Concern as venture capital funding falls
Venture capital funding fell significantly in the third quarter of the year, decreasing by 47 per cent to €170 million, according to the latest reports.
The Irish Venture Capital Association (IVCA) VenturePulse survey showed a pattern of decline, with investment falling by 33 per cent in the first nine months of the year to €546 million. “The third quarter confirms our earlier fears of a significant slowdown in the market this year,” said Alex Hobbs, chairman of the IVCA.
“We know that the Government is considering initiatives to mobilise capital to this sector. These figures illustrate that we urgently need to see a meaningful response and action to address this.
“This is of particular concern at a time of global economic uncertainty when we need to be doing all we can to boost our indigenous technology sector for the future.”
Value and volume
The largest decline during the quarter was seen in deals above €5 million, which have fallen in both value and volume by about 30 per cent.
Seed funding also fell, with the total for the third quarter falling by 13 per cent on the same period in 2017. However, the pace of decline had slowed from the second quarter of 2018, when seed funding fell by 39 per cent.