SAN FRANCISCO & DUBLIN--(EON: Enhanced Online News)--Irish Small and Medium Sized Enterprises (SMEs) raised equity investment of €113m in the second quarter of this year, an increase of 74% on the same period in 2012 according to the Irish Venture Capital Association VenturePulse survey. Total funds raised in the first half of 2013 were €164.9m compared to €116.7m the same period last year, an increase of 41% according to the report, which is sponsored by law firm William Fry.
“These funds will need to be renewed if Irish entrepreneurs are to be supported as actively as in the last five years”
Commenting, Regina Breheny, director general of the IVCA said: “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. Since the onset of the credit crunch in 2008, approximately 800 Irish SMEs raised venture capital of €1.7bn.”
Mark Horgan, chairman, IVCA added: “This is a tremendous performance and bodes well for the Irish economy especially when one considers that activity in international markets is still experiencing significant volatility, in the US second quarter numbers are down 9%.”
First round funding was 24% of funds raised compared to 15% in 2012. However, Stephen Keogh, a corporate partner in William Fry, which acted as legal advisers in over half of the funding rounds in the second quarter, added that the Irish Seed Funds, supported by the banking sector and Enterprise Ireland, are close to being fully invested. “These funds will need to be renewed if Irish entrepreneurs are to be supported as actively as in the last five years,” he said.