Alistair Campbell, guest speaker, Irish Venture Capital Association annual dinner. Photo Chris Bellew, Fennell Photography.
Threats to Ireland’s FDI model emphasise need to back SMEs as never before – IVCA annual dinner
Dublin: Friday, 28th March, 2025: Recently highlighted economic threats to Ireland’s traditional FDI (Foreign Direct Investment) model emphasise more than ever the need to support indigenous SMEs. This was stated by Gerry Maguire, chairperson, Irish Venture Capital Association and general partner, Atlantic Bridge, when he spoke in Dublin last night (Thursday) at the association’s annual dinner. Guest of honour at the event was Alistair Campbell. The IVCA marks its 40th anniversary this year.
“The potential for damaging trade wars, shifting tax policies and increasing global competition mean that Ireland’s FDI model is under pressure as never before,” said Mr Maguire. “It is more important than ever to support indigenous technology SMEs and to scale companies, to ensure that they have the funding needed to compete internationally and drive long-term economic resilience.”
Nearly €1.5 billion was invested in 217 Irish venture backed businesses last year which also saw multiple funding rounds of over €100m, but Mr Maguire warned that “we lack the private capital base required to fully sustain this growth”.
Gerry Maguire, chairperson, speaking at Irish Venture Capital Association annual dinner. Photo Chris Bellew, Fennell Photography.
Despite major challenges presented by the current geopolitical environment, Mr Maguire said that Ireland had major opportunities, especially in deep tech and AI; climate and energy transition; life sciences and biotech.
But he added that while Ireland had been well served by public capital through EI (Enterprise Ireland), ISIF (Ireland Strategic Investment Fund) and EIF (European Investment Fund), “the funding gap for scaling companies represents a major structural weakness in our investment landscape”.
He said that Ireland needed to attract more private funding and position venture capital as an essential asset class for institutional investors, pension funds, and family offices. He added that Ireland was falling behind other countries which provided stronger incentives for investors and founders. In addition, Ireland must create larger, growth-stage funds to “ensure that the country’s best companies can scale globally”.
Mr Maguire said that Ireland’s economy has been transformed since the IVCA was launched in January 1985 by then Taoiseach, Dr Garrett Fitzgerald. But he warned: “The next decade will determine whether Ireland continues to be a global leader in innovation – or risks losing its most promising companies to better-funded ecosystems abroad. We have the talent and ambition. Now, we must ensure we have the capital to match.”
Ends
Press queries to:
Sarah-Jane Larkin, director general, IVCA, Email: sjlarkin@ivca.ie;
Mob: 087 320 9209 or
Ronnie Simpson, Simpson Consulting, Email: ronnie@simpsonconsulting.ie;
Mob: 086 855 9410
About the Irish Venture Capital Association
The Irish Venture Capital Association, which marks its 40th anniversary this year, is the representative organisation for venture capital and private equity firms in Ireland.
An independent DCU report found that Irish venture capital and private equity supported the state’s investment through its agencies’ Enterprise Ireland and Irish Strategic Investment Fund and geared up investment through the Seed & Venture Capital Programme by almost 16 times.
The study estimates that employment numbers in venture and private equity backed firms grow by an average of 27%, compared to an overall increase in employment in the economy of just over 3% per annum over a similar time period.