Irish entrepreneurs have the talent and potential to build a strong cluster of start-ups valued at more than $1bn.
Irish Venture Capital Association director-general Sarah-Jane Larkin urged that if the absence of scaling finance can be addressed Ireland could build a stable of strong unicorn businesses.
Unicorns, privately-owned businesses worth more than $1bn, are already prevalent in the Irish start-up community with players ranging from Fenergo to Intercom, Transfermate and Wayflyer, and not to mention the Collison Brothers’ Stripe which is now worth an estimated $70bn.
“The challenge is our over dependence on unpredictable international investors in taking these start-ups to the next level of growth”
Larkin welcomed the decision by Minister for Enterprise Peter Burke TD’s department to establish an implementation committee to immediately start work on recommendations to assist high-potential start-ups access scaling finance.
Taking Irish business to the next level of growth
“Ireland has huge potential to create a stable of unicorns, and baby unicorns if the scaling problem can be tackled,” commented Sarah-Jane Larkin, director general, Irish Venture Capital Association.
“The Irish ecosystem for getting companies off the ground, including government and state bodies such as EI (Enterprise Ireland) and ISIF (Ireland Strategic Investment Fund), is largely working well. The big problem is that, because of a lack of local scaling finance, these innovative, tech based indigenous companies often fall into overseas ownership due to trade sales long before they have reached their potential.
“The challenge, recognised in the Minister’s announcement, is our over dependence on unpredictable international investors in taking these start-ups to the next level of growth.”
She pointed out that in the first quarter of 2024, international funding into Irish SMEs fell by 57% to €184m from €425m last year.
“While we are developing innovative, exciting, indigenous technology start-ups we must put in place mechanisms to source private capital to scale them up to global winners.”
She echoed the department’s report that lack of this vital scaling finance means that after funding high-risk seed and early-stage companies, Ireland will lose out on employment, tax revenues, the opportunity to create long-term economic value, and the positive spill overs of developing world class firms.
Main image at top: IVCA director-general Sarah-Jane Larkin
-
Bank of Ireland is welcoming new customers every day – funding investments, working capital and expansions across multiple sectors. To learn more, click here
