Irish venture capital companies raised €201m in 2002 compared to €210m the previous year, according to the annual Review of the Irish Venture Capital Association.
'While the figures are marginally down, Ireland outperformed the rest of Europe where amounts raised by venture capitalists fell by an estimated 59%,' said Michael Murphy, the Chairman of the Irish Venture Capital Association. He added that the 2002 figure compares favourably with the five year average of €142m a year.
'These figures confirm investor support and belief in the long term potential of the Irish venture capital industry and the Irish economy. As valuations have fallen there will be better opportunities to invest at prices that offer investors the prospect of good capital growth,' he said.
The report also finds that investment by Irish venture capitalists slowed last year to €105m from €144m in 2001. While this represents a fall of 27%, the IVCA Chairman said it compares well with the five year average of €120m a year.
The report reveals that the majority of funds raised (72%) last year was allocated to the high tech sector with the balance to other sectors including management buyouts. This reflects an 8% reduction in the expected allocation of funds to the high tech sector in favour of other sectors.
