By Virginia Linehan
High growth technology start-ups rarely avail of bank financing due to the level of risk associated with the business. For that reason, private investment is sought to finance start-up and development costs for these technology based ventures (Enterprise Ireland, 2015). Enterprise Ireland (EI) identifies such ventures as High Potential Start-up (HPSU) companies. A HPSU, according to EI, is a business with the potential to develop an innovative product/service for sale on international markets with the potential to create 10 jobs and reach a target of €1m in sales within 3-4 years of start-up (Enterprise Ireland, 2015). It is important to note that a HPSU, as defined by EI, may not necessarily be a technology business. The type of funding is closely aligned to the company’s stage of development i.e. feasibility stage, investor ready stage or growth stage as illustrated below. An understanding of funding options available at each phase in the journey is important from the very beginning for any start-up.
Let us consider the funding journey and understand each player… Keep reading