Irish technology firms have achieved a historic milestone, amassing a staggering €963 million in capital investments during the first half of this year, as revealed by a recent report.

This impressive influx of funding, however, is primarily attributed to a quartet of companies that secured substantial deals, each exceeding €30 million during the June quarter. Among these notable beneficiaries is Cork-based retail technology firm, Everseen.

The leading companies in this funding surge include EV charging company Jolt Energy, which raised a remarkable €150 million, while AI enterprise Everseen secured €65 million.

Environmental tech innovator Weev received €58 million in investments, and fintech trailblazer NomuPay successfully secured €50 million.

Despite these impressive capital infusions, the investment landscape proved to be challenging for smaller-scale ventures, as the number of investments valued under €1 million witnessed a significant decline of 45%.

The number plummeted from 49 to 27, according to the latest Irish Venture Capital Association (IVCA) VenturePulse survey.

These findings align with a report recently published by TechIreland, an independent organization, which disclosed that startup funding in Ireland experienced a dramatic decline during the first half of the year, plummeting to €460 million.

This represented a substantial 40% decrease compared to the same period the previous year. TechIreland’s Startup Funding Review characterized these figures as “sobering” and attributed the drop to investor apprehension stemming from the volatile economic environment characterized by interest rate hikes and persistent inflation.

Brian Caulfield, Chairperson at Scale Ireland, emphasized the need for a robust government response to counter this funding decline, suggesting the introduction of a new seed and venture capital scheme with an expanded budget, along with enhanced incentives to stimulate angel investment.

In tandem with these developments, the IVCA has urged the Irish government to streamline the process for foreign direct investment companies to directly invest in Irish startups by amending R&D tax credit legislation in the upcoming budget.

Denise Sidhu, Chairperson of the IVCA, also stressed the importance of companies diversifying their funding sources locally, as an over-reliance on international capital carries inherent risks.