High-tech Irish SMEs raised €522m in 2015, an increase of 30% on last year, according to the Irish Venture Capital Association VenturePulse survey, which was published today in association with William Fry.

International investors invested €241m (46% of total funds raised) in 2015, compared with €132m (33% of total funds raised) in 2014. This source of funds has grown from €45.5m (17% of total funds raised) in 2011 over the five-year period.

Regina Breheny, director general, IVCA, pointed out that 18% of the funds were raised by eight Irish companies who went directly abroad, mainly to Silicon Valley, compared with 13% in 2014.

“This is a growing phenomenon and further validation of the calibre of the Irish technology sector,” she added.

Breheny also maintained that the 30% increase in funding overall was significant in view of the fact that most Irish venture capital companies have been in the middle of fundraising programmes.

In Association with

Brian Caulfield (pictured), chairman of the IVCA, said: “The increased interest by overseas investors in the Irish tech sector […] is a tribute to the calibre of its entrepreneurs and technology capabilities.”

Caulfield added: “The Irish venture capital community continues to be the main source of funding for Irish innovative SMEs, both through direct investment and as the local lead investor for international syndicate investors.”

Growth/expansion funding accounted for 92% of total funds raised. According to Breheny, the tally of first round seed funding at 8% of funds raised should bottom out due to such funds currently being renewed by Enterprise Ireland’s Seed and Venture Capital Programme of 2013-2018.

Private investors, including angels, provided the bulk of the seed funding in 2015.