VC Finds Traction In Cork Growth Clusters
Kernel Capital’s portfolio of companies stayed busy throughout the Covid pandemic, which meant that activity was strong for the venture capital and private equity company also. “Our portfolio companies have raised in excess of €15m in equity, we have had two trade sales, two MBOs and a divestment of our holding in LSE-quoted IVRE, in which we were the founding institutional investor,” says chairman Niall Olden.
Kernel Capital has offices in Dublin, Belfast and Cork, each of which has strategic importance for potential investments. “Cork is recognised for its longestablished business clusters in sectors including pharmaceuticals, life sciences, ICT and maritime,” Olden explains. “IDA Ireland statistics indicate that over 150 overseas companies have operations in Cork, including up to 50 global technology companies, and eight of the top 10 global pharma companies. These multinational companies create a vibrant scientific and technology community.
“We continue to see growth in fintech, cybersecurity and medical device clusters in Cork, very often with a convergence of technologies. An excellent example is our investee Altratech, with its promotors having already founded and sold our successful portfolio companies Stokes Bio and Chip Sensors. Altratech has 15 PhD and post-graduate scientists from the disciplines of physics, chemistry and biology. The venture recently moved from UCC to new purpose-built laboratories at Forge Hill.”
Olden says that Altratech has already received over €8m in funding through an investment led by Kernel Capital, with funding from Enterprise Ireland and the Horizon 2020 programme. “In June 2021, we will close out a €5m debt and equity round with existing and new investors,” he adds.