COVID-19 Impacts Venture Capital Investment in Ireland

 

Published in association with William Fry, the latest report from the Irish Venture Capital Association shows the highest level of VC investment in Ireland to date but there has been a worrying drop in early-stage funding.

The Irish Venture Capital Association Venture Pulse survey highlights how the COVID-19 pandemic impacted venture capital (VC) investment in Ireland. It reports a near 60% slide in first time funding during the second quarter as a handful of start-ups raised their first equity rounds. This comes even as funding overall rose almost 60% to €364m.

For the first six months of the year, venture capital and private equity investment is 38% ahead of last year at €593m. There was a significant increase in large deals above €30m level in the second quarter of the year, with deals between €10m and €30m up 68% and deals in the €5m to €10m up 40%. Deals under €5m fell by 7%.

In terms of breakdown by sector, 33% went to life sciences, 27% went to software and 21% to Fintech. 

Among the investments announced during the quarter were a €65m raise by at-home testing company LetsGetChecked, and €73m by fintech company Fenergo. Other notable deals were an €18m raise by analytics company Profitero  and €17m for drug-delivery company Avectas.

The IVCA is the representative body for venture capital and private equity firms on the island of Ireland.

Key Contacts

Stephen Keogh Partner

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