The PSSF Playbook

Est. reading time: 2 minutes 37 seconds

Enterprise Ireland’s Pre-Seed Start Fund (PSSF) provides valuable early-stage support to Irish start-ups. This guide summarises the key questions that arise most often around completion, co-investment and compliance.

Q1. What are the pre-completion requirements for initial close?

Before funds can be released, the following must be submitted:

• Signed investment agreement and loan note instrument.
• Up-to-date Tax Clearance Certificate.
• Auditor/Solicitor confirmation of the new €5,000 “matching funds” (further details below).
• Solicitor’s certificate.
• Loan note certificate.

Preparing these items in parallel helps avoid delays at closing.

Q2. How long is the offer valid?

The offer remains open for 8 weeks from approval. Any extension is at Enterprise Ireland’s discretion and will be granted only in exceptional circumstances.

Q3. What is required to draw down the second €50k (if offered)?

For the second tranche, Enterprise Ireland must be satisfied that the company has made appropriate progress and complied with the conditions attached to its first tranche of investment.

Requirements include:

• Progress Report detailing how the first tranche was spent and the milestones achieved.
• Valid Tax Clearance Certificate.
• Up-to-date management accounts.
• Confirmation of any changes to the share capital.
• Evidence of an additional €5,000 “matching funds”.
• Loan Note certificate.

The second tranche must be completed within 12 months of the first; otherwise it is automatically cancelled.

Q4. Is it necessary to appoint a solicitor?

Yes. A solicitor must issue the Solicitor’s Certificate, and either a solicitor or auditor must confirm the €5,000 “matching funds”. Early engagement helps avoid delays.

Q5. What form must the €5,000 “matching funds” co-investment take?

The co-investment must be new cash, received after the date of your PSSF application, and provided as:

• Equity or quasi-equity (e.g., shares, SAFE, convertible loan note)
• Director’s loan or related-party loans (which will be subordinated to Enterprise Ireland’s investment – see more below).

It cannot be:

• Funded by any other public programme.
• A standard loan e.g. overdraft.
• The conversion of existing director / shareholder loans into shares.

The purpose is to demonstrate fresh private commitment alongside Enterprise Ireland.

Q6. What is the impact of subordination on related-party loans?

Any director, shareholder or connected-party loans outstanding at the time of Enterprise Ireland’s investment cannot be repaid until Enterprise Ireland’s convertible loan notes have converted or been repaid at maturity. This requirement may apply to third-party or bank loans.

Q7. What is Enterprise Ireland’s position on existing intellectual property?

All intellectual property (IP) required for the business plan must be owned by the company at completion. Any IP held personally or externally must be assigned to the company before closing.

Q8. Can we receive other government supports?

Yes, provided they are not funding the same business plan submitted for the PSSF. Before accepting PSSF funding, any overlapping public funding must be either fully drawn down or formally declined (e.g., LEO funding, R&D grants, New Frontiers stipend).

Q9. Can the company repay the convertible loan notes?

If the convertible loan notes have not converted by the fifth anniversary, the company may repay the notes and accrued interest by giving three months’ notice and demonstrating an ability to pay. Early repayment before maturity is not permitted.

Final thoughts

Closing a PSSF round doesn’t need to be stressful.

We’ve helped hundreds of Enterprise Ireland investee companies receive Enterprise Ireland cash down through the years including from its CSF, SEF, PSSF and HPSU funds. If you want guidance on any of the steps above, we’re here to help.