Venture capital funding into Irish SMEs doubled to €533m in the first quarter, powered by nine-figure investments in unicorns LetsGetChecked (€150m) and Tines (€115m).
Figures from the Irish Venture Capital & Private Equity Association (IVCA) show the €532.8m in VC funding for Irish firms in Q1 represented a more than 100% increase from the same period in 2024, with international investors accounting for over 80% of investment.
Gerry Maguire, chair of the IVCA, noted that over 80% of the total raised last quarter was due to deals worth over €10m, and that the picture for start-ups raising under €3m was "less rosy".
A total of €296.8m was raised was from deals worth €30m+, up 89% from €157m a year earlier, and deals of €10m to €30m raised a further €131.9m, a staggering increase of 184% from €46.4m in Q1 2024.
Deals of €3m to €5m raised €43.9m, up 138% from €18.4m a year prior, but the value of deals worth €1m to €3m (-5% to €21.6m) and up to €1m (-42% to €3.6m) both declined year-on-year. Seed deals totalled €39.3m, declining 3% from €40.4m.
The LetsGetChecked deal ensured that lifesciences sector accounted for 45% of all funding.
Similarly, Tines' funding injection helped cybersecurity to a 22% share, ahead of software (9%), fintech (8%), AI & machine learning (7%), and deeptech (5%). Internet of Things, consumer goods, AR/VR and 'other' companies each held 1%.
After LetsGetChecked and Tines, the top five deals of the quarter included new funding for AI company Protex AI (€31.8m), drone delivery firm Manna (€27m) and medical technology manufacturer Perfuze (€22m).
The first quarter excluded the impact of US 'Liberation Day' tariffs on 2 April.
Maguire said that anecdotal evidence suggested that the uncertainty and caution caused by this, especially among international investors, is likely to show up in the following quarters.
Sarah-Jane Larkin, director general, IVCA said that funding by international venture capital into Irish companies rose to 82% of the total, compared to 71% in the same quarter last year.
“This is a double-edged sword. While it reflects the high quality and potential of Irish tech firms and demand by overseas investors, it also reflects Ireland Inc’s vulnerability to international influences if the tide goes out," she said.
The total number of deals in the first quarter was 43, slightly ahead of the same quarter last year (41). The IVCA VenturePulse survey was published in association with William Fry.
Photo: (l-r) Sarah-Jane Larkin and Gerry Maguire. (Pic: Fennell Photography)
