How female entrepreneurs in Ireland can secure business funding in 2024
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Posted: Wed 25th Sep 2024
Female entrepreneurship in Ireland is experiencing significant growth, with more women starting and scaling businesses than ever before.
However, one of the biggest challenges these entrepreneurs face is accessing the funding they need to turn their ideas into thriving enterprises.
Ireland offers a range of funding options tailored specifically for female-led businesses, from government grants and venture capital to crowdfunding and microfinance.
Securing funding can be the key to overcoming early hurdles, expanding operations or breaking into new markets. But navigating the landscape of financial support can be overwhelming, especially for first-time business owners.
This blog aims to provide a guide to the best funding opportunities available to female entrepreneurs in Ireland today, highlighting the most relevant grants, loans and investment sources for women-owned businesses. Let's explore the opportunities that can help you succeed.
Disclaimer: The information in this blog was correct at the time of publishing (September 2024).
Government funding
Local Enterprise Office (LEO)
A wide range of financial support is available through the 31 LEOs across Ireland, including:
Feasibility Study Grants to help with market research
Priming Grants (business grants for Irish start-ups)
Business Expansion Grants (grants for businesses to grow)
support to make your potential product or service sustainable (up to €25,000)
The main issue with LEO grants is that they only cover around 50% of costs or investment, which can be a challenge for many start-ups.
Some female-led companies that have gone on to be hugely successful have benefited not only from the financial support available, but the training and guidance offered by experienced business mentors too.
Enterprise Ireland
Enterprise Ireland is the government agency in Ireland responsible for supporting Irish businesses with manufacturing or trading in international markets.
It actively supports women-led early-stage businesses by way of government grants and investment, but provides guidance and support for larger and more established Irish companies as well.
Enterprise Ireland has over 50 different schemes and grants available (aimed at different stages of company development), with a number of initiatives (for example, the New Frontiers programme and the Competitive Start Fund) specifically aimed at women who are just starting their own business.
However, it also supports companies at the seed stage of investment through its High Potential Start-Up Funding (HPSU).
Also worth mentioning are the Innovation Vouchers (worth €5,000) available to help female entrepreneurs work with higher-education institutions to explore a business opportunity or problem or develop an innovative product.
Another recent scheme is the Online Retail Scheme. This programme is aimed at companies that want to develop a more competitive online offer in order to increase their customer base and build a more resilient business.
Private funding
Angel investors
Angel investors are private investors who have perhaps sold their own company, made money from previous investments or have some other source of wealth and now want to invest in early-stage companies.
They often come together and form syndicates – in fact, most funding of early-stage companies in Ireland in the €250,000 to €750,000 range will be a combination of money from individual angel investors or syndicates, seed funds and Enterprise Ireland.
In Ireland, there are several angel investor networks that are either dedicated to or actively support female entrepreneurs. One key example is AwakenAngels, who focus on supporting women-led businesses and balancing the investment landscape in Ireland.
The network empowers female entrepreneurs by connecting them with female angel investors and providing resources for growth. You can learn more about angel investment through its Angel Investor Masterclass – register your interest now.
VIDEO: Securing angel investment
Watch this webinar to find out everything there is to know about seeking angel investment in Ireland:
Venture capital (VC) funds
Venture capital (VC) firms can be game-changers, especially if you're running a high-growth start-up. While securing private investment can be competitive, many Irish investors are actively looking to support women-led businesses.
Ireland is a European leader when it comes to venture capital (VC) investment in female-led start-ups, according to recent research. While many Irish VC firms don't target female entrepreneurs exclusively, most are aware of the value of diversity in their investment portfolios.
While many Irish VC firms don't target female entrepreneurs exclusively, most are aware of the value of diversity in their investment portfolios.
There are well established (and some newer) VC funds in Ireland, such as:
It's worth researching what type of companies each VC firm invests in, what they look for in a company and the level of funding each one can invest.
You'll find more details on about VC firms in Ireland at the website of the Irish Venture Capital Association (IVCA). IVCA publishes a quarterly report that looks at the investments being made in Ireland.
It gives a good overview of the companies that are attracting funding, at various levels and from various sources.
Bank loans and debt finance
In the past, taking on a loan from your bank was seen as a difficult path, for several reasons. Over the last few years, however, we've seen some changes that make bank business loans easier to apply for, and with less need for personal guarantees.
Overall, it means business owners in Ireland can keep more of the equity in their business, as they don't have to seek investment from angel investors and VC funds (see the sections above).
Another source of debt financing is Microfinance Ireland, a not-for-profit lender established by the government to provide additional lending to start-ups, micro enterprises and existing small and medium businesses.
It provides loans ranging from €2,000 to €25,000 that female-led businesses can use for:
working capital
marketing
start-up costs
buying stock, equipment, machinery and business vehicles
Other sources of funding
Revenue-based financing
This is when you raise capital by pledging a percentage of future ongoing revenue in exchange for investment. You pay the finance provider a portion of your revenue at a set percentage until you've repaid a certain amount of the original investment.
Revenue-based financing can be a fast and flexible cash injection. It avoids dilution (when a company's owners weaken their overall control by issuing more shares) and limits risk, while helping you accelerate your growth. Wayflyer is a good example of an Irish company leading the way in this area.
Invoice finance
Invoice finance has been around a long time. But Irish companies like InvoiceFair now offer a market-based funding model which provides working capital for SMEs across all sectors.
The idea is that companies sell receivables (or approved invoices) or future receivables (such as purchase orders, contracts or recurring revenue) to a pool of institutional funders.
VIDEO: Invoice finance and revenue-based financing
Watch this webinar to learn about the benefits (and challenges) of invoice finance and revenue-based financing, and how to apply:
Crowdfunding
Crowdfunding is another way to generate funds for your business. It allows you to promote your fundraising campaign and raise funds from a large number of individuals via an online platform.
One example is Irish company Spark Crowdfunding, which has already had many successful campaigns on its equity crowdfunding platform, with some companies raising in excess of €1 million.
Galway chocolate brand Grá Chocolates has used crowdfunding to grow from a tiny start-up to a small business with over 50 different product lines in under four years.
Founder Gráinne Mullins has launched another crowdfunding campaign to build her own chocolate factory – and to date has raised nearly €70,000.
Peer-to-peer (P2P) lending
P2P lending helps individual investors who want to invest money for a reasonable return to connect with businesses that need working capital.
Linked Finance, an Irish P2P lending platform, has pioneered this type of lending in Ireland since 2013, and allows businesses to borrow up to €500,000.
What you can start doing now to fund your business
Reach out to your current network
Michelle You, co-founder of Songkick, decided she wanted half of her fundraising for her second company Supercritical to come from women. She says:
"I asked women in my network who had never invested before. I just told them: 'I want you to invest in my company.'"
Don't be afraid to reach out to your current network, even if they haven't invested before.
Search online for investors
Non-traditional routes can help prove your concept. Enterprise Nation member Rushina Shah used social media, and says:
"Initially, I reached out to my Instagram followers, which sounds ridiculous, as I only had about 1,000 followers. I got four people to respond to me on Instagram, and they ended up all being investors.
"It got the business off the ground, and I was able to prove the concept."
Find angel investors in unexpected places, search online, or contact people you know via social media.
Join accelerator programmes and pitch-practice events
Sarah Norford-Jones, co-founder of private messaging app Yeo, took part in a rewarding cyber-security accelerator. She says:
"We got to bounce ideas off from that experience, and we completely pivoted our business."
A successful pitch sells the benefits of your product, but it helps to think outside the box if you're pitching a female-focused product to men.
Rushina Shah remembers the way two female founders pitched their lingerie company. She says:
"All of the VCs in the room were men. They were trying to pitch lingerie and these men didn't understand the problem they were trying to solve.
"They said, 'OK, put those shoes on.' And the men said, 'Well, this is a size too small for our feet.'
"And they said, 'Well, put them on for the duration of the pitch because that's how women feel when they're wearing the wrong bra.'"
When you're practising your pitch, experiment with answering prevention-style questions.
Get support from female-focused organisations
Find investors who can help you grow. Look for female-focused investment firms such as Angel Academe and members of the Investing in Women Code, who are committed to supporting female entrepreneurs.
Gain valuable founder wisdom by joining a free network such as Female Founders Rise with Emmie Faust. Emmie says: "We provide resources such as masterclasses on funding, and pitch deck reviews."
Final thoughts on getting funding
Getting funding is a process, but your options don't have to be limited. Make sure you have the latest financial data for your business to show potential investors.
To guarantee you can pull out the details whenever you need them, choose software that grows with your business.
Female Founder Toolkit
Download a free, practical guide that pulls together tools, tips, contacts and inspiration to help your female-led business thrive. Get the guide now
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