Dublin, Ireland – In a recent report by the Irish Venture Capital Association, it has been revealed that global funding for Irish start-ups witnessed a significant drop in the final quarter of last year. While smaller start-ups experienced increased funding, medium-sized enterprises valued at over €5 million saw a sharp decline, with figures falling from €245 million in Q3 to €204 million in Q4.
The impact extended to the tech sector, where over €1.35 billion was raised in the past year, marking a modest 2 percent increase. Notably, two-thirds of the total global funding in 2023 was allocated to tech SMEs, with 55 percent (€745 million) directed towards just eight companies.
Enterprises ranging from €5 million to €10 million faced the most significant setback, witnessing a funding decrease of at least 50 percent. However, smaller deals under €5 million experienced an uptick, particularly ventures between €3 million and €5 million, which saw a 36 percent increase in the last quarter of 2022.
Despite these challenges, notable funding deals during this period include EV charger company Easy Go (€30 million), life-science firm Luma Vision (€20 million), and software firms Clouds Myth (€10 million) and Alvirus (€5.5 million). Parcel delivery company OhPod also secured substantial funding.
Denis Sidhu, Chairperson of IVCA, emphasized the concerning decline in venture funding for tech start-ups, both in Ireland and globally, over the past six months. Global funding plummeted from €963 million to €394 million in the second half of the year.