We are in the business of building businesses
Our Business Investment Fund provides equity investment and loan finance for small and medium-sized enterprises (SMEs) in our region.
We invest across a range of sectors, including:
We want to talk to you about equity investment if you have a commercially sound business with good growth potential, a marketable product or service with a unique selling proposition, intellectual property and a strong management team with a proven track record and the ability to generate a return on investment.
We provide funding to start-up, scale-ups and expansion phase companies. We can make first-round equity investments in your business of between €250,000 to €1m and can and do make follow-on investments. In return, the WDC Investment Fund takes a minority shareholding and look for a return appropriate to the level of risk taken.
All equity investments are made under the Market Economy Investor Principle. This means that any equity investment we make is on a ‘pari passu’ basis with private sector investors, i.e. we invest on the same terms and conditions as the private sector investors.
The WDC Investment Fund can invest with other public sector bodies but the total combined investment from the public sector must not exceed 50% of the total investment round.
If you have a business project that can demonstrate positive cashflow and an ability to repay a loan over an agreed term, then talk to us about loan finance.
We usually lend from €50,000 to €300,000, repaid on an amortised basis (i.e. by monthly direct debit) over three to ten years, although we will consider shorter and longer loan terms in exceptional cases.
The Western Investment Fund is managed by the WDC and invests in businesses, community projects, social enterprises and strategic initiatives, based in or relocating to the Western Region of Ireland. “The Western Region” means the region consisting of the counties of Clare, Donegal, Galway, Leitrim, Mayo, Roscommon and Sligo as per the Western Development Commission Act of 1998.
To meet the location test of being based in the Western Region, projects and enterprises funded by the WIF must meet the following criteria:
The Company must be registered, headquartered and controlled in the Western Region with key business functions managed in the Region.
Factors to be considered:
• Location of registered office as per CRO filing
• Location of headquarters and where the majority of the activity of the enterprise/project is carried out, as covenanted by promoters.
• Location of the central administration of the project is carried out, as covenanted by promoters. i.e. central management and control exists where:
– company policy is decided
– investment decisions are made
– major contracts are defined
• Location of Principal Private Residence (‘PPR’) of > 50% of promotors as per CRO filing
• Location of Principal Private Residence of > 50% of the management team, as covenanted by promoters.
• Where the investment is made into a Special Purpose Vehicle (SPV) then 50% of the directors must located in the Western Region (PPR) and 50% of the shareholding of the SPV must be held by shareholders residing in the Western Region as per CRO filing.
When you apply to WDC’s Business Investment Fund for equity investment or loan finance your project will be assessed according to its commercial viability, growth potential and its ability to provide the WDC Investment Fund with the appropriate financial return for the investment risk taken.
We also look for a strong management team, with a proven track record of success, a product or service with its own intellectual property, competitive advantage and high growth potential plus, in the case of loans, the project’s repayment capacity.
All of our business loans are made at commercial interest rates – the prevailing EU reference rate for Ireland plus an approximate margin depending on the risk profile of the project (assessed by the WDC Investment Fund executive). Interest rates are variable and are reviewed on an annual basis.
If you wish to apply, you should, first of all, assess whether your project meets the criteria outlined above.
Then go to our online application portal below, where you can complete your application form and upload supporting documentation such as your business plan.
