Irish high tech SMEs raised €247m in the first quarter of 2017, up 4% up on the same period last year.

This is according to the latest Irish Venture Capital Association VenturePulse survey published today in association with William Fry. The survey shows that since the onset of the credit crunch in 2008, in excess of 1,300 Irish SMEs have raised venture capital of €3.1bn.
 
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 €1.37bn of capital into Ireland and geared up the State’s investment through the Seed & Venture Capital Programme by almost 16 times.
 
Furthermore, 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 syndicate investors who invested €120m or 43% of total funds raised in the first quarter 2017.
 
Software/IT services have dominated the first quarter with 51% of funds raised. One company (Version 1) raised over 36% of total funds. Electronic components was also a winning sector, raising 25% of total funds.
 
Commenting on the figures, IVCA Chairman, Michael Murphy said, "In the light of Brexit and other uncertainties it is positive to see investment being maintained especially as last year was a bumper one with the first quarter 2016 nearly double that of 2015. Compared to Q1 2016, funding in the US was down 12% and in the UK was down 11%."

He added, "Nonetheless, the Irish VC industry is in fundraising mode at the moment. Allied to the fact that 2016 was a record year overall with funding up by 70%, it will be a challenge to maintain last year’s levels."

Source: www.businessworld.ie