| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Innovation Last Updated: Feb 21, 2014 - 4:49 AM

Irish Venture Capital: Call for pension investments; Government provides 40% of annual funding
By Michael Hennigan, Finfacts founder and editor
Feb 20, 2014 - 2:46 PM

Email this article
 Printer friendly page
Séan O'Sullivan, entrepreneur, Richard Bruton, enterprise minister, and Noel Ruane of Dogpatch Labs, the Irish unit of a US VC firm, in Dublin’s Barrow Street, at the launch of a report on entrepreneurship, Jan 23, 2014.

Venture Capital: Irish firms raised €285m from investors in 2013, up 6% on the previous year, according to the annual Irish Venture Capital Association VenturePulse survey [pdf] published today. In 2012 Irish SMEs raised €269m. However, as activity has begun to slow, there has been a call for private pension funds to invest in VC funds. In recent years, the Government has provided about 40% of the funding invested by VC firms.

The Irish Government has invested $300m in US venture capital (VC) funds in recent years and there has been mainly silence on the performances.

In July 2010, Brian Cowen, then taoiseach, launched a planned $500m fund called Innovation Fund Ireland at the New York Stock Exchange. It failed to generate sufficient interest from private investors and it appears to have had a quiet burial.

The US VC  sector has had dismal returns over 20 years and 76% of US tech companies acquired in 2012 had not raised institutional investment (VC/PE -private equity) prior to acquisition.

Finfacts: Irish Innovation: Evidence of science policy failure mounts

In the 3 years 2010-2012, Irish companies raised €850m in venture capital and the Irish government provided VC companies with over 40% of that total.

Over 95% of the funds in 2013 were raised by knowledge based companies covering software, medical devices, pharma and biotech. “Venture capital is playing a vital role in fuelling the growth of Ireland’s indigenous technology sector,” commented Mark Horgan, chairman, IVCA. “VC backed companies tend to grow faster, employ more graduates and generate higher levels of exports than other indigenous SMEs.”

However, Stephen Keogh, a corporate partner in William Fry, which acted as legal adviser in over 40 of the funding rounds during the year, expressed concern that activity levels were beginning to slow.

“Irish VC firms are entering the end of the investment term within their existing funds. New capital will need to be raised from the private sector to fund SMEs into the future.”

Keogh added that Irish pension funds, which are valued at over €80bn, should consider venture capital investment as a small part of a diversified investment strategy.

“Because of low returns from cash and bonds, pension funds are seeking alternative investments. Right now, as an asset class, venture capital is offering a good investment opportunity. IPOs are on the increase and exits are back on the agenda with Tier 1 global tech firms willing to spend their cash on acquiring VC backed tech companies.”

Regina Breheny, director general, IVCA added that 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 syndicates.

“In 2013 funds raised from international players was €119m, an increase of 22% on 2012. Since the onset of the credit crunch in 2008, over €650m of international funds has been leveraged by Irish VCs into indigenous SMEs.” She added that first round funding was 18% of funds raised compared to 20% in 2012. “Seed funds supported by the banking sector and EI’s Seed & Venture Capital Programme of 2006-2012 are close to being fully invested. These funds will need to be renewed if entrepreneurs are to be supported as actively as in the last five years.”

Funds Raised:  The IVCA VenturePulse survey shows that Irish companies raised €284.9m from investors in 2013, despite the continuing global credit crunch. This compares with funds raised of €269m in the same period of 2012, an increase of 6%.

Seed/Early Stage:  Total seed funds raised in 2013 is €51.6m (18% of total funds raised). This compares to €53.7m (20% of total funds raised) in 2012.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Digital Taylorism: Amazon's chief rejects depiction of "soulless, dystopian workplace"
Most surviving startups do not grow; Tiny number powers jobs engine
Despite euro dip China & US remain most competitive manufacturing nations
Business startup rates up in most OECD countries led by Australia and UK
NASA's Kepler mission has confirmed the first near-Earth-size planet
Energy subsidies at 6.5% of global GDP; Commodity prices to remain weak
US startups rely on personal savings, debt; Venture capital funds less than 1%
Europe produces 13 $1bn+ "unicorn" startups in one year; London is Europe's digital capital
Irish-based firms raised €120m in VC funding in Q1 2015; Some top recipients Irish for tax purposes
Ireland: Fourth highest 25-34 year old ratio of third-level graduates in developed world: So what?
Business dynamism/ employer firm startups in US secular decline
Innovation Union Scoreboard 2015: Sweden, Denmark, Finland and Germany are on top
Education systems failing to provide students with skills for success in 21st century
US, Switzerland, Denmark, Sweden, Finland have best higher education systems
Handbook of Service Innovation: Ireland moving up the value chain?
Switzerland revives silk industry that thrived for two centuries
Sales of Irish tech firms create 300 millionaires in 15 years and no scaleups
Apple warns of 'material' tax payments from EU's Irish tax investigation
Apple earnings surge 33% on higher price and iPhone sales jump in China
Big Pharma's internationalisation of R&D to China
The dangers of romanticising entrepreneurs despite key role
UK and Irish business R&D heavily reliant on foreign-owned firms
Silicon Valley and the development of the silicon microchip - Part 2
Ireland: Innovation with or without R&D/ scientific breakthroughs
UK government most open/ transparent in world; Ireland & Greece lowest ranking in Europe
10 questions about Switzerland's Solar Impulse aircraft – answered
Silicon Valley loses its silicon; Typical household income stagnates - Part 1
21st century skills are 18 century skills + a computer
Growing ICT sector in Europe accounts for 5% of employment
Should Ireland copy Singapore's scientific research investment plan?
Startups vs Scaleups: 4% of UK startups have 10+ employees 10 years later
Irish patent filings at European Patent Office fell in 2014
Facebook's maze of privacy settings maybe in breach of European law
Apple to invest €1.7bn in Irish and Danish data centres
Silicon Valley insider warns of dodgy $1bn valuations of private companies
Israel's Startup Nation not a jobs engine; Nor is Irish high tech
Established industries often beat new technology investment returns
Ireland: Noonan said EU to drop Apple tax case; Now expects court case
Irish R&D Tax Credit: No evidence of rising business innovation; Facts don't matter
Apple reports biggest profit of a public company in history