The Government has announced a second round of funding to lure the venture capital industry to set up in Ireland.

The coalition will put €60m into venture capital funds which establish a presence in Ireland and at the same time the funds will make available that amount of money to promising start up companies.

Funding for the scheme will be provided through Enterprise Ireland.

The announcement was made in San Francisco, where Minister for Jobs, Enterprise and Innovation Richard Bruton has travelled for the St Patrick's Day festivities.

Previous attempts in this area have generated more than $400m in funds and the idea is to use the money being invested by the Government to leverage tens of millions of dollars from venture capital funds and to bring that money into Ireland.

A significant amount of the money will stay in Ireland and it is hoped that the venture capital companies will also set up offices here, to use as either a base to invest in small Irish start-ups, or look to invest in the rest of Europe.

Venture capital has been the key to developing Facebook, Twitter, Intel and dozens of other companies.