Tech SMEs raise record sums in first half of 2016, says IVCA

Michael Murphy, IVCA
Michael Murphy, IVCA

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9 September 2016 | 0

High tech SMEs raised €249 million in the second quarter of 2016 or a record €486 million for the first half of the year, according to the Irish Venture Capital Association (IVCA) VenturePulse survey published today in association with William Fry.

“2015 overall was a record year with €522 million being raised over the 12 months so it is promising to see the momentum continuing,” said Michael Murphy, chairman, IVCA.

“The importance of good international relationships is once again emphasised by sustained strong support from international investors. 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.”

International syndicates invested €89 million in the second quarter bringing the total in the first half of 2016 to €205 million. This compares to investment by international syndicates of €142 million in the first half of 2015.

Life sciences were active in the second quarter with 38% of funds raised by eight companies in this sector. Three companies in particular raised over 33% of total funds. Growth/expansion funding was 93% of total funds raised.

Since the onset of the credit crunch in 2008, in excess of 1,300 Irish SMEs have raised venture capital of €3 billion. These funds were raised almost exclusively by Irish VC fund managers who during this period supported the creation of over 20,000 jobs; attracted over €1.3 billion of capital into Ireland and geared up the State’s investment through the Seed & Venture Capital Programme by almost 16 times.

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