Survey Reveals Sharp Fall In Irish IT Investment

by Jason Gorringe, Tax-News.com, London

16 April 2003

Figures released by corporate financing firm Ion Equity have shown that venture capital companies invested 33% less in Irish information technology projects in the first quarter of 2003 compared with the same period last year.

Ion's quarterly 'techpulse' review of IT funding recorded EUR37.5 million invested in Irish IT projects in the first three months of 2003, compared with EUR55.2 million in first quarter of 2002. The number of individual deals was also down from 23 last year to 14 in 2003.

The largest single deal to take place so far this year has been the EUR10.2 million secured by Corvil Networks from Cisco Systems, Apax Partners and ACT Venture Capital.

Whilst the figures are somewhat depressing for Ireland's once booming IT sector, Ion Chief Executive, Neil O'Leary was heartened that investment continued to be directed at companies created as a result of University research projects, of which Corvil is one example. Another instance of this is the investment by ACT and TLCom Ventures in the Elbana project, which was formed by research teams from Trinity College, Dublin and the National Microelectronics Centre in Cork.

"It's a sign that our IT base is maturing and beginning to offer substance to investors," O'Leary commented.

Ion's 2002 survey recorded 66 major deals ranging from EUR0.4 million to EUR15.4 million totalling EUR262.2 million of investment through the year.

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