Web Summit founder Paddy Cosgrave has accused a former friend of launching a 'smash and grab' on a multi-million-euro venture capital fund.

He said David Kelly had been 'unfaithful' as a director of the firm, and 'secretly' plotted to profit from a fund initially intended to be run for the benefit of the Web Summit.

Web Summit founder Paddy Cosgrave has accused a former friend of launching a 'smash and grab' on a multi-million-euro venture capital fund.

He said David Kelly had been 'unfaithful' as a director of the firm, and 'secretly' plotted to profit from a fund initially intended to be run for the benefit of the Web Summit.

The claims were made by Mr Cosgrave's barrister, Bernard Dunleavy, at the start of a nine-week Commercial Court case which, he said, contained a level of bitterness usually only seen in the worst family law disputes. The hearing will combine five separate cases, involving chief executive Mr Cosgrave and shareholders and former directors Daire Hickey and Mr Kelly.

Mr Hickey and Mr Kelly have taken cases against Mr Cosgrave, and he has taken an action against Mr Kelly, with all claims hotly denied. Mr Dunleavy said the circumstances of the five cases 'bleed into each other'.

Opening Mr Cosgrave's action, he told Judge Michael Twomey: 'The claims are also connected by a bitterness which animates every aspect of the parties' respective proceedings. There were probably times when the court, on reading through the witness statements, must have been reminded of the most regrettable aspects of family law, rather than the sort of claims one would expect to see agitated in the Commercial Court.'

He said Mr Cosgrave's claim was for a breach of fiduciary duty - 'a failure by Mr Kelly to observe his obligations of loyalty and faithfulness to the company'.

'It is Mr Kelly's infidelity that is at the root of the proceedings. It is his faithlessness to the company which generates the anger that can fairly be seen in the papers,' he said. Mr Dunleavy said the Web Summit was 'not only a company' but a global technology conference, soon to be held in Rio de Janeiro and Vancouver. It was like 'the Klondike or the gold rush in California', except everyone wore 'T-shirts instead of overalls', he said.

Mr Dunleavy said Mr Kelly and Mr Hickey are former directors and early employees of the firm. He said: 'They deserve a measure of credit for their respective contributions.

But there is only one person who's been there through it all. It is only one person's vision, and that is Paddy Cosgrave.'

He said Mr Cosgrave had an 'outsized public profile', leading many to draw conclusions about him, without knowing anything about him. 'The court will make up its own mind, but... it will conclude

Mr Cosgrave is the engine of the business... In his mind, there is no point in being the world's biggest, if you are not also the world's best,' he said.

He said it was 'ironic' a complaint was made 'of the relentlessness of his work ethic'. He said one of the consequences of his drive for innovation was that he is always looking for opportunities for the company. That prompted him to explore the summit starting its own venture capital fund, the court heard.

Mr Dunleavy said the summit always brought together clever, highly motivated people with big ideas and no money, and investors with large amounts of money.

'Only one entity controls all the information that allows for the perfect match between ideas and money, and that is the company,' he said. 'That is what went on to be described as the unfair advantage which the Web Summit has over its competition.'

Mr Cosgrave was not experienced in venture capitalism and asked fund manager Patrick Murphy for help, the court heard. Mr Dunleavy said that because the fund could have potential reputational consequences for the summit, 'someone also needed to mind shop'. He said: 'It could not be Mr Cosgrave, he was running the Web Summit. So Mr Kelly naturally assumed the responsibility for overseeing the fund.'

However, there was an 'active deception' by Mr Kelly, counsel said. He showed the court emails and text messages in which, he said, it was clear Mr Cosgrave had, even before the first fund was up and running, envisaged a second, bigger fund would follow. However, he said: 'Mr Kelly co-opted that opportunity for his personal profit.' In doing so, he alleged, Mr Kelly exploited the unfair advantage that was the summit's unique position.

He said texts and emails between Mr Kelly and Mr Cosgrave, and Mr Kelly and Mr Murphy, showed Mr Kelly was 'speaking out of both sides of his mouth'.

He said Mr Kelly, in communication with a friend, had commented that when Mr Cosgrave had tried to renegotiate the terms of fund two, he had replied: 'F*** you, I'm going ahead with fund two without you.'

Mr Kelly never said anything like that to Mr Cosgrave, but seemed to have 'rage and anger' in his head, Mr Dunleavy said.

The court heard Mr Kelly told Mr Cosgrave he found large-scale event organisation 'super stressful' and that he planned to start a small business or work for someone else. Counsel said Mr Cosgrave was unaware Mr Kelly and Mr Murphy planned a 'complete smash and grab', with Mr Kelly intending to launch fund two - without the summit's involvement - immediately after resigning as director in the spring of 2021. Mr Cosgrave had recruited staff to run fund two, introduced investors and paid for the start-up costs, the court heard.

Mr Dunleavy said the law would regard a maturing business opportunity, such as fund two, as the property of the company. He said the launch of fund two by Mr Kelly and Mr Murphy had cost the summit €11.24million, and it was estimated they profited from the launch by €1.26million.

The hearing continues.

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