TLDR:
- Irish VC funding reached a record €494 million in Q2.
- There is a struggle for Irish SMEs to move to the growth phase due to a gap in deals under €10 million.
According to the most recent Irish Venture Capital Association VenturePulse survey, VC funding of €494 million into Irish SMEs in Q2 was the second highest on record, showing a 7% increase compared to the same period last year. However, the data revealed a gap in deals under €10 million, indicating a struggle for companies to move to the growth phase. Overall funding for the half-year fell by almost a quarter to €752.7 million. Despite the positive numbers, Irish companies are having difficulty in securing funding beyond the seed stage.
Gerry Maguire, chairperson of the Irish Venture Capital Association, pointed out that while larger deals in the €10 million plus range performed well in Q2, over 90% of this funding came from international investors. This highlights the importance of having Irish funds of scale to support local companies in their growth phase. Seed funding, which saw an 18% increase in Q2, remains robust, but there is a need for greater access to scaling finance for high potential start-ups.
The life sciences sector led the funding for the half-year, followed by envirotech, regtech, fintech, and software. Notable deals in Q2 included investments in companies like Corlytics, SynOx Therapeutics, AccountsIQ, Tines, and XOCEAN. The data underscores the need to increase the availability of growth finance from local sources to support the expansion of Irish SMEs.
