PSSF is a Springboard for Ambitious Startups

The Enterprise Ireland Pre-Seed Start Fund (PSSF) provides investment of €50,000 or €100,000 (in two €50,000 tranches), in the form of Convertible Loan note instrument, plus access to a Development Advisor and supports such as sessions with a mentor from the Enterprise Ireland team, access to their Market Research Centre, and other supports to develop start-ups.

The PSSF is designed accelerate the growth of early-stage start-up companies that have the capacity and ambition to succeed in global markets. The fund is open all year round, so startups can initiate the application process at any time, but the timing must be right for the business. Although re-applications are possible, you are limited to three applications in any 12-month period.

Anna-Marie Turley, Department Manager for Entrepreneurship & HPSU Operations at Enterprise Ireland recently said “PSSF is designed to accelerate the growth of early-stage startup companies with the capacity and ambition to succeed in global markets. The fund covers operational costs — development of market-ready products/solutions, market testing, building mission critical skillsets, etc. What we’re looking for is those fledgling innovative businesses that have the ability and drive to really scale.”

Eligibility Criteria

To apply for PSSF the company must:

· Be less than four years old from date of incorporation in Ireland at the date of formal application submission to Enterprise Ireland.

· Be pre-trading or have recently commenced trading, i.e. does not have revenues in excess of €150k in the current financial year to date or in any previous financial year.

· Be classed as a manufacturing or internationally traded services business, within which criterion a wide range of sectors are included (as listed in the Service Industries Order 2010).

· Not have received equity funding of more than €150K prior to date of receipt of a formal online application by Enterprise Ireland. Equity includes Ordinary Shares, Convertible Preference Shares, Convertible Loan Notes and Directors’ Loans. Sweat equity does not apply.

· Have the potential and ambition to achieve 10 jobs in Ireland and realise sales of €1m within 3 years (of date of application for this fund).

· Not be a linked enterprise or partner company.

· All other eligibility criteria can be found here.

A comprehensive list of all the qualifying and disqualifying factors can be found here. There is also an FAQ downloadable from the EI website.

The PSSF application process

The application process involves completing an application form on the Enterprise Ireland online application system and the submission of a video pitch. The Irish Business Innovation Centres (BICs) run monthly workshops to support applicants with this. It’s crucial that your application is clear on your technical and commercial milestones. The funding should get you to the point, ideally within 12 to 18 months, where you are able to attract further seed funding. Milestones will demonstrate how you will move forward in that direction. The BICs also provide post workshop support including individual assessment on companies suitability to apply for PSSF as well as tailored and expert support for companies to prepare their PSSF application.

Some of the critical areas to keep in mind include:

· Company and promoter/team profile

· Product/service and market opportunity

· Business proposition

· Product/service innovation

· Ability to deliver on the key commercial and technical milestones

The evaluation of each application is very detailed, to ensure that the startups which secure funding have a strong likelihood of becoming Enterprise Ireland High Potential Start-Up companies (HPSUs).

HPSUs have very strong export potential and are capable of generating revenues of over €1 million per year within three years and employing more than 10 people. Therefore, HPSUs typically have a strong element of innovation in their product/service, a team with strong domain knowledge, and a business plan that demonstrates the roadmap to raising significant investment as they accelerate their international growth. You can read more about what it takes to become a HPSU here.

PSSF is a welcome bridge for those startups that are still early stage but need investment to really start growing. At that point, raising private equity can be a huge challenge. If you have the ambition to take your startup global, building PSSF investment into your strategic roadmap can be a strategic decision. However, don’t be pre-emptive with your application! Make sure that you meet the eligibility criteria, that you have a strong team with domain knowledge and that you have identified your international scale and employment potential.

WestBIC are hosting a workshop on Wednesday 19th February to provide an overview of the Pre-seed Start Fund Pre-Seed Start Fund Workshop Tickets, Wed 19 February 2025 at 11:00 | Eventbrite and we will provide a deep-dive into how to navigate the application process with tips on how to be successful. The Irish BICs host workshops monthly, so you can find out when the next workshop is on the Enterprise Ireland website.