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A Guide to Early Stage Fundraising for Irish Startups

Oct 15, 2024
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Min Read
Who should read this?

This article is primarily written for early-stage startup founders in Ireland who are seeking government funding.

It's particularly relevant for entrepreneurs who are at the very beginning of their startup journey and need to understand the sequential funding options available through Irish government bodies.

Key Takeaways

  • The Irish startup funding journey typically starts with LEO grants (Feasibility and Priming) before progressing to Enterprise Ireland's PSSF, offering a structured pathway for founders
  • Most LEO grants require upfront spending and retrospective claiming, which can be challenging for early-stage startups with limited capital
  • Enterprise Ireland's PSSF offers €50,000 or €100,000 through a Convertible Loan Note structure, avoiding immediate equity dilution
  • The PSSF is effectively risk-free for founders as it's unsecured and only converts to equity upon specific trigger events
  • The funding process becomes more substantial as you progress, starting from €15,000 (Feasibility) up to potentially €100,000 (PSSF)
a startup doing fundraising
About the Author:
stuart connolly author
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Stuart Connolly is a corporate barrister in Ireland and the UK since 2012.

He spent over a decade at Ireland's top law firms including Arthur Cox & William Fry.

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  • Frequently Asked Questions(FAQs)

    What is the first grant I should apply for as an Irish startup?


    The LEO Feasibility Study Grant should be your first stop, offering up to €15,000 (50% of costs) to validate your business idea.

    Do I need to pay money upfront to access these grants?


    LEO grants (Feasibility and Priming) require upfront payment and retrospective claiming, but the Enterprise Ireland PSSF doesn't require upfront payment.

    What happens if my startup fails after receiving the PSSF?


    As the PSSF is an unsecured loan, your personal assets are protected if the company fails. Enterprise Ireland understands this risk as part of their investment strategy.

    When should I apply for the Enterprise Ireland Pre-Seed Start Fund?


    You can apply for the PSSF at any time, typically after exploring or exhausting LEO grants, when you're ready to scale globally and need substantial funding.
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