Western Development Commission Celebrates €100M Investment Milestone

The **Western Development Commission** (WDC) has achieved a significant milestone, reaching **€100 million** in investments through its **Western Investment Fund** (WIF). This fund has been pivotal in supporting small and medium-sized enterprises (SMEs), start-ups, community projects, and strategic regional initiatives across the west of Ireland.

Gillian Buckley, head of investment at the WDC, highlighted the importance of this achievement and its broader impact on the region. The WIF has made early investments in notable companies such as **Aerogen**, **AltoCloud**, and **CitySwift**, and operates as an “evergreen investment fund.” All returns generated are reinvested into new businesses, making it a crucial source of seed funding, especially for companies in the deep tech sector.

Investment Impact and Economic Growth

The investments made by the WIF have not only fostered local entrepreneurship but have also attracted additional public and private capital, significantly amplifying their impact. Buckley noted that the fund has leveraged over **€500 million** in total for the region through various projects, funded by both public and private sector sources as well as European Union grants.

Today, companies and projects within the WIF portfolio collectively employ approximately **5,000 people** directly and indirectly, generating more than **€5 billion** in revenues, with half of this total coming from exports. Buckley remarked, “It is a major milestone for what is a relatively small fund in the West of Ireland,” emphasizing the fund’s continual reinvestment into local communities.

Buckley explained that the focus on deep tech aligns with the original rationale for establishing the WDC and the investment fund. “It was about retaining our young talent and our population in the region and offering them high-quality jobs.” The fund dedicates significant resources to fostering deep tech companies, recognizing it as a key area of growth.

Long-term Commitment to Entrepreneurs

The WIF adopts a long-term investment approach, often supporting businesses through their growth journeys. “We have some companies that we’ve been invested in for almost **20 years**,” Buckley shared. “We are patient capital, and we do need patient capital.” This supportive role is crucial, as the road to success for many entrepreneurs can be challenging.

A standout success story is **Aerogen**, a Galway-based med-tech company that received support from the WIF. Buckley discussed how the fund assisted **John Power** in completing a management buyback of the company in **2008**. Since then, Aerogen has expanded its workforce to over **600 employees**, establishing itself as Ireland’s largest indigenous med-tech firm. Recently, the company announced plans to create an additional **700 jobs** over the next decade as part of a **€300 million** expansion, supported by **Enterprise Ireland**.

Other significant investments include **CitySwift** and **AltoCloud**. Buckley noted that CitySwift has experienced remarkable growth, developing its technology for global markets. AltoCloud, initially seed-funded by the WIF, was acquired by **Genesys**, resulting in the establishment of a headquarters for generative AI in Galway and the creation of over **400 jobs** in the region.

“The investment in startups and their subsequent growth creates a virtuous circle,” Buckley explained. “We invest in the startup. We try and support them. Sometimes they scale themselves, or sometimes they’re acquired and they scale as a result of the acquisition.”

The emphasis on local employment is crucial, with **70 percent** of jobs created in supported companies being graduate-level positions, significantly higher than the national average. The WDC also prioritizes social and community funding, investing in projects that enhance the quality of life for residents in the region.

Looking ahead, **Geraldine McLoughlin**, senior investment manager at the WDC, will participate as a panellist at the **Founders Exchange** in Galway on **October 24, 2023**. This event aims to provide entrepreneurs with valuable insights and resources to succeed in their ventures.

The WDC’s achievements underscore the vital role of investment in fostering innovation and economic development in Ireland’s western region, laying the groundwork for future growth and sustainability.