IBM's Innovation and Venture Capital (VC) Centres event in March 2007: Pictured from left to right are Dr. Brendan Finucane (Enterprise Ireland Director of Technology, Automation and Productivity Business Unit), Michael Daly (IBM Ireland Country General Manager) and Malachy Harkin (Vimio Chief Executive Officer) at IBM's Innovation and Venture Capital (VC) Centres event.

The Irish Venture Capital Association's VenturePulse survey shows that Irish companies raised €70.8m from venture capital investors in the three months to September 2008, despite the global credit crunch. This compares to funds raised of €75.4m in the same period of 2007 and €53.9m in 2006.

 Total raised in 2008 to date is up 23% to €174.3m compared to €141.5m in the same period last year and €162.7m in 2006.

“VC funding has held up well despite a shortage of liquidity across the financial sector in general,” commented Regina Breheny, director general, Irish Venture Capital Association. “This is important as a vigorous indigenous Irish tech sector has an important role to play in building a knowledge based economy.”

The number of companies that raised funds in the last quarter was 16, compared to 42 in the same period in 2007 and 12 in 2006. Amounts raised ranged from €200K to €25m.

The number of companies that have raised funds this year is 64 compared to 73 in the same period in 2007 and 31 in 2006.

In the third quarter there were 11 Irish based venture capital funds and private investors involved and 9 International funds.

The number of Irish investors involved this year to date is 22 representing 92 investments. 16 International funds made 18 investments. “Irish companies continue to attract interest from international as well as local VC investors,” commented Breheny.

A breakdown of where the funds are being invested shows that in the drug delivery and medical device sector, three companies raised €3.9m in the last quarter. In 2007 eight companies raised €7.25m. There were no investments in this sector in 2006.

In the telecoms sector, two companies raised €17.6m. This compares to four companies raising €9.9m in 2007, while four companies raised €27.8m in 2006.

In other technology (including nano technology, fibre optics, photonics and semiconductor chips) servicing a wide range of industries, five companies raised €2.4m this year. In 2007 29 companies raised €56.9m and in 2006 eight companies raised €26.1m.

Two sectors featured prominently in this quarter and they were: the communications sector where 2 companies raised €25.2m and the business services sector where 4 companies raised €21.7m.

2008 to date by sector

• Drug delivery and medical devices: 11 companies raised €32.6m (19% of total).

• Telecoms: Seven companies raised €33m (19%).

• Other technology: 30 companies raised €32.6m (19%).

• Communications: Four companies raised €33.7m (20%).

• Business services: Four companies raised €21.7m (12%).

• Environment/Energy: Three companies raised €2.6m (1%).

• Other: Five companies raised €17.8m (10%).