Luxcel Biosciences, a pharmaceutical company based in Cork, has been named overall winner of the inaugural 2003 EquityNetwork All-Island Seedcorn competition. The prize was €100,000.

The firm beat off competition from seven other fledgling companies for the top prize. The runners-up will share a prize fund worth €120,000.

Luxcel Biosciences provides drug discovery solutions to the pharmaceutical industry, enabling cell-based drug screening and related applications.

It works directly with major pharmaceutical companies, and currently has a number of global distribution agreements in place.

The Seedcorn competition, which received almost 200 final entries from companies throughout Ireland, is funded by IntertradeIreland, the cross-border trade and business development body established under the Belfast Agreement. It is open to companies founded three years ago or less.

The competition's aim is to raise awareness of private equity funding for young businesses.

It also seeks to help them become investor-ready by simulating the conditions they would experience when seeking funding from private investors.

Chief executive of Luxcel Biosciences, Dr Richard Fernandes, said: "This is fantastic news for the company and a reflection of the strong team we have put together.

"Apart from the €100,000 funding injection which we've now secured, winning the competition will be a great boost for our profile among other potential investors and partners.

"Starting and developing a new company is a huge undertaking," he said. "It is a challenge to persuade others to buy into the vision."

According to a Seedcorn study conducted last year by PricewaterhouseCoopers for EquityNetwork, which is an initiative of IntertradeIreland, a significant "funding gap" exists in the €75,000-€375,000 region.

As a result, many young companies are forced to move away from more traditional forms of funding, but find it difficult, particularly in the current economic climate, to raise the necessary capital for their ventures.

The judging panel chairman, Mr Barry Fitzsimons, said that among the qualities the judges were looking for in the finalists were commitment, expertise and an ability to identify new niches which had not previously been filled, thereby giving them the opportunity to grow.

"We are also looking for discipline," he said.

"To really make this work, they should be willing to work an almost 24-hour day to make sure it is successful."

The individual qualities of those behind the companies were also extremely important in this regard, he added.

"In each of these companies, there is usually one individual who has the initial spark.

"But it is also about knowing how to bring a team together to make that idea work," he said.