VC investments hit record €255m

IRISH venture capitalists’ investments in Irish companies broke all records in 2003 hitting €255m and there is a further €250m looking for suitable deals.

The figures for 2003 which brought the 10- year aggregate investment to 1 billion are set to be matched or surpassed this year according to the Irish Venture Capital Association (IVCA).

Investments by Irish venture capital companies recovered in 2003 to €255 million, up 141% on 2002 when €105 million was invested.

The bulk of the money invested supports the Irish technology sector with 96% of 2003 investments being made in technology firms according to the IVCA Annual Review, published yesterday.

The new chairman of the Irish Venture Capital Association Shay Garvey, who is a partner in VC company, Delta Partners, said: “This is the highest weighting of investment in the tech sector by any European country.”

The 2003 figures revealed a very definite trend towards MBOs with 70% of the total invested in buyouts of seven existing companies.

However, Mr Garvey does not believe this trend will continue. “The buyout opportunities in Ireland have traditionally been very few,” he said.

The review showed a consistent pattern of investment in start-ups with VCs investing €33 million in 106 start-ups in 2003.