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New $172million venture capital fund to set up in Ireland with support from Enterprise Ireland and NPRF – Minister Bruton

€20 million investment in leading US international Life Sciences Venture

Capital Fund by Dept of Jobs through Enterprise Ireland

Investment will mean new funding for innovative companies to grow and

create jobs in Ireland

The Minister for Jobs, Enterprise and Innovation, Richard Bruton T.D. today

(Tuesday) announced that Lightstone Ventures is partnering with Enterprise

Ireland and the NPRF to establish a $172million venture capital fund with

offices in Ireland that will invest in innovative Irish companies.

This is the third investment by the Department of Jobs, Enterprise and

Innovation through Enterprise Ireland under the Innovation Fund Ireland

programme. Lightstone Ventures is a leading US venture capital fund that

has recently raised a fund of $172million. Enterprise Ireland has invested

€20million in the fund alongside a commitment of €10million from the

National Pensions Reserve Fund.

Today’s announcement will result in new funding being available for

innovative companies in the Life Sciences sector in Ireland to support

company development and job creation.

Making the announcement Minister Bruton said:

“Today’s announcement that Lightstone Ventures is partnering with

Enterprise Ireland and the NPRF to establish a fund that will invest in

innovative companies is a major boost for the Irish venture capital

industry and for the Irish Life Sciences sector. This sector has been

identified in the Action Plan for Jobs as a fast growing sector with

significant potential for job creation.

"The investment in this fund adds another source of funding to the Irish

market, further increasing the range of sources of funding available for

Irish companies. Increasing the availability of different types and sources

of non bank financing is a core objective of the Action Plan for Jobs 2014.

“Research shows us that start-up companies have a significant positive

impact on job-creation. Almost 4,000 high-level jobs alone were created by

indigenous venture capital backed companies in the three years to 2012. I

am confident that the establishment of this fund will directly improve the

chances for innovative Irish companies to access the funding, mentoring and

networks they need and provide a major boost for job-creation in Ireland.”

Lightstone Ventures closed its first Irish-based deal, FIRE1, in December

2013. FIRE1 is a new company launched in conjunction with The Foundry, a

premier medical device incubator. The Series A investment round in the

company was co-led by Lightstone Ventures and New Enterprise Associates

(NEA). Global medical device leader Covidien plc (NYSE: COV) also invested

in the company. The board of the company is in the process of identifying a

number of key hires to drive the company forward.

“Lightstone Ventures is pleased to announce the opening of its Dublin

office", noted Lightstone Partner Jason Lettmann who will relocate to

Dublin this summer to lead this Irish initiative. "As Europe's importance

in the development and commercialization of breakthrough medical

technologies continues to grow, Lightstone Ventures believes it is

essential to establish a local European presence. Dublin's access to

talent, innovation, and world class research coupled with a fair and

balanced regulatory approach make it an ideal location for such a hub".

Julie Sinnamon, CEO, Enterprise Ireland, commented: “I would like to

congratulate Lightstone Ventures on raising their fund and welcome them to

Ireland. Enterprise Ireland looks forward to working with the team to drive

the further development of the Irish life sciences sector”.

ENDS

For further information, please contact:

Press Office: Department of Jobs, Enterprise and Innovation, 01 631 2222

Press Office: Enterprise Ireland 01-7272805

Notes to the Editor:

Lightstone Ventures

Lightstone Ventures (LSV) was founded in 2012 by the Life Science Partners

of Advanced Technology Ventures (ATV) and Morgenthaler Ventures to focus on

novel breakthrough medical devices and biopharmaceuticals. The Lightstone

team actively manages the Morgenthaler and ATV life science portfolios of

more than 40 life science companies and has been involved in several of the

largest, venture-backed healthcare exits over the last decade including:

Ardian, Avidia, FoldRx, Hypnion, MicroVention, Morphotek, Orexigen,

Perclose, Plexxikon, Proteolix, Threshold and Zeltiq. Lightstone is an

international firm with offices in Palo Alto, Calif., Boulder, Colo.,

Boston, Mass and Dublin, Ireland (opening in 2014). For more information,

visit www.lightstonevc.com.

Innovation Fund Ireland

Two calls for expressions of interest under Innovation Fund Ireland have

been issued by Enterprise Ireland to date. The original Exchequer funding

commitment, managed by EI, was €125m. VCs receiving a commitment from

Enterprise Ireland shall establish a presence in Ireland to invest in Irish

companies or companies with significant operations in Ireland. An

equivalent amount is managed by the NPRF within their commercial mandate.

This is the third announcement by Enterprise Ireland.