Venture Capital Funding for Irish SMEs Drops 58% in Q1 2026
Venture capital funding for Irish SMEs fell sharply in the first quarter of 2026, with Irish technology companies raising just €221.7 million a 58% decline compared to the same period in 2025, according to a new report by the Irish Venture Capital Association (IVCA).
Record High Last Year Makes the Drop More Striking
The IVCA’s VenturePulse survey, published Sunday, puts the numbers in context. IVCA chair Caroline Gaynor noted the results must be viewed against an exceptionally strong opening to 2025, when Irish firms raised more than half a billion euro a record for a first quarter. Despite the sharp decline, international investors still accounted for 85% of the capital raised during the quarter.
The top five deals were Neurent Medical (€62.5m, medtech/life sciences), Aerska (€33m, biotech), Evervault (€21m, cybersecurity), Circit (€20m, fintech), and XFuel (€18.5m, environmental industries). Life sciences dominated, accounting for 54% of the total at €119.5m, followed by fintech at 13% and software at 12%.
Interestingly, AI and machine learning represented just 2% of the total on a sector basis, though AI likely embedded in many of the products and services captured in the survey.
Funding declined across all deal-size bands except transactions below €1m. In the €3m to €5m range, investment fell 77% to €7.9m, while deals between €5m and €10m dropped 62% to €16.5m.
IVCA director general Sarah Larkin flagged geopolitical risk as a key concern, saying it was difficult to predict the impact of the Iran War on the next quarter, while noting that local policy measures could help cushion early-stage startups.
