The Daily Star Ireland
Tech funding in Ireland during the first nine months of 2024 has dropped by 18%, reaching €945 million, according to recent data from the Irish Venture Capital Association. This marks a larger decline compared to global venture funding, which has decreased by less than 4% over the same period.
The updated figures reveal that Irish tech SMEs raised €193 million in the third quarter, a slight increase of 1% compared to the same period last year. Almost half of this amount, €85 million, came from foreign investors.
Gerry Maguire, chairperson of the Irish Venture Capital Association, pointed out that the potential for an isolationist U.S. administration could result in policies that negatively affect Ireland, highlighting the importance of nurturing homegrown companies. He emphasized the need to focus on developing Ireland’s own tech champions instead of relying on uncertain foreign investment.
The third quarter saw a 55% rise in the number of deals, with a total of 59 transactions. Notable deals included €18.2 million raised by the medtech company Neurent Medical, €15 million from renewable energy firm Circal, €15 million from ePower, €13.9 million from medical device company Luminate, and €13.8 million from medtech firm Loci Orthopaedics. However, there were no deals exceeding €30 million during this period.
In terms of sectors, life sciences led the way with 42% of the total funding (€392.8 million), followed by envirotech (13%), regtech (10%), fintech (9%), and software (9%). Artificial intelligence, which secured 11% of the funding in the third quarter, became the third highest-funded sector.
Maguire noted that while there were no large deals above €30 million, the rise in smaller deals under €10 million, including seed funding, was a positive development. Deals in the €3 million to €5 million range increased by 52%, reaching €29 million, while rounds between €1 million and €3 million grew by 16% to €26 million. Additionally, deals valued at under €1 million rose by nearly a third to €9 million, and seed funding more than doubled to €33.5 million.
Maguire described these trends as indicative of a thriving early-stage ecosystem in Ireland, with many companies focused on advanced technologies like AI, cybersecurity, quantum computing, medtech, and envirotech.
Sarah-Jane Larkin, director general of the IVCA, highlighted a key issue in the Irish funding landscape: a lack of matching private capital from sources like pension funds, family offices, and corporations. While access to public capital through entities like Enterprise Ireland, the Ireland Strategic Investment Fund, and the European Investment Fund has improved, she stressed the need for government action to address this funding gap, as seen in the UK and countries like Denmark and France.
The IVCA’s figures were compiled in collaboration with William Fry.
