Irish small and medium sized firms saw the flow of venture capital to them increase by a third in the third quarter of the year compared to the same period last year.

New data from the Irish Venture Capital Association (IVCA) shows that €309m was raised by businesses here between July and September, up from €230.6m a year ago.

The VenturePulse survey reveals that so far this year, Irish companies have secured just over €1bn in venture capital funds.

That represent an increase of one quarter versus the first nine months of last year.

Two large deals worth over €30m and five deals in the €10-30m category made up a large amount of the funding that was raised in the third quarter.

Cybersecurity and fintech were the leading sectors in the period, each raising 28% of total funding.

The IVCA said overall the performance was positive.

"In view of continuing global uncertainty, this is an encouraging outcome for the indigenous technology sector and compares favourably to Europe where funding year on year for the third quarter fell by 35% and by 44% for the nine months1," said Leo Hamill, chairperson of the association.

However, in the category under €10m, the volume of deals actually reduced by 54%, while in the sub-€1m bracket, they dropped by €41m.

"The softness in these two categories probably reflects uncertainty over the global economic outlook combined with the impact of the Russian war against Ukraine," said Sarah-Jane Larkin, director general of the IVCA.

Notwithstanding these issues in the lower value areas, the organisation is positive about the outlook.