Irish tech firms raise a record €734m in the nine months to September 2016
“Strong performance” by the life science sector which raised over half of funds this year
Survey shows continuing appetite by international investors
Dublin, Wednesday, 9th November, 2016: Irish technology companies raised a record €734 million from investors for the nine months to end September 2016 or 77% ahead of the €415m over the same period last year according to the Irish Venture Capital Association Venture Pulse survey published todayin association with William Fry. In the third quarter (to September) Irish firms raised €248m compared to €108min the same quarter last year.
“A particular feature in 2016 has been the strong performance bythe life sciences sectorwhich accounts for 54% of total funds raised, boosted by an 80% concentration in Q3,” commented Michael Murphy, chairman, Irish Venture Capital Association.
“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. Compared to the IT sector, these companies in general require significant amounts of funds to build out product and to grow a business. It is significant to note that they are raising the required funds from Irish and international investors, thus validating the R&D and the expertise in Ireland.”
Regina Breheny, director general, IVCA added that significant international funds continue to beattracted into the Irish tech sector with local venture capital companies playing a key role.
“The Irish venture capital community continues to be the main source of funding for Irish innovative SMEs both through direct investment and as the local lead investor for international syndicates whoinvested €123m in the third quarter bringing the total for the nine months to end September 2016 to €328m. This compares to investment by international syndicates of €225m in the same nine month period in 2015.”
Growth/expansion funding was 94% of total funds raised in the third quarter. However, Ms Breheny said that new seed funds are starting tohave an impact.
“First round seed fundingis growing again and at €57m for the nine months to end September are exceeding the peak levels of 2013.”
Overall she said that since the onset of the credit crunch in 2008, in excess of 1,350 Irish SMEs raised venture capital of €3bn. These funds were raised almost exclusively by Irish VC fund managers who during this period have supported the creation of up to 20,000 jobs;attracted over €1.3bn of capital into Ireland andgeared up the State’s investment through the Seed & Venture Capital Programme by almost 16 times.
The IVCA VenturePulse survey shows that funds raised in the nine months to end September 2016 reached a high of €734.3m. This compares with funds raised of €415.1m in the same period in 2015, with €314.4min 2014 and with €232.6m in 2013.Irish companies raised €247.8m from investors in Q3 2016.
Early stage companies raised seed capital of€57m (8% of funds raised for the nine months to end September 2016). This compares with €25.5m (6% of funds raised) in the same period in 2015, with €17m (5% of funds raised) in 2014 and with €48.5m (21% of total funds raised) in 2013.
How the Venture Pulse survey is compiled
The data covers equity funds raised by Irish SMEs and other SMEs headquartered in Ireland from a wide variety of investors. This research is the result of detailed information supplied internally by members of the Irish Venture Capital Association and from published information where IVCA members were not involved.
Press queries or interview please contact:
Regina Breheny, Director General, IVCA, Email:
Mob: 087 051 7754 or
Ronnie Simpson, Simpson Consulting, Email:
Mob: 086 855 9410