Venture capital investment may have slowed this year but investors are still willing to take a punt on innovative start-ups, according to new research.
A report published by Ernst & Young and Venture One showed that €21.9 million in venture capital was invested in small firms this quarter, a decline compared to €28.4 million last quarter and €30.6 million in the same period last year.
Eleven deals were completed, an increase from the eight deals in the second quarter this year but a decline compared to the 14 deals in the third quarter of 2004.
In comparison, although third-quarter figures for Europe showed an improvement on the second quarter 2005, there was likewise a decrease in funding amounts compared to the same period last year.
Garry O'Rourke of Ernst & Young Ireland, says that although Ireland's figures for the last quarter are down, the overall picture for 2005 is looking stronger than this time last year.
He pointed out that the total amount raised to date in 2005 is actually up on the same nine month period last year.
By industry, Ireland continues to perform well in information technology. IT investment increased to €17.5 million, up in comparison to the same period last year and the second quarter of 2005.