The Irish Venture Capital Association (IVCA) has announced a record-breaking €1.48 billion in venture capital investment into Irish technology SMEs for 2024, marking a 9% increase from the previous year.
This milestone, detailed in the IVCA VenturePulse report published in association with William Fry, also highlights a remarkable fourth quarter with €535 million invested, a 162% surge compared to the same period in 2023.
IVCA Chairperson, Gerry Maguire, attributed the growth to substantial investments, underscoring Ireland’s capability to foster and scale world-class tech firms. However, he noted a “choppy” funding environment for companies seeking less than €5 million, with deals in this category declining throughout the year and in the fourth quarter.
Artificial Intelligence (AI) emerged as a significant sector, attracting over €100 million in VC investment. Maguire emphasized the potential of AI, particularly with the entry of Chinese operator DeepSeek, which is expected to enhance margins and reduce development costs for AI startups. He highlighted that the recent Nasdaq sell-off primarily impacted major chip makers and AI platforms, not the sectors where most Irish AI firms operate. Maguire sees vast opportunities in AI applications across healthcare, climate, education, and other sectors, driven by lower development costs.
Sarah-Jane Larkin, Director General of IVCA, pointed out the importance of government support for early-stage companies. She cited the success of AI company Nuritas, which raised €42 million in the fourth quarter, and sea drone technology leader XOCEAN, which secured €115 million. Larkin welcomed the Government’s €250 million Seed & Venture Capital Scheme 2025-2029, with the first call for up to €100 million in applications due by February 20. This initiative is timely, given the sharp decline in funding for deals below €5 million.
The report also revealed a decrease in deals across various funding ranges: deals in the €3-€5 million range fell by 37% to €82 million for the year, and by 56% to €17.6 million in the fourth quarter. Funding in the €1-€3 million category dropped 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 decreased by 4% annually to €127 million and by 55% to €17.9 million in the quarter.
The top five deals in the fourth quarter of 2024 were led by Dublin-based medical device company Fire1 (€116 million), followed by XOCEAN (€115 million), travel software firm Nuitée (€46 million), AI company Nuritas (€42 million), and fintech firm NomuPay (€35.9 million).
Life sciences dominated the sectoral breakdown, accounting 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). A total of 217 deals were completed in 2024, mirroring the previous year’s figure of 216. Larkin emphasized the need for ambition, aiming to double this number despite global headwinds.
Mark Quealy, Corporate Partner at William Fry, commented, “The IVCA’s VenturePulse 2024 Report highlights the strength and potential of Ireland’s tech sector. The significant investments in AI and other emerging technologies demonstrate the continuing capacity to create and scale world-class tech firms here in Ireland. Additionally, the Government’s new Seed & Venture Capital Scheme is a timely boost for early-stage companies and should help to address the funding difficulties encountered by some businesses when seeking to raise that first round of external investment. At William Fry, we are dedicated to helping our clients navigate and capitalise on these opportunities.”
