Venture capitalists are upbeat

IRISH venture capitalists see a major upswing in the sell-off and flotation of start-up companies in which they have invested close to €1 billion.

Two years ago, no Irish VCs expected their clients to float on a stock exchange through an Initial Public Offering (IPO) within two years before 2005. However, a survey of the 21 members of the Irish Venture Capital Association, published yesterday, shows that more than one-third of IVCA members (35%) expect one or more client companies to IPO over the next two years.

The survey also suggests further market concentration and interest from international firms seeking to acquire Irish companies, with almost 90% of IVCA members foreseeing an exit strategy for one or more client companies through a trade sale in the next two years.