More than €300 million was raised by Irish SMEs during the first nine months of 2014, but funding for start-ups fell dramatically over the period, according to a new survey from the Irish Venture Capital Association (IVCA). The study reveals just 5 per cent of funds raised this year have gone to start-ups compared to 21 per cent for the first nine months of 2013.

The IVCA VenturePulse survey shows that Irish companies raised €314.4 million from investors in the nine months to the end of September, up 35 per cent compared to a year earlier when €232.6 million has been secured through funding. For the first nine months of 2012, Irish businesses raised €184.8 million.

Seed funds raised in the year to the end of September was €17 million, just 5 per cent of the total raised by SMEs. In the same period a year earlier seed funds raised was equivalent to 21 per cent of all sums secured.

IVCA director general Regina Breheny expressed concern over the decline in first round seed funding for start-ups.

“The seed funds supported by the banking sector and Enterprise Ireland’s Seed & Venture Capital Programme of 2006-2012 are close to being fully invested. These funds need to be renewed if entrepreneurs are to be supported as actively as in the last five years.”