The latest venture capital fund to be established in the Republic is named after the Battle of Agincourt where the victors, the English, won against the superior French forces through the tactical use of lightly-armed archers.

Irish mercenaries were probably present, remarked the managing partner of Agincourt, the $200 million (€183 million) venture capital fund.

Paul Kane is now looking for today's Irish would-be mercenaries to take risks. He hopes to beat the odds by backing Irish technology companies in an "under-performing" sector and believes it will be the economy's future driving force. In the technology sector, opportunities are there for entrepreneurs to "run their own show", he says. "We want to encourage people to take risks with their ideas and talents, and set up new businesses." Software development is vital to him as an emerging area and he sees enterprise software, in such areas as banking, insurance and distribution, as key sectors. "We want to invest in companies that are in high growth markets. It is driven by the market."

He says investments of up to £5 million will be made in companies. The fund, which will be seeking returns of between 25 per cent and 30 per cent annually, is not interested in a "quick exit" strategy but will encourage successful companies in which it has a stake to go on the acquisitions trail.

"I know Nasdaq flotations are trendy to do, but really the more effective strategy is trade sale, or for the Irish companies to go into an acquisition programme.

"What we want to do is expand the Irish equity base of ownership."

He does not see larger multinationals contributing to future growth to the extent that they are responsible for the current boom.

"We would view the Irish market as being at a crossroads. The key sector for sustained growth in the Irish market is small indigenous technology companies.

"In the past, the focus was on job creation. In the future, the focus will be on growing the equity base of Irish companies. You will have Irish multinationals that will have offices headquartered in Dublin."

Mr Kane, from Washington DC, worked in sales and marketing for IBM before moving to Nixdorf Computer, where he specialised in new account sales.

When Nixdorf was taken over by Siemens the US offices were closed down. "I decided I could do this myself. I set up a consultancy for small technology and software companies."

He was involved with Carpe Diem Trading for eight years with a consultancy service for small technology and software companies.

"My experience is within the US market, working to develop sales and markets and earnings for smaller companies and technology businesses, a number of which were venture capital backed."

Some of his client base and people he worked with have come on board in this latest venture, he says.

The private equity fund will run over four years and has a minimum $40 million spend. With $30 million already committed, Mr Kane says he expects the $40 million target to be reached by early summer after which it will be invested.

Most of the fund is coming from private equity sources within the US. Other venture capital funds have tread warily in the technology sector but Mr Kane says the assembled group's expertise gives it the wherewithal to invest in the fledgling area.

"We find that the VC [venture capital] products in the market have a low appetite for risk and suffer from a lack of familiarity with technology."

Among the 28 partners and advisers who were headhunted are Senator George Mitchell, who brokered the Belfast Agreement; Pat O'Neill, the outgoing chief executive of Avonmore Waterford Group; and the economist, Dr Peter Bacon, known for his report on the housing sector last year.

"We feel they bring some unique talent or connection to what we are doing," says Mr Kane.

For Senator Mitchell, a director of five public companies, it is his first venture into a private company. Also involved are Michael Foley, president of Heineken USA, Karl Croke, a managing partner in the recruitment consultancy, Amrop Ireland, and Ken Kingery, vice-president of western US sales, CBT Systems.

Agincourt was established last year although it has not yet made the plunge into funding any companies. The policy is to examine the sector a company is operating in first, before evaluating that company.

"We have come across a number of attractive candidates. What we have been trying to do is ensure that we have the right infrastructure to do business."

Smaller companies have an innate attraction because of their growth potential. "The experience of our group is in working with small companies."

He says the State is traditionally biased towards selling into Britain and has a "shortage of export know-how" in US markets, where half of the worldwide purchasing of technology products takes place. Agincourt hopes to fill the gap through the contacts of its US partners.

"That is our key differentiate . . . less than 10 per cent of indigenous Irish technology companies are actually selling or trading into the North American market," he says.

The Irish market has developed in the past five years and now has a population of "talented people" amid a shortage of venture capital opportunity.

"The time, hopefully, with what we are doing is opportune."