Con­cern as ven­ture cap­i­tal fund­ing falls

The Irish Times - Business - - TECHNOLOGY - CIARA O’BRIEN

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.

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.