€60m invested by Irish venture capital firms supported by Enterprise Ireland in 2011 – up 43% on 2010
Enterprise Ireland Publishes its Seed and Venture Capital Programme Report 2011
Total investment by seed and VC funds under Enterprise Ireland’s Seed & Venture Capital Programmes reached €614m by end 2011
The Enterprise Ireland Seed and Venture Capital Programme 2011 Report published today (Friday 20 July 2012) has shown that despite a continuing challenging economic climate for business, Irish venture capital firms supported by Enterprise Ireland made 131 investments in 93 companies with a value of €60 million in 2011. This marks a 43% increase on the value of investments in 2010. This is a significant result, mirroring the strong performance by Irish exporters in 2011 and the increase in the number of innovative start up enterprises supported by Enterprise Ireland during the year.
Welcoming the report, Minister for Jobs, Enterprise and Innovation Richard Bruton TD said:
“Venture capital funds provide crucial funding, advice and networks both to early-stage high-potential companies in key high-growth sectors and to expanding established businesses. They are an essential element of the innovation system and mean that more high growth companies can receive the funding and backing they require to go out and achieve strong exporting results, creating jobs in Ireland.
“For this reason, as part of our plan for jobs and growth, the Government is determined to support the development of a more dynamic venture capital industry in Ireland and the Action Plan for Jobs commits to delivering a number of key measures to step up our performance in this area. Today’s announcement shows a strong performance in this area, with an increase of 43% over 2010 on the total investment amounts made under the Seed and Venture Capital Programmes, and I am determined to ensure that we repeat and improve on this in the coming years.”
Launching the report, Niall O’Donnellan, Enterprise Ireland’s Head of Investment Services said:
“Access to capital from all sources played an important part in the strong performance by Irish exporting companies in 2011. The Seed and Venture Capital sector played a vital role in supporting and increasing employment in innovative businesses by providing essential risk equity to enable many of our clients to realise growth opportunities. We in Enterprise Ireland are very aware of the essential role the venture capital sector plays in Ireland’s economic growth in meeting the needs of both entrepreneurs and expanding companies, supporting them to innovate, grow their businesses, increase exports and create jobs.”
A highlight of the year was the continuing increase in seed funding being made available to meet the urgent need for capital for entrepreneurs and early stage start ups. During the year, there was an increase of €27 million in seed capital funding available to Irish companies with the launch of the new €22 million AIB Accelerator Fund and the €5 million increase in funding of Bank of Ireland Seed and Early Stage Equity Fund 2009.
Over the past 18 years the Government, through Enterprise Ireland, has committed approximately €320 million, as a limited partner, to 40 seed and venture capital funds (with a total size of €1.2 billion) that have been set-up in Ireland. This includes investing in nine new VC funds under the current 2007-2012 Seed and Venture Capital Programme. The total amount of investment available to companies under this current Programme reached €614 million in 2011.
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Highlights of 2011
- In 2011 funds supported under the seed and venture capital programmes made 131 investments with a value of €60 million, representing a43% increase on the value of investments in 2010.
- The total value of VC funds invested under the seed and venture capital programmes up to end 2011 has now reached €614 million.
- A further €27 million of seed capital investment, from AIB, BOI and Enterprise Ireland, has been announced in 2011; this brings the total size of the Irish seed capital funds to €124 million.
- The total amount of money under management under Enterprise Ireland’s 2007 -2012 Seed & Venture Capital Programme has reached €636 million at the end 201
Download the Seed & Venture Capital Programme Report 2011 in pdf format