The Ireland Strategic Investment Fund, Enterprise Ireland and the European Investment Fund have contributed to a vehicle that is expected to reach close to $120m.

The European Investment Fund (EIF), the EU-owned vehicle responsible for funding SMEs, has partnered Ireland-based VC firm Act Venture Capital to launch a fund of nearly €100m ($120m) in size.

Enterprise Ireland, the state-owned export credit agency, and the country’s sovereign wealth fund Ireland Strategic Investment Fund have also contributed cash, as have financial services firm Allied Irish Banks and private investors.

EIF is injecting €20m into the Act V fund, which will focus on both early-stage and growth-stage startups that hope to scale internationally.

The fund will provide up to €7m in 15 to 18 companies in the software, internet, digital media, communications and mobile sectors over the next four years, with some expected to be portfolio businesses of Act’s seed funding activities.

Act now has €500m under management across five funds.

John Flynn, managing director of Act Venture Capital, said: “This fund will help to sustain Ireland as one of Europe’s most active locations for technology venture funding.  Act is keen to partner with leading entrepreneurs where we can exploit our international network to help them expand.”