The venture arm of Dublin Business Innovation Centre has launched Ireland Smart Tech Fund, an early stage fund which will invest primarily in software and medical device companies over the next five years.
DBIC Ventures has created the fund with a €16m funding commitment from Enterprise Ireland. DBIC said the fund has raised €23m to date and it plans to raise €30m in total within the next 12 months.
DBIC Ventures managing partner Richard Watson said: “The fund will be investing in highly scalable export-focused companies in Ireland that have exceptional growth potential. Most of the fund will be reserved for follow-on investment in strongly performing portfolio companies. We have the ability to invest up to €2.5m in a company through multiple investment rounds up to an exit event, and the fund will co-invest with other investor groups in each round.”
Watson added that the fund will target mainly B2B software companies in areas such as fintech, cybersecurity, healthcare, ICT, smart grid, digital transformation, and medical devices.
DBIC chief executive Michael Culligan added: “During the recession we had four seed venture funds available, each of which was doing about 10 investments a year and which, combined, led to north of €100m being made available to companies. This enabling capital underpinned many of today’s fast-scaling high growth indigenous tech companies.
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“DBIC Ventures considers the new fund will do likewise for the next generation of top Irish technology companies. We anticipate that more private investors will join the fund over the next year, providing a one-stop shop to invest in the very best Irish tech success stories of tomorrow."
DBIC Ventures has been co-managing the AIB Seed Capital Fund, through which it invested in 40 early stage tech companies. Portfolio companies include iCabbi, GridBeyond, redT Energy, NewsWhip, SilverCloud Health, Video Elephant, Visible Thread, Terminal Four and Davra.
Photo: Business minister Heather Humphreys with EI’s Donnchadh Cullinan, Michael Culligan and Richard Watson. (Pic: Maxwell)
