ISIF backs Elkstone's €100m early-stage venture capital fund

Alan Merriman, Founder at Elkstone, Nick Ashmore, Director of Ireland Strategic Investment Fund, and Orla O'Gorman, Advisory Board Member at Elkstone.

The Irish Strategic Investment Fund (ISIF) has agreed to anchor a €100m Early-Stage Irish Venture Fund by leading Dublin-based investment firm Elkstone, which announced its final close today.

The €100m fund is Ireland’s largest early-stage venture capital (VC) fund and has already deployed over €10m to date to Irish founders.

The fund will support “exceptional Irish founders” developing innovative, internationally scalable, and “potentially category-defining” companies.

Investments to date include Bluedrop Medical, MEG, Inclusio, Allsorter, Danalto and Output Sports, with others closing imminently in AI and cyber security.

Elkstone said it aims to complete its initial investments through its Early-Stage Irish Venture Fund by 2026.

Alan Merriman, Elkstone chief executive, said that while the current economic environment is challenging, it is a “good time to be investing”, and his firm is particularly positive on the outlook for disruption and innovation.

“We are delighted to have delivered on our promise to the Dept of Finance and our clients to bring about a unique EIIS venture fund providing access to support the venture funding ecosystem here. Our fund investor base comprising both entrepreneurs and private capital alongside EI and ISIF, is a key edge in helping us bring meaningful value add to Irish founders as they look to fulfil their businesses potential and scale internationally,” he said.

“We are very much looking forward to continuing to play our part in enabling deserving early-stage businesses to grow and bring about stellar returns for our investors and meaningful social and economic impact for the Irish economy,” he added.

With institutional partnerships including ISIF and Enterprise Ireland, Elkstone has already invested in more than 50 startups, including backing Irish tech companies like Flipdish, LetsGetChecked, Manna, Soapbox Labs and Protex AI, resulting in the creation of more than 1,000 jobs and companies going on to raise over €600m in follow-on funding.

Nick Ashmore, Director of ISIF, said that Elkstone’s fund expands ISIF’s reach in early-stage venture capital, and “gives Irish businesses a valuable new option for attracting the capital they need to grow”.

“ISIF is a strong supporter of indigenous Irish businesses that have ambitions to scale and target international markets,” said Mr Ashmore.

“Our new partnership with Elkstone will fuel the success of a range of fast-growing Irish businesses and we aim to build on these success stories in the coming years,” he said.