Categories: Business

More Irish startups secured investment in 2012, €269 million raised

More and more Irish companies and startups are securing capital investment but the value of those investments is decreasing, that’s according to the annual Irish Venture Capital Association VenturePulse survey.

Last year in Ireland, 189 companies raised €269 million from investors. Compare this to 2011 when 159 Irish technology companies raised €274 million. So while the number of companies successfully securing investment is increasing, the amount of funding collectively received is falling.

Nevertheless, Dr. Manus Rogan, chairman of the Irish Venture Capital Association (IVCA), believes that these figures can be deemed “very satisfactory” when considering the current global financial downturn,

“While the amount raised was just 2% lower than in 2011, the number of companies supported increased by 18%. This is a very satisfactory performance especially when compared with activity in international markets which is experiencing double digit falls as the global credit crunch continues to bite.”

€53.8 million of the total €269 million investment raised by Irish technology firms in 2012 was first round funding – startups receiving their first significant capital investment. The remaining €215.2 million, or 80% of the overall funds raised, helped already established companies to continue to grow and expand.

Regina Breheny, director general of the IVCA, spoke of the importance of Irish venture capital funding to small and medium enterprises (SMEs), particularly in light of the “continuing shortage of bank finance”. Breheny added that since the banking collapse that first hit in 2008, 735 Irish companies have raised €1.45 billion, supporting the creation of 20,000 jobs.

Last month, Irish anti-transaction fraud startup, Trustev, raised €300,000 to build its ‘social fingerprint’ tool to safeguard online retailers. The IVCA chairman, Dr. Rogan, however, warned that Irish venture funds may “start to run out” from 2012.

Medical device and drug delivery firms received a big increase in funding support in 2012, raising €47.9 million. Software companies raised €68.9 million, medical software and service companies €26.6 million, and nanotechnology, fibre optics and photonics companies €54.6 million.

Dr. Rogan concluded that 2012 investment figures suggest that “Ireland’s indigenous tech sector is becoming more broadly based”. Something that our struggling economy will very much welcome.

Albizu Garcia

Albizu Garcia is the Co-Founder and CEO of Gain -- a marketing technology company that automates the social media and content publishing workflow for agencies and social media managers, their clients and anyone working in teams.

Recent Posts

AI and the Dopamine Trap: How Algorithms Are Rewiring Our Social Cravings

New research shows AI companions can lift mood and teach social skills, but only when…

2 days ago

Hate speech, deepfakes & false info undermine UN work: comms chief

Hate speech is a launching point for crackdowns on narratives that impede UN agendas: perspective…

2 days ago

Making Sense brings strategic insight to the SIM Hartford Chapter

On June 4, technology executives gathered at the SIM Hartford chapter presided over by Fariba…

4 days ago

‘Digital disinformation undermines trust in climate & health authorities’: WHO Pan European Commission on Climate & Health

The PECCH is an attempt to persuade us into believing that climate & health policies…

6 days ago

WEF ‘Summer Davos’ in China to tackle transhumanism, AI & One Health agendas

The program agenda for the World Economic Forum's (WEF) 16th Annual Meeting of the New…

1 week ago

10 design and architecture writers to put on your radar this year

It’s easy to get caught up in the visuals—perfectly styled rooms, dramatic before-and-afters, bold architectural…

2 weeks ago