Irish SMEs raise 25pc more capital than last year, bucking European trends

Irish firms have raised over a billion euros in venture capital so far this year, up 25pc on 2021 and bucking European trends.

Leo Hamill, chairperson, Irish Venture Capital Association. Photo: Fennell Photography

Venture capital funding into small and medium-enterprises (SMEs) reached just under €1.1bn in the first nine months, up from €871.8m in the same period last year.

Funding in the third quarter was up 34pc on the same period last year, to €309m, according to the Irish Venture Capital Association’s (IVCA) VenturePulse survey, in association with William Fry.

Most of the capital raised went to firms in the tech sector.

“In view of continuing global uncertainty, this is an encouraging outcome for the indigenous technology sector and compares favourably to Europe, where funding year-on-year for the third quarter fell by 35pc - and by 44pc for the nine months,” said IVCA chair Leo Hamill.

Growth in the third quarter was driven by very large deals, including two raises of close to €60m each by tax automation platform Fonoa and cyber security start-up Tines.

Seed funding - which is for early-stage first round investments, and tends to be smaller in size - was also buoyant, up by 45pc in the third quarter to €44.8m, and up 13pc in the year so far.

There are a number of Irish funds currently investing at seed stage, including ACT, Delta, Elkstone, Furthr and Lightstone Ventures, while earlier this year the Government tripled its innovation seed fund to €90m.

However, aside from seed funding, smaller deals have tumbled this year.

Deals from €5m-€10m fell 54pc to €33.5m in the three months to September
Source: Independent.ie

 

 

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