Irish Tech SMEs See 58% VC Funding Drop to €221.7M in Q1, Life Sciences Lead

Venture capital investment in Irish tech SMEs fell 58 per cent to €221.7 million in the first quarter of the year, according to the Irish Venture Capital Association VenturePulse survey. This follows a strong start to 2025 when Irish companies raised over half a billion euro.

International investors provided 85 per cent of the capital. IVCA chairperson Caroline Gaynor noted this highlights exposure to overseas investment but also appetite for quality Irish tech firms despite significant global AI spending.

Funding decreased across most deal categories, except for investments under €1 million. Deals between €3 million and €5 million dropped over three-quarters to €7.9 million, while those between €5 million and €10 million fell 62 per cent to €16.5 million.

The top deal was Neurent Medical at €62.5 million, followed by Aerska at €33 million, both in life sciences and biotech. Evervault raised €21 million, with Circit and XFuel also in the top five. Life sciences dominated Irish investment, accounting for 54 per cent (€119.5 million), followed by fintech (13 per cent) and software (12 per cent). AI represented 2 per cent, though IVCA director general Sarah-Jane Larkin noted this might be understated due to AI's integration into products. Larkin also suggested local policy initiatives, like Enterprise Ireland's increased direct investment limit and the Government's €250 million Seed and Venture Capital Scheme 2025-29, could mitigate global geopolitical impacts on investor confidence.