Venture capitalists put €60m into firms

Irish venture capitalists poured €60m into companies last year, according to the Enterprise Ireland Seed and Venture Capital Programme 2011 Report.

Irish venture capital firms supported by Enterprise Ireland made 131 investments in 93 companies with a value of €60m in 2011. This marks a 43% increase on the value of investments in 2010.

Enterprise Ireland’s head of investment services, Niall O’Donnellan, said the venture capital industry had played a key role in supporting jobs in Ireland.

“The Seed and Venture Capital sector played a vital role in supporting and increasing employment in innovative businesses by providing essential risk equity to enable many of our clients to realise growth opportunities.

“We in Enterprise Ireland are very aware of the essential role the venture capital sector plays in Ireland’s economic growth in meeting the needs of both entrepreneurs and expanding companies,” he said.

A highlight of the year was the continuing increase in seed funding being made available to meet the urgent need for capital for entrepreneurs and early stage start-ups.

During the year, there was an increase of €27 million in seed capital funding available to Irish companies with the launch of the new €22m AIB Accelerator Fund and a €5m increase in funding of Bank of Ireland Seed and Early Stage Equity Fund 2009. Jobs Minister Richard Bruton said the Venture Capital industry was key to fostering new Irish enterprises.

“Venture capital funds provide crucial funding, advice and networks both to early-stage high-potential companies in key high-growth sectors and to expanding established businesses. They are an essential element of the innovation system and mean that more high growth companies can receive the funding and backing they require to go out and achieve strong exporting results, creating jobs in Ireland,” he said.