THE industrial development agency, Forbairt, has combined with Jefferson Smurfit Group ERU to set up a £10 million venture capital fund which will invest in start up business and small to medium sized companies.

This is the second such fond launched by Forbairt this year - a £10 million fund for investment in software companies was launched in June in associate with ICC Bank. It is understood that a third £10 million fund will be announced later this week, although it is not yet known which sectors will be targeted for this latest venture capital fund.

Announcing the latest fund, the Minister for Enterprise and Employment. Mr Bruton, said the aim is to stimulate the growth and employment potential of growth oriented industries - both manufacturing and services - through the provision of additional equity funding.

The £10 million fund will have equal contributions from Forbairt, Smurfit and EU structural funds and £3 million is available immediately for in vestment. The anticipated investments will range from £100,000 to £500,000 and each proposal must involve plans for at least 10 new and sustainable jobs within three years of receiving the investment.

The Minister said the fund "is designed to provide long term permanent finance that companies cannot provide themselves and that is crucial to their long term growth. This will be equity funding accompanied by venture management experience. We will be bringing to the emerging companies, not just badly needed money but also badly needed skills in management".