Enterprise Ireland reports on seed and venture capital investment

Enterprise Ireland has reported venture funds invested reached €38.7 million as venture capitalists "consolidated" their position in 2004.

According to the latest figures from Enterprise Ireland on the Seed and Venture Capital Programme, 2004 was a year where venture capitalists had sought to consolidate their positions in companies after a number of "challenging" years for the sector.

Welcoming the report Minister for Enterprise, Trade and Employment Mr Micheál Martin said: “The availability of risk capital is an essential ingredient in growing high growth start-up and early stage companies. In 2004 almost all of the companies attracting investments were in these categories.

"The Enterprise Strategy Group report 'Ahead of the Curve' published in July 2004 recommended that Enterprise Ireland should continue to stimulate the development of seed funds to address gaps in the financing of business start-ups. The largest number of investments in these partnership funds was made in 2004 with 81 investments to the value of €38.7 million. This brings the total invested by these funds to €133 million in 75 companies since 2001."

Mr Feargal Ó Móráin of Enterprise Ireland said Life Sciences companies in particular were a major target of investment in 2004.

He said: “Such companies now account for 19% of the value of investments since 2001, compared to 10% at the end of 2003. The partnership funds are essential for the survival and growth of entrepreneur-led businesses and are a key element in Enterprise Ireland’s strategy, 'Transforming Irish industry'".

The report noted that to the end of 2004 there were 15 funds fully operational, totalling an investment of €38.7 million in that year and that in all 81 investments completed.

Start-ups attracted €15.1 million (39%) of the investment and early stage companies attracted €20.2 million (59%) of the investment.

Since 2001, the total invested was €133 million in 75 companies.

Companies in the Regions (outside Dublin city and county) accounted for 31% of total invested (by value) since 2001.

A major investment sector was software which accounted for 62% of total invested (by value) since 2001, while life sciences accounted for almost 19% of total invested (by value) in the same period.

(SP)