Market Demand for and Supply of Scaling Finance in Ireland

This report entitled 'Market Demand for and Supply of Scaling Finance in Ireland' is part of the department’s ongoing work to implement the recommendations of the Finance for Scale-ups Working Group, which was published in July 2024.

The report quantifies and describes the gap in finance for scaling companies in Ireland, examining both the supply and demand dimensions of the current ecosystem focusing on Equity Finance and deal sizes of €2 million to €50 million. The report concludes that there is a gap in equity financing for Irish enterprises which it estimates to be about €1.1 billion over the next 3 to 5 years. It finds that demand for equity finance amongst scaling firms has increased in Ireland over the last decade and expects that trend will continue.

The report also finds that the gap is multifaceted being particularly acute for deals in the €5 million to €10 million range; from Series A and especially Series B+; for capital and research and development intensive sectors and; for firms requiring patient, long term, capital investment. On the supply side, the report found that most Irish funds are too small with the average fund size in Ireland being just under €70 million and Irish VC funds are even smaller at €60 million. The average deal sizes in Ireland being €6.5 million compared to the European average of €8.9 million.

The Department of Enterprise, Tourism and Employment is currently developing detailed policy proposals for actions to address the gap.