PwC Reveals That Irish Technology Investment Fell 31% In 2001

by Jason Gorringe, Tax-News.com, London

08 July 2002

A survey released by PricewaterhouseCoopers on Friday has revealed that investment in Irish technology ventures fell 31% in 2001, with 126 million euros invested in a total of 65 companies last year.

In its fouth annual report on technology investment in Europe, entitled 'Money for Growth 2001', PwC announced that technology continues to be the largest industry grouping for investment in Europe, attracting 37% of the total amount invested across all sectors in Europe.

The economy of the Republic of Ireland is especially reliant upon foreign and domestic technology investment, as investment in the tech sector accounts for more than 80% of total Irish investments (compared to a European average of 37%).

However, Joe Tynan, Partner and Venture Capital Sector Leader at PricewaterhouseCoopers Dublin, explained on Friday that despite the drop in investment levels last year, there is no need for panic:

'Despite the overall decline in technology investments in 2001, there is currently no shortage of funds for investment in Ireland and excellent opportunities remain open to companies seeking venture capital with convincing business proposals.'

He continued: 'The odds of raising venture capital for technology investments...are stacked in favour of well-researched, innovative propositions with some seed finance already in place.'

The PwC report concluded that a return to sustained growth in technology investment is unlikely until large companies increase their technology spending on an international level.

However, according to Mr Tynan, the improved entrepreneurial atmosphere which has re-emerged in the Republic of Ireland recently, combined with an improving tax environment for Irish companies should provide a great deal of support for the upturn when it comes.

Recommended