Irish tech firms saw €1.3bn in venture capital in 2022, according to new figures from the Irish Venture Capital Association.
ut it was a year of contrasting seasons, with rapid growth in the first nine months being offset by a recessionary last quarter as the tech world began to tighten its belt.
Smaller and medium sized tech firms felt the pinch most in the latter part of the year with a sharp drop in funding from international VC outfits.
Despite the 47pc year-on-year funding fall in the last three months of the year, the overall VC investment figure into Ireland was on par with 2021, at €1.33bn, the joint-highest on record.
The biggest funding deals in 2022 included Wayflyer (€134m) and Flipdish (€94m), both of which have now had to let staff go as part of the global wave of tech layoffs. Other significant rounds included TransferMate (€66m), Fonoa (€62m) and Carrick Therapeutics (€60m).
The most lucrative sectors were Fintech (23pc), life sciences (21pc), software (19pc) and cybersecurity (8pc).
“Despite a flat year, venture capital funding in Ireland last year performed reasonably well compared to global VC trends in which funding in 2022 fell by 35% to $445bn,” said Leo Hamill, chairperson of Irish Venture Capital Association.
“It should also be remembered that VC funding in Ireland in 2022 was still 43pc ahead of 2020, despite all the global economic challenges and uncertainties faced last year.”
But there is still cause for concern, he said.
“Global trends were reflected in the fact that overseas VC investment in Ireland fell by 73pc in the fourth quarter to €58.3m, from €214m in the same period last year. The flight of international capital in the fourth quarter highlights Ireland’s exposure and the need to boost local sources of funding for scaling companies.”
The IVCA VenturePulse figures, published in association with William Fry, show that seed funding levels remained largely steady last year, except for the last three months.
“Economic and geo political headwinds experienced last year highlight the importance of having active Irish seed funds in the local market, able to invest in a counter cyclical manner and ensure that great founding teams can build companies in Ireland even during a global downturn,” said Sarah-Jane Larkin, director general of the IVCA.
