New Irish technology companies are springing up and spreading out at an incredible rate, and Silicon Valley is proving an attractive US base for many of them.

However the road to success in the US is paved with pitfalls that can make or break a business. To combat this, and provide assistance to Irish companies, Enterprise Ireland opened an "incubation" centre in California over a year ago.

Ms Marina Donohoe, a former marketing adviser to software companies for Enterprise Ireland, which looks after the interests of indigenous firms, was dispatched to formalise the agency's first west-coast presence.

"At the time a lot of Irish companies really needed to get to market quickly, get office space and get capital. By putting this facility in place companies don't have to worry about office logistics. From day one they can be active in the market," Ms Donohoe says.

More than a year on, the incubation centre has nurtured a number of Irish businesses which have used it as a launch pad to enter the US market.

They include Clockworks, Transware, International Test Technologies, Card Services International, and Pentus Technologies, which recently merged with MV Technologies.

According to Ms Donohoe there is a misconception that the incubation centre is a kind of development centre for new technologies. In reality it is a technology and trade centre which allows companies with products and a client base delve deeper into their markets.

The centre can hold five companies at any one time, each of which has the use of a single room for a minimum of three months up to a (negotiable) maximum of one year.

The cost of the facility - between $1,000 and $1,400 per month - is extremely competitive compared with typical office leasing rates in the Valley.

Each office takes a maximum of two people, and they can avail of secretarial services offered as part of the executive office centre complex.

Ms Donohoe says demand to join the centre is very high, so the decision is made on the basis of who will benefit most from the service.

The latest batch of Irish companies located there include Apion Technologies, Netnote International, VistaTec, Inflo Communications operating in the US as ViaSec, and Prime Learning, better known in Ireland as Neville Technologies.

In order to stand a chance of acceptance, companies need to meet a number of requirements. Typically they must have a finished or nearly finished product. They also need money in place to fund a long-term sales and marketing budget. Ms Donohoe says this usually comes in the form of second-round funding.

However, there are cases where the technology centre is not the most appropriate route for a business. Ms Donohoe says they will hear a company's presentation and then sit down and consider the appropriate routes available.

"We try to validate the opportunity for them and ask do they need to be there. They need to have a game plan in place. If they are junior personnel then forget it, a US presence needs to be bought into by Irish management."

Enterprise Ireland has around 80 client companies, which may not have a physical presence in the US but varying levels of involvement in the market there. In terms of physical presence there are now 33 Irish companies operating in the San Francisco Bay area.

This base offers a growing source of invaluable expertise for Enterprise Ireland. Much of Ms Donohoe's activity centres around networking, and putting the right people in contact with each other either through formal or indirect channels.

"Networking is a hugely important dimension to the Valley. Lawyers will decide if your company is appropriate or not, so choosing the right law firm is crucial. They are very strong business advisers with connections to powerful partners."

Enterprise Ireland also has strong contacts with the recruitment industry. While there are a lot of strong Irish graduates with Valley experience looking to join a start-up company, Ms Donohoe says most of the successful hires are local recruits.

This point is reinforced by Mr Paul Costigan, managing director of Massana, an Irish company with a long-term goal to operate in the semi-conductor sector.

"Silicon Valley is incredibly parochial, you must become local. It's important not to fight the tide, and follow Valley practices. It is a good idea to get an experienced US marketing and sales vice-president with lots of key contacts."

Mr Costigan says he spent two years courting one individual to fill this role. Although it was extremely expensive he sees the benefits beginning to accrue now. A strong local candidate will cost anywhere from $150,000 and usually there are strong stock options and benefit schemes drawn into the contract.

Establishing a Valley presence takes time, and Ms Donohoe advises companies not to expect sales for at least nine months. The cost of establishing a presence can cost anywhere between $400,000 and $5 million over a two-year period.

Enterprise Ireland works aggressively at getting the right people together to do business. Through its online bulletin board Irish companies can communicate with each other. Trade shows also provide valuable benchmarking information for new-comers.

A "buddy" system has been set up to identify complementary established companies which will devote a few hours a month to work with start-ups on a voluntary basis.

Enterprise Ireland is now in the process of establishing an advisory board, to comprise around nine people from relevant services sectors. It will meet on a quarterly basis to assess individual casestudies and engage in brainstorming sessions to hammer out legal, marketing, financial and technical strategies.

"Irish companies don't have the same `in your face' brashness as US companies. This can only be learned by spending time in the Valley," Ms Donohoe says.

She happily adds that so far there have been no Irish retreats out of the Valley - all companies have moved on to establish their own offices.

Any further expansion of the trade and technology centre on Campbell Avenue will have to be industry-driven, Ms Donohoe says.

"The more I read about Irish start-ups, the more I see appropriate candidates for the centre. If in the next six months five companies drastically need space, we will look to expand."

Enterprise Ireland has published a new guide, Starting Up in the USA. For more information contact Karen Penrice at Enterprise Ireland on 01 206 6310.