Irish tech companies raise record venture capital funding of €778m in first half of year

  • Photo: Sarah-Jane Larkin, Director General, Irish Venture Capital Association

    Venture capital investment into Irish tech firms in the first half of the year rose by 21% to a record €778.1m,

    The findings come from the Irish Venture Capital Association VenturePulse survey published  in association with William Fry.

    However, the rise was largely due to a stellar first quarter when funding reached €379.7m. Funding in the second quarter rose by under 2% to €398.4m. 

    Leo Hamill, chairperson, Irish Venture Capital Association, commented: “It was a strong first half overall for Irish tech companies raising funds, especially when one considers the geopolitical and economic headwinds and downturn in publicly quoted technology stocks over this time,” commented “It remains to be seen whether the significant slowdown in growth in the second quarter to under 2% heralds a more difficult second half to the year.”  

    He also highlighted a 50% fall in funding from overseas investors which fell to €152m from €303m in the second quarter. Leo said:. “This over reliance on foreign investment threatens Ireland’s ability to continue to develop indigenous world class technology companies. The tide of available global capital is starting to go out, which highlights the importance of our pre-budget submission recommending measures to boost domestic sources of funding.” 

    RELATED: New chair appointed for Irish Venture Capital Association

    Seed funding, which represents early stage first round investments, fell by 7% to €47.1m in the first half, from €50.5m in the same period last year.  

    Sarah-Jane Larkin, director general, Irish Venture Capital Association, said that there had been a recovery in the second quarter although she cautioned that it was from a low base. Seed funding in quarter two rose by 77% to €24.8m from €14m. 

    She added: “We are optimistic, however, that this upturn in important seed funding will continue as the Government’s €90 million fund for Irish start-ups comes on stream in the second half.” 

    RELATED: Venture capital funding into Irish SMEs increase by 19%

    Deals under €1m fell by 19% in the first half to €21.1m from €26.2m last year. Transactions in the €1-5m category dropped by 9% to €83.6m from €91.9m. Deals in the €5-10m range fell by 43% to €44m from €77.7m.  

    The overall growth for the half year was due to an increase in deals in the €10-30m range which grew by 50% to €257.5m, from €171.3m and in the over €30m range which increased by 36% to €371.7m from €274m. 

    Sarah-Jane Larkin concluded: “Based on deal sizes, it’s quite hard to analyse what’s going on in the market until we see the results from the next two quarters. “If the larger deals fail to come through in the second half, then we could start to see a downturn overall. But while large deals are important, it’s vital that early stage firms and those looking to raise under €5m can source funding.”

    Source: Written from press release.

    About the author

    Aoife is a Sync NI writer with a previous background working in print, online and broadcast media. She has a keen interest in all things tech related. To connect with Aoife feel free to send her an email or connect on LinkedIn.

    Got a news-related tip you’d like to see covered on Sync NI? Email the editorial team for our consideration.

    Sign up now for a FREE weekly newsletter showcasing the latest news, jobs and events in NI’s tech sector.

Share this story