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NewsVC funding helps Irish high-tech firms scale up global opportunities
VC funding helps Irish high-tech firms scale up global opportunities
02.09.2010
Irish technology companies raised €76m from investors in the second quarter of 2010, up 33pc on the same period last year, according to the VenturePulse survey from the Irish Venture Capital Association (IVCA).
The survey measured finance raised from domestic and international venture capital funds, from AIB and Bank of Ireland seed capital funds, Enterprise Ireland and from private investors including angels.
Fifty high-tech companies raised money in the second quarter, compared to 35 in the same period last year. Venture capital investment accounted for three quarters of the funds raised. Fourteen Irish-based venture capital funds were involved in funding 19 companies, while 19 international funds invested in 13 companies.
The survey found that €57m of the funds raised were for follow on or expansion investment. Of this 45pc was provided by Irish venture capitalists, with the remaining 55pc provided through syndicated deals by international venture capitalists. According to the IVCA, these funds will be used to scale up the international business opportunities of indigenous Irish SMEs.
“The pattern is that for every €1 invested by Irish VCs, an additional €1.20 is brought in from abroad into Irish SMEs,” commented Regina Breheny, director-general, IVCA. “As part of the due diligence process, international investors like the reassurance that local VC investment provides.”
The survey also reveals that first-round funding in Ireland remained steady at 25pc of funds raised, similar to levels experienced throughout 2009 and up from 21pc in 2008 and 6pc in 2007. These funds were provided mainly by private investors.
Photo: Regina Breheny, director-general, IVCA
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