Irish technology companies raised €62.6 million in the first half of 2007, according to the latest Techpulse survey from the Irish Venture Capital Association (IVCA).

This was down from €83.7 million raised in the first six months of 2006.

However, the number of companies that raised funds increased from 19 in the first half of last year to 31 over the same period of 2007.

At just more than €2 million, the average amount raised so far this year by firms is roughly half that for the same period in 2006.

The amounts raised in the first six month of 2007 varied between €200,000 and €8 million, the survey found.

A number of venture capital (VC) groups are putting together new funds for investment purposes. "Despite this, our survey suggests that there is plenty of funding still going on," said Regina Breheny, director general of the IVCA.

The biggest growth area for VC funding this year was in the drug delivery and medical devices market, where nine companies raised €17.4 million between them. There was no funding for this sector in the first half of 2006. In telecoms, five businesses raised €16.4 million, a reduction from the €21.1 million raised by six groups a year ago.

Funds were supplied by 12 VC groups in Ireland and 13 from overseas. "It is good to see Irish VC firms remain active in the market and that the tech sector here continues to attract the interest of overseas players," Ms Breheny said.