Record year as Irish tech firms raise €888m in venture capital – up 70% (Irish Venture Capital Association)
February 15 2017 - 4:15AM
Business Wire
- Data shows international appetite for
Irish tech firms
- Life sciences is “star performer” with
52% of funds raised
Irish based technology firms raised a record €888m in 2016, up
70% from €522m the previous year according to the Irish Venture
Capital Association Venture Pulse survey published today in
association with William Fry. This is against an international
background where venture capital in the US (NVCA) declined by 13%
and in the UK (Pitchbook) the decline was 4%.
“The figures demonstrate the continuing attraction of Irish tech
firms by international investors,” commented Michael Murphy,
chairman, Irish Venture Capital Association (IVCA). “International
syndicate investors, working with local venture capital firms,
invested €548m in 2016 compared to €294m in 2015.”
“The life sciences sector was the star performer in 2016 with
52% of funds raised,” added Regina Breheny, director general, IVCA.
“Eleven companies in particular raised over 38% of total funds. The
life sciences sector in Ireland is showing signs of maturity and is
benefiting from the State’s investment in R&D through Science
Foundation Ireland.”
She added that as well as life sciences another area of growing
significance in Ireland was fintech. “Fintech is the new kid on the
block. It is disrupting the traditional banking model and growing
in response to a different regulatory environment that emerged
after the recent financial crisis.”
Growth/expansion funding was 92% of total funds raised.
IVCA chairman Michael Murphy added that new seed funds are
already having an impact with first round funding growing again.
“The good news for start-ups is that at €70m for the year to end
December, seed funds are now exceeding the peak levels of
2014.”
Mr Murphy said that since the onset of the credit crunch in
2008, in excess of 1,400 Irish SMEs raised venture capital of
€3.5bn. These funds were raised almost exclusively by Irish VC fund
managers who during this period supported the creation of up to
20,000 jobs; attracted over €1.7bn of capital into Ireland and
geared up the State’s investment through the Seed & Venture
Capital Programme by almost 16 times.
Ends
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Press queries or interview please contact:Regina Breheny,
Director General, IVCAEmail: reginabreheny@ivca.ieMob:
+35387-051-7754orRonnie Simpson, Simpson ConsultingEmail:
ronnie@simpsonconsulting.ieMob: +35386-855-9410