Irish tech firms are flying in the face of the global credit crunch when it comes to raising funds. At €242.9m in 2008, the amount they have secured is 7.5pc up on the previous year, 26pc higher than in 2006 and at its highest level since 2002, according to the Irish Venture Capital Association (IVCA) VenturePulse survey.
An added bonus in 2008 was a bounce in the funding going into seed and early stage companies, which reflected new venture capital (VC) funds coming on stream, according to Regina Breheny, director general, IVCA.
"For the year 2008, 32 companies in this category raised just over €1m (21pc of funds raised). This compares to 2007, when nine companies raised €13.2m or 6pc of total funds,” she said.
The total number of tech companies that raised funds was 93 in 2008, compared to 82 in 2007 and 34 the previous year.
In 2008, the number of Irish-based VC funds and private investors involved was 29 (160 investments), with 31 international funds (36 investments). Irish venture capitalists continued to successfully syndicate with international players in many of the later-stage deals.
Zoning in on sectors, the survey reveals the highest amount raised was in the drug delivery and medical device sector, where 16 firms raised €46m; followed by telecoms, where nine companies brought in €38m and the pharma/biotech sector, in which 23 companies raised €42m.
By Sorcha Corcoran
Pictured: Regina Breheny, director general, IVCA