Tag: #ICVA

VC funding to Irish tech firms grew by 52% to almost €380m in 1st qr

Venture capital funding into Irish technology firms increased by 52% to €379.7m in the first quarter of this year, compared to €249.4m in same period last year, according to the Irish Venture Capital Association VenturePulse survey published today in association with William Fry.

But chairperson of the Irish Venture Capital Association, Nicola McClafferty, said that the headline figure concealed a “potentially worrying fall” of 30%-50% across all categories under €10m, including seed funding. The number of deals overall fell by almost a third to 50 from 74 in the same period last year.

“All the growth came from eight deals worth over €10m each, including three over €30m. While the momentum carried over from last year has continued for more established companies raising large rounds, some of that impetus seems to have stalled for earlier stage companies.” 

She added, “The venture industry worldwide saw a slowdown in the first quarter as a result of an uncertain global economic outlook and the war in Ukraine. While challenging market conditions may continue, we also know that many great companies are started and built in times of downturn, so we await with interest the data in the coming quarters.” 

The value of deals between €5-€10m fell by 51% to €11m.  Deals in the €1-€5m also halved to €34.5m from €70.3m in the same period last year. Deals under €1m dropped by 31% to €8.9m.

 

Sarah-Jane Larkin, director general, IVCA said that 79% of funding came from international sources in the first quarter. “While this is to be welcomed and emphasises the quality of Irish tech firms and their appeal to international investors, we have expressed concern before about where any shortfall would be made up if the global economy contracts.” 

She pointed out that seed funding in the first quarter had fallen by nearly 40% to €22.3m from €36.5m in the previous year. “So the Government’s announcement in February of a new €90 million Irish Innovation Seed Fund Programme for Irish start-ups is particularly timely.” 

Top deals in the first quarter were two Irish unicorns, fintech company Wayflyer which raised €134m, and digital food ordering platform Flipdish (€94m). Envirotech company Exergyn raised €32.7m.

Irish tech companies raise record venture capital funding

Venture capital investment into Irish tech firms in the second quarter this year hit a record €392m, up 7.6% on the same period in 2020 which was itself unprecedented, according to the Irish Venture Capital Association VenturePulse survey published today in association with William Fry. The survey also reports a record half year to €641m, up 8% from €593m in 2020.
“A feature of the results is that international funding, mostly from the US, rose to 70% of the total in the first half, up 55% on the same period last year,” commented Nicola McClafferty, chairperson, Irish Venture Capital Association. “This is a strong endorsement of the high quality of Irish tech companies and reflects a global interest in them.” 
She added, “The worry is that international investment is cyclical and when the tide goes out we will be unable to replicate these funds. We should be looking now to increase the supply of funding from domestic non-traditional VC investors such as pension funds, private investors and corporates as is happening across the UK and other European countries.” 

She stressed that this can be achieved at no cost to the Exchequer and urged the Government as part of Budget 2022 to establish a working group to advise on how best to implement this.

Sarah-Jane Larkin, director general, Irish Venture Capital Association, said that funding for the half year had increased across all deal sizes with the exception of those in the €5-€10m range which fell by 10% to €77.7m.

“In terms of the important start-up and early stage companies there was a fall of 47% in the value of deals in the €1m-€5m range in the second quarter to €21.6m and a 42% drop in the number of deals. We hope this was just a temporary blip as the half year performed well with an increase of 15% in the €1m-€5m range to €91.9m and a rise of 19% in the number of deals from 37 to 44.” 

Deals below €1m, largely comprised of investment in earlier stage companies, rose by 22% in the first half to €26.2m. The number of deals rose by 16% to 64.

Reflecting a trend across Europe there were significant increases in larger investments in the second quarter. Deals over €30m were up 34% to €185m as a result of investments in life sciences diagnostics company, Let’s Get Checked which raised €123m, and fintech company, Wayflyer which raised €62m. Deals in the quarter over €10m also increased, by 4% to €116m.

Life science companies at 43% were the top fund raisers in the first half of 2021 followed by Software (20%); Fintech (12%); ICT (6%) and Deep tech, or companies founded on a scientific discovery, (4%).