Investment by venture capital firms into Irish tech firms and small businesses remained flat last year, according to new data.
A 47% reduction in fourth quarter funding to €244.6m left the total amount of money injected into Irish businesses by VCs during 2022 at €1.2 billion, similar to a year earlier.
This was seen by the Irish Venture Capital Association (IVCA), which compiled the figures with William Fry, as a positive result against the global backdrop.
"Despite a flat year, venture capital funding in Ireland last year performed reasonably well compared to global VC trends in which funding in 2022 fell by 35% to $445 billion," said Leo Hamill, chairperson of the IVCA.
"It should also be remembered that VC funding in Ireland in 2022 was still 43% ahead of 2020, despite all the global economic challenges and uncertainties faced last year."
The figures however show a concerning flight of capital from international investors in the fourth quarter of the year.
"Global trends were reflected in the fact that overseas VC investment in Ireland fell by 73% in the fourth quarter to €58.3m, from €214m in the same period last yea," said Mr Hamill.
"The flight of international capital in the fourth quarter highlights Ireland's exposure and the need to boost local sources of funding for scaling companies."
Among the biggest deals last year were a €134m raise by Wayflyer, the €94m raised by Flipdish and the €66m invested in TransferMate.
Fintech received 23% of total, followed by life sciences at 21% and software with 19%.
Seed funding remained flat also, up just 1% across the year, although it fell sharply in the final quarter.
"Economic and geo political headwinds experienced last year highlight the importance of having active Irish seed funds in the local market, able to invest in a counter cyclical manner and ensure that great founding teams can build companies in Ireland even during a global downturn," said Sarah-Jane Larkin, director general, IVCA.
