Technology companies attract majority of home investments
Total investment in Ireland by Venture Capitalists (VCs) amounted to €535 million in 2003 compared to €129 million in 2002.
Much of the money was used to fund buy outs.
The Irish Venture Capitalists funding raised €255 million in 2003 of which €176 million was to fund buy-outs of seven companies.
If the buy-out funding is excluded, investments by Irish VCs decreased by 25%, falling from approximately €105 million in 2002 to some €79 million in 2003.
The picture, from an Irish perspective, is not as bad as it looks. PriceWaterhouseCoopers’ Global Technology Industry Group (GTIG) has published its Sixth Annual Report on Technology Investments in Europe.
It found:
Some 96% of Irish investments were in technology firms with 83% going to computer-related companies.
Funds raised in Ireland in 2003 totalled €60 million compared to €201 million in 2002, a decrease of 70%.
None of the large Irish VCs did a fund raising in 2003.
However total investment in Ireland in 2003 was €535 million, of which €293 million came from foreign VCs.
A significant portion of total investment was used to fund buy-outs, including Riverdeep, Alphyra and Trinity Mirror.
Shay Garvey, Chairman of the Irish Venture Capital Association (IVCA), confirmed that funds invested by their members in 2003 amounted to €255 million compared to €105 million in 2002, an increase of 143%.
Investments funded the start up or expansion of 180 companies in 2003, he said.
Joe Tynan, Irish Partner for the PwC Global Technology Industry Group said: “The Technology sector continues to be the main focus for investment, accounting for 96% of all investment by Irish VCs in 2003 with 83% of total investment being made in computer related companies, compared to 43% in 2002.”
Mr Tynan said that the companies would benefit from fresh injections of capital to see them on to greater stages of development.
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