Calls for a working group to assess the startup financing landscape
The Irish Venture Capital Association has called on the government to create a task force to look at the conditions for companies trying to raise funds.
n its pre-budget submission, the IVCA said a task force on institutional investment in innovative businesses should be set up to create a ‘stronger Irish culture of equity’.
The organization said such a group was needed to assess the conditions, barriers and government policies that affect businesses’ access to finance.
He said the coming years could be “difficult” for companies trying to raise funds.
“Irish policy needs to be shaped to attract more additional institutional investment into Irish venture capital and private equity funds,” he said.
The IVCA has regularly called for reforms of government programs such as the investment incentive for jobs, tax relief for investors, in order to get more money for start-ups.
According to the organization, venture capital investments in Irish tech companies rose 8% in the first half of the year to € 641 million as the number of deals rose 16%.
However, he also followed a drop in the number of deals between 1 and 5 million euros, suggesting a drying up of start-up funding that could be detrimental to the future development of Irish start-ups.
The IVCA said more needs to be done to encourage capital in young tech companies, which can be riskier than investments like real estate.
“There is an urgent need to encourage private capital to move away from passive assets like property and direct it towards financing the future of Irish industry and productive assets that will restore and rebalance our economy”, a- he declared.
Speaking at an event hosted by lobby group Scale Ireland earlier this month, Finance Minister Paschal Donohoe acknowledged a desire to change programs like the EII.
“I know there are some mediums that you would like to see changed or increased in the future,” he said.
“This is still the kind of thing I will be reflecting on in the coming weeks.”
Any change in the 2022 budget to support for indigenous businesses comes amid potential changes to the corporate tax rate in Ireland, which could have a profound effect on the Irish economy.