EI startups have limited appetites for co-investments

According to Enterprise Ireland’s CEO, Irish start-ups are finding it harder to raise growth finance due to a retreat in capital markets amid rising interest rates and economic uncertainty.

eo Clancy said Enterprise Ireland has a strong pipeline of dozens of high-performance early-stage companies it is ready to fund this year, but falling risk appetite among venture capital funds has made it difficult to find partners.

This means that some companies cannot release available cash from the government agency as this requires a matching equity commitment from a private source.

“We tend to come in on a match basis and companies are finding that it’s more difficult for us to raise and match funds,” said Mr. Clancy Irish Independent.

“It’s going pretty well, but I think the caveat is that we’re likely to see the pipeline as strong as it was, and probably have more potential as we explore new ways to tap into it.” It’s about the right money.”

He said Enterprise Ireland had provided €90m of fresh capital alongside commitments from the Irish Strategic Investment Fund (Isif) and the European Investment Funds to work with venture capital and private equity firms operating in Ireland to attract more investment support financially.

Exports from Irish companies supported by Enterprise Ireland (EI) rose 12 per cent last year to a record €27.29 billion.

This marked the highest level of growth ever recorded by the government agency, which helps Irish companies grow and expand in international markets.

Exports of EI-supported companies increased in all areas of the world.

Exports to the UK rose 15 per cent from 2020 despite ongoing post-Brexit uncertainty. The UK now accounts for almost a third of EI’s reported export trade, with exports totaling €8.43 billion last year.

The Eurozone accounted for over a fifth of the export trade of EI-backed companies in 2021, with exports to the region now totaling €6.04 billion.

Exports to North America also grew last year by a total of 14 percent to 4.87 billion euros. This market now accounts for 18 percent of exports.

“While the UK remains our largest trading partner, it is good to see our strategy of increasing exports to other key markets, particularly the eurozone, continuing to pay off,” said Mr Clancy.

Food exports rose 6 percent to 12.91 billion euros and accounted for 47 percent of total exports – the largest sector. Construction companies made the biggest jump, increasing by a quarter to €2.89 billion.​​​​

https://www.independent.ie/business/irish/ei-start-ups-find-limited-appetite-for-co-investment-41835603.html EI startups have limited appetites for co-investments

Fry Electronics Team

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