More Irish companies are vying for less investment money according to a new survey from the Irish Venture Capital Association. The annual VenturePulse survey found that in 2012 189 technology companies raised €269 million from investors, down from €274 million raised by 159 companies in 2011.
"While the amount raised was 2% lower than in 2011, the number of companies supported increased by 18%. This is a very satisfactory performance especially when compared with activity in international markets which is experiencing double digit falls as the global credit crunch continues to bite," said Dr Manus Rogan, chairman, IVCA.
"First round funding represented 20% of funds raised with the balance of 80% supporting follow on/expansion funding," said Regina Breheny, director general, IVCA (pictured). "Irish venture capital funding remains an important source for Irish technology SMEs particularly in view of the continuing shortage of bank finance."
Breheny said that since the onset of the credit crunch in 2008, 735 Irish SMEs have raised venture capital of €1.45 billion. "The Irish venture capital community continues to be the main source of funding for Irish SMEs both through direct investment and as the local lead investor for international syndicate investors."
She added that VC investment since 2008 has supported the creation of up to 20,000 jobs; attracted over €450 million of capital into Ireland and
geared up the State’s investment through the seed and venture capital programme by almost seven times.
The IVCA survey also found that while software companies continue to head the list of firms with €68.9 million of the money raised in 2012, there has been a big increase in support for medical device and drug delivery firms which raised €47.9 million.
Other technologies such as nano, fibre optics and phototonics raised €54.6 million, while medical software and service raised €26.6 million in 2012.
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