Investment in Irish Small and Medium-Sized Enterprises (SMEs) surged to €533 million in the first quarter of the year, demonstrating a significant increase.
Venture capital investments in Irish Small and Medium-sized Enterprises (SMEs) prospered during the opening quarter of 2025, surging to an all-time high of €532.8 million, according to recent data from the Irish Venture Capital Association (IVCA). This represents more than a doubling of funding compared to the same period last year, signifying a notable growth spurt in the sector.
Notably, the largest quarterly jump in funding occurred in the €30 million and above category, which observed a near-90% increase to €296.8 million. Funding in the €10 million to €30 million bracket saw a tremendous surge of 184% to €132 million. Deals in the €5 million to €10 million range grew by 138% to €43.8 million, while funding in the €3 million to €5 million category skyrocketed by 346% to €35 million, up from €7.8 million in the previous quarter.
On the flip side, deals in the €1 million to €3 million category decreased by 5% to €21.6 million, and deals under €1 million fell by 42% to €3.6 million from €6.2 million the previous year. The decline in the number of deals in the €1 million to €3 million category saw a significant drop from 21 to six. The decrease in seed funding or early-stage funding rounds raised by SMEs fell by 3% to €39.3 million from €40.4 million the previous year.
Overall, there were 43 deals in the first quarter of 2025, slightly above the 41 deals during the same period last year. The top five deals in the first quarter were:1. Life science company Let's Get Checked, which raised €150 million2. Cybersecurity firm Tines, which raised €115 million3. AI company Protex AI, which raised €31.8 million4. Drone delivery firm Manna, which raised €27 million5. Medical technology manufacturer Perfuze, which raised €22 million.
The figures exclude the impact of US "Liberation Day" tariffs on April 2, which may have affected some deals during the quarter.
Gerry Maguire, Chairperson of the Irish Venture Capital Association, expressed concern about the potential impact of uncertainty and caution among international investors, particularly in relation to the US tariffs. According to Sarah-Jane Larkin, Director General of the IVCA, funding by international venture capital into Irish companies rose to 82% of the total, compared to 71% in the same quarter last year.
The statistics suggest that Ireland remains an attractive destination for international venture capital, particularly in cutting-edge sectors like technology and AI. A robust economy, supportive government policies, and a vibrant business environment continue to attract foreign investors. However, smaller startups may face challenges in securing the necessary funding, as the growth in investments appears to favor larger, well-established companies.
In the first quarter of 2025, the technology and AI sectors saw significant growth in funding, with large investments going to companies like Protex AI and Manna, totaling €31.8 million and €27 million respectively. On the contrary, smaller startups might face funding challenges, as the growth in investments seems to lean towards larger, established companies, possibly due to international investor uncertainty over factors such as US tariffs.
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