Irish tech SME’s receive record €1.48bn funding in 2024

Investment in Irish technology SMEs hit a historic peak of €1.48bn in 2024, according to the latest data from the Irish Venture Capital Association (IVCA) VenturePulse report. The report reveals a 9% increase in investment compared to the previous year, with a record fourth-quarter investment of €535m, reflecting a remarkable 162% surge from the same period in the previous year.

Gerry Maguire, the chairperson of the Irish Venture Capital Association, emphasized that the growth in the year and the final quarter was predominantly driven by significant investments, indicating Ireland’s capability to establish and expand world-class tech companies. While hailing these achievements, Maguire also noted the challenging funding environment for companies seeking to raise less than €5m, describing it as “choppy.”

Artificial Intelligence (AI) emerged as a pivotal player, accounting for over €100m of the total VC investments into Irish firms in the previous year. Maguire speculated that the influence of Chinese operator DeepSeek is likely to attract more VC investors to the sector, potentially enhancing margins and reducing development costs for AI startups. He drew parallels between the evolution of AI with the transformation caused by Software-as-a-Service or cloud computing, underscoring the potential of AI applications in various sectors such as healthcare, climate, and education.

Sarah-Jane Larkin, the director general of IVCA, highlighted specific success stories from the AI sector, showcasing companies that started with modest funding and grew significantly over time. She pointed out that the current global economic and political uncertainties necessitate government support for investment in early-stage enterprises. Larkin commended the Government’s €250m Seed & Venture Capital Scheme 2025-2029, emphasizing its timeliness in the face of declining funding for deals below €5m.

The statistics revealed a decline in funding across various brackets, including deals in the €3-€5m range, which decreased by 37% annually, and investments below €1m, which saw a 19% decline for the quarter. Despite these challenges, life sciences, software, envirotech, fintech, and data sectors attracted substantial investments, contributing significantly to the total funding raised in 2024.

In total, 217 deals were completed in 2024, maintaining a similar count to the previous year, with Larkin advocating for an ambitious target of doubling this figure in the future. The data underscores the potential for increased investment in early-stage companies, with a strong focus on fostering growth and innovation within the Irish technology SME landscape.