In 2008 and early 2009, behind the scenes we spoke to folks who could make a SeedFund happen but it fell a bit on deaf ears, and despite some great input from others - the feedback was “SeedFunds” are not a runner in Ireland. Question: Can SeedFund and Startuplab models work in Countries like Ireland ?
We previously announced a €10m Irish Seedfund in 2009 - but unfortunately it was on April Fools day.
Here is an outline of the proposed plan which we pitched.
Seedfund helps startups through what is for many the hardest step, from idea to company. We will invest mostly in software and web services. The new fund, a €10 million fund, will invest in approximately 100 startups over a five year period. It will invest between €50K and €200K per company, with a typical “bitesize” being €100K - in return for small stakes in the companies funded (usually 5-15%).
The Seedfund will invest in startups via batches. We will have 1 intake per annum of 20 Startups through the StartupLab. It is a six-month program in Dublin, Ireland, kicked off with a StartupLab Week to whittle the companies from 30 down to 20.
It will focus on getting product to market, initial traction, and intensive mentorship for all startups. The selected startups will have the opportunity to travel to Silicon Valley on the PaddyValley Tour at the end of the lab for meetings with investors, partners and acquirers. This is modeled on the success of SeedCamp, Techstars and Y Combinator.
Outline of StartupLab
The StartupLab will be made up components, where SeedFund mentors, and invited experts will work with startups on specific components.
Startup Camp
Lean Startup
Going to Market - Product
Startup Metrics
Customer Development
Funding your Company
Investor Demo Day
PaddysValley Tour
** Weekly dinners - where invited guests come to speak.Typical speakers will include startup founders, venture capitalists, lawyers, accountants, journalists, investment bankers, and executives from big technology companies.
Applying for SeedFund ?
Instead of submitting a business plan or making a slide presentation, you just fill out an application form for the SeedFund Competition. We will seek applicants globally - with the intention that they setup their operation in Ireland. The most promising groups will be invited to to meet us in person.
SeedFund Alumni
By funding such a large numbers of startups, in a specific sector, we can build an
“alumni” network, and where a strong ethos of helping out others.
Mentors
Through the network of existing Web2Ireland friends, we will recruit 30+ mentors, who will participate on panels, present topics and provide feedback that will help startups succeed.
An Example list of Mentors
Barry Maloney Balderton
Breon Corcoran PaddyPower
John McElligot eBay
Colm Long Facebook
Paddy Holohan Newbay
Ray Nolan Hostelworld
Scott Rafer
Ed Bussey
Saul Klein
Judy Gibbons Accel
Toni Schneider Wordpress
** See http://seedcamp.com/pages/mentors [not exclusive]
**** Also to bring possible Angel Investors into the network -
PaddyValley Tour
PaddyValley Tour brings the SeedFund startups to Silicon Valley for exclusive meetings with the Valley’s hot startups, VC’s and potential partners. The Tour will also include a Public Showcase and culminate in an evening soiree.
SeedFund Management
SeedFund, will be managed by 1-2 entrepreneurs with a background in startups, with support from Finance, legal and administration partners. A fixed price for Fund management for 5 years will be set to cover basic costs with a co-investment option provided for each of the companies in fund by the Fund Management.
SeedFund Partners
We will seek Limited Partners who have the following objectives
- help Ireland Inc grow next wave of companies
- are startup friendly
- seek to be involved in the positive PR campaigns @ startup culture in Ireland
These may include Irish/Multinational Corporations -Vodafone, O2, Google, Eircom, Guinness, Enterprise Ireland, and Irish VCs, European/US VCs
These Partners will also be possible investors at A round stage, or co-investors at seed stage.
Sample Outline of Startup Lab Week
Day1/2 - Dublin
Objective - Snapshot of companies - where they are ?
Founders Day - 5 min pitches
Document Goals/Issues
Pitch Workshop
War Stories
Day3/4 - London
Objective - Funding/Scaling
Funding Workshop - UK VCs/Angels - Saul Klein, Judy Gibbons, SeedCamp[
Going to Market - Product - Ed Bussey, David Kelly, Brent Hoberman, Ryan Carson
Scaling Up - [technology & business]
Networking event in London
Day 5 - Dublin
Local Finale event
Pitches from all companies
20 selected to go to next stage.
PaddysValley Week (modelled on Israeli Web tour - http://www.israelwebtour.com/ and previous tour organized by Damien Mulley )
Visits to large technology companies;
Evening Events;
Master Classes in Marketing/Metrics/Money
Eric Ries - Lean Startup
Steve Blank - Customer Development
Dave McClure - startup metrics
Ron Conway, Jeff Clavier, Tim O’Reilly, etc
Wrap Up Event & Awards.
10 Companies in place to take term sheet from SeedFund.
Irish Footnote: Thankfully iGap from Alliance took some of the ideas on board, and Enterprise Ireland Startup Fund is interesting, but I do think an industry led SeedFund like above would work in Ireland (and accelerate the success of Startup scene in Ireland)
