Venture capital funding surges to record in first quarter
Irish small and medium business raised a record €533 million in venture capital in the first quarter of the year.
But the figures from the Irish Venture Capital Association (IVCA) highlight an imbalance in the market, with the quarter dominated by larger deals and things looking less positive for smaller companies looking to raise less than €3 million.
The life sciences sector was most in demand with funders, accounting for 45 per cent of the funding total in the quarter, according to the VenturePulse survey. That was followed by cybersecurity at 22 per cent, software at 9 per cent and fintech at 8 per cent. AI and machine learning accounted for 7 per cent.
Among the five biggest deals were the €150 million raised by life sciences company Let's Get Checked, and the €115 million raised by cybersecurity company Tines. AI company, Protex AI, drone delivery firm, Manna, and medical technology manufacturer, Perfuze, completed the top five.
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More than 80 per cent of the deal value was down to deals worth more than €10 million. Among individual deals, those in the €30 million and over category rose by almost 90 per cent to reach €296.8 million, while deals in the €10 million to €30 million range were up 184 per cent to €132 million.
But while deals for more than €3 million in funding rose, those in the €1 million to €3 million category were down 5 per cent to €21.6 million, and those under €1 million were down 42 per cent to €3.6 million. Seed funding was also lower, falling 3 per cent.
Overseas investors played a significant role in funding during the quarter, at 82 per cent compared to 71 per cent a year earlier.
'This is a doubled edged sword,' said Sarah-Jane Larkin, director general of the IVCA. 'While it reflects the high quality and potential of Irish tech firms and demand by overseas investors, it also reflects Ireland Inc's vulnerability to international influences if the tide goes out.'
That is of particular concern given the tariffs introduced by US president Donald Trump and others threatened, which have injected considerable uncertainty into the global markets. The venture capital figures cover the period before US 'liberation day' on April 2nd.
Gerry Maguire, chairman of the IVCA, said there was anecdotal evidence that uncertainty and caution is likely to show up in following quarters, especially among overseas investors.
The VenturePulse survey is compiled from information supplied internally by members of the IVCA and from published information where the funding included non-IVCA members.
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