Ryan Entrepreneurship Fund

Background and Objectives

LIT Thurles Campus

LIT has established enterprise centres within the region with which LIT is associated. These include Limerick City, Croom, Newcastlewest and Tipperary, with the Thurles Chamber Enterprise Center based in the LIT Thurles campus and Questum, a research and innovation center, which is under construction in Clonmel, being the two Tipperary centers involved.

LIT aims to provide early stage equity for start up companies and focuses on such companies within the enterprise center. The Ryan Entrepreneurship Fund for Tipperary will be part of the LIT system but its funds will provide support to the Tipperary-based-start-up enterprises and will be primarily directed towards those enterprises which have participated in one of the enabling programmes, courses or modules on the LIT’s Enterprise Ladder.

General Qualifying Criteria

The overall vision of the Ryan Entrepreneurship Fund for Tipperary is to invest funds to assist start-up businesses so that the enterprises have enough funds to sustain themselves for a period of development, until they reach a state of beginning either able to continue funding themselves, or have created something of value so that they are worthy of future rounds of funding. The Ryan Entrepreneurship Fund is expected to form part of and to supplement the overall financing programme of early stage companies, which will also include proprietor equity and which may include bank loans, friend and family funding and grant assistance. Funding decisions will be made by the Ryan Entrepreneurship Fund Review and Oversight panel.

The Ryan Entrepreneurship Fund support for start-up business is expected to be in the range of €10,000 to €25,000 per enterprise.

Target Companies

Ryan Entrepreneurship Fund will be targeted at Tipperary-based start-up businesses that have participated in one of the enabling programmes, courses or modules on LIT’s enterprise ladder. A recommendation from the LIT Enterprise Center’s management team or another 3rd party Enterprise Center or board will be required

Ryan Entrepreneurship Fund will focus on start-up where in the opinion of the Review and Oversight panel, the Ryan Entrepreneurship Fund support will make a meaningful difference in helping the start up business grow.

On the recommendation of the Review and Oversight panel, support for the Ryan Entrepreneurship Fund for Tipperary will take the form of a grant for a redeemable equity stake and or business development supports. Once repaid, it is intended to recycle the seed funds for future start-ups.

Ryan Entrepreneurship Fund is specifically targeted as supporting start-up businesses in County Tipperary. Administration and management costs of the Ryan Entrepreneurship Fund are absorbed by LIT. Accordingly 100% of the seed fund will be allocated to the start up bushiness since the administration and due diligence chargers are underwritten by LIT and its enterprise partners.

Panel and Governance:

All applications for support from the Ryan Entrepreneurship Fund will be reviewed and assessed by a panel representing:

    • LIT Corporate Services and Capital Development;
    • LIT Research,Development and Enterprise;
    • AIB
    • Finance Expertise from one of LIT Strategic Partners;
    • Legal Expertise from one of LIT Strategic Partners;
    • Enterprise Ireland
    • The One Foundation

 

The Review and Oversight Panel will be accountable to and report to the Executive Manager of LIT.

Approval Process

The overall approval process will incorporate:

    • An application process to include a suitable business plan;
    • A review process;
    • A decision process;
    • A feedback process.

 

It is intended that the post investment process will include a review of agreed deliverables allowing an ongoing quantitative and qualitative assessment of progress and performance against the submitted business plan.

Eligibility for application to the Ryan Entrepreneurship Fund for Tipperary requires the following:

  • A recommendation from one of LIT’s Enterprise Center managers or equivalent(e.g. enterprise development manager in Enterprise Ireland/ or a Community Enterprise Center) who will have already completed their own formal evaluation.
  • A due diligence by a nominated member of the Review and Oversight panel if required.

Governance

LIT’s Executive Management, through the Office of the Vice President of Corporate Services and Capital Development, manages all procedures, processed and regulatory approvals for the administration of Ryan Entrepreneurship Fund. The Office of the Vice president of Corporate Services and Capital Development has delegated authority to the Review and Oversight panel to review and decide on all applications for funding support. An agreed reporting methodology of the office of the Vice President of Corporate Services and Capital Development has been established which includes an update on agreed deliverables for every company approved for the Ryan Entrepreneurship Fund support on an ongoing basis.

Funding Target

The initial target for the Ryan Entrepreneurship Fund for Tipperary is a minimum of €500,000.

Donations to the Ryan Entrepreneurship Fund for Tipperary

LIT has a charitable status (CHY No: 10923) and it is an eligible charity for the purpose of tax relief on donations made to it. In general; terms the minimum eligible donation which is necessary in order to qualify for tax relief in Ireland is €250 per annum. With effect from 1 January 2013 tax relief on donations by individuals (employed or self employed) is given by way of repayment by the Revenue Commission to the charity at a blended rate of up to 31% (provided the individual has paid sufficient income tax). Therefore while an individual does not get a personal tax deduction, the charity can get a refund or top-up in line with donations made. Tax relief on donations made by companies can be treated as a trading expense, thereby giving tax relief at 12.5% to trading companies.

This summary and accompanying table are subject to change in line with legislative amendments.

Level of Donation

€5,000 | €10,000 | €25,000 | €50,000

Corporate Donor

Donation/Benefit to Charity €5,000 €10,000 €25,000 €50,000
Tax Relief at 12% (€625) (€1,250) (€3,125) (€6,250)
Net Cost To Company €4,375 €8,750 €21,875 €43,750

Self Employed or PAYE Donor

Donation/Benefit to Charity €5,000 €10,000 €25,000 €50,000
Potential Repayment by Revenue (€1,550) (€3,100) (€7,750) (€15,500)
Donation(Net Cost) €3,450 €6,900 €17,250 €34,500