Qumas, a Cork-based software firm, has raised €7 million (£5.5 million). The investment has raised hopes that venture capital funding is returning to the indigenous technology market.

The money, raised during a difficult period for the global technology sector, was led by Accenture Technology Ventures and included Allied Irish Bank Group.

Dublin-based IBI Corporate Finance advised Qumas on the deal and claimed yesterday it was currently negotiating similar deals worth €100 million for other Irish technology firms.

Mr Tom Godfrey, director, IBI Corporate Finance, said international venture capitalists had become increasingly active in the Irish market following a slow start to the year.

"While investment criteria are much more exacting than last year, investor appetite for excellent Irish technology companies such as Qumas, is strong," he said.

But companies could expect to get only about half the valuation they may have achieved in fundraising last year, he added. It is believed Qumas achieved a valuation of $36 million (€41 million) following the deal with IBI, giving the new investors a stake worth just under 20 per cent of the firm.

Qumas, based in Cork and with offices in the US, develops software for achieving regulatory compliance objectives by streamlining and enhancing the management of electronic records. It provides heavily regulated companies, such as those in the pharmaceutical industry, with a system to ensure enterprise-wide compliance and reduce the amount of time spent on administration.

In April 2001, Qumas and Accenture announced an alliance aimed at enhancing the pharmaceutical and medical device industries' ability to meet the US Food and Drug Administration's requirements for electronic records and electronic signatures.