Venture capitalists plea for aid

THE private sector needs to make “a leap of faith” and support Irish venture capitalists over the next 12 months in order for the industry to be recapitalised, a conference heard yesterday.

With key traditionally-sourced funding for the VCs themselves — such as from the Government, the National Pension Reserve Fund and the banks — drying up; venture capitalists are facing a situation at the end of next year where they will need significant recapitalisation.

Addressing delegates at yesterday’s Venture Capital Conference; hosted in Dublin by North-South business development body, InterTrade Ireland; Irish Venture Capital Association chairman, Peter Sandys said that while the network of investment opportunities remains positive, larger VC funds will be unable to take on new investments by the end of 2012 if the issue of recapitalisation isn’t met head-on.

“The VCs are currently well capitalised and investing in a good and dynamic environment, but we have already begun engaging with state agencies and the private sector over how this issue can be addressed. We are seeing returns on investments improving and we just need the private sector to make a leap of faith,” he said.