Irish based technology firms raised a record €888m last year, up 70% from the figure of €522m in 2015.
This is according to the Irish Venture Capital Association's Venture Pulse survey, which was published today in association with William Fry.
Michael Murphy, chairman of the IVCA, said the performance was particularly significant as venture capital activity in the US declined by 13% and by 4% in the UK last year.
"The figures demonstrate the continuing attraction of Irish tech firms by international investors. International syndicate investors, working with local venture capital firms, invested €548m in 2016 compared to €294m in 2015," he added.
The life sciences sector secured 52% of the total funds raised last year, with 11 companies raising over 38% of the total.
"The life sciences sector in Ireland is showing signs of maturity and is benefiting from the State's investment in R&D through Science Foundation Ireland," commented Regina Breheny, director general of the IVCA.
Another area of growing significance in Ireland was fintech.
"Fintech is disrupting the traditional banking model and growing in response to a different regulatory environment that emerged after the recent financial crisis, " she stated.