Kernal Capital today launched the €10m Bank of Ireland MedTech Accelerator Fund, which is the country's first seed fund to focus exclusively on the indigenous medical technology sector.

The fund is targeting export orientated high potential start-up life-science companies that operate in the medical device, diagnostics or medical sectors. Investments will range from €100,000 to €500,000.

NUG Galway joins the University of Limerick, Bank of Ireland and Enterprise Ireland in supporting the initiative.

The medical technology industry generated €6.8 billion in exports in 2009 and directly employs over 24,000 people. Nine of the world's top ten medical technology companies have investments here.

Kernal Capital notes that the west of the country is known globally as a centre of excellence in the creation of innovative research based companies and indigenous medical device start-ups.

It said that this new fund creates greater access to investment, which will help early stage companies capitalise on the sector's potential.