The number of venture capital deals in Ireland was largely constant in the last quarter of 2004, compared to the previous two quarters. The latest data from Ernst & Young and VentureOne says this marks an end to the steady rate of decline since 2001.
The survey, which looks at VC investments in early stage, emerging and innovate companies, also revealed that there was a 23% reduction in overall deals done in Ireland in 2003 compared with 2002.
There were 40 deals financed to date last year in Ireland compared with a total of 52 in 2002. During the year there was a 27% fall in the number of deals in the information technology sector.
The biopharmaceuticals segment in Europe was especially active in the last quarter of 2003. This sector completed 46 deals for a total of €257m - the highest amount invested in any single segment in the quarter.
The survey also found that European venture capital deal flow increased by 7% in Q4 2003. Overall €855m was invested in 249 financings in the last quarter of 2003 compared to 233 financings and €871m raised in Q3 2003.
'Venture capital activity in Europe historically lags behind the US by at least two quarters,' commented Ernst & Young's Enda Kelly. 'With investment holding steady in the US in the most recent quarters, we can expect the see the European market following suit throughout this year'.
'Ireland's performance last year was indicative of the European scenario as a whole, and I believe the outlook for 2004 is one of cautious optimism with the environment continuing to remain conducive to increased financings,' he added.
