NDRC builds and invests in early stage digital start-ups, providing capital and hands on expertise to young Irish companies with international growth potential. NDRC is recognised as a leader in this area. It was ranked as the no. 2 University Business Accelerator in the world in the UBI Global Index 2015. By the end of 2016, NDRC's portfolio companies secured €152 million in cumulative follow-on investment. The cumulative enterprise value of its portfolio was valued at €427m. NDRC companies have directly created 680 jobs in Ireland and 127 jobs outside of Ireland. NDRC's ultimate goal is to deliver a sustainable supply of globally scalable Irish digital companies, help to create high value jobs and economic impact for the country.

In addition to an initial cash investment of between €30,000 and €100,000 per company, the NDRC team provides strategic business development advice and intensive mentoring by experts in digital enterprises, innovation, finance, investment, marketing and communications. NDRC decides on what level of cash investment each venture qualifies for through investigating each venture's business model separately. Those suited to the larger investment must include deep industry or research-based knowledge or technology.

NDRC’s Investment Programmes offer start-up teams:

• Investment of between €30k and €100k per venture.
• 12 to 24 weeks of working alongside a broad spectrum of start-ups, innovators and investors.
• Expert mentorship in areas such as Company Financials, Investor Readiness, Marketing, PR and Business Model Innovation.
• Weekly workshops and networking with acknowledged leaders.
• The opportunity to create connections with the investment community.

The key business performance indicator for the company is third-party follow-on investment (FoI) that is secured by ventures emerging or developing from the company’s portfolio.

Cumulative follow on investment increased by 26% year on year, from €152m by 2016 to €192m by 2017. The cumulative enterprise value of ventures emerging from NDRC also increased

by 14% year on year, from €427m by 2016 to €486m by end 2017. The growth outcomes (cf. results for the year below) are a consequence of a continued flow of investments and ventures through NDRC and increasing maturity of NDRC ventures that have proven viability since emerging in previous years. NDRC employs a residential approach in support of its hybrid investment model, in which investee companies reside in NDRC for the duration of pre-seed stage of development.

The total comprehensive expense for the financial year was €263,858 (2016: income of €459,684). This represents the board-approved utilisation of designated reserves. The company is exempt from corporation taxation. Results in the form of third-party follow-on investments in the outputs of the company’s investments continue to be strong for the year. Building very strong results in the previous year, the company reports a cumulative €192m (2016: €152m) of follow on investment secured by new enterprises emerging 24 – NDRC ANNUAL REPORT 2017-2018 or developing from the company’s investment programmes. The amount of equity released in, or valuations placed on, these new enterprises to secure the follow-on investment indicates a year end cumulative enterprise value of these enterprises of €486m (2016: €427m.).

NDRC’s mission is to deliver a sustainable supply of globally scalable Irish digital start-ups – that is both the investment mandate of their fund and their raison d’être as a company. The origins have had a strong research commercialisation foundation, and have broadened scope to include support for digital start-ups from any source.

NDRC have achieved over the course of the past 10 years, with standout businesses such as Nuritas – €20 million in follow-on funding to date, SilverCloud Health – one of the most societally impactful investments and one which has raised more than €10 million. NewsWhip – which has secured €8 million in funding to date and Tandem – which last year raised €2 million, being just some of the examples dotted throughout portfolio. In 2017, €40 million in follow-on investment was secured by NDRC’s portfolio of companies. In 2016 that figure was €27 million.

Currently NDRC operates in Dublin, Galway, Oman and Waterford. Based in the PorterShed in Eyre Square, Galway, this initiative is a collaboration from Enterprise Ireland, NDRC and GCID (Galway City Innovation District) aims to drive the growth of digital start-ups nationally. NDRC started operations in The Portershed during 2017, with the introduction of its first 10 start-ups revealed in August.

The Oman Technology Fund (OTF), the Oman Government’s technology investment fund, recently engaged with NDRC to run a pre-seed accelerator programme in Muscat, Oman. Up to ten young ventures from Oman and the surrounding region were selected by OTF to participate. NDRC provides accelerator expertise and personnel throughout the three-month programme, with OTF investing the required capital in the companies.

The programme, based in ArcLabs at Waterford Institute of Technology’s West Campus, in Carriganore, Co. Waterford, is a key part of NDRC’s national remit. It is also an important part of Enterprise Ireland’s overall strategy to increase the number and quality of start-ups that have the potential to employ more than 10 people and achieve €1 million in export sales within three years. The investors and supporters of NDRC@ArcLabs, in addition to Enterprise Ireland, include Suir Valley Ventures, Bank of Ireland Seed and Early Stage Equity Fund, Bord Gáis Energy in partnership with Centrica Innovations, South East BIC, and Local Authorities of Carlow, Kilkenny, Waterford and Wexford, Local Enterprise Offices and Enterprise Centres.