VC funding to Irish companies increased by a third in Q3

Irish small and medium-sized businesses saw the flow of venture capital to them increase by a third in the third quarter of the year compared to the same period last year.

New data from the Irish Venture Capital Association (IVCA) shows companies raised €309m here between July and September, up from €230.6m a year ago.

The VenturePulse survey reveals that Irish companies have raised just over €1bn in venture capital funding so far this year.

That represents an increase of one quarter compared to the first nine months of last year.

Two large deals worth more than €30 million and five deals in the €10-30 million category made up a large part of the funding that was raised in the third quarter.

Cybersecurity and fintech were the leading sectors in the period, each raising 28% of total funding.

The IVCA said that, overall, the performance was positive.

“In light of continued global uncertainty, this is an encouraging result for the indigenous technology sector and compares favorably with Europe, where year-over-year funding for the third quarter fell 35% and 44% over the nine months.” said Leo Hamill, president of the association.

However, in the category of less than 10 million euros, the volume of operations was reduced by 54%, while in the section of less than 1 million euros it was reduced by 41 million euros.

“The weakness in these two categories likely reflects uncertainty about the global economic outlook combined with the impact of the Russian war against Ukraine,” said Sarah-Jane Larkin, IVCA CEO.

Despite these problems in lower value areas, the organization has a positive outlook.

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