Investment by Irish venture capital companies recovered to €255 million last year from €105 million in 2002, according to the Irish Venture Capital Association (IVCA), writes Jane O'Sullivan, Markets Correspondent.
However, 70 per cent of last year's investment went to management buyouts of seven existing companies, including the MBOs of Alphyra, Riverdeep and Conduit.
In its annual review, the association says venture capitalists invested in 187 companies in 2003 with 96 per cent of the amount invested going to technology firms.
"This is the highest weighting of investment in the tech sector by any European country," IVCA chairman Mr Shay Garvey said.
The review found that Irish venture capital companies have invested close to €1 billion over the last decade and the outlook for investment is bright.
Irish venture capitalists currently have around €200 million to €250 million in capital to invest. "The rate of investment in 2004 is already exceeding that of 2003," Mr Garvey said.
Last year, venture capitalists invested €33 million in 106 start-ups, up from the €27 million invested in 62 start-ups in 2002.
Investing in expansions and other type companies slipped from the 2002 level, to €46 million from €76 million. But the number of companies receiving expansion investment was broadly unchanged at 84.
