Funds invested into Irish technology SMEs reached a record high of €1.48 billion in 2024, or 9% up on the previous year, according to the Irish Venture Capital Association (IVCA) VenturePulse report published today.
The association, which marks its 40th anniversary this year, also reported a record fourth quarter in 2024 of €535 million, 162% up on the same period the previous year.
Gerry Maguire, chairperson, Irish Venture Capital Association, commented: “Growth in the year and final quarter was driven by big investments which demonstrates that Ireland has the capacity to create and scale world class tech firms.”
However, he described the funding environment for firms looking to raise less than €5m as “choppy”. “Deals right across all sizes below €5 million fell during 2024 and in quarter four.”
According to the VenturePulse report, AI accounted for over €100 million of the total VC investment into Irish firms last year. Maguire said that the recent impact of Chinese operator DeepSeek is likely to increase, not decrease, appetite by VC investors in the sector.
“The arrival of players such as DeepSeek has the potential to boost margins and decrease development costs for AI start-ups. We are potentially witnessing the democratisation and ease of participation by AI developers, in the same way that Software-as-a-Service or cloud computing transformed and disrupted the traditional software model.”
He pointed out that the DeepSeek driven sell off of Nasdaq stocks mostly affected big chip makers, or AI platforms of Google, Microsoft and others, not areas in which most Irish AI firms compete. “There is massive potential in AI applications across healthcare, climate, education and other sectors, and this will be boosted by lower costs of development which represents a major opportunity for Ireland.”
Sarah-Jane Larkin, director general, IVCA commented that fourth quarter and annual data emphasised the potential for the new Irish Government to support investment in early-stage companies. “AI company, Nuritas, for example, raised €42m in quarter four but its first round back in 2015 was just over €100,000. Co Louth based company, XOCEAN raised €115m in this quarter and is now a world leader in sea drone technology.”
She added that current global economic and political turbulence, largely driven by the new administration in the US, means that the Irish Government’s latest €250 million Seed & Venture Capital Scheme 2025-2029 “couldn’t come at a better time”, with applications for the first call of up to €100 million to be submitted to Enterprise Ireland by the end of this week (February 20).
“This is very welcome as funding for deals below €5m fell sharply across the quarter and the year.”
Deals in the €3-€5 million range fell by 37% to €82m for the year, and by 56% to €17.6 million for the fourth quarter 2024, compared to the same period the previous year.
Funding in the €1-€3 million category fell by 24% to €105 million for the year and by 63% to €23.6 million for the quarter. Investments below €1 million declined by 4% to €28.9 million for the year and by 19% to €7 million for the quarter. Seed funding, or first rounds raised by SMEs, decreased by 4% annually to €127 million and by 55% to €17.9 million in the quarter.
The top five deals in quarter four 2024 were: Dublin headquartered medical device company, Fire1 (€116 million); Louth-based sea drone developer, XOCEAN (€115 million); Dublin headquartered travel software firm, Nuitée (€46 million); Dublin headquartered AI company, Nuritas (€42 million) and Dublin based fintech firm, NomuPay (€35.9 million).
Life sciences accounted for 37% (€552.9 million) of the total raised in 2024, followed by Software: 13% (€185 million); Envirotech: 11% (€161.7 million); Fintech: 8% (€119 million) and Data: 8% (€115 million).
217 deals were completed in 2024, similar to the previous year (216). “In view of global headwinds, we should be ambitious and aiming to double this,” added Larkin.
The IVCA VenturePulse survey is recognised by the VC industry and by government and international bodies, including the OECD, as “the definitive and most up to date source of fundraising activity in Ireland.” The data covers equity funds raised by Irish SMEs and other SMEs headquartered in Ireland.
This research is the result of the latest detailed information supplied internally by members of the IVCA and from published information where IVCA members were not involved. A list of the funding rounds that comprise the source data for the total is available on the IVCA website.
Read the orginal article: https://www.eu-startups.com/2025/02/vc-funding-in-ireland-soars-to-e1-48-billion-but-early-stage-firms-face-choppy-waters/
