Irish Venture Capital Market Remains Buoyant

by Jason Gorringe, Tax-News.com, London

04 June 2003

Figures published recently by the Irish Venture Capital Association for 2002 show that the amount raised by companies softened slightly compared to 2001, but still dramatically outperformed the rest of Europe.

Venture Capital companies in Ireland raised EUR201 million last year against a figure of EUR210 million the previous year. However, the most dramatic statistic revealed in the IVCA report was a 59% fall in the amount raised by venture capitalists elsewhere in Europe, according to the association's chairman, Michael Murphy. He also stated that the 2002 figure was way above the five year average of EUR142 million per year.

"These figures confirm investor support and belief in the long term potential of the Irish venture capital industry and the Irish economy. As valuations have fallen there will be better opportunities to invest at prices that offer investors the prospect of good capital growth," Murphy told RTE News.

The report also displayed a heavy bias towards the IT sector with 72% of funds raised by venture capitalists heading for investment in hi-tech firms. However, this was 8% lower than expected prior to thr release of the report.

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