Podcast Ep 283: Platform94 CEO Marie Donnellan is on a mission to make the west of Ireland a regional powerhouse for scaling enterprises.
There is a method to what Marie Donnellan is doing that is both original and innovative. In recent months the CEO of Galway-based Platform94 installed what she calls fractional C-suite professionals who bring world class business experience directly to the boardrooms and leadership of scaling businesses across the west.
Earlier this year she recruited Sue Gannon, former Netflix vice-president of HR, as fractional chief people officer, and former Galway Clinic CEO as fractional chief financial officer.
“That’s where the idea of a fractional C-suite came from. You’re bringing in really experienced individuals that scaling businesses can access without the full-time cost. For them to be able to give that level of expertise to a scaling business is invaluable”
The move is not only different but could be a game-changer for fast-growth companies that need global experience when it comes to finances and people.
It scaled from the West
“We have a really great ecosystem with fantastic multinationals working really well with world-class scaling businesses and innovations. The ingredients are really there”
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Platform94 evolved from Galway Technology Centre, which was established in 1994 after Digital Equipment Corporation’s closure displaced 2,500 workers in the region. The facility has grown from 6,000 to 66,000 square feet and now houses 105 businesses with more than 700 employees. The rebrand to Platform94 in 2023 reflected its expanded regional focus beyond Galway and broader support for scaling businesses, not just technology companies.
Over the course of our interview Donnellan Marie emphasised that there’s a gap in Ireland when it comes to supporting scaling businesses – companies with established teams, customers, and products that need help growing internationally. Platform94’s fractional C-suite approach addresses this by providing experienced talent (chief people officer and chief financial officer) that scaling companies can access without full-time costs. Genius.
“The history is really important to us. When Digital closed down, it had a monumental impact on Galway. So Galway Technology Centre came about through a Government task force led by Seamus Keating, and one of the tasks was to try and find a place where displaced workers could start businesses.
“They found a small 6,000 square foot building. Today it’s 11 times the original size –now 66,000 square feet. The calibre of people coming out of Digital in really difficult times was incredible, and many went on to be very successful entrepreneurs. Toucan Technology was one of the first businesses set up in Galway Technology Centre, which went on to be a great success.”
There was an intent behind the decision to rebrand in 2023. “The reason was to lose the name ‘Galway’ – that might sound harsh, but it was serving a regional base and helping scaling businesses throughout the wider region, not just technology businesses. We wanted to become a platform for scaling businesses trying to grow internationally. The ‘94’ gives a nod to the year it was formed.”
Platform94 is almost at full-capacity, which she says is nothing new for the hub. “I think we’ve been at ‘full capacity’ about 10 times, but I keep trying to find small spaces and repurpose areas because we try to never turn anyone away who needs help.
“We also have a regional community called Scale by Platform94, supporting businesses where they are – they don’t have to be based in our building. Currently, there are 85 businesses from Clare up as far as Donegal and throughout the Midlands, and it’s growing really quickly. There’s definitely huge demand from businesses needing help scaling internationally.”
I asked Donnellan about her emphasis on scaling businesses. “When I started, it was very obvious to me that as a country our supports for start-up businesses are top class. What Enterprise Ireland does is phenomenal, what The Local Enterprise Offices do, our universities, great incubators –they’re doing incredible things around idea generation.
“But when it comes to scaling businesses – businesses that are already established with a team, customers, a tried and tested product or service, and a market, but need help bringing that to the next level and scaling internationally – I felt there weren’t the same level of supports. You’re transitioned to external consultants, but you’re not really at a level where you can afford that.
“Most of the businesses in our building already fell under that bracket, so it made sense to hone in on this expertise. It’s not that we don’t help startups – we’ll help anyone that comes to us – but primarily we focus on international scaling.”
The fractional C-suite approach, she says, gives scaling businesses the skills and advice they need without having to make expensive hires.
“Looking at the West, I see three main challenges: access to networks can be harder because businesses are more spread out; funding continues to be a challenge; and access to really experienced talent at C-suite level where, as a scaling business, you might not yet be able to afford someone at that level full time.
“That’s where the idea of a fractional C-suite came from. You’re bringing in really experienced individuals that scaling businesses can access without the full-time cost. For them to be able to give that level of expertise to a scaling business is invaluable.”
Facing the storm
With international venture capital investment levels into Ireland plummeting, the challenge for regional businesses to raise funding will become more acute in the coming years.
“It depends on the particular company. We have a mix – med tech companies, software with some AI, cybersecurity – but many businesses wouldn’t be fundraising at the moment. If you’re a software business with recurring subscription revenue, you might be bootstrapping really well.
“Anyone in the medtech space is fundraising and finding it challenging. There’s a catch-22 situation: Irish venture capitalists might be looking at smaller investments and can’t put in the capital needed for a Series B. But if you go to the US looking for $3m or $4m, that’s way too small – they won’t look at you until you’re looking for at least €10m.
“We also get feedback from US investors that Irish scaling businesses can be unattractive because they’ve given away a lot of equity really early, so the cap table is not attractive. That’s something the Irish Government needs to look at – it’s a crying shame if we have amazing businesses with fantastic technology and global potential, but they’ve given away large portions of equity early on.”
But the real issue for scaling businesses is talent. “Anytime we survey our community, talent is always the number one issue, ahead of funding. Actually, we just did a survey a few weeks ago, and for the first time ever, economic uncertainty went ahead of both talent and funding.
“Yes, funding is a challenge if you’re in a long R&D period type business, but if you can secure funding and you’re trying to find top-class talent, talent is probably more of an issue than funding. Companies in the West actually have an advantage on the talent front – the lifestyle you could have, quality of life, beautiful scenery, access to schools for your kids. It’s a better quality of life than the stresses of a city.”
One of the hallmarks of Donnellan’s leadership of Platform94 has been her engagement with overseas partners and markets.
“We try to locate partners in different international locations that will help our businesses with scaling to that region. We’re primarily focused on the UK and the US, because they continue to be the top two regions that our companies are expanding into.
“The UK is the number one market – 65% of our scaling community are already trading in the UK. We have partners in Manchester, Wales, the West Midlands. When one of our companies wants to expand into the UK, we have partners we can put them in touch with. It’s not just a physical desk or space, it’s the people who can do the introductions on the ground and help put them in touch with the right people.
“We have a similar network in the US, in Chicago and Maryland. The only way for us to do this effectively is to have international partners that we know who to go to. Those partners are really invested in trying to get great businesses to expand into their area, so the support they provide to Irish businesses is fantastic.”
I asked Donnellan about her vision for developing entrepreneurship and business in the West of Ireland.
“As a nation, we’re very entrepreneurial, but I think we’re quite risk-averse, and that’s maybe a little more heightened in the West. I think we have a really bad attitude to business failure. If you look to the US, when someone has business failure, it’s nearly a cause for celebration – it’s like a battle scar. What did you learn from it? Many great unicorns and success stories are often someone’s third, fourth, fifth business.
“Whereas in Ireland, especially in the country, when someone fails at something, it can be a case of hiding away. We really need to normalise business failure and learning from things and celebrating things and moving on to the next level.
“From a schools perspective, we’re more focused on a mindset of job security than value creation and generation. We’re never taught from a young age how to actually create wealth. My dream vision would start from a much earlier stage with kids, really teaching them how to make money and how to be entrepreneurial and normalise failure,” Donellan concludes.
“I think the structure is there in the West. We have a really great ecosystem with fantastic multinationals working really well with world-class scaling businesses and innovations. The ingredients are really there. If we could just work on our mindsets a little bit, I think we’d have the full package.”
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