· Need for angel investors to come forward to support early stage & start up firms in life sciences, biotech & medical devices sector.

· Up to 10 new angel investment syndicates to be set up across a number of industry sectors to help boost the establishment of indigenous firms.

· Each syndicate expected to have an investment capacity of up to €1 million.

Halo Business Angel Network (HBAN), the national network for angel investing in Ireland, has begun creating investment syndicates to provide support and financing for indigenous companies in the life sciences sector.

HBAN, a joint initiative of InterTradeIreland and Enterprise Ireland, is focused on increasing levels of angel investment in the technology and life sciences industries in Ireland and is committed to the formation of up to 10 new investment syndicates to facilitate the required investment.

According to HBAN, the formation of syndicates of angel investors - private individuals who invest in start ups or early stage enterprises - will be an essential means of boosting the number of indigenous operators in the life sciences industry, which is worth up to €44 billion annually to the Irish economy¹.

Diane Roberts, National Director, HBAN, said: “What we’re really looking to do is to facilitate the development of an ‘Angel Capital’ Industry in Ireland. Scotland has a very vibrant Business Angel Community that contributes approximately stg£21.8 million (€24.8 million) annually of investment into indigenous industry²”.

Last week, 30 stakeholders from the industry met in Dublin to form the first syndicate group and to review a number of potential projects including Argutus Medical and Vasorum. Each of the syndicates that are formed is expected to have an investment capacity of up to €1 million.

“Private investment is critical to the development of a healthy start up sector and provides early stage financing when a company is probably too early stage to attract an institutional investor such as a venture capital firm,” said Mrs. Roberts.

“To make this happen, we are in the process of forming syndicates of angel investors, to jointly provide financing for a number of enterprises in the life sciences sector. This approach works both ways, as the risk is spread evenly between the investors in the syndicate and the entrepreneur is in a position to draw on a significant pool of expertise, as well as securing the necessary funding,” she said.

Speaking at a HBAN Life Sciences Investor Group Session, Dr. Ena Prosser, Partner, Fountain Healthcare Partners, a venture capital group, said: “In the life sciences sector in Ireland, we have noticed a number of investment opportunities, especially among those firms that are looking to finance new product development, or expansion overseas, or a similar next step in their evolution”.

“We believe the creation of angel investment syndicates would help fill this funding gap and, on a wider level, support the regeneration of the national economy,” said Dr. Prosser, who was formerly Director of Enterprise Ireland BIO, the arm of Enterprise Ireland responsible for the commercialisation of new technologies in the biotechnology sector.

¹ Source: Life Sciences Ireland, Irish Exporters Association

² Source: The Risk Capital Market in Scotland 2008, Scottish Enterprise