Some big med-tech raises helped break Ireland's startup funding record

IRISH TECH FIRMS have raised record funds from investors so far this year thanks to a number of big fundraising rounds in the med-tech sector.

According to the latest quarterly ‘venture pulse’ survey by the Irish Venture Capital Association (IVCA), companies based here raised €734 million from January to the end of September, almost €320 million more than for the same nine-month period last year.

From the start of July to the end of September, the third quarter, tech firms raised almost €250 million, more than double the amount raised in the same quarter in 2015.

These figures were blown up by a few major deals for med-tech and pharma firms based here, which accounted more than half the total funds raised.

The data also includes companies that have tenuous links to Ireland, such as Iterum Therapeutics, which raised €36 million earlier this year. It is headquartered in Dublin but is effectively a US company.

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Life sciences

The largest fundraising rounds for the quarter include Dublin-based startup Carrick Therapeutics raising €85 million to finance research into various types of cancer.

Other significant deals include €36 million raised by Genomics Medicine Ireland to research the genetic causes of conditions like Alzheimer’s and a €16.2 million funding round completed by Galway’s Vivasure Medical to commercialise its device for surgeons.

Michael Murphy, the IVCA’s chairman, highlighted “the strong performance by the life sciences sector” and praised the government’s investment in medical research through the state-backed body, Science Foundation Ireland.

“Compared to the IT sector, these companies in general require significant amounts of funds to build out product and to grow a business,” Murphy said. “It is significant to note that they are raising the required funds from Irish and international investors, thus validating the R&D and the expertise in Ireland.”

IVCA chairman Michael Murphy

Early stage companies also fared well, according to the survey, having raised €57 million in the nine months to the end of September, roughly double the amount raised last year.

IVCA director general Regina Breheny added that indigenous venture capitalists remain the main source of funding for Irish small- and medium-sized businesses.

The IVCA data has been inflated in some quarters by major funding rounds for companies which in some cases have loose ties to Ireland.

For example, Iterum Therapuetics, which raised €36 million earlier this year, is headquartered in Dublin but is effectively a US firm.