Five organisations representing the indigenous technology sector have welcomed the move by the Minister for Finance to establish a proposed new equity fund with an initial €30 million in funding to invest in domestic, high-innovation enterprises.

In addition, the Alliance for an Innovation-Driven Recovery has praised the decision by the minister to review the Employment and Investment Incentive Scheme (EIIS), but expressed the view that this needed to happen urgently. 

Members of the Alliance are Euronext; HBAN (Halo Business Angel Network); Irish Venture Capital Association; Scale Ireland and TechIreland. 

Early-stage indigenous tech startups

Sarah-Jane Larkin, director general, Irish Venture Capital Association, said: “With right structures there is major scope to attract more private investment into early-stage indigenous tech startups and build a pipeline of scaling companies that will reduce our economic dependency on foreign direct investment.

Sarah-Jane Larkin, director general, Irish Venture Capital Association

“According to Ibec, households saved €9.8 billion in the first seven months of 2020, holding €20 billion more in Irish banks than they owe in debt. With zero or negative bank interest rates there is a pool of funds that could help to drive an Irish economic recovery if the right EIIS incentives are available, which they aren’t at the moment.” 

However, Larkin added that comparatively high levels of capital gains tax remain a drag on entrepreneurship in Ireland and she hoped that the minister would address this in future. 

“As the minister has pointed out we have to prepare for a post-Brexit future. This includes being competitive with post-Brexit incentives which will be offered in the UK.”