Irish tech companies raise €76m in Q2
Technology companies in Ireland have raised €76m from investors in the second quarter of 2010, an increase of 33pc compared to the same period last year.
The Irish Venture Capital Association (IVCA) Venture Pulse survey measures funding raised from domestic and international venture capital funds from AIB and Bank of Ireland seed capital funds, private investors, including angels, and Enterprise Ireland.
They found that €57m of the funds were for follow on or expansion investment.
Of this figure, 45pc was provided by Irish venture capitalists and 55pc provided through syndicated deals by international venture capitalists.
The funds acquired will be used to scale up international business opportunities of indigenous Irish SMEs.
“The pattern is that for every €1 invested by Irish VCs, an additional €1.20 is brought in from abroad into Irish SMEs,” said Regina Breheny, director general of IVCA.
“As part of the due diligence process, international investors like the reassurance that local VC investment provides.”
The survey states that first round funding in Ireland remained steady at 25pc of total funds raised, similar levels found through 2009, and up from 21pc in 2008 and 6pc in 2007.
These funds were provided mostly by private investors.
Fifty technology companies raised money in the second quarter, up from 35 in the same quarter last year. Venture capital investment accounted for three-quarters of the funds raised.
Fourteen Irish venture capital funds were part of funding 19 companies and 19 international funds invested in 13 companies.