV and the ITN group.  Wavebreak is currently recruiting for a Sales Manager and creative staff (see http://www.wavebreakmedia.com/ for more details).

Another fast-growing Irish business supported by Kernel Capital is Kilkenny-based renewable energy systems provider Hybrid Energy. In April 2011, our €500,000 investment in the firm enabled it to expand into new markets including the United Arab Emirates, Qatar, Guatemala, Germany, Italy, Fiji and Ghana. A provider of cost effective, easy to maintain power solutions for off-grid telecommunications base stations, customers include Meteor, Telefonica, O2, British Telecom and Vodafone.  Hybrid Energy is currently recruiting a Sales Manager.

Kerry-based BioAtlantis is another example of a dynamic Kernel Capital-backed company, exporting its products to 22 countries. In June 2010, the Bank of Ireland Kernel Capital Fund II invested €750,000. Focussed on the research, development and manufacture of plant biostimulants and animal prebiotics the firm has achieved multi million euro annual sales revenues and trades profitably.  BioAtlantis is currently recruiting a Sales Executive (see http://www.bioatlantis.com/for more details).

These examples represent 3 from our portfolio of 51 companies where there are currently over 30 immediate job vacancies and strong growth plans.  Entrepreneurs, innovation and venture capital together represent a powerful engine of job creation.

Written by Orla Rimmington, Operations Director in Kernal Capital

If you are interested in the topic of equity finance why not read the article by Alan Gleeson called  Raising Equity Finance