John, agree completely on not wasting time trying to get VC money in the current climate. Focus on all other avenues first rather than wasting time chasing a ghost is absolutely spot-on advice. If the idea is solid, funding will be found in my humble view (even if it is a loan from a family member!). As a new startup, the business owner needs to avoid getting caught up in the trap of “getting finance” over focusing on developing the business and the need to actually get some customers!

My company is tech product with my business partner and I having an IT background (management, analysis and some design). We don’t have strong build capability and are using Contrast for this aspect of work because this is what they are good at. Agree with the point that if you are a tech company that you need tech skills. However, if you can find a really solid partner who provides the necessary support to get your product out there, gives good advice and is willing to work with you, it is possible to source this element without the need to extend the workforce.

Again, thanks all for the advice – all taken on board and digested.

Another issue is that for some reason Irish companies desire publicity without actually working hard at it or investing in it. I know chicken and egg but often completely overlooked in the start-up plan. And the latter whether anyone likes it or not is crucial. How many non-revenue earning valley companies have you heard of before you saw their product? And we are as good product wise as them.

The world is full of great products/ideas and most investors in a sector have met the next big thing. What it is not full of is people who can actually say this is our market and why, how we will communicate to that market, how we will make money, who we want to link up with and where we see the company going and how you will make cash back. This is why they are investing but you would be surprised how often people forget it.

EI despite the critics is still the most successful VC in Ireland….that’s the risk adverse state ! Also people forget that despite it all they are often the only people willing to invest time and money to help people not making any cash. They are investors, on behalf of the taxpayer, but they are still investors. Treat them like you would a VC. If you can’t sell to someone who wants to talk to you then you are in trouble and you’ve missed something.

In relation to the IDA and re-direction of the small amount the state invests in FDI. Most of the FDI is value add…no IDA equals no Google, Amazon, Facebook, Apple or Microsoft, etc. They don’t come because the take a fantasy guess about where to locate in Europe. And none of those (who work with a large number of Irish companies by the way) equals no reason for smart non-Irish grads to come here, no linkages back in the US market, no reputation for Ireland as a great place for software development and no doors get open because you are Irish. They are part of the cog. How many Irish managers got their start in a great MNC ?

It has always been tough to get investment, it makes new companies focus, drop the dreaming and start talking about dirty money. And there is nothing wrong with approaching it that way either.

My 0.02c? If you try to bootstrap your Irish (or any) startup by attracting private or VC funds to Ireland you will expend most of your energy chasing the funding, diverting you from investing labor in your product. Use Joe’s advice to find out what state grants/funding are guaranteed to be available and do everything you can to qualify for them.

Assume for now that private and VC funding in the current financial environment is practically non-existent and assume that will not change in the short term. I’m sure they are claiming they are investing in the same way that the commercial banks are claiming they are lending to SMEs but they’ll waste your time and reserves pretending to look busy. Wait until it is proven that liquidity has returned to the private markets and have something tangible that they can invest in (powerpoint presentations don’t count).

At the end of the day, remember that the most important contributors to success are the team and the product execution. Focus all your energy on refining your product/ideas and assembling/lining up a founding team that has the passion & technical skills to execute a product that people will want to buy. At the recent FOWA Dublin DHH mentioned that the founders of a software product/service company must be hands-on technical bodies – as he put it, there is no room for a ‘finance’ or ’sales’ guy in a startup that only has three employees. Invest labor in your product and you will build it’s value.

Oh and read Robin Blandford’s blog archives for a perfect example of the type of single-minded passion and focus on product that I am talking about above.

Another issue is that a lot of support is encumbered by large amounts of paperwork & bureaucracy. While I agree that a certain amount of accountability is neccesary my experience (and those of others) has indicated that this fixation on form-filling is a hindrance and deadens creativity.
A system whereby early stage startups would be given a “lumpsum” investment once they meet certain criteria would go a long way to promoting entrepreneurship.

We also need to stimulate and grow a native angel/seed community. Compared to the US and the UK angel or seed investing is dead in this country. Seed and Angel investing is also not just about funding, it is also about people who have been there and done that making investment decision.
I could go on for a long while but will leave it at this for now

I’ll happily accept some light editing of the more obvious typos in commentary

Joe.