From left: Sonia Neary, CEO of Wellola; Minister Peter Burke, TD; Daniel Izquierdo Hijazi, CEO of Micron Agritech; and Leo McAdams, Enterprise Ireland. Image: Shane O'Neill/Coalesce
This will help Enterprise Ireland to create larger funds that can be invested in start-ups in a range of areas, from AI and life sciences to green technologies.
The Irish Government has allocated €250m for the Seed and Venture Capital Scheme to provide funding for early-stage Irish start-ups.
Announced today (15 August) by Minister for Enterprise, Trade and Employment, Peter Burke, TD, the new cycle of the scheme will operate for four years starting in 2025 and be administered by Enterprise Ireland.
Burke hailed the funding as “good news” for entrepreneurs in Ireland seeking alternative sources of financing for their start-ups.
“These vibrant and innovative companies are driving exciting change in key sectors of our economy and play a key role in ensuring that Ireland continues to enjoy a strong economy that delivers jobs and prosperity,” he said.
According to Burke, his department secured a 42pc increase in funding over the existing scheme to enable Enterprise Ireland to create larger funds that can be invested in start-ups in a range of areas, from AI and life sciences to green technologies.
“We need to continue to develop an environment that gives more funding options to our entrepreneurs and supports their ambition so that their innovative ideas and the jobs created by them can remain here in Ireland,” Burke continued
“Over the last 30 years, this scheme has helped Enterprise Ireland become the largest venture capital investor in Europe and given the current uncertainty with global bond markets, today’s announcement provides assurance to investors that Ireland and our companies are an attractive location for investment.”
The announcement comes after Burke’s department commissioned a review of the Seed and Venture Capital Scheme between 2013 to 2022 and found “strongly positive” results about the relevance and impact of the scheme.
“The Seed and Venture Capital Scheme continues to strengthen the funding ecosystem for high growth start-up companies in Ireland, helping to foster an environment where companies can start, grow, innovate and scale internationally by providing vital equity capacity,” said Leo McAdams, divisional manager of investment services at Enterprise Ireland.
“This will also play a role in stimulating the Irish economy, by delivering enhanced equity capital availability for early stage, innovative Irish SMEs, supporting them to create new jobs, increase exports and to scale with a focus on ESG, sustainability and regional activity.”
A KPMG report published this week found that venture capital funding in Ireland picked up in the second quarter of the year, rising 38pc over the same period last year.
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