Irish tech start-ups have raised over €3 billion since the financial crash of 2008, according to new figures that show SMEs obtained €247 million in funding the first three months of this year alone.

This marks a 4 per cent rise on the first quarter of 2016 when €237.4 million was raised. It also compares with a low of just €26.6 million in the same three month period in 2008.

The latest VenturePulse survey published by the Irish Venture Capital Association (IVCA) in association with William Fry, shows a continuing recovery in first round seed funding, which was up by over a third to €33 million. That is equivalent to 14 per cent of all funds raised during the three months under review.

This also compares with €24.7 million in the corresponding quarter a year earlier and just €4.6 million in the first three months of 2014.

“In the light of Brexit and other uncertainties it is positive to see investment being maintained especially as last year was a bumper one with the first quarter 2016 nearly double that of 2015,” said IVCA chairman, Michael Murphy.

However, he said while the Irish VC industry is in fundraising mode at the moment that it will be a challenge to maintain last year’s levels throughout 2017.

“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 who invested €120 million or 43 per cent of total funds raised in the first quarter 2017,” said Mr Murphy.

Companies in the software/IT services space, dominated during the quarter, accounting for 51 per cent of all funds raised. Electronic components was also a winning sector, raising 25 per cent of total funds.

Article Source: Irish Times