Venture capital funding to Irish tech firms increased by 8.9% to €249.4 million in the first quarter of 2021, up from €228.9 million in the same period last year, according to an Irish Venture Capital Association VenturePulse survey published in association with William Fry. 

“Funding appears to have shaken off any restrictions caused by COVID-19,” said Gillian Buckley, chairperson, Irish Venture Capital Association (IVCA).

“This is reflected in the fact that the number of deals increased by 65% to 74, compared to 48 in the same quarter last year, largely driven by a welcome recovery in early stage funding.” 

She pointed out that funding to startups and early-stage indigenous companies for the 12 months last year fell by almost a third. “We hope the more positive outcome in the first quarter is a harbinger of recovery for early-stage funding in 2021.” 

The first quarter 2021 bounce back in startup and early stage funding is reflected in the fact that deals in the €1-5 million category jumped by 84% to €70.3 million from €38 million, while the number of transactions nearly doubled from 18 to 33. 

Life sciences, software and cybersecurity

Deals of less than €1 million grew by 53% to €12.9 million compared to €8.4 million in the same period last year. The number of deals in this category rose by 55% to 34 from 22. 

“Government support for startups and early-stage companies through Enterprise Ireland and Ireland Strategic Investment Fund is beginning to show a real impact,” said Sarah-Jane Larkin, director general, IVCA. “Without this it is unlikely we be seeing the growing importance of sectors such as life sciences to the Irish economy.”  

Life sciences accounted for €130 million or more than half (52%) of funding in this quarter driven by an €89 million round for Mainstay Medical. Next highest category was software at €46.7 million (19%) followed by cybersecurity €21.9 million (9%).