Can Ireland compete globally in
ag-tech?
I think the simple answer to that is yes. I think there’s great opportunity here in Ireland both in terms of the underlying practices and processes of agriculture.Ireland can be used as a testbed by companies and for initial deployment of new technology and then expand internationally.
What is Suir Valley Ventures?
Suir Valley Ventures is an early stage venture capital firm that invests in a number of sectors. We invest in augmented (AR) and virtual reality (VR) technology, internet of things (IOT) and fin-tech. Specifically looking at agri-tech, we see IOT and AR or VR technologies as being very relevant to innovations in the ag-tech space.
When was the fund set up?
We were established in March this year. The fund is primarily investing in Ireland at the moment and we are out there engaging with Irish companies right now. Ultimately we also expect to invest in the UK as well.
How much will you invest in any one company?
We’re a seed venture capital company. Typically we will invest up to about €500,000 in the seed round for a percentage of the company. We would be investing up to €500,000 and another seed venture firm might be coming in for €250,000 to €300,000. Enterprise Ireland would also be coming in for €200,000 to €250,000. And of course there can be a variety of combinations to that. We look to both lead in seed rounds and partner with other venture firms, where we come in on a round that they’re leading.
What do you expect of companies after you invest?
We invest at the seed stage but we then follow on from the initial investment. There’s a long-term capital requirement for a new company and we would certainly allocate funding to help grow the business. So we really see ourselves providing capital to companies at a seed stage but also supporting the company during its journey as it grows.
When do you generally anticipate a return from a company?
Our fund is a 10-year fund. We invest capital into a business over the first five years and in the second five years we work with companies to get that return. Return on investment could be from a listing on a public market or from the sale of the company.
Typically on average it takes five to six years to get a return in the industry at large. The investors in the venture capital fund are governmental institutions, sovereign wealth funds and also family offices. They invest in venture capital because they see it as producing potentially high returns over a long period of time.
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