Funding raised by Irish technology firms through venture capital funds fell last year, raising concerns about future support for the sector, a new survey said today.
According to the Irish Venture Capital Association, 159 companies raised a total of €274 million in 2011. That was down from 2010, when 156 companies raised €310.2 million, and €288.1 million raised by 139 firms in 2009.
There was a “major” slowdown in the second half of the year, the survey said, attributing it to overseas investors. The first half of 2011saw the level of funding rise 58 per cent to €161.9 million, but that reversed to a 46 per cent decline for the second half of the year.
“We have serious concerns that Irish venture capital firms too will start to run short of funds in 2012," said IVCA chairman Maurice Roche. "This will place a major brake on the future expansion of Ireland’s indigenous tech sector."
According to the IVCA’s figures, Irish small and medium sized companies have raised a total of €1.1 billion in venture capital since the credit crunch began in 2008.
“The Irish venture capital community continues to be the main source of funding for Irish high tech SMEs,” said director general of the IVCA Regina Breheny.
