“We need to be more ambitious for the future.”

In Fitzgerald Power’s interview series, we’re speaking to people, with different perspectives, who feel they can offer more to the workplace – from the water cooler all the way up to C-Suite.

It’s hard to believe it has been over 6 years since former RTÉ political correspondent Martina Fitzgerald left journalism, after working in the media and RTÉ for almost twenty years. But post journalism, Fitzgerald has been very busy to say the least, running Scale Ireland since late 2020.

For those not acquainted with Scale Ireland – and it would be difficult given its reach and reputation – it is the not-for-profit representative organisation for the Irish tech sector. In fact, while it is a relatively new organisation, it is now the biggest industry body for the Irish tech sector. No mean feat in just over 5 years. So it’s no wonder ahead of an EU meeting in Brussels on start-up and scaling companies, Fitzgerald says her career in journalism feels like a lifetime ago. “Both sectors (media and the start-up sector) are fast paced and dynamic. But away from the cameras, I am very proud of what we have achieved over the last five years. We now have around 800 members… but we started with zero on our dashboard in late May 2021 and we launched (a membership model) in the middle of the pandemic with no marketing budget and a tiny but dedicated team. But that’s how many founders begin – look at John Purdy who started from an office in his bedroom.”

So what does Scale Ireland do for its members? “We try to create the right conditions for start-ups and scaling companies to thrive, and to make Ireland a leading location for innovation and entrepreneurship. So what does that mean – well, we highlight, promote and advocate for founders and for the sector. Ultimately we want this sector to be the leading economic driver of our economy. To achieve that – we look at the key issues and challenges that they are facing. We are just finalising our 2025 State of Start-up Survey to get the sentiment of founders and CEOs on a range of issues. We also conduct extensive research, make submissions and advocate to government, state agencies and officials on their behalf. And when I say start-ups – I mean that we represent start-ups of all sizes, stages and sectors, all around the country. We are not exclusive and do not exclude anyone. That is very important to us and I believe to the community. I think it’s a strong endorsement from the sector that we have built an 800 strong organisation from scratch”.

As most reading this will be aware, scaling a business is an enormous task. In practice, it can feel like attempting to harness an octopus, a task that feels ever-changing and slippery. That said, it’s high risk, high reward. What are the risks and challenges entrepreneurs should be aware of? “For the last two years, 80% of founders and CEOs have identified funding as the key issue which is aligned with the findings of Atomico’s State of EU Tech survey last year,” Fitzgerald says. “The retention and recruitment of staff is another big issue and unfortunately red tape. It is so frustrating for our members that many of the schemes and supports that are out there, dedicated to benefiting start-up and scaling companies, are so difficult to navigate. So the participation levels aren’t where they should be. We believe that we don’t necessarily need new schemes and supports – we just need the current ones to work. Start-ups don’t have the time and resources or deep pockets to appoint financial experts to help them. A more balanced approach is needed and report after report from the Commission on Taxation to the White paper on Enterprise has highlighted this as an issue’.

Turning to the retention and recruitment of staff, Fitzgerald says ‘a recent quote by Index Venture’s Vojtech Horna said that Ireland really needs to take action in relation to our share option schemes if we are to keep recruiting and retaining staff in the tech sector here. Index Ventures conducts the annual global ranking of share option schemes so we cannot ignore this’.  (“We’ve been talking to the Irish for many years,” Vojtech Hornahe said. “Obviously, there’s very little take-up of the KEEP scheme. I think there are fixes that the new government can make, and that would make it attractive. But then, you effectively keep having this conversation about making it better in Ireland, making it better in the Czech Republic, make it better in Sweden etc. The opportunity is to create something that creates this pan-European scale. So suddenly you’re not creating an Irish startup with Irish employees, then maybe making a move and opening in another country, but from the start, building a pan-European business.”

Fitzgerald and her team have outlined a number of suggestions that, they think, would boost the start-up economy for Irish-based and international businesses. “We need to attract more private investment and diversify the funding options. For instance, we really need to unlock pension funds’ investment to finance growth innovative companies by putting a small portion of our pension funds’ savings into indigenous companies through VCs. We have seen many of France’s leading institutional investors committing billions through the TIBI one and two initiatives. So France has done it well. Denmark has done it well, and England is adopting it. It would be a real game changer here and indeed across Europe. We’d also love to see more spending and support for R&D activity,” she says. “There have been some positive moves with a rate increase in the Budget before last, but we need to accelerate the level of support and spending in this vital area if we want to be a global leader in research and development. They’re just some of the key areas… I could keep going on for hours if you let me.”

Though Fitzgerald is keen to express the superlatives – ”We have great hubs, state agencies, talent, universities, founders and great teams, and we’ve done a lot when you look at our size proportionate to other countries” – her focus is on the future, and particularly the innovation gap between China, the US and Europe. As a member of the advisory board of ENSA – the European Commission agency dedicated to best practice for start-up and scaling companies and a board member of the biggest representative group for start-ups in Europe – she is well placed to comment on the wider European picture.

“The Draghi Report [on EU competitiveness] has really put a spotlight on innovation” she says. “Europe really needs to concentrate its attention on closing that gap, on providing more funding, on spending more on research and innovation with a concerted plan and roadmap to increase our competitiveness at this critical stage – especially given the opportunity created by transformative technologies. So, I would say we need to be more ambitious. We need to look at what’s happening in Britain and France. They’re bigger countries, but we need to be more ambitious for this sector because our founders are ambitious. They’re going out, they’re creating great companies, they’re scaling them internationally. They’re creating employment in their communities and globally. We need to match that, but we also need to look at what’s happening in other countries.”

‘There is strong momentum, the Draghi report has really focused minds that Europe needs to act – and especially now given what is happening with the US. This is a real moment for Ireland to look at how it can significantly and strategically support our indigenous tech sector. We were delighted to see the ambitious targets in Enterprise Ireland’s new strategy. Bottom line – we have to be as ambitious as our founders’.

For more information on Martina, check out her LinkedIn here, or find out more about Scale Ireland’s work, collaborations and annual surveys, on their website here.