High-tech SMEs raised €249m in funding in the second quarter of 2016 and a record €486m for the first half of the year, according to an Irish Venture Capital Association survey. The tally is a 58% increase from the first half of 2015, when €307m was raised.

International syndicates invested €89m in the second quarter, bringing the total in the first half of 2016 to €205m. That compares with investment by international syndicates of €142m in the first half of 2015. In addition, two companies this year raised capital of €98m directly from international investors.

IVCA chairman Michael Murphy said: “2015 overall was a record year, with €522m raised over the 12 months, so it is promising to see the momentum continuing."

International Relationships

He added: “The importance of good international relationships is once again emphasised by sustained strong support from international investors. 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.”

Life sciences were active in the second quarter, with 38% of funds raised by eight companies in this sector. Three companies in particular raised over 33% of total funds. Growth or expansion funding came to 93% of total funds raised, with only 7% going to first round seed funding.

In Association with

The survey shows that Irish companies raised €249.1m from investors in Q2 2016. Funds raised in the first half of 2016 reached a high of €486.4m. This compares with funds raised of €306.9m in H1 2015, with €211.9m in H1 2014 and with €164.9m in H1 2013.

In Q2 2016, early stage companies raised seed capital of €16.8m (7% of funds raised), bringing the total in H1 2016 to €41.5m (8% of funds raised). This compares with €19.4m (6% of funds raised) in H1 2015, with €6.4m (3% of funds raised) in H1 2014 and with €34.2m (21% of total funds raised) in H1 2013.

Photo: IVCA chairman Michael Murphy (Pic: Chris Bellew)