The Irish high-tech start-up scene is having a buoyant 2009, in contrast to the investment environment elsewhere.
In Q109, 32 technology companies raised €54m, according to the Irish Venture Capital Association (IVCA). This is up 24% up on Q108. Amounts raised ranged from €50K to €18m.
In Q108, 24 technology companies raised €43.3m, and, in Q107, 14 companies raised €33m.
“This compares very favourably to fund raising in the US and UK which is down in the first quarter,” said Regina Breheny, the IVCA’s director general.
Breheny said first Q109 figures recently released by the NVCA in the US show activity in the US down 61% in dollar terms and down 44% in company numbers raising funds.
“In the UK, data sources are reporting similar declines of up to 70%, so not all the financial news coming out of Ireland is bad,” said Breheny alluding to Irish banking sector’s woes.
Breheny added that there were funds available for good start ups as the figures show that first round funding in Ireland was 30% of funds raised compared to 20% in the US.
For the year 2008, 93 technology firms raised €243m. “This is 7% up on 2007 and in the teeth of the global credit crunch,” commented Joe Concannon, chairman, IVCA.
Concannon added that figures from the UK suggested that total funds raised there in 2008 came to €885m excluding pharma/bio. “When you consider the respective sizes of the economies this suggests that Ireland is punching much bigger than its weight internationally and nurtures some hope in striving towards the goal of creating a Smart Economy here. The Government’s move to invest in university R&D may be starting to see benefits.”
Funding the 32 technology companies which received funding in Q109 were 15 Irish based venture capital funds and private investors involved (47 investments) and 10 International funds and private investors (10 investments).
- In the Pharma/Biotechnology sector, four companies raised € 23.5m
- In the drug delivery and medical device sector, four companies raised € 2.3m.
- In the telecoms sector, four companies raised €5m.
- In the environment technology sector, three companies raised €9.6m.
- In other technology (including nano technology, fibre optics, photonics and semiconductor chips) servicing a wide range of industries, five companies raised €3.3m.
- In Q109 12 companies raised €15.9m (30% of funds raised), in 2008 six companies raised €7.6m (18% of funds raised).