The Irish Venture Capital Association (IVCA) has reported a record-breaking €532.8 million in venture capital investment into Irish technology SMEs for the first quarter of 2025, according to its latest VenturePulse survey published in association with William Fry.
This marks the highest ever Q1 total and represents an 89% increase compared to the same period last year.
IVCA Chairperson Gerry Maguire noted that while the headline figure is impressive, over 80% of the total investment came from deals exceeding €10 million. "This concentration of capital in larger deals paints a less rosy picture for early-stage companies seeking to raise under €3 million," he said. "It suggests a growing imbalance in the funding landscape that could impact the long-term health of the innovation pipeline."
The report highlights a surge in international investor participation, with overseas backers accounting for 82% of total funding—up from 71% in Q1 2024. IVCA Director General Sarah-Jane Larkin described this as a "double-edged sword," reflecting both the global appeal of Irish tech firms and the sector's exposure to international market fluctuations.
The top five deals in Q1 2025 were led by diagnostics firm Let's Get Checked (€150 million), followed by cybersecurity company Tines (€115 million), AI firm Protex AI (€31.8 million), drone delivery company Manna (€27 million), and medtech innovator Perfuze (€22 million). Life sciences dominated the sectoral breakdown, accounting for 45% of total investment, followed by cybersecurity (22%), software (9%), fintech (8%), and AI & machine learning (7%).
While large-scale investments soared, early-stage funding continued to decline. Deals in the €1–3 million range fell by 5% to €21.6 million, and sub-€1 million deals dropped 42% to €3.6 million. Seed funding also dipped slightly by 3% to €39.3 million. The number of deals under €1 million fell sharply from 21 to just six.
Mark Quealy, Corporate partner at William Fry, commented:
"This record-breaking first quarter underscores the continued strength and international appeal of Ireland's innovation ecosystem. While the surge in large-scale investments is encouraging, the decline in early-stage funding highlights a growing disparity that must be addressed to ensure a healthy pipeline of seed investment in future Irish scale-ups. At William Fry, we remain committed to advising both investors and entrepreneurs as they navigate an increasingly complex funding landscape."
A total of 43 deals were completed in Q1 2025, slightly ahead of the 41 recorded in the same quarter last year. Despite global uncertainties, including the impact of the US "Liberation Day" tariffs introduced in April, the IVCA remains cautiously optimistic about the resilience of Ireland's tech sector.
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