TechIreland stated new data have been seen in a number of sectors regardless of the pandemic challenges, whereas the health-tech house as soon as once more attracted probably the most funding final 12 months.
2021 was a record-breaking 12 months for Irish tech funding with €1.6bn raised by 292 firms, a 60pc enhance in funding in comparison with 2020.
That’s in keeping with the most recent report from TechIreland, which confirmed new data being hit throughout Irish tech sectors by way of the variety of offers and the scale of funding rounds.
In complete, 12 firms raised greater than €30m final 12 months, which is a big enhance from three firms reaching this milestone in 2019. A brand new document was reached with 46 firms elevating between €5m and €30m.
Regardless of the continued challenges of the pandemic, 118 firms raised early-stage rounds, which TechIreland stated is again to pre-Covid ranges.
“2021 was a landmark 12 months for Irish tech with data damaged throughout all sectors and levels of progress,” TechIreland CEO John O’Dea stated. “At a time of rising worldwide rigidity, it’s nice to be the bearer of fine information.”
O’Dea added that Enterprise Eire “led the cost” with early-stage funding. The State company revealed final week that it invested more than €28m in 125 Irish start-ups final 12 months, which included 82 high potential start-ups. Final 12 months, Enterprise Eire was recognised as one of many most active investors in Europe and globally.
Enterprise Eire banking relations supervisor Donnchadh Cullinan stated: “The rise in funding final 12 months throughout the board has proven that whereas the pandemic interrupted the traditional start-up cycle for everybody, the basics of funding nonetheless maintain and, as in earlier years, good tasks will all the time entice curiosity from traders.”
TechIreland’s funding report for 2020 indicated that seed funding offers were drying up in Eire. Nonetheless, this sector appears to be making a comeback because the variety of firms elevating as much as €1m elevated by 10pc final 12 months.
Numerous new funds have been launched not too long ago geared toward boosting early-stage Irish start-ups. In February, the Authorities launched a €90m Irish Innovation Seed Fund, managed by the European Funding Fund and structured on a fund-of-funds foundation led by Enterprise Eire.
Final week, Dublin-based enterprise capital agency Delta Companions introduced a brand new fund with a target close of €70m to again 30 early-stage know-how companies in Eire, and Elkstone additionally launched a €100m fund to take Irish start-ups within the seed and pre-Collection A levels to the subsequent degree.
Financial institution of Eire head of know-how Paul Swift stated funds like these “will present a degree of certainty by way of potential entry to capital for the pipeline of Irish high-growth tech firms”.
Well being-tech tops the charts
Much like earlier years, the health-tech sector attracted probably the most funding in Eire – 74 firms raised €623m final 12 months, a 50pc enhance from 2020. The medical system subsector noticed huge progress as 22 firms raised €264m, which is a rise of 265pc.
Enterprise options got here second by way of funding worth however noticed the most important variety of funding rounds, as 84 firms raised €363m.
Fintech was subsequent with 29 firms elevating €265m, up from €186m the earlier 12 months. The massive investments on this sector have been Carne Group’s €100m investment from Vitruvian Companions and Wayflyer’s $76m Collection A funding spherical.
E-commerce noticed a pointy funding enhance as 36 firms raised €100m final 12 months, up from 14 firms elevating €33m the earlier 12 months.
The SaaS sector continues to develop quickly, elevating €315m final 12 months amongst 44 firms. This represents a 60pc enhance on 2020, which was 67pc greater than the earlier 12 months. Corporations centered on AI hit a brand new document with €171m raised.
Nonetheless, massive information, IoT and AR/VR sectors all noticed a decline in funding. The AR and VR sector went from €45m in funding in 2020 to solely €3.5m final 12 months.
The ten largest investments accounted for half of the general funding raised final 12 months, with the highest three offers all within the health-tech sector. These have been Mainstay Medical elevating €131m, LetsGetChecked’s $150m funding round and GH Analysis’s $125m fundraise.
Ladies-founded tech start-ups additionally noticed a big increase, as 55 firms led by ladies raised €230m last year. This can be a dramatic enhance from 2020, when funding into women-founded firms reached a record €105m. Nonetheless, this quantity remains to be solely 13pc of the whole quantity raised final 12 months.
Much like earlier studies, a regional imbalance in funding was obvious with Dublin taking greater than 75pc of the whole funding final 12 months. The most important win exterior of Dublin was Cork-based Teamwork, which raised $70m in its first funding spherical.
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