Irish tech raised file VC funding of €778m in first half of 2022

The newest IVCA report discovered that there was a 50pc fall in abroad funding for Irish tech corporations within the second quarter of the 12 months.

Irish tech corporations raised file ranges of enterprise capital funding within the first half of this 12 months, however a slowdown within the second quarter might threaten the outlook for the remainder of 2022.

That’s in accordance with a report revealed at present (11 September) by the Irish Enterprise Capital Affiliation (IVCA). It discovered that VC funding in Irish tech corporations rose by 21pc to a file €778.1m within the first half of the 12 months.

The IVCA famous that this efficiency was largely resulting from a strong first quarter, when funding reached €379.7m. The second quarter, nevertheless, noticed a slowdown with solely a 2pc rise to €398.4m in comparison with last year’s record second quarter.

“It was a robust first half total for Irish tech corporations elevating funds, particularly when one considers the geopolitical and financial headwinds and downturn in publicly quoted expertise shares over this time,” mentioned IVCA chair Leo Hamill.

“It stays to be seen whether or not the numerous slowdown in progress within the second quarter to beneath 2pc heralds a harder second half to the 12 months.”

Hamill, who took over as chair of the IVCA in July, mentioned that there was a 50pc fall in abroad funding into Irish tech corporations within the second quarter – from €303m to €152m.

“This over-reliance on international funding threatens Eire’s means to proceed to develop indigenous world-class expertise corporations,” he mentioned.

“The tide of accessible world capital is beginning to exit, which highlights the significance of our pre-Budget submission recommending measures to spice up home sources of funding.”

Bigger offers wanted in second half

It wasn’t simply funding from overseas that took successful. Seed funding for Irish start-ups fell by 7pc to €47.1m within the first half – down from €50.5m in the identical interval final 12 months.

IVCA director normal Sarah-Jane Larkin mentioned that whereas there was a restoration in seed funding within the second quarter, rising by 77pc to €24.8m, it was an enchancment over a low base.

However Larkin expects this upturn in seed funding to proceed due to the Authorities’s €90m investment fund aimed at Irish start-ups launched earlier this 12 months.

Offers in virtually each transaction class fell within the second quarter, in accordance with the report revealed in affiliation with William Fry.

The exception was offers valued within the €10m to €30m vary, which grew by 50pc to €257.5m, and people valued over €30m, which elevated by 36pc to €371.7m. Offers in these classes included funding for Trinity Biotech, TransferMate and &Open.

“Based mostly on deal sizes, it’s fairly exhausting to analyse what’s occurring out there till we see the outcomes from the following two quarters. If the bigger offers fail to come back by way of within the second half, then we might begin to see a downturn total,” mentioned Larkin.

“However whereas giant offers are necessary, it’s very important that early-stage companies and people trying to increase beneath €5m can supply funding.”

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