Enterprise Minister Richard Bruton has announced an investment worth $37.5m (€28.7m) in a US healthcare venture capital fund.
The investment under the Innovation Fund Ireland programme will see Sofinnova Ventures establish a presence in the Irish market.
Enterprise Ireland has committed $25m to the fund, alongside a commitment of $12.5m by the National Pensions Reserve Fund.
Minister Bruton made the announcement in Silicon Valley today.
“Developing a dynamic venture capital industry in Ireland is a key part of this Government’s growth strategy," he said.
"Venture capital funds provide crucial funding, as well as mentoring and advice, to early-stage high-potential companies in key high-growth sectors."
The minister said the Government was determined to support the development of a more dynamic venture capital industry in Ireland by seeking to attract top tier venture capitalists to invest here.
"Healthcare and life sciences is a sector which the Government has identified as having potential for high levels of employment growth, and today's announcement will mean that more high-growth Irish companies can meet this leading life sciences fund," he added.
Sofinnova Ventures has over 40 years of experience building start-ups and corporate spin-outs into market leaders.
With $1.4bn under management, the firm applies capital and expertise to guide companies to successful exits and has offices in Menlo Park and La Jolla, California..