AMID ALL the gloom overhanging the financial sector, a ray of sunshine emerged this week in the form of NCB Ventures putting together a €75 million fund to invest in early-stage companies, writes Ciaran Hancock
This is NCB's third venture capital fund and was about three years in gestation, a reflection of the changed economic times we live in.
The stockbroker has put together a strong line-up of investors. Enterprise Ireland is coughing up more than €20 million, while the National Pension Reserve Fund is chipping in about €15 million. Ulster Bank is contributing about €10 million, while Diageo is pouring €5 million into the fund. NCB and its clients pick up the slack with the prospect of overseas backing next year, taking the final total to over €100 million.
Unlike the broker's previous funds, Michael Murphy, NCB Ventures' managing partner, says it would also invest in companies in Northern Ireland. "We think there will be plenty of opportunities in the North," he tells me.
Murphy says the focus is likely to be on medical devices, support services and information technology. "The timing is brilliant for us in that asset prices are falling right now," he adds.
He's not wrong.
With funding almost as rare as a sunny day on Tory Island, Murphy should brace himself for a deluge of applications from cash-hungry start-ups.
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