VC firms can avail of additional €10m to back Irish start-ups

Venture Capital firms have been invited to apply for additional capital to invest in Irish start-ups impacted by Covid-19.

Enterprise Ireland said it is looking to hear from VC firms with which it has previously invested in to access some €10 million in additional funding for the Seed and Venture Capital Scheme, which it manages.

The financing boost, which was announced as part of the July Stimulus, is in addition to the €175 million already made available through the scheme.

It provides a new tranche of funding for Irish venture capital funds to invest in portfolio companies that have been hit hard by the coronavirus pandemic.

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Applications will be evaluated on the basis of the most critical needs currently with a further tranche of funding planned for 2021.

“The funding environment for innovative Irish companies’ in Ireland in the first-half of the year has been robust. However, the economic impact of Covid-19 sets new challenges for venture backed companies and investors in the early and growth-stage funding markets,” said Leo McAdams, head of investment services at Enterprise Ireland.

Recent figures from the Irish Venture Capital Association, shows start-ups struggled for funding in the second quarter as VC firms prioritised companies already in their portfolios.

Seed financing was down nearly 60 per cent year-on-year as funding overall rose almost 60 per cent to €364 million on the back of a number of big deals for companies such as Fenergo and LetsGetChecked.