Record €963.2m invested into Irish tech in first half of 2023

IVCA survey highlights difficult environment for start-ups

Trade

Denise Sidhu, IVCA

Venture capital investment into Irish tech firms in the first half of 2023 rose by 24% to €963.2 million.  According to the Irish Venture Capital Association (IVCA) VenturePulse survey, the second quarter saw a 16% increase to €461.5 million.

International investors accounted €785.4 million (82%) of total venture capital investment in Ireland in the first half of 2023 €360.5 million (78%) for the second. With overall positive results, the survey data highlighted a difficult environment for start-ups looking to raise under €1 million. 

Denise Sidhu, chairperson, IVCA, said: “Ireland only broke the one billion threshold for a full year for the first time in 2021, yet we are close to that in 2023 for the half year. For the first time, AI was in the top three sectors for the first half, raising €83 million. 

“There is a high risk of over dependence on mobile international capital. We need to put in place alternative sources locally.”

IVCA urged the government to make it easier for foreign direct investment firms to invest directly in start-ups by amending R&D tax credit legislation.

Sarah-Jane Larkin, director general, IVCA, said: “We should be tapping into our success in attracting the world’s largest multinationals by incentivising them to invest in innovative Irish companies.”

TechCentral Reporters

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