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

Through Enterprise Ireland, the Government will put €60m into venture capital funds which establish a presence in Ireland. At the same time the funds will make available that amount of money to promising start up companies.

The funding was announced in San Francisco.

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 that will stay and the hope is that the venture capital companies will also set up offices in Ireland. They can use that base to invest in small Irish start ups but they can also look to invest in the rest of Europe.

It is all premised on the irony that Ireland has attracted some of the world's most dynamic companies, but has yet to produce a company on our own of any significant scale.

Venture capital has been the key to developing Facebook, Twitter and Intel and dozens of other companies and it is hoped that Ireland can use the money in a similar way to fund promising Irish companies.