Three quarters of Irish venture capital companies plan to increase investment in new projects this year, according to a new Irish Venture Capital Association survey.
Almost 80% of IVCA members say they will invest more in new projects in 2003, the survey revealed while 14% said they will invest less. 57% say they will invest more or the same in their existing projects.
'Despite an uncertain global and local economic outlook, this finding is positive news for Irish companies seeking funds over the next 12 months,' said Conor O'Connor, IVCA Chairman.
The IVCA survey also suggests very limited IPO activity before 2005. 86% of those surveyed said they did not expect any IPO activity among client companies in that time. Just 14% expected any of their client companies to IPO over the next two years.
However, all respondents expect one or more of their companies to be involved in a trade sale. 'A trade sale will always be the more likely exit strategy in Ireland for founders, investors and shareholders rather than an IPO,' the survey said.
Overall, this latest IVCA survey reports a more realistic attitude among companies seeking investment. While the volume of investment proposals submitted to Irish venture capitalists over the last year has decreased, an increase in quality has been reported.
