Software/IT companies took the lion’s share of VC funding raised in Q1 2017, which totalled €247m.

The Irish Venture Capital Association’s (IVCA) VenturePulse survey for the first quarter of 2017 was published this week. Some 51% of the €247m raised went to software/IT companies. Dublin-based IT services business Version 1 raised over 36% of the total funds. Electronic components was also a winning sector, raising 25% of total funds.

The overall fundraising figure represented a 4% improvement on the total raised in Q1 2016. Early stage companies raised seed capital of €33.5m, 14% of the funds raised.

Michael Murphy (pictured), IVCA chairman, said that in light of Brexit and other uncertainties, it was a positive sign to see investment being maintained, particularly as last year was a bumper fundraising one, with Q1 2016 nearly doubling Q1 2015’s efforts.

He continued: “Compared to Q1 2016, funding in the US was down 12% and in the UK was down 11%. Nonetheless, the Irish VC industry is in fundraising mode at the moment. Allied to the fact that 2016 was a record year overall, with funding up by 70%, it will be a challenge to maintain last year’s levels.”

Murphy added that the importance of good international relationships was again emphasised in Q1’s fundraising performance. “The Irish venture capital community continues to be the main source of funding for Irish innovative SMEs both through direct investment and as the local lead investor for international syndicate investors, who invested €120m, or 43% of total funds raised in the first quarter 2017.”

The Venture Pulse survey is compiled from data covering equity funds raised by Irish SMEs and other SMEs headquartered in Ireland from a wide variety of investors.