Venture capital for Software Business

Could anyone advise on some likely finance houses, venture capitalists, state organs (incl Co Ent Boards- if applicable) that would review a business plan on a software project.

Some facts:
1. Product already exists
2. Needs to be developed for larger application on new platform
3. Investment needed between €600-800k.

My experience to date suggests that investments pitched at less than €1m meets with lukewarm enthusiasm and the option of "cold-calling" the various executives in VC companies may not be a very productive approach. I wonder if there is fee-based, project-appraisal consultancy agency out there that might assist in taking the project to VC's?

I was involved in a software company that raised c. € 800k from a VC about 10 years ago. We used the corporate finance dept. of our accountants to make introductions for us. Would this be an option for you ? They may be able to suggest the VC's that would be most interested in your project.

If you are involved in exports, then Enterprise Ireland may be willing to make an investment in the company or may be able to help with grants etc.

I'm working in the Corporate Finance department of a large regional accountancy practice at the moment. Normally we deal in BES, Debt Funding Proposals, M&A etc... however we have recently become involved with several venture capital groups and are an associate member of the IVCA. As a very new and junior member of staff (ha!), I had occasion to do a lot of research on Irish Venture capital recently...

> Firstly your location is one factor. If you are in the West or Shannon region, state agencies may be of more use to you.

> If you are a city, the use of your local Business Incubation Centre may be a solid idea. There's several in Dublin, along with regional cities and towns like Sligo, Athlone, Cork, Waterford etc. Indeed some of these centres even have their own funds (such as the Dublin Incubation centre which invests €65k - €250k)

> €800k is too small for only a few of the big foreign players. Intel Capital for example invest a minimum of €1m.

> However most of the venture capital firms will consider smaller investments...
* NCB from €125k up
* Trinity from €500k up
* The WDC from €125k to €1m
* 4th Level from €75k to €500k
* Enterprise Equity from €125k to €1.25m
* Delta from €500k up
* ACT from €750k up
* Kernal from €300k to €1.5m

> There are a huge numbers of questions you should be able to answer before even considering contacting these funds and others. These include:
* How are funds required? say €200k now, €200k in 6mts, and €400k in 1.5yrs??
* What exist strategies could the investors use? Is your software something that can be sold to a major? What is the time frame involved?
* What is the revenue model? Is it sustainable? How long before it kicks in? Is it export driven?
* Is the business scalable internationally? Can the business maintain strong USP's?
* What are the threats to the business model?
* Have you looked at the raw numbers? What are the cashflow predications? How realistic are these?
* etc.

If your idea is unique and protectable and all the above can be worked out; then you should have a good shot. As suggested above, contact your accoutant for advice, it might be a good idea to use an accountant with associate membership of the IVCA.

If you want contact details for my department, just PM me.

Hope this helps

If it for yourself, and you are being sued re existing business debts in the High Court as stated in previous post, you can forget about venture capital investment for the present i'd say.

Thank you henry and CGorman.....most helpful.